• CHS not transferring Share Certificate because of Conditional Gift Deed

Context:
I am the only daughter of my widowed father. My father (Donor) gifted me (Donee) a property(Flat) out of natural love since he is 75+. However, considering his safety we added a condition which states that "it has been mutually agreed by the said Donor and the said Donee that the Donor will have an absolute right to occupy and enjoy the said premises during his lifetime".The gift deed has been executed and duly executed before/by Sub-Registrar of Assurance of Mumbai District. It has been 3+ months since I have applied for transfer of share certificate, The society is not willing to do so stating this condition is invalid and contradictory and has stopped responding to me. 

My Questions:
1) Does the above condition make the gift deed invalid?
2) Can society object to transferring Share Certificate in this case to Donee?
3) If the answer to (2) is No, how can I take legal action against this?
Asked 4 years ago in Property Law
Religion: Hindu

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8 Answers

1) gift deed is valid 

 

2) society should not object to transfer 

 

3) issue legal notice to society to transfer share certificate in your name 

 

4) complain to registrar against society 

Ajay Sethi
Advocate, Mumbai
96719 Answers
7798 Consultations

  1. The condition stated in the gift deed doesn't make it invalid. It's a perfectly valid gift deed. 
  2. The society is under legal obligation to transfer the share certificate, according to the gift deed. The society  has committed a legal wrong by objecting to such a transfer  
  3. Yes. You can and must take legal action. You have to sue the society before the cooperative court or the consumer court. 
  4. Which of the two options adviced in 3 is most suitable in your case can be adviced only after an exhaustive consultation session with you. You need to visit me for that. 
  5. I'm willing not just to advice, but also to take charge of the appropriate litigation as your counsel (lawyer). I'm based in Mumbai /NaviMumbai just as you are; hence it shouldn't be much difficult for you to visit me for exhaustive consultation. 
  6. ९८२०८९७८८४. (Nine eight two zero eight nine seven eight eight four) 

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1570 Answers
5 Consultations

1. A conditional gift deed is invalid. 

A conditional gift is where the gift deed turns invalid if a certain condition which, had to be fulfilled was not. Conditions have to be made before or at the time of making the gift; it cannot be added later.

A condition has to be uncertain or something that is not in the control of the donor. However, a conditional gift where the donor has complete control over the condition is void.

Certain legal conditions to be taken care while preparing the gift deed:

  • There should be a complete absence of monetary compensation while giving a gift. When there is money or something of equal value given in return for receiving a gift it becomes an exchange.
  • A gift must be given by the donor to the donee without undue influence, fraud or coercion. It should be given through the sheer will of the donor.
  • A gift has to be existing movable or immovable property. It cannot be something that will be transferred to the donor in the future.
  • A gift can be absolute or limited. An absolute gift is the complete transfer of the property to the donee. He can do whatever he wants to with the property. However, limited rights only create a life interest. The property will go back to the heirs of the donor after the death of the donee. So, the donee only has the right to enjoy the property he may not sell it or destroy it.
  • The donor must not simply execute the gift deed but must have the intention to gift the property. The deed must be executed voluntarily and with the intention to transfer the property.

2.  The society can object to the invalid gift deed and can even refuse to transfer the share certificate in favor of donee when the donee do not acquire the proeprty at all during the lifetime of the donor.

 

3. The answer is yes, for the reasons given therein. 

T Kalaiselvan
Advocate, Vellore
86915 Answers
2331 Consultations

My Questions:
1) Does the above condition make the gift deed invalid?
ANSWER: The Gift Deed condition is PERFECTLY Legal, more so specifically since "Conditional Gift Deed" is permitted under the provisions of Transfer of Property Act.

2) Can society object to transferring Share Certificate in this case to Donee?
ANSWER: The Society has no legal jurisdiction to challenge or object to the above conditional Gift Deed. The Society is legally bound to transfer membership to the Donee.

3) If the answer to (2) is No, how can I take legal action against this?
ANSWER: Two options. Apply to the Deputy Registrar of your ward, by following due procedures of law and request for directions to transfer membership in favor of donee.
File grievance petition before the local Consumer Court against the Society and seek directions to the Society and also claim compensation and damages to the physical & mental trauma the donee has to undergo due to Society's refusal.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

1. No. The condition is perfectly valid

2. No

3. Apply to registrar of co-operative housing society. There is a provision of deemed membership if society does not respond to the notice of the registrar within the notice period stated in his notice

Yusuf Rampurawala
Advocate, Mumbai
7658 Answers
79 Consultations

1. Gift Deed takes effect immediately and gets transferred in the name of Donee from Donor. In other words, the transfer of property from the Donor to the Donee happens immediately during the lifetime of the Donor itself,  subject to the Donee accepting the gift. Hence the condition of " The Donor will have absolute right to occupy and enjoy the said premises during his lifetime" is invalid and contradictory to the very essence of Gift Deed.

2.  The society is legally right in objecting to the transfer of Share Certificate to the Donee.

3.   In the instant case, the Donor of the property should have executed a WILL favouring his daughter and should not have executed Gift Deed the way it is, when he had the option to execute a WILL, thereby after his death his daughter would have become absolute owner of the property.

4.  Now also, this mistake can be corrected by either cancelling the Gift Deed or the Donee regifting it to her father.

Shashidhar S. Sastry
Advocate, Bangalore
5378 Answers
329 Consultations

1. Society is talking nonsense. It has no locus to decide the validity of condition. The gift deed is perfectly valid as the title has passed from your father to you, whereas he has only been given the right to reside in the property.

2. The remedy in your hands is to file a suit for mandatory injunction against society in the civil court to direct it to issue the share certificate and also seek damages for mental agony.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

1. No. 

2. You can file a complaint to dy registrar and later file appeal under 23(2) of MCS Act

Prashant Nayak
Advocate, Mumbai
32366 Answers
199 Consultations

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