Gift under Transfer of Property Act: Can Property Be Transferred as Gift?

Gift under TPA
Gift under Transfer of Property Act

Sections 122 to 129 of the Transfer of Property Act deals with laws of gifts inter vivos.

A gift is basically a transfer without any consideration. It is an act of the giver, which should not be merely done:

  1. In obedience to any legal obligation, nor
  2. To place done under any legal obligation.

The donee cannot be made to return such a gift as he did not demand it; it is a voluntary transfer of property ownership in favor of another person. Black’s Law Dictionary defines a gift as a voluntary transfer of personal property without consideration or compensation.

Section 122 defines Gift

It says that a gift is a transfer of certain

  • Existing movable and immovable property
  • made voluntarily and
  • without consideration,
  • from one person to another person also known as Donee, and
  • accepted by or on behalf of Donee

Such acceptance needs to be made during the lifetime of the donor. And if he dies before any acceptance is made, then such a gift will be considered void.

Essentials of a valid Gift

Section 122, along with Sections 123, 124, and 125, mentions the essentials of a gift:

  • Transfer of ownership of movable or immovable property should be there.

Case: Hari Singh v. Bishanlal

In this case, the property was gifted to a temple with a condition imposed on it that the office bearers could not alienate the property but could only use the income for temple purposes. In this case, the court held that such a gift is valid and declared that the alienation of property is illegal.

  • Gifted property should be in existence at the time when it is gifted.

Case: Munnilal Mahto v. Chandeshar Mahto

In this case, the gift of a share in coparcenary was given to the Donee without another coparcener’s consent. The court, in this case, decided that the gift be upheld.

  • The transfer made must be without any consideration.
  • A competent person should be a donor.

Note: A minor cannot make a gift.

  • The Donee should be a living person for transfer to be valid.

Case: Tila Bewa’s Case

The lordships did not find any condition attached, which could make the gift revocable. They held that to look after the defendant was only the donor’s wish and not a condition. The donor can revoke or cancel the gift on the non-fulfillment of it.

  • The acceptance of the gift should be done by the Donee himself or by any other person on his/her behalf.
  • The acceptance should be made only when the Donor is alive.
  • A registered document should be present for the transfer of immovable property.
  • The document needs to be signed by the Donor himself.
  • The document needs to be attested by two witnesses.

The gifted property must be transferable under Section 6 of the Transfer of Property Act.

Read More:  Transfer of Benefits: An Unborn Person

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