(1.) What actually constitute a 'conditional gift' and whether the reservation of right or interest and right to encumber the property for a specified amount would make the document a conditional gift is the question came up for consideration.
(2.) The dispute involved is with respect to the construction of Ext.A1 gift deed which according to the plaintiff is a conditional gift. Ext.A1 gift deed is of the year 1963. After the expiry of 34 years, the donor cancelled the same unilaterally under Ext.B2 of the year 1997 and executed a Will, Ext.B3. The suit for partition was dismissed by the trial court, but in appeal, a preliminary decree for partition was granted.
(3.) In Ext.A1 gift, a life interest of the donor and his wife Velumbi was reserved. A right to encumber the property to an extent of Rs.200/- and Rs.100/- each was also reserved. The various clauses incorporated in Ext. A1 gift of the year 1963 includes a right given to the donee to effectuate mutation and transfer of ownership over the property from the date of its execution. A mere reservation of life interest with the donor or with the wife of donor and a right to encumber the property to a specified amount, though amounts to a condition attached with the gift, it is only a liability cast upon the subject of the gift and not a condition which would decide the validity of the gift.