Concept Of Gift in Transfer Of Property

Property law

Submitted by:
V. VINEETH REDDY
2013129
III SEMESTER

DAMODARM SANJIVAYYA NATIONAL LAW UNIVERSITY

Visakhapatnam
November 2014

ACKNOWLEDGEMENT:

I would like to express my gratitude towards our Vice-Chancellor Prof. R.

G. B. Bhagavath kumar Sir, for the providing me an opportunity to
improve my skills of writing and research through projects. I would
specially like to thank our Economics Professor Mr. Ramachandradu Sir
for the support he has provided me in completion of the project
successfully.

THANK YOU

TABLE OF CONTENTS
S.N

CONTENTS

1
2
3
4
5
6
7

PAGE
NO

INTRODUCTION
DEFINITION OF GIFT
IDEA OF GIFT
TYPES OF GIFT
ESSENTIALS OF GIFT
GIFT DEED
TRANSFER OF GIFT DEED

4
4
5
5
8
8
9

DEPENDING UPON THE

8
9
10
11
12
13
15

NATURE OF THE GIFT

TRANSFER PROCESS OF GIFT
MODE OF TRANSFER OF GIFT
ATTESTATION OF GIFT DEED
WHEN GIFT TAKES EFFECT
IRREVOCABLE GIFTS
REVOCATION
NO REVOCATION UNDER

11
12
13
14
14
14
18

16
19
20

REMAINING GROUNDS
BONAFIDE PURCHASER
CONCLUSION
BIBLIOGRAPHY

18
19
20

INTRODUCTION:

Gift is transfer of ownership without consideration transfer without consideration.

Transfer without consideration is called gratuitous transfer. A gratuitous transfer may
take place between two living persons or, it may take place only after the death of the
transferor. Gift may therefore, be either inter vivos or, testamentary. Gift inter vivos is
gratuitous transfer of ownership meaning within the meaning of section 5 of the
transfer property act, 1882. Gift testamentary is called a will which is transfer by
operation of law and is outside the scope of this act. A gift made during apprehension
of death is called a gift mortis causa. Such gifts are also excluded from project 1. The
provisions of this Act are applicable only to gifts inter vivos.
Gifts are which cannot be revoked are called as irrevocable gifts and the gifts which
can be revoked are mentioned in the transfer of property act and only those gifts can
be revoked which fulfils the conditions of revocation as such and remaining other are
irrevocable gifts.

DEFINITION OF GIFT:
Section 122 of the transfer of property Act, 1882 defines gift as under:
gift is transfer of certain existing movable or immovable property made voluntarily
and without consideration, by one person called the donor, to another, called the
donee, and accepted by or on behalf of the donee
Gift , as defined in this section, is gratuitous transfer of ownership in some existing
property made voluntarily. The definition include gift of both movable as well as
immovable property. The transferor is called donor and the transferee is called donee.

1 Under Muslim law a gift made in apprehension of death is called gift

during marz ul maut and is interpreted as will. Gift made by a Muslim is
called hiba. Both of these gifts are excluded from this chapter by section
129 of the Act.

Donor: Donor must be a competent person. For competency, the donor must have
capacity as well as right to make the gift. If the donor had capacity to contract he
deemed to have capacity to make gift. Thus, at the time of gift the donor must be of
the age of majority and registered societies or firms or institutions are also competent
to make gifts. Besides capacity, donor must also have the right to make gift. Gift being
transfer of ownership, the donor must have ownership rights in the property at the time
of gift.

Donee: Donee need not be competent to contract. Donee may be any person in
existence at the date of making of gift. A gift made to minor or insane person or even
in favour of a child in mothers womb is provided it is lawfully accepted by a
competent person on his or her behalf. Donee too may be juristic person. Juristic
persons, such as, firms, companies or institutions are deemed to be competent done
and gift made to them is valid. However donee must be ascertainable person. Gift
made to public in general is void. If ascertainable, donee may be two or more persons.

