There is a provision under section 191 of the Indian Succession Act wherein, a man may dispose, by gift made in contemplation of death, of any movable property which he could dispose of by Will.
The requirements of a gift in contemplation of death as laid down by Section 191 are:
- The gift must be of movable property
- It must be made in contemplation of death
- The donor must be ill and he expects to die shortly of the illness
- Possession of the property should be delivered to the donee and
- The gift does not take effect if the donor recovers from the illness or the donee predeceases the donor.
Example:
1) A being ill and in expectation of death, delivers to B, to be retained by him in case of A's death – a watch, 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 and certain mortgage deeds. A dies of the illness during which he delivered these articles. B is entitled to the watch, the debt secured by C's bond, the bank note, the promissory note of the Central Government, the bill of exchange and the money secured by the mortgage deeds.
2) A being ill and in expectation of death, puts aside certain articles in separate parcel 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 set aside the parcels. B and C are not entitled to the contents of the parcels.