GIFT – TRANSFER OF PROPERTY ACT, 1882 (SECTIONS 122 TO 129)
Definition [Section 122]
•A gift is the transfer of certain existing movable or immovable property, made
voluntarily and without consideration, by one person (donor) to another (donee) and
accepted by or on behalf of the donee.
•It is a gratuitous transfer of ownership in an existing property, done
voluntarily and without monetary consideration.
2. Nature of Gift
•Gratuitous Transfer: Transfer without consideration.
•May take place between:
•Living persons → called Gift inter vivos (covered under S.5 & S.122, TP Act).
•After death → treated as testamentary gift (will), not governed by TP Act.
•Gift Mortis Causa: Gift made in contemplation of imminent death.
3. Essentials of a Valid Gift
A valid gift must fulfill the following conditions:
1.Transfer of ownership
2.Property must be in existence (present, not future)
3.May relate to movable or immovable property
4.Must be made without consideration
5.Made voluntarily – i.e., with free consent of the donor
6.Donor must be competent – capable of making a contract [S.7]
7.Acceptance by the donee
•May be done by guardian if donee is a minor
•Must be made during the lifetime of the donor and when he is capable of
giving
•If donee dies before acceptance, the gift is void
8.Mode of transfer must comply with legal requirements
Gift of Immovable Property [Section 123]
•Must be made only through a registered deed, signed by or on behalf of the
donor, and attested by at least two competent witnesses.
•Mere oral gift or delivery of possession is not valid.
•Registration is compulsory, regardless of property value.
Gift of Movable Property
•Can be made either:
•By registered instrument, or
•By delivery of possession
•Registration is optional
Mohammedan Gifts (Hiba)
•Not governed by the TP Act, but by Mohammedan Personal Law
Essentials:
1.Declaration by donor
2.Acceptance by donee
3.Delivery of possession
•No need for written document or registration
•Provisions of Indian Stamp Act and Registration Act do not apply
Suspension or Revocation of Gift [Section 126]
A. By Agreement
•Donor and donee may agree that gift shall be revoked or suspended upon
happening of a specific event that:
•Must not depend on the will of the donor
•Must be clearly expressed and part of the same transaction
•Gift revocable at donor’s will is void.
Case Law: Mool Raj v. Jamma Devi
•Gift was made without specifying conditions for revocation
•Held: Gift was absolute and cannot be revoked
Thakur Raghunath Ji Maharaj v. Ramesh Chandra
• Gift revocable at donor’s pleasure is not valid
B. By Rescission (Like a Contract)
•Gift can be revoked on grounds under Indian Contract Act, such as:
•Coercion, undue influence, fraud, misrepresentation
•Based on S.19, Indian Contract Act
•Consent must be free – otherwise, gift is voidable.
Legal heirs may revoke on these grounds after donor’s death (within 3 years from
knowledge of the facts).
Sheel Arora v. Madan Mohan Bajaj
•Gift validly executed, cannot be unilaterally revoked by donor without
donee’s participation
Asokan v. Lakshmikutty
•Subsequent conduct of donee irrelevant once gift is completed
No Revocation on Other Grounds
•A valid gift cannot be revoked for:
•Mere regret
•Change in relations
•Donee’s later conduct
Transferee for Consideration Without Notice
•Where a gifted property is transferred by donee to a third party:
•If the third party (transferee) is a bona fide purchaser for consideration
without notice of donor’s right to revoke, donor cannot revoke the gift.
Revocation under Mohammedan Law
•A Muslim donor can revoke a gift even after delivery of possession, unless:
1.Gift between spouses
2.Gift to close blood relative (within prohibited degrees)
3.Gift for religious purposes (Sadaka)
4.Donee is dead
5.Property destroyed
6.Gift has changed form or increased in value
•Revocation after possession requires a decree from the court
Onerous Gifts [Section 127]
•Gift with obligation or burden attached to it
•Donee must accept entire gift, including burdens, or reject entirely
•Minor donee may accept during minority, but can repudiate upon majority
Principle: “He who takes the benefit must bear the burden.”
Universal Donee [Section 128]
•Donee receives entire property of donor
•Becomes liable for all debts and liabilities of donor existing at the time of gift
•Not liable for future liabilities
Deathbed Gifts (Donatio Mortis Causa)
•Gifts of movable property made in contemplation of imminent death
•Governed by Section 191, Indian Succession Act, 1925
Essentials:
•Gift made in expectation of death
•Delivery of possession (actual or symbolic)
•Becomes effective only after death
•Can be revoked if donor recovers
