prof s c pratihar (medical practitioner &legal studies) 19 June 2009

conditional gift

dear members, can a gift deed by father to her unmarried daughter be conditional?such as part of house she wl have only living rights and in no case she can dispose the property to somebody by transfer of property Act. thanks in advance.

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4 Replies

Dinkar Vidyarthi (Advocate) 19 June 2009

Dear Sir,

first of all you have to know that a gift is a transfer of ownership without consideration. S122 of T.P. Act, as such if father wants to provide a right to only live to his unmarried daughter in certain part of house during her lifetime then it is possible by way of licence beacuse GIFT IS ABSOLUTE TRANSFER OF OWNERSHIP. as such it can not be conditional.

A V Vishal (Advocate) 19 June 2009

Dr Pratihar,

There can be conditional Gifts, there is no bar on making such gifts. I am enclosing a copy of the deed of conditional deed which can be utilised by making proper modifications to the same:

DEED OF CONDITIONAL GIFT

THIS DEED OF GIFT is made at ... this ... day of ... between Mr. A residing at ... hereinafter referred to as 'The Donor' of the One Part and (1) Mr. B and (2) Mr. C residing at ... and at... respectively hereinafter referred to as 'the Donees' of the Other Part.,

WHEREAS the Donor is the full owner of an immovable property consisting of land and a building thereon situate at ... and more particularly described in the Schedule hereunder written.

AND WHEREAS one of the said Donees the said ... is the wife of the Donor and the other Donee is the nephew of the Donor, and the Donor has no Issue.

AND WHEREAS the Donor in consideration of natural love and affection that he bears to the Donees, desires to make a gift of the said property to them in the manner following-

AND WHEREAS the market value of the said property is estimated to be Rs....

NOW THIS DEED WITNESSETH that in consideration aforesaid the Donor doth hereby grant and transfer by way of gift the said land and premises situated at ... and more particularly described in the Schedule hereunder written together with all and singular the things permanently attached thereto or standing thereon. and all the rights, liberties. privileges, casements and advantages, appurtenant thereto And all the estate, right, title and Interest, use, possession, benefit, claim and demand whatsoever of the Donor TO HAVE AND TO HOLD the same unto and to the use of Donees as tenants-in-common in equal shares subject to the payment of all taxes, rates, assessment, due and duties now and hereafter chargeable thereon and payable to the Govt. or any local authority. And subject to the condition that if the said Mrs.... wife of the Donor dies without any children then the whole of the said property shall belong to the other Donee being the said Mr.... and his heirs, executors and administrators absolutely And subject to the condition that the said property cannot be sold and mortgaged so long as the first Donee the said Mrs ... is alive.

AND the Donor doth hereby covenants with the Donees –

(a) That the Donor now has in himself, good right, full power and absolute authority to grant the said piece of land and other the premises hereby granted as gift In the manner aforesaid.

(b) The Donees may at all times hereafter peaceably and quietly enter upon have occupy, possess and enjoy the said piece of land and premises and receive the rents, issues and profits and rents thereof and every part thereof to and for their own use and benefit without any suit, lawful eviction, interruption. claim or demand whatsoever from or by the Donor or his heirs, executors, administrators and assigns or any person or persons lawfully claiming or to claim by from under or in trust for the Donor.

(c) That the said land and premises are free and clear and freely and clearly and absolutely and forever released and discharged or otherwise by the Donor and well and sufficiently saved, kept harmless and indemnified of and from and against all former and other estate, titles, charges and encumbrances whatsoever, had made, executed, occasioned or suffered by the Donor or by any other person or persons lawfully claiming or to claim by from under or in trust for the Donor.

(d) AND FURTHER that the Donor and all persons having or lawfully claiming any estate or Interest whatsoever to the said land and premises or any part thereof from, under or in trust for the Donor or his heirs, executors, administrators or any of them shall and will from time to time and at all times hereafter at the request and cost of the Donees do and execute or cause to be done and executed all such further and other acts, deeds, things, conveyances and assurances in law whatsoever for better and more perfectly assuring the said land and premises and every part thereof unto and to the use of the Donees In the manner aforesaid as by the Donees their heirs. executors, administrators and assigns or counsel in law shall be reasonably required.

IN WITNESS WHEREOF the Donor and the Donees (by way of acceptance of the said gift) have put their respective hands the day and year first hereinabove written.

THE SCHEDULE ABOVE REFERRED TO

Signed and delivered by the

withinnamed Donor A In the presence of ...

Signed by withinnamed

Donees 1) Mr. B and 2) Mr. C in the presence of ...

1................

2................ .

Dinkar Vidyarthi (Advocate) 19 June 2009

Dear Members,

Kindly explain me the difference between the term GIFT and TRUST including LICENCE, and any specific ruling by which S.C. ever recognised such type of Conditional Gift within the ambit of facts shown by Prof Pratihar

Deekshitulu.V.S.R (B.Sc, B.L) 20 June 2009

Mr Vidyarthi

I think You are wrong. A gift can always be conditional and a man writing a gift or settlement in favour of his kith or kin can make out any comdition. such as reserving only a life estate and vested reminder to some body, or a conditions regarding performance of some duties etc. In the later case if the conditions to be performed by the donee are not done, then the donor can always cancell the same and the said recital can be part of the deed itself.

I request you to kindly go thro this proposition