THE IDEA OF GIFT:

A gift is a transfer of property without any monetary consideration by one person in
favour of another and accepted by him or by a person on his behalf. A gift, where both
the parties are Muslims is governed by the provisions of the quranic law, and not by
the Transfer of property Act, as it is inconsistent with the provisions of this act.
There are certain essentials of a gift like donor and donee, subject matter of a gift,
interest created by the donor, gift must be made with free and voluntary consent and
acceptance of gift without consideration.
Under section 122 of the transfer of property Act, 1882 gift defined as the transfer of
certain existing movable and immovable property made voluntarily and without
consideration, by one person called the donor, to another , called the donee and
accepted by or on behalf of the donee.
TYPES OF GIFTS:

The two principal categories of gifts are:

Inter vivos gifts

Causa mortis gifts

Inter vivos gifts: Inter vivos is Latin for between the living or from one living person
to another. A gift inter vivos is one that is perfected and takes effect during the lifetime
of the donor and donee and that is irrevocable when made. It is a voluntary transfer of
property, at no cost to the donee, during the normal course of the donors life.
A gift inter vivos differs from a sale, a loan, or barter since something is given in
exchange for the benefit in each of such transfers. Whether the value given is a money
or price, a percentage interest or an equivalent item of property, or a promise to repay,
the element of exchange makes such transfers something other than a gift.
There are a number of special types of inter vivos gifts. Forgiveness of a debt is a gift
of the amount of money owed, and destroying the promissory note signed by the
debtor and handling it over to him or her can accomplish delivery. A share of stock in
a corporation may ordinarily be given to someone else by having ownership
transferred to the person on the books of the corporation or by having a new stock
certificate issued in the persons name. a life insurance policy can generally be given
to someone by delivering the policy, but it is more expedient to express in writing that
all interest in the policy is assigned, or transferred, to the donee and to notify the
insurance company to that effect. Certain states require these formalities since state
law strictly regulates insurance. Written transfer can only make gifts of land.
A donor can limit an inter vivos gift in certain ways. For example, he or she might
give someone a life estate in his or her property. When the donee dies, the property
reverts to the donor. A donor cannot place other restrictions on a gift if the restrictions
would operate to make e gift invalid. If, for example, the donor reserves the power to
revoke a gift, there is no gift at all.

Causa mortis Gifts: a gift causa mortis (Latin for in contemplation of approaching
death) is one that is made in anticipation of imminent death. This type of gifts takes
effect upon the death of the donor from the expected disease or illness. In the event

that the donor recovers from the peril, the gift is automatically revoked. Gifts causa
mortis only apply to personal property.
A donor who is approaching death might make a gift by putting his or her intention in
writing. This procedure is likely to be followed, when, for example, the donee is in
another state, and personal delivery is thereby impractical. The delivery requirement is
frequently relaxed when a causa mortis gift is involved, since a donor is less likely to
be able to make an actual delivery as his or her death approaches. A symbolic delivery
is frequently sufficient to show that a gift was made, provided at least some effort to
make a delivery is exercised. The overt act aids a court in its determination as to
whether a delivery has been made.
The difference between a gift causa mortis and a testamentary gift made by will is that
a will transfers ownership subsequent to the death of the donor, but a gift causa
mortis takes effect immediately. In most states, the donee becomes legal owner of the
gift as soon as it is given, subject only to the condition that the gift must be returned if
the donor does not actually die.
The requirements of causa mortis gift are essentially the same as a gift inter vivos. In
addition, such a gift must be made with a view toward the donors death, the donor
must die of the aliment, and there must be a delivery of the gift.
Gifts causa mortis are usually made in a very informal manner and are frequently
made because dying people want to be certain that their dearest possessions go to
someone they choose.
A donor who is approaching death might make a gift by putting his or her intention in
writing. This procedure is likely to be followed, when, for example, the donee is in
another state, and personal delivery is thereby impractical. The courts only permit the
donee to keep the gift if the donor clearly intended the gift to take effect at the time it
was made. If the gift is made in writing in a will and is intended to become effective
only after the donor dies, the gift is a testamentary one. The law in each jurisdiction is
very strict about the features that make a will valid. One requirement, for example, is
that witnesses must sign the will. If the donor writes down that he or she is making a
gift, but the writing is neither an immediate gift nor a witnessed will, the donee cannot
keep the gift.

The delivery requirement is frequently relaxed when a causa mortis gift is involved,
since a doctor is less likely to be able to make an actual delivery as his or her death
approaches. A symbolic delivery is frequently sufficient to show that a gift was made,
provided at least some effort to make a delivery is exercised. The overt act aids a court
in its determination as to whether a delivery has been made.
A gift causa mortis is only effective if the donor actually dies. It is not necessary that
the donor die immediately, but the person must die of a condition or danger that
existed when the gift was made and without an intervening recovery. The donee
becomes legal owner of the property in most states from the time the gift is made. The
person must, however later return the gift if the donor does not actually die. If the
donor changes his or her mind and revokes the gift, or recovers from the particular
illness or physical injury, the gift is invalid. A donor also has the right to require that
debts or funeral expenses be paid out of the value of the gift.

