x executes a registered gift deed of seven villages to his daughter Y and delivers immediate possession of four villages to Y. As regards the remaining three villages, X inserts a condition that she would retain possession and enjoy profits thereof during her life-time but she could not have right to transfer to anyone else. Is the entire gift valid? Or is it partially valid? Decide.
In the case of the hindu law of gifts, the donor can reserve the usufruct of the property to himself and such a gift is valid. Reserving the usufruct of the property to himself for life does not invalidate a gift of property.
In the given problem, the gift is valid for all the seven villages, because X (the donor) has an intention to effect a transfer of the proprietary interest in all the seven villages and to vest the same in Y, the donee. The reservation of the right to enjoy the usufruct on the three villages during the lifetime of Y, does not make the gift invalid as to the three villages. So, the entire gift is valid.