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 life time of the donor. When a gift is incomplete and the title remains with the donor, the deed of gift may be cancelled. The Hon’ble Supreme Court of India, while deciding Civil Appeal No. 10785 of 2018, arising out of the SLP (C) No. 35515 of 2017 in case S. Sarojiniamma Versus Velayudhan Pillai Sreekumar observed that the Deed of transfer in this case was executed for consideration and was in any case conditional subject to the condition that the donee would look after the Petitioner and her husband and subject to the condition that the gift would take effect after the death of the donor. We are thus constrained to hold that there was no completed gift of the property in question by the Appellant to the Respondent and the Appellant was within her right in cancelling the Deed.
The Court while referring to Raninkuntla Rajamma case observed that the fact that the donor had reserved the right to enjoy property during her life time did not affect the validity of the Deed.
There is no provision in law that ownership in property can 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. A gift is transfer of property without consideration. Moreover, a conditional gift only becomes complete on compliance of the conditions in the Deed.
The Appellant a childlesse widow of 74 years, executed a gift deed in favour of her nephew (brother’s son) in the expectation that he will look after the Appellant and her husband. The Gift Deed was conditional one that it would take effect after the death of the Appellant and her husband. However, later on 02.06.1999, the Appellant cancelled the Gift Deed, where upon the Respondent filed a Civil Suit before Munsif Sasthamcotta for declaration that the cancellation executed by the Appellant is null and void and therefore , also a suit for declaration claiming his right over the property on the strength of the Gift Deed. The said suit was decreed.
The High Court while dealing with the RSA dismissed the suit and held that the donor had reserved the right to enjoy the property during her life time and it did not affect validity of the Deed.
The Supreme Court finally observed as under :-
“We are thus constrained to hold that there was no completed gift of the property in question by the Appellant to the Respondent and the Appellant was within her right in cancelling the Deed”.