Understand the difference between gift, settlement and will in this method

Property transfer is also a kind of complex process

Property transfer in families is a sensitive issue. Any wrong decision taken in the warmth of relationships can cause legal complications in future. One such case came up in the recent Supreme Court decision N. P. Sasindaran vs. N. P. Ponnamma (2025 INSC 388).

Understand the matter from the case

In 1985, the father gave a piece of land to his daughter without taking any money. The daughter got it registered as a gift. But in 1993, the father sold the same land to his son, saying that the earlier transaction was only a will. The daughter went to court. The Supreme Court ruled that the 1985 transaction was a gift and settlement, which cannot be canceled later.

What is right in gift, settlement and will

Gift:

Unconditional and immediate transfer. Gift is defined under section 122 of the Transfer of Property Act, 1882. Free transfer without any demand for quid pro quo. Immediate ownership. Registration is mandatory for immovable property and gift cannot be revoked.

In this case, the daughter accepted the gift and got it registered, so the father cannot change it.

Settlement:

Equitable division of property. This is defined under section 2(b) of the Specific Relief Act, 1963 and section 2(q) of the Indian Stamp Act, 1899. This document is on the moral responsibility for equitable distribution of property in the family. Registration is mandatory and it cannot be cancelled unilaterally.

In this case: The father gave land to the daughter without any quid pro quo, which proves settlement.

Will:

Transfer of property after death As per Section 2(h) of the Indian Succession Act, 1925, a will comes into effect after death. A person can change it throughout his life. As per Section 63, signatures in the presence of two witnesses are required. Registration is not mandatory, but advisable.

In this case: The son claimed that the 1985 document was a will, but the Supreme Court found that it was a gift and settlement.

Why is a death certificate necessary?

A death certificate is a legal document that officially confirms the death of a person. It is necessary for transfer of property of the deceased, insurance claim, closing bank accounts, obtaining succession certificate and availing benefits of family pension and government schemes. It is also important for government records, census. It may also be needed for legal work related to funeral. To get a death certificate, information about the death has to be given to the local municipal corporation, village panchayat or health department within 21 days. For this, the identity card of the deceased, death certificate of hospital or doctor and ID of family member are required. The application process can be done online (government website) or offline (municipality/panchayat office). It is issued in 7 to 15 days.

Court's decision:

The Supreme Court ruled that the transfer of property in 1985 was a gift-settlement, not a will. Therefore, the father cannot unilaterally revoke it. The father's sale of land to the son in 1993 was illegal and the daughter got full rights to the property.

Lessons learned:

Seek proper legal advice before dividing property. Get a gift or settlement transferred immediately, while a will comes into effect after death. Do not take decisions based on emotions. Gifts or settlements cannot be revoked, so prepare documents carefully.