Gift under Transfer of Property Act
Gift under the Transfer of Property Act, 1882
1. Definition of Gift
The term “Gift” is specifically defined under Section 122 of the Transfer of Property Act, 1882.
Section 122: "A transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee is called a gift."
2. Essentials of a Valid Gift
For a gift to be valid under the Act, the following essentials must be satisfied:
a. Transfer of Existing Property
The subject of the gift must be an existing property—either movable or immovable.
Property must be transferable.
Property which is future or contingent cannot be gifted.
b. Voluntary Transfer Without Consideration
The transfer must be voluntary and without consideration (no exchange of money or other benefits).
If the transfer is made for a consideration, it is not a gift but a sale or exchange.
c. Donor and Donee
The donor must be competent to contract (i.e., of sound mind and major).
The donee must be capable of accepting the gift.
d. Acceptance by Donee
The gift must be accepted by the donee during the lifetime of the donor.
Acceptance can be express or implied.
Without acceptance, the gift is not complete.
e. Delivery of Possession
In the case of movable property, delivery of possession to the donee is necessary.
For immovable property, the gift must be registered as per the Registration Act, 1908 (Section 123 of the Transfer of Property Act).
3. Types of Gifts
Inter vivos Gift: Gift made during the lifetime of the donor.
Gift by Will (Testamentary Gift): Not covered under Transfer of Property Act but under the Indian Succession Act.
4. Mode of Gift
Movable Property: Delivery of possession is essential.
Immovable Property: The gift must be made by a registered instrument and must be accepted by the donee.
5. Revocation of Gift
A gift once completed cannot be revoked unless the donor conditions the gift to be revocable.
The gift becomes irrevocable once acceptance and delivery are complete.
Relevant Case Laws on Gift
1. Krishna Ramchandra Mahale v. Shantabai Mahale, AIR 1959 SC 820
Held that the acceptance of gift by the donee is necessary for completion of gift.
Without acceptance, the transfer is incomplete.
2. Nair Service Society Ltd. v. K.C. Alexander, AIR 1968 SC 1161
Distinguished gift from other forms of transfer by emphasizing the absence of consideration.
The transaction must be voluntary and without consideration.
3. Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana, AIR 1968 SC 889
Reinforced the requirement of registration of immovable property gift for validity.
Any transfer of immovable property without registration is void as per the Registration Act.
4. Sardar Singh v. State of Punjab, AIR 1967 SC 63
Gift must be complete with acceptance; mere intention to gift is not enough.
Delivery of possession or acceptance is vital.
5. Vinod Seth v. Dr. Satish Rattan, AIR 1983 SC 139
Recognized that acceptance of gift can be implied from conduct.
Summary Table
| Essential Element | Explanation |
|---|---|
| Transfer of property | Must be existing movable or immovable property. |
| Voluntary and without consideration | Transfer must be gratuitous, no money involved. |
| Competent Donor | Donor must be of sound mind and major. |
| Acceptance by Donee | Must be accepted during donor’s lifetime. |
| Delivery or Registration | Movable: delivery; Immovable: registered instrument. |
Conclusion
The gift under the Transfer of Property Act is a gratuitous transfer of existing movable or immovable property by a donor to a donee, voluntarily and without consideration, and accepted by the donee during the donor’s lifetime. The law ensures that gifts are genuine transfers and protects against fraud or coercion by requiring acceptance and, in case of immovable property, registration.
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