Onerous Gifts under Transfer of Property Act
🔹 Meaning
Gift under TPA means voluntary transfer of property without consideration.
Onerous gift = A gift that gives a benefit but at the same time imposes a burden/obligation on the donee.
Governed by Section 127, TPA.
⚖️ Maxim: “Qui sentit commodum sentire debet et onus” → He who enjoys the benefit must also bear the burden.
🔹 Statutory Rule (Section 127)
Single Transfer of Several Properties
If several properties are gifted together in one transfer and one of them is burdened with an obligation, the donee cannot pick only the good part.
He must accept all or reject all.
Independent Gifts
If two or more separate and independent transfers are made, the donee may accept some and refuse others.
Donee Not Competent to Contract
If a minor or a person not competent accepts an onerous gift, he is not bound by the obligation at that time.
But once he becomes competent (attains majority) and retains the gift with knowledge of the burden, he becomes bound.
🔹 Illustrations
Composite gift: A gifts two houses to B in one deed. House 1 is free; House 2 is mortgaged. B cannot accept only House 1 and refuse House 2.
Separate gifts: A gifts land by one deed today and a car by another deed tomorrow. Land is burdened, car is not. B may accept the car and refuse the land.
Minor donee: A gifts a property to minor B subject to paying debts. B is not bound now. But if B retains it after majority knowing the burden, he is bound.
🔹 Important Case Laws
Meenakshiammal v. Ramasamy Muthiriar
Held: If an onerous gift is accepted by a competent donee, he cannot later reject the burden. Acceptance = bound by obligation.
Naresh Kumari v. Chameli (SC, 2024)
Gift imposed condition of perpetual unpaid service.
Court: Such a condition amounts to forced labour (begar) and violates Fundamental Rights.
Principle: Section 127 does not validate unconstitutional burdens.
K. Balakrishnan v. K. Kamalam
Reiterated: In a single transfer, donee must accept or reject the whole gift.
🔹 Key Points to Remember
Section 127 applies only to gifts with burden.
Acceptance is mandatory (express or implied).
Minor → not bound until majority, unless retains after knowledge.
Courts will enforce burdens only if lawful.
Burdens violating public policy or Constitution (e.g., forced labour, slavery) are void.
🔹 Conclusion
Onerous gifts ensure fairness: one cannot take the benefit and avoid the burden in a composite transfer. The law, however, protects minors and upholds constitutional limits, ensuring no obligation contrary to justice or liberty is enforced.
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