The honorable Supreme Court in its landmark judgment has held that a conditional gift only becomes complete on the compliance of the conditions in the deed, and the donor is within rights to cancel such a gift deed. The bench compromising of Justice Arun Mishra and Justice Indira Banerjee was considering an appeal against the Kerala High Court judgment.
The said judgment came in the case of S. Sarojini Amma v. Velayudhan Pillai Sreekumar with the ruling that “A conditional gift with no recital of acceptance and no evidence in proof of acceptance, where possession remains with the donor as long as he is alive, does not become complete during the lifetime of the donor. When a gift is incomplete and title remains with the donor the deed of gift might be canceled."
In the instant matter, one Sarojini Amma had executed a gift deed in favor of her nephew Sreekumar. The provisions of the gift deed it was clearly stated that the gift would take effect after the death of herself and her husband and that the condition was that the donee would look after them. However, Sarojini Amma had later, canceled the said deed. This was challenged in the civil court. the civil court has upheld the decree but the high court relying on Reninkuntla Rajamma vs. K. Sarwanamma had set-aside the order of the civil court.
The honorable division bench of the Supreme Court has in the instant case said that “We are in agreement with the decision of this Court in Reninkuntla Rajamma, that there is no provision in the law that ownership in property cannot be gifted without transfer of possession of such property. However, the conditions precedent of a gift as defined in Section 122 of the Transfer of Property Act must be satisfied.” The court further held that A gift is a transfer of property without consideration But a conditional gift only becomes complete on the compliance of the conditions mentioned in the deed.
Tags : SC