SRIDHAR v. N. REVANNA INSC 155

Case name: Sridhar & Anr. v. N. Revanna & Ors. Decided in year 2020

Facts In 1957, Muniswamappa had given a piece of land by a gift deed to his grandson N. Revanna. Such gift deed consisted of a proviso that he shall not be entitled to alienate or transfer that particular piece of land. Meanwhile in 1985, third parties purchased such lands from the son. Subsequently, Revanna's sons Sridhar and another filed a case claiming the sales were illegal as the gift deed prohibited transfer. They argue that the property is still in their name because their father went against the tenets of the deed.

Issue: Can a gift deed contain a condition that entirely prevents the donee (recipient of the gift) from selling or transferring the property, or is such a condition null and void under Section 10 of the Transfer of Property Act, 1882?

Decision: The Supreme Court ruled in favor of the respondents, who were the buyers. It upheld the validity of the sales executed by Revanna. Reasoning for Majority Judgment The Court explained that Section 10 of the Transfer of Property Act declares any condition in a transfer document by which the whole benefit of the right granted by the transfer is taken away from the receiver as being void. The restriction in the gift deed, thereby stopping Revanna to sale of the property was void in law. Thus, Revanna had the right to sell and the sales were perfect.

Dissenting Opinion Reasoning: There was no dissenting opinion in this case

Impact of the case: This case clarified that absolute restrictions on selling or transferring property in a gift deed are void. It emphasized that once a property is gifted, the donee has complete ownership and can transfer it freely, reinforcing the principle of free transferability of property under Indian law.

Citation: Sridhar v. N. Revanna, (2020) INSC 155 (India).