Hi
To explain to you the legal terms of your conditional sale as pathway , a brief introduction is required to be provided in to some thing called Easement and Easementry Rights.
The word Easement stands for the right to use another’s property. It is a right, which the owner of a particular land enjoys over an adjacent property, which he does not possess. It is the right over a property belonging to someone else and not to the person claiming easement.
The landowner who gets the benefit from the property which is not his own and over which he has a right is called dominant heritage or dominant tenement and the owner of such a land is called the dominant owner. Dominant because the owner has control over the use of that particular land which he does not possess.
Here the property of the actual landowner who cannot object to the other using his land is called servient heritage or servient tenement and the owner of such a land is called servient owner. Servient or subordinate because he has to abide by the requirements and convenience of the dominant owner. In fact, whether he likes it or not, it is a burden brought to bear on him by grant, by custom or by prescription.
X owns a piece of land. Y has the right of way over it. Here X is the servient owner and has the servient heritage. Y is the dominant owner and he has the dominant heritage.
X cannot sell the property to any person without consent of Y. In your case, X has to sell only with your(Y) Consent.
So file a suit restraining X and the municipality from effecting a Gift deed as your rights are getting trampled. The courts shall give you interim orders in your favour and also issue notices to other side.
No worries.
Hope this helps.