All India Bar Examination (AIBE) 2-II Previous Year Question Papers with Answers

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77.

A makes an absolute gift of a house to B, with the direction that B shall reside in it. Which of the following statements is the most accurate application of the principle set out below ?


Principle :

Section 11 of the Transfer of Property Act, 1882, stipulates that in the event of a transfer of property where an absolute interest is created in the property by one person in favor of the other, but the terms of transfer direct that such interest be applied or enjoyed in a particular manner, the transferee may enjoy or dispose off the interest as if there is no such condition.
A: The condition is valid and B must live in the house as the house may be forfeited if he does not do so.
B: The condition is valid and B must live in the house so as to act as caretaker to A's house in the adjoining plot.
C: The condition is void because A has no right to prescribe any conditions.
D: The condition is void and B may or may not live in the house, as per his discretion.
E: The condition is void because the house is in a dilapidated condition.

The answer is: D

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Explanation

The correct option is D: The condition is void, and B may or may not live in the house, as per his discretion.

Here's the explanation:

The principle stated in Section 11 of the Transfer of Property Act, 1882, allows for the transferee to enjoy or dispose of the property as if there is no condition when an absolute interest is created in the property by one person in favor of the other, but the terms of transfer direct that such interest be applied or enjoyed in a particular manner.

In this case, A has made an absolute gift of the house to B but with the condition that B shall reside in it. However, Section 11 of the Transfer of Property Act makes it clear that when such a condition restricts the transferee's rights to a significant extent, the condition is considered void, and the transferee has the discretion to live in the house or not.

Therefore, Option D is the correct choice because the condition is void, and B is not legally obligated to live in the house as per A's direction.