Gifts, kinds of gifts, onerous gifts, universal donee, parties to gifts, case laws, illustrations, when can a gift be revoked

1. GIFT

2. DEFINITION
• Section 122 of TPA defines gift as,
“Gift is the 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.
Acceptance when to be made- Such acceptance
must be made during the life time of the donor and
while he is still capable of giving. If the donee dies
before acceptance, the gift is void.

3. KEY INGREDIENTS OF
VALID GIFT
 It shall be inter vivos (between living
people) of existing movable or
immovable property,
 Shall be made voluntarily,
 Without consideration,
 By the donor to the donee
 In case of immovable property it shall
be registered, in case of movable
property the possession shall be
delivered,

4. ACCEPTANCE WHEN TO BE MADE
• A transfer of gift is completed only when it is accepted by the donee.
• This acceptance shall be made:
1. During the life time of donor,
2. While donor is still capable of giving,
3. Gift is void if the donor dies before acceptance thereof by the donee.

5. VOID GIFTS
Gift made to several persons of whom one does not accepts-
When a gift is made to several persons, to two or more donees, of
whom one does not accept it, is void as per section 125 of the TPA.
Gift of a future property- A gift made of a property that
does not exists while making it is said to be a void gift as
per section 124 of the TPA.

6. ONEROUS GIFTS
• Onerous gifts refers to the gifts which are a liability
than assets.
• The term onerous means burdened.
• Thus a property on which the liabilities exceed the
benefits of such property is called as onerous gifts.
• It is in the hands of the donee to reject such types of
gifts.

7. CONCEPT OF UNIVERSAL DONEE
Concept of universal donee is not recognised in English law, in Hindu law it is called as ‘sanyasi’.
When a donor transfers all of his property to a donee, without keeping anything to himself then such
a donee is called as a universal donee.
In such a transfer, the donee is liable towards all the debts of the donor. However, the donee is liable
towards the debts accounting towards the amount of the property.
If such a universal donee is a minor then he can not be made liable until he attains majority, upon
which he will be given a choice to either accept such a gift or reject it.

8. EXCEPTIONS TO THIS CHAPTER
This entire topic of gifts as given under the transfer of
property act, does not deals with the following:
• Donation mortis cause of movable property- it exempts all gifts of
movable property made in contemplation of death.
• Gifts made under Mohammedan law- Under Mohammedan law,
the gift of an immovable property is valid and hence nothing
provided under this section pertaining to gifts of immovable
property is applicable to them.

9. CASE LAWS-
• Renikuntla Rajamma v. K. Sarwanamma that the mere fact that the donor retained the
right to use the property during her lifetime did not affect the transfer of ownership of
the property from herself to the donee as the gift was registered and accepted by the
donee.
• Gomtibai v. Mattulal, it was held by the Supreme Court that in the absence of written
instrument executed by the donor, attestation by two witnesses, registration of the
instrument and acceptance thereof by the donee, the gift of immovable property is
incomplete.

10. ILLUSTRATIONS-
• “A” transfer two gift shares X and Y to “B” in a single
transfer. X is the share of prosperous company and Y is
share of sinking company. B refuses to accept gift Y. So B
cannot take X gift also.
• a) A gives a field to B, reserving to himself, with B’s assent,
the right to take back the field in case B and his
descendants die before A. B dies without descendants in A’s
lifetime. A may take back the field.
• (b) A gives a lakh of rupees to B, reserving to himself, with
B’s assent, the right to take back at pleasure Rs. 10,000 out
of the lakh. The gift holds goods as to Rs. 90,000, but is void
as to Rs. 10,000, which continue to belong to

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