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GIFT - Transfer of Property Act 1882

Updated: Jul 9, 2021


Requisites of a valid gift:

Section 122 of T.P.Act defines a gift. 'It is the transfer of certain existing movable or immovable property made voluntarily and without consideration and accepted by or on behalf of the donee'.

The person who makes the gift is the donor.

The donee must accept the gift:

a) during the life time of the donor and

b) While the donor is still capable of giving the property gifted. But if the donee dies before acceptance the gift is void.

Gift of movable property may be registered or may be effected by delivery. However gift of immovable property of any value requires registration under sections 17 (a) of the Registration Act. It must be signed by the donor and must be attested by two witnesses.

  1. Gift to God Almighty may be oral or may be in writing or may be registered.

  2. A makes a gift of his jewels to B. This may be done by delivery.

  3. A makes a gift of a piece of land worth Rs.50/-. This is to be registered.

  4. The property must be existing at the time of the gift. A gift of future property is void. When a gift is made to several persons and one or more donees does not accept, then it is void respect of those who do not accept.

Revocation of gift:

(i) Conditional gifts: The fundamental rule is that 'A resumable gift is not a gift at all.' A gift once given cannot be revoked at the mere will of the donor; such a gift if made, is void ab initio. But, a conditional gift is void.A conditional gift which attaches a condition subsequent is valid if the condition is not vague or illegal or immoral or opposed to public policy or impossible of performance. Hence conditional gifts may be made.

Ex.: A gifts to B a plot of land, reserving to himself with the consent of B, to take back the plot if B or his descendants die before A. B dies without any descendants during A's life time. The condition is valid and A may take back the plot.

b) A make a gift to C, a concubine, for her continued relation ship with the donor. The condition is immoral therefore gift is void. c) A gives Rs. 1 lakh to B reserving to himself with B's consent,the right to take Rs. 25,000 at his pleasure. Gift is valid upto Rs.75,000/ - only. It is void in respect of Rs.25,000/-.

(ii) Gift made under coercion, fraud undue influence or misrepresentation may be revoked by the donor. Protection of Transferees: Transferees who take the property for consideration and without notice are protected against any prejudice that may result due to revocation by the donor.

The leading case is: Allcard Vs. Skinner A, a sister executed a gift to S, the lady superior under undue influence. Later A sued to set aside the gift. A would have won but there was too much of delay is suing. Hence, her claim was dismissed.

Onerous Gift :

Section 127 of T.P.Act deals with onerous gift. It means a single transfer made to the donee but some of the properties gifted are burdened by obligations. The donee must take the entire gift. If he accepts only to take those which are without obligations, then the gift is void. But if the gift is in two or more separate and distinct transactions, the donee may select at his liberty and refuse those which are not beneficial to him.

Eg. : A gifts in one transaction, 200 shares of X & Co. a prosperous company and also 100 shares of Y & Co. a company in difficulties. Heavy calls are expected from Y & Co. A may take the entire gift. He is a onerous donee. He cannot take the gift of the shares of X & Co. only. A minor may repudiate the onerous gift after attaining majority. Effect of Onerous gift: The donee is liable to the extent of the total gifted property in his hands.

Universal Donee:

Here a gift of the entire property of the donor is made to a donee. The donee is liable for all the debts, dues and liabilities of the donor at the time of the gift. This liability extends to the extent of the property in the hands of the donee. Such a person who takes the entire rights and liabilities is called a universal donee. Property means here movable and immovable. If A makes a gift of his immovables only and not movables to B, B is not a universal donee. The universal donee is liable only to the extent of the immovable and movable property comprised in the gift. The liability is with reference to the tune of gift by the donor, that is universal donee is not liable for debts & liabilities incurred by the donor after the universal gift is made.



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