Gift under Hindu Law

Gift under Hindu Law holds a significant place in the legal landscape. In Hindu law, the act of gifting is more than a gesture of generosity; it represents a legally binding transaction that embodies values, responsibilities and rights.

What is Gift under Hindu Law?

A gift under Hindu Law is a voluntary act where an individual gives up their rights to a property without seeking anything in return, while simultaneously creating rights for another person. The process of gifting is finalised only upon the acceptance of the gift by the recipient. 

As per the Mitakshara, a gift in Hindu Law involves renouncing one’s property rights without any consideration and establishing rights for someone else. This transference of rights to another person is fully realised only when the recipient agrees to receive the gift and in no other manner.

Essentials of Gift under Hindu Law

The essentials of gift in Hindu law include transferring property from one person to another without compensation, with elements like donor, donee, subject matter and proper acceptance of the parties.

1. Absence of Consideration

One of the fundamental principles of gifts under Hindu law is the absence of consideration. Unlike transactions involving money or compensation, gifts are characterised by their unconditional nature. When a gift is made, the idea of receiving something in return is completely absent. This ensures that the act of gifting is driven solely by the voluntary intention of the donor.

2. Presence of a Donor

In the process of gifting, the person making the gift is known as the “donor.” It is important to note that the donor need not necessarily be the legal owner of the property being gifted. However, the donor must be of legal age to execute a gift under Hindu Law. Furthermore, the donor possesses the authority to transfer property, either wholly or subject to certain restrictions. This authority stems from the legal capacity to make such transfers.

3. Presence of a Donee

Conversely, the recipient of the gift is referred to as the “donee.” Interestingly, Hindu law allows even minors to receive gifts. However, if the gift imposes any form of burden or responsibility on the minor, such obligations cannot be enforced until the minor reaches adulthood. Upon attaining the age of majority, the donee has the choice to accept the responsibility associated with the gift or return the gifted property.

4. Subject Matter of Gift

The ambit of gifting under Hindu law extends to various types of property:

• Self-acquired property: An individual may gift their separate or self-acquired property while ensuring the claims of those individuals they are legally obligated to support.
• Stridhana: A female is empowered to donate or bequeath her stridhana, which encompasses her separate property and assets.
• Widows’ Rights: In specific circumstances, a widow may gift a portion of the assets she inherited from her deceased husband.
• Parental Authority: Parents hold the right to gift their belongings, whether inherited or self-acquired. However, this right is subject to the claims of those entitled to maintenance.
• Coparcenary Interest: A coparcener possesses the ability to gift their interest in coparcenary property, provided the rights of those entitled to maintenance are respected.
• Impartible Estate: The owner of an impartible estate is entitled to gift or bequeath it, unless specific traditions or tenures prevent such actions.

5. Gift of Undivided Interest

The Mitakshara law, which prevails in various states, imposes limitations on co-owners gifting their entire stake in a co-owned property. While there is no personal impediment preventing the donor from reclaiming the gifted property, such transactions are deemed invalid. The donor, however, retains the ability to gift under Hindu Law their stake with the consent of fellow co-owners.

6. Delivery of Possession

A gift under Hindu law is regarded as a disposition in presenti. For a gift to be legally effective, it must be appropriately executed, registered and delivered into the possession of the donee. This process involves the donor relinquishing their ownership rights in the property without expecting any form of compensation. 

Simultaneously, the act of gifting creates rights for the recipient. However, the gift under Hindu Law attains its full legal status only upon the acceptance of the donee. This acceptance marks the completion of the gifting process and no other method can accomplish this.

7. Acceptance of Gifts

Crucially, for a gift under Hindu law to be considered legally valid, acceptance is imperative. Interestingly, the Transfer of Property Act does not prescribe a specific method for acceptance. Instead, the circumstances surrounding the transaction, as well as the actions and intentions of the parties involved, play a pivotal role. One mode of acceptance is the physical delivery of the gift document to the donee. This act may signify the donee’s acceptance and the possession of the gifted property can also indicate acceptance.

 Modes of Gift in Hindu Law

Under Hindu law, the acceptance of a gift can be made in 3 modes: mental acceptance, verbal acceptance and corporeal acceptance.

1. Mental Acceptance

This form of acceptance occurs within the realm of the recipient’s mind. It involves the conscious acknowledgement and intention to accept the gifted property. While not outwardly expressed, this mental affirmation holds legal weight and signifies the donee’s agreement to receive the gift in Hindu Law.

2. Verbal Acceptance

Verbal acceptance involves the articulation of one’s intention to accept the gift under Hindu Law. This can take the form of spoken words explicitly conveying the recipient’s willingness to receive the property. Such verbal communication solidifies the donee’s consent to the gift and serves as a clear expression of acceptance.

