Section 191 of ISA : Section 191: Property Transferable By Gift Made In Contemplation Of Death

Explanation using Example

Imagine John, an elderly man, who is diagnosed with a terminal illness. Believing that he might not survive, he decides to give his cherished wristwatch to his nephew, Mark. John hands over the watch to Mark, expressing that it should be his to keep if John passes away from his current illness.

However, John's health takes a surprising turn for the better and he recovers fully. Since the gift of the wristwatch was made in contemplation of death, and John survived the illness, the gift does not take effect. John is entitled to ask for the watch back from Mark.

If, on the other hand, John had not recovered and had passed away due to the illness, Mark would legally become the owner of the wristwatch, as per the provisions of Section 191 of The Indian Succession Act, 1925.