Conditional Gifts Are Incomplete Until Conditions Are Complied With; Such Gift Deeds Can Be Cancelled By The Donor: SC [Read Judgment]

‘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 lifetime of the donor. When a gift is incomplete and title remains with the donor the deed of gift might be cancelled.’The Supreme Court has held that a conditional gift only becomes complete on compliance. When a gift is incomplete and title remains with the donor the deed of gift might be cancelled.’ The Supreme Court has held that a conditional gift only becomes complete on compliance of the conditions in the deed, and the donor is within rights to cancel such a gift deed. Referring to provisions of the Transfer of Property Act, the bench said 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. Moreover, a conditional gift only becomes complete on compliance of the conditions in the deed.” The court also said the deed of transfer was executed for consideration and was in any case was subject to the condition that the donee would look after the woman and her husband, and subject to the condition that the gift would take effect after the death of the donor.