ESSENTIALS OF GIFT
The essentials of gift are given below:

There must be transfer of ownership

The property must be existing property
Transfer is without consideration
The transfer is made voluntarily, i.e., free consent
Gift must be accepted by transferee

GIFT DEED
This document allows you to gift your assets or transfer ownership without any
exchange of money. To gift immovable property, you just have to draft the document
on a stamp paper, have it attested by two witnesses and register it. Registering a gift
deed with the sub register of assurances is mandatory as per section 17 of the
registration act, 1908, falling which the transfer will be invalid. Besides, such a
transfer is irrevocable. Once property is gifted it belongs to the beneficiary and you
cannot reverse the transfer or even ask for monetary compensation.
However, if you want to gift movable property like jewellery, registration is not
compulsory. At the same time, a mere entry in an account book is not sufficient to

establish a transfer. Apart from physically handling over the property, you need to
back it with a gift deed. The process is slightly different if you are gifting company
shares. You will have to fill out the share transfer form and submit it to the company
or registrar, and the transfer agent of the firm. Once again, get a gift deed drawn and
executed to complete the transfer, but the document need not be registered.

TRANSFER OF GIFT DEPENDING UPON THE NATURE OF PROPERTY:

Section 123 of the transfer of property act, 1882 deals with transfer how effected. For
the purpose of making a gift of immovable property, the transfer must be affected by a
registered instrument signed by or on behalf of the donor and attested by at least two
witnesses. For the purpose of making a gift movable property the transfer may be
affected either by a registered instrument signed as aforesaid or by delivery. Such
delivery may be made in the same way as goods sold may be delivered.
This section deals with formalities necessary for completion of a gift. Unless these
formalities are completed, the legal title does not pass on to the donee and the gift is
not enforceable at law. Section 123 of the transfer of property act, 1882 lays down two
modes for effecting a gift depending on the nature of property. Registration is
necessary for the gift of immovable properties. Where the property is movable, it may
be effected by delivery of possession.
IMMOVABLE PROPERTIES:
A gift of immovable property must be made only through a registered document.
Irrespective of valuation of property, registration is necessary for the gift of an
immovable property. Gift of a piece of land valuing less than a rupees must also be
registered.

Registration of a document including a gift deed, implies that the

transaction is in writing , signed by the executant (donor), attested by two competent

persons and duly stamped before the registration formalities are officially completed.
In Gomtibai vs muttulal2, the supreme court held that in the absence of the written
instrument executed by donor, attestation by two witnesses, registration of this

2 AIR 1997 SC 127

instrument, and acceptance thereof by the donee, the gift of the immovable property is
not complete.
Without due completion compliance of these formalities, the gifted property cannot be
said to have been transferred to the done. The doctrine of part performance is not
applicable to gifts. Therefore, the done that takes possession of a land under
unregistered gift deed cannot defend his possession on being evicted. However
following two points are important with regard to the requirement of registration:

Although registration of gift of immovable property is must but the gift is not
suspended till the registration. A gift may be registered and , made enforceable
at law even after the death of the donor provided the essential conditions are

fulfilled.
Where the essential conditions for a valid gift are not fulfilled, registration
shall not validate the gift.

The registration cannot validate a gift in the absence of any of the essential elements.
On the other hand, without registration title cannot pass even if the essential
ingredients are present. Accordingly, although a gift of immovable property may be
made by registered deed, yet if it is not accepted by done the gift is inoperative3.
The case was under the government grants act, 1985(section 2). The ruler permitted
the plaintiff to occupy and reside on a portion of the land after the closure of the
orphanage. It was mentioned in that deed that the plaintiff and his heirs and successors
would enjoy that land and might get their names recorded in the settlement records.
The court said that it was in the nature of the grant rather than a gift. This was
particularly so because there no indication in the document that the ruler as donor
gifted the land, and the plaintiff as a done accepted the same. No witness signed or
attested the document as is required in a gift transaction under section 123 of the
Transfer of Property Act4.
MOVABLE PROPERTIES

3 Radhika Devi Vs Rajesh Kumar Niranjan, AIR 2009 Part 109

4 Sher khan vs state of Orissa, AIR 2008 ORI 1994

Gift of movable properties may be completed by delivery of possession, registration is

optional it is not compulsory, accordingly gift of a movable property effected by
delivery of possession is valid irrespective of the valuation the property. The mode of
delivering the property to done depends upon the nature of the property 5. All that is
necessary is that done gets title as well as possession of the gifted property. Delivery
of goods movables may be made by doing anything which the parties agree shall be
treated as delivery or which has the effect of putting the property in possession of the
transferee (donee).

