Authorization of Gifts under Transfer of Property Act

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A gift is a voluntary transfer of ownership when the donor transfers ownership without compensation or consideration of monetary value. In some cases, the property is involved or the parties are two living persons, or the transfer is made only after the transferor’s death. When a transfer takes place between two living people, it is said to be a mutual life, and when it takes place after the transferor’s death, it is said to be a will. Since the transfer of a will is outside the scope of Section 5 of the Property Transfer Act (Act) of 1882, this law is only relevant for the transfer between gifts of creatures.

Definition of Gift

Gifts are a form of property transfer.

Gifts are defined in Section 122 of the Act as an existing or transfer of an existing property. Such transfers must be voluntary and uncompensated. The sender is the sender and the recipient is the sender. The recipient must agree to receive the gift. In this section, gifts are defined as a free transfer of ownership of existing property. The concept includes the transfer of both immovables and immovables.

Parties to a Gift Transfer

Donor- Donors must be competent. That is, you need to have both the knowledge and the authority to donate. If the donor is legally competent, he is considered able to donate. This means that the donor must be legally competent and have reached the legal age at the time of donation. Associations, companies and companies that are registered and allowed to donate are called legal entities.

Gifts from minors or insane people are invalid. In addition to ability, donors must also have the legal right to donate. Since the gift is a transfer of ownership, the donor’s claim will be incurred from the ownership at the time of the transfer.

Donee- To contract, Donee does now no longer want to be able. He will be any residing man or woman at the time the donation is made. A present introduced to a loopy person, a minor, or maybe a toddler inside the mother`s womb is suitable if it’s miles lawfully commonplace on his or her behalf with the aid of using an able person.

Competent donees are juristic people inclusive of firms, institutions, or corporations, and presents given to them are legitimate. The donee, on the opposite hand, needed to be someone who may be identified. The trendy public’s present is null and invalid. The donee will be extra human beings if those records are available.

Essential Elements

There are the following five essentials of a valid gift:

  1. Transfer of ownership
  2. Existing property
  3. Transfer without consideration
  4. Voluntary transfer with free consent
  5. Acceptance of the gift

Transfer Of Ownership- The transferor, the donor, must transfer the entire share of the property to the Donnie acquirer. When transferring absolute profits, all rights and obligations of ownership are also transferred. To make such a transfer, the donor must be the legal owner of the relevant asset. Anything other than ownership is not transferable as a gift. However, as with any transfer, gifts may be subject to certain restrictions.

Existing Property- The gifted property may be immovable, immovable, tangible or intangible, but must be present and transferable at the time of gifting, as defined in Section 5 of the Property Transfer Act. Gifts of future property are considered invalid. Inheritance donations (expectations for success), potential inheritance, or the right to sue are invalid.

Transfer Without Consideration- A gift is a transfer of ownership of property without compensation. Also, an offer of a small asset or a small acquirer in exchange for a transfer of a large asset qualifies the transaction as a sale or exchange. In this section, the term “compensation” has the same meaning as Section 2 (d) of the Indian Contract Law.

The consideration is monetary. It’s based on money. Mutual affection is not a financial factor, so the property of exchanging affection for affection is a gift. Voluntary Transfer with Free Consent Donations must be made voluntarily. In other words, it must be done with the consent of the donor as voluntary consent.

Free consent is when the donor is completely free to donate without fear of coercion, fraud, or undue impact. The donor must be free and autonomous in carrying out the certificate of donation. The fact that the donor acted voluntarily means that he was fully aware of the terms and nature of the transaction when he signed the gift certificate. It is the responsibility of the recipient to prove that the gift was given voluntarily and with the consent of the donor.

Acceptance of Gift- The recipient must agree to receive the gift. Even gifts must not be transferred without consent. The recipient of the gift has the right to refuse the gift, as in the case of useless assets or disturbing gifts. An unfavourable gift is a gift whose burden or obligation exceeds the actual market value of the goods.

You need to receive a gift like this. This acceptance may be explicit or indirect. Implicit understanding can be concluded from the recipient’s behaviour and surroundings. When the recipient owns the property or the certificate of ownership, he or she received the gift. The assumption of the right to collect rent in the event of a vacancy can be inferred from the assumption of the right to collect rent in the event of a vacancy.