3. Corporeal Acceptance

Corporeal acceptance is manifested through physical actions or gestures. It entails the donee physically taking possession of the gifted property, thereby demonstrating their explicit acceptance. This t act symbolises the recipient’s affirmative response to the gift and signifies their readiness to assume ownership.

Types of Property That Can be Gifted in Hindu Law

According to Hindu law, the following categories of property can be disposed of through the mechanism of a gift:

Separate or Self-Acquired Property

A Hindu individual has the right to gift away their separate or self-acquired property. However, a condition applies: if family members who are legally entitled to receive maintenance from that person make a claim against the gift, then the Hindu cannot dispose of their property through a gift.

Coparcenary Interest (Dayabhaga School)

In the Dayabhaga School of law, a coparcener within a joint Hindu family can gift their coparcenary interest. This is subject to the rights of maintenance of those family members who are entitled to be maintained by that coparcener.

Coparcenary Interest (Mitakshara School)

Under the Mitakshara School, a coparcener cannot gift their coparcenary interest, except when they are the sole surviving coparcener within the family.

Father’s Right to Dispose of Property

In accordance with the Dayabhaga law, a father has the authority to dispose of the entirety of his property through a gift under Hindu Law. However, this authority is subject to the claims of family members who are legally entitled to be maintained by him.

Female Hindu’s Right to Dispose of Property

As per Section 14 of the Hindu Succession Act, 1956, a female Hindu has the legal capacity to dispose of all her property through a gift. However, it is worth noting that in ancient Hindu law, she was only entitled to gift her stridhana property.

Widow’s Right to Dispose of Property

A widow possesses the right to gift a portion of her widow’s estate. This gift can be directed towards her daughter or son-in-law, particularly in the context of her daughter’s marriage. Notably, this form of disposal cannot be carried out through a will.

Gifts by Hindus and the Application of the Transfer of Property Act

In the context of Hindu law, gifts that fall under the purview of the Transfer of Property Act must adhere to specific guidelines for their validity. These guidelines pertain to the transfer of both immovable and movable property.

Gift of Immovable Property

To execute a valid gift of immovable property, the transfer must be formalised through a registered instrument. This instrument should carry the signature of the donor or a representative acting on their behalf. Additionally, it must be attested by at least two witnesses. This formal process ensures the legal integrity of the transaction.

Gift of Movable Property

For the purpose of gifting movable property, the transfer can be established through a registered document bearing the donor’s signature. Alternatively, the transfer can also be effectuated by the physical delivery of the property to the recipient. This flexibility in the method of transfer recognises the varying nature of movable property.

Gifts to Unborn Persons

According to traditional Hindu law, gifts could not be made in favor of individuals who did not exist at the time of the gift. However, it’s important to note that in Bangladesh, the customary provisions and practices of the Hindu religion may govern gifts under Hindu law. Additionally, the Transfer of Property Act of 1882 may apply to Hindu bequests, even though traditional restrictions exist.

Reservation of Life Interest

The validity of a gift is not compromised if the donor reserves the right to enjoy the benefits or profits of the gifted property for their lifetime. This practice does not render the gift in Hindu Law invalid and the donor’s reserved usufruct is legally permissible.

Conditions Restraining Alienation or Partition

In situations where a property is gifted with a condition that restricts the donee’s ability to alienate or partition it, such conditions restricting alienation are considered void. However, it’s important to emphasise that while the condition itself is nullified, the gift remains valid and enforceable.

Revocation of Gift under Hindu Law

A gift in Hindu law, holds a binding nature upon the donor. Revocation of gifts under Hindu Law by the donor is generally not permissible.

However, the gift under Hindu Law can be revoked by the Donor in case of fraud or undue influence. 

This principle finds support in the case of Ganga Bakash vs. Jagat Bahadur. Furthermore, when a gift is executed by a Hindu widow, the onus falls upon the donee to establish that the widow comprehended the implications of the gift fully.

A pertinent instance highlighting this requirement is the case of Deo Kura vs. Man Kura, where a gift came under scrutiny during a legal proceeding initiated eight years after its execution. The contention arose from an assertion that the donor lacked a complete understanding of the gift document’s contents.

Conclusion

Gift under Hindu Lawis when someone willingly gives property to another person without expecting something in return. This creates rights for the person receiving the gift. Key aspects of a gift include not expecting anything in return, the roles of the giver and receiver and what kinds of property can be given.

Accepting a gift in Hindu Law can happen through thoughts, words or actions, making the gift legally valid. Once a gift is given, it’s usually final and can’t be taken back, except in cases of cheating or unfair pressure, as seen in past legal cases. This shows that while giving a gift is a kind gesture, there are rules in place to make sure it’s fair and lawful for everyone involved.