Gift
Also called: Gift inter vivos, Hiba (Muslim law), Donation
The voluntary transfer of existing movable or immovable property without consideration by a donor to a donee, accepted by or on behalf of the donee during the donor's lifetime. Section 122 of the TPA.
Explained
Section 122 of the Transfer of Property Act, 1882 defines a gift as the transfer of certain existing moveable or immoveable 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. The acceptance must 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, and his heirs cannot accept it in his place.
The elements are: existing property, a transfer of ownership, voluntariness, absence of consideration, and acceptance. Under Section 123 a gift of immoveable property must be effected by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses. A gift of moveable property may be made either by such a registered instrument or by delivery. Delivery of possession is not essential to a gift of immovable property under Section 123, so a donor may reserve a life interest, as the Supreme Court held in Renikuntla Rajamma v. K. Sarwanamma (2014).
The Act then adds specific rules. A gift of existing and future property is void as to the future property (Section 124). A gift to several donees is void as to the share of one who does not accept (Section 125). Under Section 126 a gift may be suspended or revoked on a specified event not dependent on the donor's will, or where it could be rescinded if it were a contract, but a gift revocable at the mere will of the donor is void. Section 127 deals with onerous gifts, and Section 128 makes a universal donee liable for the donor's debts to the extent of the property. Undue influence in a gift is tested in the same way as for a contract.
Section 129 saves gifts of moveable property in contemplation of death and the rules of Muslim law. A hiba needs declaration, acceptance and delivery of possession and may be oral; in Hafeeza Bibi v. Shaikh Farid the Supreme Court held that a writing recording a hiba does not need registration. Examiners test acceptance, Section 123 formalities, the revocation rules and this Muslim law exception.
What the law says
“Gift” is the transfer of certain existing moveable or immoveable 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.
Defines gift and the time for acceptance
For the purpose of making a gift of immoveable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.
For the purpose of making a gift of moveable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery.
Such delivery may be made in the same way as goods sold may be delivered.
Formalities for gifts of immovable and movable property
The donor and donee may agree that on the happening of any specified event which does not depend on the will of the donor a gift shall be suspended or revoked; but a gift which the parties agree shall be revocable wholly or in part, at the mere will of the donor, is void wholly or in part, as the case may be.
A gift may also be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded.
Save as aforesaid, a gift cannot be revoked.
When a gift may be suspended or revoked
A gift comprising both existing and future property is void as to the latter.
Gift of existing and future property void as to the future property
Nothing in this Chapter related to gifts of moveable property made in contemplation of death, or shall be deemed to affect any rule of Muhammadan law ***.
Saves donations mortis causa and Muslim law
(a) instruments of gift of immovable property;
(b) other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property;
(c) non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of the creation, declaration, assignment, limitation or extinction of any such right, title or interest; and
Instruments of gift of immovable property must be registered
Example
For example, D executes and registers a gift deed of his house in favour of N, but N dies before accepting it. The gift is void under Section 122, and N's son cannot accept it on N's behalf.
For the exam
- Gift: existing property, voluntary, without consideration, accepted in the donor's lifetime (Section 122 TPA).
- If the donee dies before acceptance, the gift is void.
- Immovable property: registered instrument, signed by donor, attested by two witnesses (Section 123).
- Gift revocable at the mere will of the donor is void (Section 126).
- Muslim hiba is saved by Section 129; it may be oral and its written record need not be registered.
442 questions in the Law Maker question bank use this term. Practise Transfer of Property Act questions
Judgments
- Hafeeza Bibi v. Shaikh Farid (2011)A Muslim gift (hiba) satisfying declaration, acceptance and delivery of possession is valid even if recorded on unregistered paper. The writing is not an instrument of gift needing registration under Section 17 of the Registration Act.
- Subhas Chandra Das Mushib v. Ganga Prosad Das Mushib (1966)The Court held that undue influence under Section 16 of the Contract Act must be specifically pleaded and proved in stages, and that no presumption of undue influence arises merely from the donor's old age or close relationship.
Related terms
- Transfer of propertyUnder Section 5 of the TPA, an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself and one or more other living persons.
- Immovable propertyLand, benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth. Defined inclusively in Section 3(26) of the General Clauses Act, 1897.
- Movable propertyUnder Section 2(21) of the BNS, property of every description except land and things attached to the earth or permanently fastened to anything attached to the earth. Other Acts frame it differently.
- ConsiderationAn act, abstinence or promise done or made at the desire of the promisor by the promisee or any other person, which is the price for the promise (Section 2(d) of the Contract Act).
- Undue influenceUnder Section 16 of the Contract Act, where one party is in a position to dominate the will of the other and uses that position to obtain an unfair advantage. The contract is voidable.
- WillThe legal declaration of a testator's intention about his property, which he desires to take effect after his death (Section 2(h) of the Indian Succession Act, 1925).
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.