Transfer of Property Act

4th
Sem
Transfer of Property
Act, 1882
Sections-122 and 123
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.
Aditya Dassaur & Prinkle singla

Roll nos-206/10 & 207/10
4th Sem
Page |2
ACKNOWLEDGEMENT
I would like to thank my Property Law teacher, for giving me an opportunity to

work on this project. Without her support and cooperation, this project would
not have been possible. I would also like to thank the library staff for making
available the books required. In the end, I also want to thank my family and
friends for their support.
INTRODUCTION
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Section 122. Gift defined- Gift is the transfer of certain existing movable
and 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 may be made during the
lifetime of the donor and while he is still capable of giving.
If the donee dies before acceptance, the gift is void.
GIFTS
Gift is transfer of ownership without consideration. Transfer without
consideration is called a gratuitous transfer. A gratuitous transfer may take place
between two living persons or, it may take place only after the death of the
transferor. Gift may, therefore, be either inter vivos or, testamentary. Gift inter
vivos is gratuitous transfer of ownership between two living persons and is a
transfer of property within the meaning of section 5 of this act. Gift
testamentary is called a will which is transfer by operation of law and is outside
the scope of this act. A gift made during apprehension of death is called a gift
mortis causa. Such gifts are also excluded from the chapter. The provisions of
this act are applicable only to gifts inter vivos.
Definition of Gift- Section 122 defines gift as under:
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Gift is the transfer of certain existing movable and 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.
Gift, as defined in this section, is gratuitous transfer of ownership in some
existing property made voluntarily. The definition includes gift of both movable
as well as immovable property. The transferor is called donor and the transferee
is called donee.
Donor- Donor must be a competent person. For competency, the donor must
have capacity as well as right to make the gift. If the donor has the capacity to
contract, he is deemed to have the capacity to make a gift. Thus, at the time of
gift, the donor must be of the age of majority and must have a sound mind. Gift
by minor or an insane person is void. Juristic persons, such as, registered
societies or firms or institutions are also competent to make gift. Besides
capacity, donor must have ownership rights in the property at the time of gift.
Donee- Donee need not be competent to contract. Donee may be any person in
existence at the date of making of gift. A gift made to minor or insane person or
in favour of a child in mothers womb is valid provided it is lawfully accepted
by a competent person on his/her behalf. Donee too may be a juristic person.
Juristic persons, such as firms, companies or institutions are deemed to be
competent done and gift made to them is valid. However, done must be an
ascertainable person. Gift made to public in general is void. If ascertainable,
done may be two or more persons.
ESSENTIAL ELEMENTS OF A GIFT

Essential elements of a valid gift are given below:
There must be transfer of ownership.
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The property must be existing property.

Transfer is without consideration.
Gift must be accepted by transferee.
I.
Transfer of Ownership- Gift is transfer of ownership, i.e, absolute

interest. The transferor (donor) must divest himself of the absolute
interest in the property and vest in the transferee (donee). The donor must
intend to pass on all the rights and liabilities I respect of property to
donee. Nothing less than ownership may be transferred by way of a gift.
However, like other transfers, gift may also be made subject to certain
conditions. But, conditional gift must not be against any of the provisions
laid down under sections 10 to 34 of this act.
II.
Existing Property- The property, which is the subject matter of gift, may
either be movable or immovable. It may be tangible or intangible.
Actionable claims or mortgages are tangible properties and may be gifted.
Property may be of any kind but two conditions are necessary. Firstly, the
property must be in existence at the date of making of the gift. Gift of
future property is void. Where the sale of a house in favour of A is
completed on 5th October, 1993 the gift to B is void. Since on the date of
gift A himself was not the owner of that house, the gift is void. Secondly,
the property must be transferable within the meaning of section 5 of this
act. Gift of spes-successionis or mere chance of inheriting property or
mere right to sue, is void. In Damodaran Kavirajan v. T.D .Rajappan1, a
mother settled her properties by way of gift in favour of a son for settling
dispute between family only for consideration that the son relinquished
his right to future shares in the property left by her. Kerala High court
held that the deed was not a gift because it purported to transfer a share to
be received by son in future.
AIR 1992 Ker 397
Page |6
III.
No Consideration- An essential feature of a gift is that it must be