Modes of Making a Gift

Section 123 of the Act offers the situations that ought to be met so as for a present to be completed. The donation can most effective be legally enforced if positive techniques are followed. This segment lays out opportunities for creating a contribution, relying on the character of the assets. The switch of immovable assets necessitates registration. If the assets are movable, they can be transferred via way of means of transport of possession.

Regardless of the asset’s worth, registration of the switch is needed inside the case of immovable assets. A file containing a present deed ought to be in writing, signed via way of means of the executant (donor), attested via way of means of ready persons, and legally stamped earlier than the registration steps are officially completed.

According to the High Court in Gomtibai v, a gift is an immovable property that is incomplete without the giver’s writing, the attestation of two witnesses, the registration of the deed, and the gifted party. Mattulal, 1996. Ownership of must is registered, although contributions are not interrupted until registration is complete. Even after the donor’s death, a donation can still be registered and legally binding if all necessary aspects of the donation are present.

The registry will not approve a donation if the basic elements of a legitimate donation are missing.

A Gift of Future Property

A promise that cannot be legally enforceable is a gift that is a future asset. Accordingly, under section 124 of the Act, gifts that are future-formed property are void. A gift as a whole is not void when it includes both present and future property, i.e. one existing at the time of gift giving and the other not. Only the part relating to future ownership is considered void.

Under section 124, a gift that is future income from property before it is accrued is also void.

A Gift Made to More Than One Donee- If a property is entrusted to more than one giver and one of them refuses to accept it, the donation shall be void at the rate of interest to which he or she would have accepted, by Article 125 of this Law. the law. The grantor receives the interest rather than the giver to the other party.

A gift given jointly to both the recipients has the right to live and is valid and the other recipient inherits the entire gift if either party is given the gift to die.

Expensive gifts are gifts that are more responsible than beneficial. The word “heavy” comes from the Latin word “onerous”. Expensive goods are those in which the liability of the good outweighs the benefits of the good. An expensive gift, also known as an unprofitable gift, is property given as a gift. The recipient has the right to refuse these gifts.

According to Article 127, if a person receives a gift that has many characteristics, one of which is expensive, that person is not free to refuse the expensive gift and accept others. This rule is based on the principle “qui sentit goodsum sentre debet et onus“, according to which “one accepts “. 

Universal Donee

Although universal succession is possible under English law in the event of a person’s death or bankruptcy, English law does not recognize the concept of the universal donee. Sanyasi, a manner of life in which people give up all of their worldly possessions and devote their lives to spiritual pursuits, is recognized in Hindu law.

A universal donee is someone who gets the entire estate of the donor as a gift. This category includes both movable and immovable properties. According to Section 128 of the Internal Revenue Code, the donee is responsible for all of the donor’s debts and liabilities owed at the time of the gift. This section reflects the equitable principle that the person who receives specific benefits as a result of a transaction is the one who bears the burden of proof.

Suspension or Revocation of Gifts

Section 126 of the Act lays out the legal requirements that must be met in the case of a conditional gift. The donor may condition a gift on it as being suspended or withdrawn if certain circumstances are met, and these criteria must be by Section 126. This section defines two types of gift revocation, and a gift may be cancelled solely for these reasons.

When the donor and the donee mutually agree that the gift will be suspended or cancelled if an event occurs that is not dependent on the donor’s will, the gift is called a gift subject to a condition laid forward by mutual agreement. The following items must be included:

  • The condition must be stated explicitly.
  • The condition must be part of the same transaction; it can be stated in the gift deed or in a separate document that is part of the same transaction.
  • The condition on which a gift can be cancelled cannot only be determined by the donor’s will.


The Act must be followed for a transfer to be considered a gift. This Act goes into great detail about what constitutes a gift and how it is transferred. Because the gift constitutes a transfer of ownership rights, it must be in the transferee’s possession and ownership at the time the transfer is made. Although the transferor must be qualified to make the transfer,

the transferee can be anyone. If the transferee is unable to contract, a competent person must ratify the acceptance of the gift on his or her behalf. Gifts of future property are null and void. Partially accepting lucrative gifts while rejecting onerous gifts is also ineffective.

The article has been contributed by Swayam Goyal, an LLB Hons 2nd year student at Bennett university Great Noida.

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