Navin Chandra v. Smt. Kesharbai

Facts

• A gift deed was executed transferring property to the donee with a condition that the donee "shall never sell, mortgage, or alienate the property to anyone"
• The donee subsequently mortgaged the property
• The donor's heirs challenged the mortgage, relying on the restraint clause in the gift deed

Issue

1. Whether a condition in a gift deed absolutely prohibiting the donee from alienating the property is enforceable.

Held

• The condition is void under S.10 TPA. Any condition absolutely restraining the transferee from parting with or disposing of their interest in property is void. The donee takes the property free of the restraint and can deal with it as absolute owner.

Ratio Decidendi

S.10 TPA strikes down conditions that absolutely restrain alienation because they conflict with the very concept of ownership. Once property is transferred, the transferee becomes owner with all incidents of ownership, including the right to alienate. An absolute bar on alienation is repugnant to the nature of the estate transferred.