Summary
The Supreme Court upheld cancellation of the purported gift deed on the facts of the case. The instrument was admittedly executed for consideration, required the recipient to care for the donor and her husband, and was to take effect after the donor’s death. No completed gift had occurred. The Court distinguished mere reservation of lifetime possession or enjoyment, which by itself does not invalidate an otherwise completed and accepted gift.
Issues
- Whether the conditional instrument executed for consideration constituted a completed gift.
- Whether retention of lifetime possession alone prevents a valid gift.
Provisions considered
- Section 122, Transfer of Property Act, 1882A gift requires a voluntary transfer without consideration and acceptance. The instrument here was executed for consideration and did not complete a gift during the donor’s lifetime. (¶¶ 12, 14, 15, 18, 19)
- Section 123, Transfer of Property Act, 1882A duly executed, registered and attested gift accepted by the donee need not be accompanied by immediate transfer of possession; the instrument here failed on its distinct substantive conditions. (¶¶ 13, 16, 17, 18)
Held
- Reservation of possession and enjoyment during the donor’s lifetime does not by itself invalidate a gift of ownership. The requirements of a gift and its acceptance must nevertheless be satisfied. (¶¶ 16, 17, 18)
- A conditional gift does not become complete until the conditions in the deed are met. Where it remains incomplete and title remains with the donor, cancellation is permissible. (¶¶ 15, 18)
- This instrument was admittedly for consideration, required care of the donor and her husband, and postponed its effect until the donor’s death. On these terms there was no completed gift and the donor was entitled to cancel it. (¶¶ 4, 19)
- The appeal was allowed and the High Court’s judgment and order set aside. (¶ 20)
Result
Appeal allowed; High Court judgment and order set aside. Cancellation of the incomplete purported gift was upheld.