gratuitous. Ownership must be transferred without any consideration. The
value of consideration is immaterial. Even a negligible property or, very
small sum of money given by transferee in consideration of a transfer of
ownership in a big property would make the transaction either a sale or
exchange. The word consideration has the same meaning as given in
section 2(d) of the Indian Contract Act. It must be a pecuniary
consideration, i.e, it must be valued in terms of money or property.
Mutual love and affection is not a pecuniary consideration. Property
transferred I consideration of love and affection is a transfer without
consideration, hence a gift. A gift deed was executed by a mother in
favour of her only daughter and the daughter promised to look after and
maintain the mother during her life. It was held by the court that the gift
was made on account of natural love and affection and not in
consideration of the promise made by the daughter 2 . A transfer of
property made in consideration of services rendered by done is a gift. A
property transferred in consideration of donee undertaking the liability of
donor is not gratuitous, therefore, it is not a gift.
IV.
Voluntarily- The donor must make the gift voluntarily. voluntarily

here means that donor has made the gift in exercise of his own free will
and his consent is a free consent. His consent is free when he has the
freedom of making gift, without any force, fraud, coercion or undue
influence. The donor must have and independent and free will in
executing the deed of gift. Where coercion or undue influence has been
exercised on the donor, it cannot be said that the gift was made
Munni Devi v. Chhoti, AIR 1983 All 444
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voluntarily. Voluntary act on the part of the donor also means to suggest
that the donor has executed the gift deed in full knowledge of
circumstances and nature of the transaction. Where a gift is made by a
purdanashin lady who mostly remains inside the house, it must be
established beyond reasonable doubt that she executed the gift deed
voluntarily. The burden of proving that the gift was made voluntarily with
free consent of the donor, lies on the donee3. The donor was old, illiterate
and ailing lady. The donee was her collateral. He was the dominant party
and was able to exercise active influence. The woman deposed that she
was taken to the house of the donee and dhooni was given to her there to
ward off an evil spirit. At that time two gift deeds were executed by
taking her signatures under the pretext that she was signing her pension
papers. As soon as she came to know, she took action challenging the gift
deeds. The court held that it could not be said that she had executed the
gift deeds voluntarily. She was positively acting under influence and had
no independent advice. The deeds were set aside4.
V.
Acceptance of Gift- Gift must be accepted by the done. Property cannot

be given to a person even in gift against his/her consent. The done may
refuse the gift, e.g, when it is non-beneficial property or of the title deeds,
there is acceptance of the gift. Where property is on lease, acceptance
may be inferred upon the acceptance of the right to collect rents.
However, when the property is jointly enjoyed by donor and donee, mere
possession cannot be treated as evidence of acceptance. When the gift is
not onerous, a slight evidence is sufficient to prove that the gift has been
3
4
Ajmer Singh v. Atma Singh, AIR 1985 P&H 315.

Surjit Singh v. Bimla Devi, AIR 2008 NOC 969 (HP)
Page |8
accepted by donee. Mere silence of the donee is indicative of acceptance

provided it can be established that the donee had knowledge of the gift
being made in his favour5.
The last paragraph of this section provides that id donee dies before
acceptance, the gift is void.
Condition attached to gift- A condition was was attached to the gift that the
donee would serve donor till his life time. The donee complied which the
condition till the time of the donors demise. The gift became absolute. The
legal heirs were not allowed to claim the property on the ground that service
in favour of legal heirs was not continued6.
Section 123. Transfer how effected- For the purpose of making a gift of
immovable property, the transfer must be effected by a registered instrument
signed by or on behalf of the donor, and attested by atleast two witnesses.
For the purpose of making a gift of movable property, the transfer may be
effected either by a registered instrument signed as aforesaid or by delivery.
Such a delivery may be made in the same way as goods sold may be delivered.
MODES OF MAKING GIFT

