AIf you want to voluntarily gift movable or immovable property to any of your relatives or acquaintances. Or wish to do so, then before giving a gift, you should know the rules and regulations related to it so that the giver and receiver of the gift do not face any problems later. They should not get into any legal trouble. Information about important legal provisions related to gift is given here:-
Definition of gift: According to the section of Transfer of Property Act1882, gift is a free and voluntary transfer of any property (movable or immovable), given by the donor and accepted by the recipient during his lifetime.
What is gift deed? Gift deed is the document that certifies the transfer of gift. This document is legal under Section 122 of the Transfer of Property Act1882. How is the gift of movable property and immovable property? Movable property can be gifted orally or in writing. Registration is not mandatory. To gift immovable property, it is mandatory to prepare and register a gift deed.
Why is registration necessary for immovable property? Under Section 17 of the Registration Act, 1908, a gift of immovable property is valid only if it is registered in the office of the SubRegistrar.
When will the gift deed be valid, void or voidable?
A gift deed is considered valid when there is free consent of both the donor and the donee and it is registered. If the consent of the donor is obtained by force, fraud or undue influence then such gift deed is considered void. A gift can be suspended or canceled by mutual agreement of the donor and the donee (Section 126).
Can ancestral property be gifted? Gift of Ancestral Property: Under Hindu law, a father or the managing member of a Hindu Undivided Family (HUF) has the right to gift ancestral property only for a 'pious purpose'. This sacred purpose should be related to charitable or religious activities. If the property is gifted on the basis of 'love and affection', it does not fall within the scope of 'pious purpose' and will not be considered valid. How. Lakshmana vs. K.C. In Chandrappa Gowda (2022) case, the Supreme Court again clarified that a Hindu father or manager of HUF can gift ancestral property only for a 'pious purpose'.
Important provisions of Transfer of Property Act1882 (Section 123129) Gift Deed:
Act Section 123: Gift of immovable property must be by a registered document, signed by the donor and attested by at least two witnesses.
Section 124: Gift is valid for current property only. If the gift involves future property, that portion of the future gift will be void.
Section 125: Joint Gift: If a gift is made jointly to two or more persons and one of them does not accept it, the gift will be void on the part of the refuser.
Section 126: Can the gift be postponed or canceled? Yes, a gift can be canceled depending on the agreement between the giver and the recipient. Suspending or revoking a gift at the will of the donor: A gift cannot be revoked at the will of the donor unless it is proved that the gift was made by fraud, forceful influence, or undue pressure.
Section 127: Onerous Gift (Owner's Gift) If the gift carries a liability or burden with any property, the recipient must accept the entire benefit and burden together to accept it. If he does not accept the burden, the gift will be invalid.
Section 128: Universal Gift (Sarbhomik Gift) When the gift covers the entire property (movable and immovable) of the donor, the donee is liable for all the debts and liabilities of the donor. This liability is limited to the extent of the gifted property.
Section 129: Gift in apprehension of death (Mortis Causa) A gift given in apprehension of death is valid only when: The donor fears his own death. The recipient should accept the gift only during the lifetime of the donor. The donor may die due to the same reason. If the donor survives, the gift automatically becomes invalid.
Can a gift be given to a livein partner?- View of the Supreme Court and other courts: Mohinder Singh (D) through LRS and others vs. Mal Singh (D) through LRS and others. The trial court and the Appellate Court in CA No. 17312009 declared the gift deed “illegal and immoral” because the recipient woman was not the wife of the donor. The Supreme Court condemned this approach and said that this mentality does not match modern social realities.
Justice Kaul said, “Wife or no wife, whatever be the situation, he wants to gift something to someone and he has come before the court in the proceedings and confirmed that he has gifted it. You can get the gift deed. The only question would be if the nature and character of the property is such that you have a share in it and your share has been transferred by gift deed.” If the gift deed is validly executed, there is no justification for determining the nature of the relationship of the donor and the donee.
Decisions in major court cases related to gifts; K. Balakrishnan vs. K. Kamalam (2004): Gift deed must be voluntary and gratuitous to be valid. Renikuntla Rajamma vs. K. Sarwanamma (2014): After the gift deed, the donor has no right over the property. Gift deed is a legal means of free and permanent transfer of property. To make it legal, free consent, registration and compliance with all provisions of law are mandatory.
– .
Image Credit: KhasKhabar.