Report No. 110
Gifts in Contemplation of Death (Section 191)
Gifts in contemplation of death constitute a subject analogous to the law of succession and are governed by the detailed provisions laid down in section 191.
32.2. Section 191.- Section 191 reads as under:-
"191. (1) A man may dispose, by gift made in contemplation of death, of any movable property which he could dispose of by will.
(2) A gift is said to be made in contemplation of death where a man, who is ill and expects to die shortly of his illness, delivers to another the possession of any moveable property to keep as a gift in case the donor shall die of that illness.
(3) Such a gift may be resumed by the given and shall not take effect if he recovers from the illness during which it was made; nor if he survives the person to whom it was made.
(i) A, being ill, and in expectation of death, delivers to B, to be retained by him in case of A's death-
a bond granted by C to A;
a bank note:
a promissory-note of the Central Government endorsed in blank;
a bill of exchange endorsed in blank; certain mortgage-deeds.
A dies of the illness during which he delivered these articles.
B is entitled to-
the debt secured by C's bond;
the promissory note of the Central Government;
the bill of exchange;
the money secured by the mortgage-deeds.
(ii) A, being ill, and in expectation of death, delivers to B the key of a trunk or the key of a warehouse in which goods of bulk belonging to A deposited, with the intention of giving him the control over the contents of the trunk or over the deposited goods and desires him to keep them in case of A's death. A dies of the illness during which he delivered these articles. B is entitled to the trunk and its contents or to A's goods of bulk in the warehouse.
(iii) A, being ill, and in expectation of death, puts aside certain articles in separate parcels and marks upon the parcels respectively the names of B and C. The parcels are not delivered during the life of A. A dies of the illness during which he sets aside the parcels. B and C are not entitled to the contents of the parcel".
The illustrations may be thus explained.
Illustration (i) takes cases where there has been actual delivery in contemplation of death.
Illustration (ii) takes cases of constructive delivery.
Illustration (iii) is a case of no delivery.