A condition of a gift deed restricting alienation of property by the donee is hit by Section 10 of Transfer of Property Act, 1882 and is void

The Supreme Court in the matter of Sridhar vs. N. Revanna in Civil Appeal No. 1209 of 2020 decided on 11.02.2020 reinforced that no condition can be imposed absolutely on the right of a transferee to alienate his interest in the property.
Facts
One Shri Muniswamappa was the great grandfather of the plaintiffs and grandfather of defendant No.1. Shri Muniswamappa executed a gift deed in favour of defendant No.1, N. Revanna. The Defendant No. 1 transferred the property by way of sale to Defendant No. 2- 5.
The plaintiffs filed a suit against the defendants seeking declaration that the sale in favour of Defendant No. 2 to 5 by Defendant No. 1 was void. The Plaintiffs relied on a condition stipulated in the gift deed executed by their great-grandfather which stated that Defendant No. 1 – N. Revanna hereafter had no right to alienate the suit property. The Plaintiffs contended that Defendant No. 1 only had a life stake in the suit property and he could not have executed sale deeds in favour of Defendant Nos. 2 to 5. The Defendant No. 1 supported the case of the Plaintiff and contended that he was in dire need of money and was unaware of any legal impediment upon alienating the suit property.
On the other hand, the Defendant Nos. 2- 5 contended that the gift deed in favour of Defendant No. 1 was a valid gift deed and the condition limiting the right of the Defendant No. 1 to alienate the property, was a void condition.
The trial court dismissed the suit and recorded that the condition in the gift deed that the donee shall not be eligible to alienate the property was void and defendant No.1 has validly executed the sale deeds in favour of defendant Nos.2 to 5. In first appeal, the High Court took a contrary view that the above condition of the gift deed was not void however, the High Court did not annul the sale deed rather granted limited relief to the plaintiffs that the plaintiffs are entitled to receive back the consideration which was received by defendant No.1 by execution of sale deeds.
Issue
Whether a condition restricting the right of the done to alienate the property is good in law

Ratio
Upon scrutiny of the contents of the gift deed, the Supreme Court observed that the gift deed in favour of the donor was absolute.
The Supreme Court relying on Section 10 of the Transfer of Property Act, 1882 held that any condition restraining the transferee the right of alienation is void. A plain reading of Section 10 of Transfer of Property Act makes it clear that the condition in the gift deed that defendant No. 1 shall not alienate the property is a void condition.