TPA - Section 13

Transfer of Property Act, 1882 Section 13

Transfer for benefit can not be made in favour of unborn person

Transfer of Property Act, 1882 (IV of 1882 ) - Section 13 – Transfer for benefit can not be made in favour of unborn person - The condition put on person unborn is entirely different from execution of gift deed in favour of a person who is not born - M gifted immovable property to his grandson, N - The gift deed stated that "donee or his younger brothers who may be born hereafter shall enjoy the property during his or their life time as the case may be and on his or their demise it shall devolve on his or their male children then surviving who shall be at liberty to deal with the property mentioned in the schedule hereunder in any manner" - The condition was put on the donee and his younger brothers who may be born after the execution of the gift deed - Gift was not in favour of any unborn person rather gift was in favour of N who was a minor, five years old - The reference of donee and his younger brothers or their male children was made while enumerating the conditions as contained in the gift deed - The condition put on person unborn is entirely different from execution of gift deed in favour of a person who is not born - Thus, the gift was clearly a gift in favour of defendant No.1 and not in favour of unborn person, thus, Section 13 has no application in the facts of the present case . F.M. Devaru Ganapathi Bhat v. Prabhakar Ganapathi Bhat, (2004) 2 SCC 504, relied. #2020 SCeJ 60

Donor gifted the property in favour of the appellant, then living, and also stipulated that if other male children are later born to her brother, they shall be joint holders with the appellant. Such a stipulation is not hit by Section 13 of the Act

There is no ban on the transfer of interest in favour of an unborn person. Section 20 permits an interest being created for the benefit of an unborn person who acquires interest upon his birth. No provision has been brought to our notice which stipulates that full interest in a property cannot be created in favour of an unborn person. Section 13 has no applicability to the facts and circumstances of the present case. In the present case, the donor gifted the property in favour of the appellant, then living, and also stipulated that if other male children are later born to her brother, they shall be joint holders with the appellant. Such a stipulation is not hit by Section 13 of the Act. Creation of such a right is permissible under Section 20 of the Act. The respondent, thus, became entitled to the property on his birth.. F.M. Devaru Ganapathi Bhat v. Prabhakar Ganapathi Bhat, (2004) 2 SCC 504