Present transfer required for actionable claims; a future proposal does not complete a gift or assignment.

A transfer of an actionable claim under section 130 of the Transfer of Property Act is effective only if the written instrument clearly shows a present intention to transfer and actually effectuates that transfer. A letter expressing only a future proposal, contemplated further drafting, or incomplete steps does not constitute a completed assignment or gift. On that reasoning, the letter of 3 May 1955 did not transfer the claim; the operative transfer occurred only on 19 September 1955, bringing the gift within the estate duty period.

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Issues: Whether the letter dated 3 May 1955 effected a valid transfer of the actionable claim of Rs. 9,00,000 under section 130 of the Transfer of Property Act, or was merely a proposal to make a gift, and consequently whether the amount was gifted within two years of the deceased's death and liable to estate duty.

Analysis: Section 130 of the Transfer of Property Act requires a written instrument signed by the transferor that effectually transfers the actionable claim; no particular form of words is necessary, but the intention to transfer in praesenti must be clear from the language used. Reading the letter as a whole, the Court found that it spoke in terms of future completion and contemplated a subsequent draft and further action, rather than an immediate and completed transfer. The expressions used indicated only a proposal or expression of intention to make the gift, not a present assignment of the sum of Rs. 9,00,000. The later signed communication of 19 September 1955 was therefore the operative transfer, and it fell within the two-year period relevant under section 9 of the Estate Duty Act, 1953.

Conclusion: The letter of 3 May 1955 did not complete the transfer or gift of the actionable claim. The gift was completed only on 19 September 1955 and was liable to estate duty.

Ratio Decidendi: A transfer of an actionable claim under section 130 of the Transfer of Property Act is effective only when the written instrument clearly manifests and effectuates a present transfer; a document expressing merely a future intention or proposal does not amount to a completed transfer.

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