Kokilambal and Ors. v. N. Raman

Quick Summary

This case settles a simple but important point: did the nephew, Varadan, get full ownership during the aunt’s life, or only after her death?

The Supreme Court said the deeds gave Varadan contingent rights that would vest only after Kokilambal’s death. Because Varadan died earlier, nothing vested in him. So, she could revoke the deeds and settle the properties afresh. The appeal was allowed.

Issues

• Whether the settlement deed created a vested interest in favour of Varadan during the settlor’s lifetime or only upon her death.
• Whether the settlor, Kokilambal, could revoke the deeds and make fresh settlements after Varadan’s death.

Rules

• If the deed keeps control with the settlor or makes ownership depend on a future event, the beneficiary does not get absolute rights.
• A contingent interest arises only if the stated future event occurs.
• The settlor’s intention must be read from the deed as a whole.

Facts (Timeline)

Arguments

Judgment

The Supreme Court allowed the appeal.

• The deeds clearly stated that full ownership would pass only after the settlor’s death. So Varadan had no absolute title during her life.
• Because Varadan died earlier, the contingency did not occur. The deeds did not vest the property in him.
• Kokilambal was free to revoke and execute fresh settlements, which stand upheld.

Ratio Decidendi

Read the deed as a whole. Clauses that postpone vesting till the settlor’s death and require joint consent for alienation show a contingent interest, not a present vested transfer. Predeceasing the settlor defeats the contingency.

Why It Matters

• Helps drafters avoid confusion between vested and contingent interests.
• Shows that control clauses (joint consent, life enjoyment) can keep ownership with the settlor till death.
• Guides families on the effect of a beneficiary dying before vesting.

Key Takeaways

1. State vesting time in plain words—“title passes on the settlor’s death”.
2. If joint consent or control remains, it likely points to a contingent interest.
3. If the beneficiary dies first, the settlement may fail; revocation becomes possible.

Mnemonic + 3-Step Hook

Mnemonic: “DIE–CONSENT–VEST”

• Die: Vesting waits till settlor’s death.
• Consent: Joint consent = control with settlor.
• Vest: If beneficiary dies first, no vest.

IRAC Outline

Glossary

Vested Interest

Right is fixed now, though enjoyment may be later.

Contingent Interest

Right depends on a future event; if the event fails, the right fails.

Revocation

Calling back a deed before rights finally vest.

FAQs

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