T Choithram International SA v Pagarani [2000] UKPC 46 was a decision of the Judicial Committee of the Privy Council on appeal from the British Virgin Islands in relation to the vesting of trust property in a trustee.

On 17 February 1992, with people gathered at his bedside, Mr Pagarani announced he was transferring his money to a Jersey trust for his proposed philanthropic foundation.

Mr Pagarani executed the trust deed in front of three trustees (who also signed), his accountant and the First Secretary of the Indian High Commission.

Those present testified that Mr Pagarani made an immediate absolute gift to the Foundation of all his shareholdings and credit balances in four British Virgin Island companies.

[3] Moreover, the court will not give a benevolent construction so as to treat ineffective words of outright gift as taking effect as if the donor had declared himself a trustee for the donee, see Milroy v Lord (1862) 4 De G F & J 264.

Suggestions have also been made to the effect that the Privy Council was prepared to bend the law to prevent the intention of the donor being frustrated, and the charitable foundation losing such a large bequest.

The logic behind the decision is slightly fuzzy, relying more upon notions of fairness than legal rules, and it has been questioned in some quarters whether it would be followed in similar less clear cut circumstances.

One commentator has suggested politely that in the decision "the courts are not entirely consistent with their message in relation to equity's power to perfect imperfect gifts".

This he hoped to achieve by setting up a foundation to serve as an umbrella organisation for those charities which he had already established and which would in due course be the vehicle to receive most of his assets when he died.