Gift deed requirements under property law: instrument executed for consideration and postponed until death was not a completed gift.

Under Sections 122 and 123 of the Transfer of Property Act, 1882, a valid gift requires a voluntary transfer without consideration, by a registered instrument for immovable property, accepted during the donor's lifetime. A document styled as a gift deed will not amount to a completed gift where it discloses consideration, reserves possession and enjoyment to the donor, and is intended to operate only after the donor's death; in that situation, the essential elements of a gift are absent and any conditional transfer remains incomplete until the condition is fulfilled. The Supreme Court held that the document was not a completed gift and that the donor was competent to cancel it, setting aside the High Court's finding.

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Issues: Whether a document styled as a gift deed, but executed for consideration and intended to take effect only after the death of the donor, amounted to a completed gift; and whether the donor was entitled to cancel the deed.

Analysis: A gift under Section 122 of the Transfer of Property Act, 1882 requires a voluntary transfer without consideration, and for immovable property the transfer must be made by a registered instrument under Section 123 of the Transfer of Property Act, 1882 and accepted during the donor's lifetime. A conditional gift becomes complete only on fulfilment of the stipulated conditions. Where the document itself shows consideration, reserves possession and enjoyment with the donor, and postpones operation until after death, the essential elements of a completed gift are absent.

Conclusion: The document did not constitute a completed gift and the donor was competent to cancel it; the finding of the High Court was set aside.

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