Condition does not Alienate the Gifted Property is Void Amaresh Patel LANDMARK JUDGMENT Fri, Feb 28, 2020, at ,12:04 PM Title of the Case – Condition does not Alienate the Gifted Property is Void Name of the case – Sridhar & anr vs. N. Revana & ors., C.A. No. 1209 of 2020 (Supreme Court) Date of Judgment – February 11, 2020 Judges: Justice Ashok Bhushan and Justice Navin Sinha Subject and sections involved – Section 10 of the Transfer of Property Act Section 10. Condition restraining alienation.—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, except in the case of a lease where the condition is for the benefit of the lessor or those claiming under him: provided that property may be transferred to or for the benefit of a women (not being a Hindu, Muhammadan or Buddhist) so that she shall not have power during her marriage to transfer or charge the same or her beneficial interest therein. Issue: Whether a defendant who has gifted the Scheduled property had no right to alienate the Scheduled property in any manner whatsoever? Whether the defendant had right under gift deed to alienate the suit properties? Fact of the Case: One Shri Muniswamappa, great grandfather of the plaintiffs and grandfather of the defendant, was the absolute owner of the suit scheduled property. He executed two gift deeds in favour of his grandson, N. Revanna. The gift deed contained a condition that done and his younger brothers hereafter had no right to alienate the scheduled property. Ratio of the Case: The division bench of Supreme court observed that as per section 10 of Transfer of Property Act, a condition that the done shall not alienate the subject property is avoided. Section 10 of the Transfer of Property Act Section 10 expressly provides that where the 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. According to Section 10, any condition restraining the transferee the right of alienation is void. Now, we’ll analysis provision of section 13 of TPA. Section 13: Transfer for benefit of an unborn person Where, on a transfer of property, an interest therein is created for the benefit of a person not in existence at the date of the transfer, subject to a prior interest created by the same transfer, the interest created for the benefit of such person shall not take effect unless it extends to the whole of the remaining interest of the transferor in the property. Illustration A transfers property of which he is the owner to B in trust for A and his intended wife successively for their lives, and, after the death of the survivor, for the eldest son of the intended marriage for life, and after his death for A’s second son. The interest so created for the benefit of the eldest son does not take effect because it does not extend to the whole of A’s remaining interest in the property. A perusal of the gift indicates that Manuswamappa gifted the immovable property to his grandson, N. Revana. The gift was not in favour of an unborn person rather gift was in favour of N. Revana who was a minor, five years old. The reference of done and his younger brothers or their male children was made while enumerating the conditions as contained in the gift deed. The conditions as contained in the gift deed. The condition was put on the done and his younger brothers who may be born after the execution of the gift deed. The condition put on the person unborn is entirely different from the execution of gift deed in favour of a person who is not born. Thus, the gift was clearly a gift in favour of defendant No. 1 and not in favour of the unborn person, thus, Section 13 has no application in the facts of the present case. Thus, the apex court set aside the order of High Court and decided in favour of defendants.