This section deals with formalities necessary for completion of a gift. Unless
these formalities are completed, the legal title does not pass on to the donee and
the gift is not enfoeceable at law. Section 123 lays down two modes for
effecting a gift depending on the nature of property. Registration is necessary
for the gift of immovable properties. Where the property is movable, it may be
effected by delivery of possession.
5
6
Vannathi Vallapil v. Puthiya Purayil, AIR 1986 Ker 110

Chameli v. Naresh Kumari, AIR 2010 P & H 55
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Immovable properties- A gift of immovable property must be made only

through a registered document. Irrespective of the valuation of property,
registration is necessary for the gift of an immovable property. Gift of a piece of
land valuing less than rupees one hundred must also be registered. Registration
of a document including gift deed, implies that the transaction is in writing,
signed by the executants, attested by two competent persons and duly stamped
before the registration formalities are officially completed. In Gomtibai v.
Muttulal7, theSupreme Court had held that in the absence of written instrument
executed by donor, attestation by two witnesses, registration of this instrument,
and acceptance thereof by the donee, the gift of immovable property is not
complete.
The following two points are important with regard to the requirement of
registration:
Although registration of gift of immovable property is must but, the
gift is not suspended till registration. A gift may be registered and
made enforceable at law even after the death of the donor provided
the essential conditions are fulfilled.
Where the essential conditions for a valid gift are not fulfilled,
registration shall not validate the gift.
Movable Properties- Gift of movable properties may be completed by

delivery of possession. Registration is optional; it is not compulsory.
Accordingly, gift of a movable property effected by delivery of possession
7
AIR 1997 SC 127
P a g e | 10
is valid irrespective of the valuation of property. The mode of delivering the

property to donee depends upon the nature of property8.
Actionable Claims-As defined in section 3 of this act, actionable claims are
unsecured money dbts or right to claim movabless not in possession of the
claimant. Actionable claims are beneficial interests in movable. They are,
therefore, intangible movable properties.
Gift to idol-There is a conflict in the judicial decision regarding the mode of
effecting gifts to an idol. According to the Allahabad and Patna High
Courts, gift to an idol must be made through a registered document.
Gift to minor-A widow gifted her self-acquired property by executing a gift
deed in favour of a minor. Persons who were not her heirs, cognates or
agnates were not allowed to question the disposition, the donee, being a
minor, at the time, the property was put in possession of the donees father,
and it was looked after by the father on behalf of the minor. It was held that
the father had no right to execute a will giving the property to the sons of his
second wife.
Section 33 of the sale of goods Act, 1930
P a g e | 11
BIBLIOGRAPHY
Sinha, R.K, The Transfer Of Property Act

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4th

Aditya Dassaur & Prinkle singla

I would like to thank my Property Law teacher, for giving me an opportunity to

Definition of Gift- Section 122 defines gift as under:

ESSENTIAL ELEMENTS OF A GIFT

The property must be existing property.

Transfer of Ownership- Gift is transfer of ownership, i.e, absolute

AIR 1992 Ker 397

No Consideration- An essential feature of a gift is that it must be

Voluntarily- The donor must make the gift voluntarily. voluntarily

Munni Devi v. Chhoti, AIR 1983 All 444

Acceptance of Gift- Gift must be accepted by the done. Property cannot

Ajmer Singh v. Atma Singh, AIR 1985 P&H 315.

accepted by donee. Mere silence of the donee is indicative of acceptance

MODES OF MAKING GIFT

Vannathi Vallapil v. Puthiya Purayil, AIR 1986 Ker 110

Immovable properties- A gift of immovable property must be made only

Movable Properties- Gift of movable properties may be completed by

AIR 1997 SC 127

is valid irrespective of the valuation of property. The mode of delivering the

Section 33 of the sale of goods Act, 1930

Sinha, R.K, The Transfer Of Property Act

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