Rambaran Prasad v Ram Mohit Hazra

Facts

• Donor gifted property to donee with a condition: "The donee shall not transfer or alienate the property at any time"
• Donee later attempted to sell; donor's heirs challenged the sale relying on the condition
• Question: whether the restraint was valid

Issue

1. Whether a condition absolutely prohibiting alienation, attached to a gift of property, is valid under S.27 of the Transfer of Property Act.

Held

• The condition is void under S.27. A total prohibition on alienation is repugnant to the nature of the absolute estate conferred by the gift. The donee takes the property free of the restraint and can alienate at will.

Ratio Decidendi

S.27 strikes down any condition that absolutely restrains the transferee from parting with or disposing of the property. The transferee receives absolute ownership; a condition negating the power to alienate is inconsistent with that ownership and therefore void.