No gift can be made so as to defeat the interests of a creditor or to defraud the creditor. Such a gift shall be voidable at the option of such creditors. In the same way a gift can also not be made against the interests of the persons entitled to get maintenance.
This view has come to be supported by the decision of the Supreme Court too in Ammothepi v. Kumar Sen. In Smt. Panvmm v. Chikaranagappa, Karnataka High Court has held that gift of major ancestral properties in favour of his married daughter even being for religious purposes cannot be held to be a valid gift. However if this gift is for small part only, then it could be held to be valid one.
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This view has come to be, also supported by the decision of the Supreme Court in R. Kappayee & others v. Raja Gounder, the Court held that, father can make a gift of ancestral immovable within reasonable limits. However, if a gift was not within reasonable limits, such a gift would not be upheld “as gift”.
A karta or manager of a joint Hindu family can validly give in gift a small portion of the property for religious purpose to a stranger. But the gift will not be valid if karta has given gift to a person out of kindness. Hindu law does not confer upon karta an unlimited power of gift, but it is only a limited right. The phrase ‘for religious purposes’ cannot be interpreted liberally or widely. So any gift given to a stranger out of kindness or love and affection by a karta will cease to be a valid gift.
A gift made to a person with a condition that the donee will not have any right to transfer the gifted property will be valid but such a condition shall be treated to be void.