A condition absolutely restraining the donee in Gift Deed to transfer is void; SC.

Supreme Court of India

Justice Ashok Bhushan and Justice Navin Sinha

The question arose before the SC {SRIDHAR & ANR. v. N. REVANNA & ORS.} is as to whether defendant No.1 who was gifted the schedule property had no right to alienate the schedule property in any manner whatsoever - in view of restrictions placed in Gift Deed qua alienation.

It was held by the SC that Section 10 of Transfer of Property Act expressly provides that where property is transferred subject to a condition or limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or limitation is void. Further, held that according to Section 10 any condition restraining the transferee the right of alienation is void. It was held that a plain reading of Section 10 of Transfer of Property Act makes it clear that the condition in the gift deed dated 05.06.1957 that defendant No. 1 shall not alienate the property is a void condition, and accordingly it was held that the plaintiff was not entitled for declaration.