5 Section 33 of the sales of goods act, 1930

TRANSFER PROCESS OF GIFT

Gift how to be made: section 122 defines gift to mean the transfer of certain
moveable or immoveable property made voluntarily and without consideration by one
person to another and accepted by or on behalf of the latter. But how the gift becomes
effective is given under section 123. It is seen that the gift of the immovable property
should be only to transferring the right, title and interest by the donor to the donee by
a registered instrument signed by or on behalf of the donor and must be attested by at
least two witnesses. In the absence of any registered instrument signed on gift and
acceptance thereof by the donee, the said property could not be said to have been
legally transferred. Therefore gift is not completed in eyes of law.

GIFT TAX OFFICER VS DR V SRINIVASAN, 29 JANUARY 20026:

In this case the high court held that section 123 of the transfer of property act provides
that for the purpose of making a gift of immovable property, the transfer must be
effected by a registered instrument signed by or on behalf the donor, not attested by at
least two witnesses. The act does not any exception to the general law as found in
section 123 of the transfer of property act. Therefore, in order to effectuate a valid gift,
the requirements of section 123 of the transfer of property act require a registered
instrument. There was no registered instrument in May, 1956 and mere delivery of
possession would not satisfy the requirements of section 123 of TP Act, it would
therefore follow that there was no gift in the year 1956.
Therefore in this case, it was held by the honble

madras high court that mere

delivery would not satisfy the requirements. In the case of the assesse also mere
agreement to sell the property on 13 th april 1981, and mere delivery of property at
that time did not constitute any gift7
Immovable properties:

6 gift tax officer vs dr v srinivasan, 29 january 2002:

7 1980 124 ITR 233 (mad)

Where immovable property is gifted, the transfer must be effected by a registration

instrument signed by or on behalf of the donor, and attested by at least two witnesses.
A gift of immovable property is invalid without registration even if intended donee is
put in possession. An oral gift is void in law unless there is a specific statutory
provision dispensing with formalities for gifts as laid in act.

REGISTERED GIFT DEED

Registered gift deed- denial of execution of, by person by whom it purports to have
been executed is on the party relying upon deed and burden has to be discharged by
calling atleast one of attesting witnesses to prove execution- where burden has not
been discharged, deed cannot be used as evidence of gift. Section 123 of TP Act
requires specific mode in the matter of execution of gift of immoveable property. The
gift of the immoveable property can be made only by the execution of the registered
deed attested by two witnesses. The law prescribes the specific mode that it must be
effected by a registered instrument or deed signed by or on behalf of the donor and
attested by at least two witnesses. Section 68 of the indian evidence act requires the
production of at least one of the attesting witnesses to prove its execution. Compliance
with section 68 and 69 of the indian evidence act is necessary to make gift deed
admissible in evidence. None of the attesting witnesses of the deed has been examined
in this case to prove the execution thereof. The deed dated 29-11-1960 could not be
used as evidence and its execution cannot be said to have been proved8.
MODE OF TRANSFER OF GIFT:
Transfer of property under mode of transfer gift deed may provide for transfer of
existing property to donee at future date and or on happening of certain events
intention of the donor to be gathered by reading deed as a whole- no word thereof to
be ignored meaningless- effect to be given to every part of the deed where deed in
favour of two minors donees jointly concludes with words you shall enjoy property
and live as you wish after you have attained majority and got married, the words to
be interpreted that gift would take effect only when donees as marriage between them
8 Flora magaret vs A .lawrence, 2000(6)kar.LJ 27B.

