Estate duty inclusion of gifted property follows where donor retains enforceable benefits and donees lack complete exclusion.

A settlement deed that reserved enforceable benefits to the donor, including payments from the property income, a right of recourse against defaulting donees, a charge for arrears, and entry to take the yield on default, meant the donees did not enjoy the property to the complete exclusion of the donor. On those terms, the gifted properties were includible in the principal value of the estate on the donor's death under section 10 of the Estate Duty Act, and the provision applied against the accountable person in favour of the Revenue.

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Issues: Whether the value of properties settled by the deed was includible in the principal value of the estate on the donor's death under section 10 of the Estate Duty Act.

Analysis: The settlement deed required the donees to pay specified amounts and paddy out of the income of the properties to the donor during his lifetime and thereafter to his widow. The deed also reserved to the donor the right to proceed against the defaulting donees and their properties, to create a charge for arrears, and to enter the property and take the yield in case of default. These stipulations showed that the donor retained an enforceable interest and that the donees' possession and enjoyment were not to the complete exclusion of the donor or of the benefit reserved to him under the gift.

Conclusion: The properties were includible in the estate, and section 10 of the Estate Duty Act applied against the accountable person and in favour of the Revenue.

Ratio Decidendi: Where a gift is coupled with a reservation of enforceable benefits to the donor that restricts the donees' enjoyment, the gifted property is not possessed and enjoyed by the donees to the complete exclusion of the donor for the purposes of estate duty.

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