didnt take place held: a reading of the section 123 along 122 and 5 of the act, it
appears to be me that in the matter of gift also, transfer or conveyance of the property
may be provided to take place in present or future. The gift deed may also provide that
the transfer may be effective on the happening of certain conditions in future. In other
words, person making the gift may provide that the interest in gifted property will
stand conveyed or transferred as per deed either in present or in future. In the deed, it
has to be looked into to ascertain the intention of the parties, whether the transfer has
been effected in present or in future, expression lastly used in the document, you
shall enjoy the above mentioned property and live, as you wish after you attained
majority and got married. These expressions have to be taken as controlled by the
expression used earlier that the intention of the author is that the right and title as an
absolute owner of the property should pass on to the donees on the fulfilment of those
conditions. That as the document appears to have fulfilled been executed with object
of the marriage and the effect of it is that donees could get absolute ownership under
the deed of the fulfilment, both of these conditions, namely, attaining the age of
majority by both of them and they getting married and until and unless this had so
happened, the property had to remain in possession of the husband of the donor. This
action shows that till the happening till the happening of the condition ,namely the
attaining age of majority by the two donees and they are getting married, the property
had remain in possession of the husband of the donor, so, the property had not been
transferred to the donees, the transfer could take effect only on the donees attaining
majority and getting married. That as the marriage did not take place in the present
case and the plaintiff did not marry the defendants daughter, deed did not become
effective to transfer the title of the property to the plaintiff and defendant and the title
of the property re-examined with donor. Mere execution of the deed of cancelation at
the subsequent stage will not lead to the conclusion that the gift deed had been acted
upon. This deed cancelling the gift deed might have been executed as a matter of mere
precaution and for safety protection9 Hutchgowda vs smt. Jayyama and another,
1996(2) kar, LJ 751
ATTESTATION OF GIFT DEED:

9 Hutchgowda vs smt. Jayyama and another, 1996(2) kar, LJ 751

In the present case, the gift deed in question has been registered and the sub register
makes the necessary endorsements. P.W. 2 has sworn that he had attested the deed.
But he has no where stated in his evidence that the executrix namely, gangavva affixed
her signature or mark to the gift deed in his presence or acknowledged to him, that she
had affixed her signature or mark to the gift deed. Therefore, his evidence does not
satisfy the ingredients of definition attested. Hence it would have to be held that
attestation by P.W 2 and another person required by law, has not been proved.
Therefore though gangavva appears to have admitted execution of the giftdeed as is
seen from the endorsement of the sub registrar, it will have to be held that the gift deed
though registered does not satisfy the requirements of section 123 of the transfer of
property Act. When that is so, no title in law can be said have passed from gangavva
to plaintiffs, even assuming that did not have such title to transferAnant somappa pattar vs kalappa devendrappa yarakad, 10 1987(2) kar LJ sh.N.177:
ILR 1985 Kar.1432
Gift- proof of attestation. Where the attestor called as witness says he does not know
who else attested and there is no other evidence, held, the gift deed was not proved as
required by lawKempamma vs honnammma11 , 1979(1) kar.LJ.sh. N.85

GIFT WHEN TAKES EFFECT :

a gift takes effect from the date of the execution of the deed of gift and not from date
of its registration. A gift takes effect as soon as the instrument of gift, is duly executed
and attested is handed over to the donee and the gift has been accepted by the donee. A
gift of movable or immovable property by registered instrument is complete as soon as
the donee accepts the same. Delivery of possession is not necessary unless it is case of
oral gift under any custom
10 1987(2) kar LJ sh.N.177: ILR 1985 Kar.1432

11 1979(1) kar.LJ.sh. N.85

IRREVOCABLE GIFTS:
The literal meaning of revocation is suspension so the meaning of irrevocable gifts is
the gifts that cannot be suspended. The gifts which cannot be suspended as such are
called as irrevocable gifts
In the transfer of property act there was no specific provision for the irrevocable gifts
but it is implied that the gifts which cannot be revoked are obviously irrevocable in
nature in order to understand this ground first we have to know the gifts which can be
revoked and the remaining other would be irrevocable. Section 126 of the transfer of
property act deals with the gifts that can be revoked and the process of revocation of
such type of revocable gifts
WHEN A GIFT MAY BE SUSPENDED OR REVOKED:
The donor and donee may agree that on happening of any specified event which does
not depend upon the will of the donor a gift shall be suspended or revoked, but a gift
which the parties shall be revocable wholly or in a part, at the mere will of the donor,
is void wholly or in part as the case may be
A gift may be also revoked in any of the case ( save want or failure of consideration )
in which, if it were a contract, it might be rescinded. Save as aforesaid, a gift cannot
be revoked. Nothing contained in this section shall be deemed to affect the rights of
the transferees for consideration without notice.

TOKHA VS BIRU
In this case the donor made gift or immovable property in favour of donee in lieu of
services to be provided to her by the donee and subsequently after 3 months another
agreement was executed that in case the donee failed to maintain the donor the gift
would be revoked
It was held that the deed of gift and agreement would not form part of the same
transaction and could not be read together and given effect to

THAKUR RAGHUNATH JI MAHARAJ VS RAMESH CHANDRA

The property was gifted for a specific charitable purpose. The condition attached was
that if the college building was not constructed within six months. The donor would be
entitled to the property. The condition was held to be permissible.
The donee remained as a trustee under fiduciary relationship with the donor. The
donor was allowed to claim back the property on breach of the condition mentioned in
the agreement executed along with the gift deed.
The donors suit for the land was maintainable

SYNOPSIS

Revocation by mutual consent

Revocation by rescission as contracts
No revocation under any other grounds
Subsequent conduct of the donee after acceptance- irrelevant
Bona fide purchaser

REVOCATION BY MUTUAL CONSENT:

Donor and donee may agree that the gift shall be revoked upon the happening of an
event not dependent on the will of the donor. The condition revoking the gift must be
express, it should not be merely in the form of a wish or desire. In other words, the
condition on the non-fulfilment of which the donor may the gift must be expressly laid
down in the deed. A gift of certain properties was executed in lieu of the past and
future services rendered by donee to donor. But failure of donee to render services to
donor or to maintain donor in future, was not a specified to be condition for the
revocation of the gift. The himachal Pradesh court12 held that since the condition of
revocation of gift upon donees failure to render services to donor was not laid down in
the deed, it was unconditional gift, and therefore it cannot be revoked by the donor.
12 (1973) KER. 64

Where a condition has not been expressly laid down in the gift deed, it might be
treated simply as the wish or desire of the donor and is not a condition upon the breach
of which gift could be made revocable by donor
However, even though a condition is not laid down in the gift deed itself, and has been
provided under a mutual agreement separately but forms part of the transaction of gift,
the condition would be valid and enforceable. In Thakur raghunathe jee maharaj vs
Ramesh Chandra case:13
The property was gifted for a specific charitable purpose. The condition attached was
that if the college building was not constructed within six months. The donor would be
entitled to the property. The condition was held to be permissible. The donee remained
as a trustee under fiduciary relationship with the donor. The donor was allowed to
claim back the property on breach of the condition mentioned in the agreement
executed along with the gift deed. The donors suit for the land was maintainable.
The condition for revocation of gift is a condition subsequent. It must be valid under
the provisions of law for conditional transfers. The condition totally prohibiting the
alienation of property is void under section 10 of this act, therefore, if the gift made
revocable with such condition, the condition itself being void, the gift is not revokedjudgment of jagdeo singh vs nandan mahto14
REVOCATION BY RESCISSION AS CONTRACTS:
Gift is gratuitous transfer of ownership made voluntarily. If it could be proved that the
gift was not made voluntarily, i.e the consent of the donor was not free the gift must be
revoked. Gift is always preceded by an express or implied contract, offer by donor and
acceptance by donee. If the preceding contract itself is rescinded or revoked there is
no question of taking place of transfer made under it
Accordingly, under section 126 a gift is revoked also on any grounds on which it
might be rescinded in contracts

13 AIR 2001 SC 2340

14 AIR 1982 Patna 32

According to indian contracts act the contract can be rescinded if the consent to an
agreement is made by

Coercion
Undue influence
Fraud
Misrepresentation15

The period of limitation for the revocation of gifts on the grounds of fraud,
coercion, misrepresentation or undue influence is three years from the date on
which such facts are known such facts are known to the plaintiff ( donor)16

NO REVOCATION UNDER ANY OTHER GROUND:

Except on the ground of the above mentioned conditions gift cannot be revoked under
any other conditions
A gift is deed was validly executed in favour of the donee. It was held that a
simultaneous claim by the donor that the gift deed was revoked unilaterally by him
and lodged registration was not valid as there was no participation by the doneejudgment in the case sheel arora vs madam mohan bajaj
SUBSEQUENT

CONDUCT

OF

DONEE

AFTER

ACCEPTANCE-

IRRELEVANT
BONA FIDE PURCHASER:
The last paragraph of this section protects the interest of a bona-fide transferee for
value without notice of donors right of revocation for example: a makes a gift of his
house to b with a condition that he shall revoke the gift if b son does not take up
studies of law after graduation. B sells his house to c. c has no notice of any such
condition. After graduation b son does not join law course. A cannot revoke the gift
15 Consent to agreement under ICA 1872
16 1937 A.C. 226

because c interest shall be effected. If c has notice of such condition or that c was a
gratuitous transferee, A could have revoked the gift.

Conclusion

Bibliography