Legalsutra - Gifts Under Transfer of Property Act

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TaxImplicationsofMergersandDemergers
TransferandRemovalofJudges
GiftsunderTransferofPropertyAct
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TableofCases
1.BabyAmmalv.RajanAsari,(1997)2SCC636.
2.BalwantSinghv.MeharSingh,AIR1974P&H130.
3.Bhagatraiv.Ghanshyamdas,AIR1948Nag326.
4.BibiManiranv.MohammadIshaque,AIR1963Pat229.
5.BrijRajsinghv.SewakRam,(1994)4SCC331.
6.CITv.R.SGupta,(1987)2SCC84.
7.ComissionerofGiftTaxv.AbdulKarimMohammed,(1991)3SCC520.
8.Duraisamiv.SarojaAmmal,AIR1981Mad351.
9.GhulamAhmedSufiv.MohammedSidiqDareel,AIR1974J&K59.
10.Gomtibaiv.Mattula,(1996)11SCC681.
11.JameelaBegumv.ControllerofEstateDuty,Madras,(1991)Supp.(1)SCC136.
12.KuppuswamiChettiarv.A.Chettiar,AIR1967SC1395.
13.M.MKhanv.S.AKhan,(1971)3SCC810.
14.MakkuRawtherv.ManahaparaCharayil,AIR1972Ker27.
15.MohammedHesabuddinv.MohammedHesaruddin,AIR1984Gau41.
16.MohammedNarizuddinv.GovindarajaluAppah,AIR1971Mad44.
17.MohsinAliv.StateofMadhyaPradesh,(1975)2SCC122.
18.N.MThakkerv.P.MThakker,(1997)2SCC636.
19.NasibAliv.WajedAli,AIR1927Cal197.
20.RamNiwasTodiv.BibiJabrunnissa,(1996)6SCC444.
21.Shakuntalav.StateofHaryana,(1979)3SCC226.
22.ShriRamKrishanMissionv.DogarSingh,AIR1984All72.
23.SoniaBhatiav.StateofUttarPradesh,(1981)2SCC585.
24.StateofU.Pv.SayedAbdulJain,(1973)2SCC26.
25.StateofU.Pv.SayedAbdulJalil,AIR1990SC1272.
26.Taraknathv.SushilChandraDey,(1996)4SCC697.
27.V.P.KUmmav.P.NKunhamu,AIR1964SC275.
28.Vasudevv.Pranlal,AIR1974SC1728.
TableOfStatutes
1.IndianContractAct,1872.
2.IndianRegistrationAct,1908.
3.IndianSuccessionAct,1925.
4.InsuranceAct,1938.
5.StampAct,1899.
6.TransferofPropertyAct,1882.
Introduction
GiftisaTransferofPropertyandisdefinedinSection122oftheTransferofPropertyAct,1882.Itisauniquetransferofpropertyinthesense
thatitinvolvesnoconsideration.Thebasicessenceofagiftisthecompleteabsenceofconsideration[1].ThelawofgiftsinIndiaisgovernedby
Sections122to129oftheTransferofPropertyAct,1882.HoweverMohammedangiftsaresubjecttotherulesofMuslimLawandtheTransferof
PropertyAct,1882isnotapplicabletosuchgifts.
ThedifferencesbetweentheMuslimLawofgiftsandthelawofgiftsundertheTransferofPropertyActarentverygreat.Apartfromafewminor
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10/9/2016 Legalsutra|LawStudents'KnowledgeBaseLawSchoolProjects,mootcourtmemorials,classandcasenotesandmore!|GiftsunderTransferof
ThedifferencesbetweentheMuslimLawofgiftsandthelawofgiftsundertheTransferofPropertyActarentverygreat.Apartfromafewminor
differencesowingtoreligionandcustomthebasicessenceandconceptofagiftisthesameunderbothsystemsoflaw.
Therecannotbetoomanydifferencesbetweengiftsunderdifferentsystemsoflawasthedefinitionofagiftisveryclearandthereisawell
settledconsensusastowhattheessentialelementsofagiftare.Tohavetoomanydifferencesbetweenthelawsofgiftsmightinterferewiththe
fundamentalsoftheconceptofagiftandgivethetransactionadifferentcolour.Forexamplethereisaconsensusamongstalmostallsystemsof
lawthatagiftinvolvesnoconsiderationandinvolvestheelementsofvoluntarygivingandacceptancefollowedbypossessioninthehandsofthe
doneeie.thepersonwhoacceptsthegiftfromthedonorie.thepersonwhogivesthegift.Thisconsensusisalmostuniversalandwillremain
unchanged.
InthisprojectacomprehensivecomparativestudyandanalysisofGiftsundertheTransferofpropertyAct,1882andMohammedangiftshasbeen
performed.ThisprojectfirstdealswithGiftsundertheTransferofPropertyAct.Itexplainsandanalysesthevarioussectionsdealingwithgifts
withreferencetoappropriatecaselaw.ThestudyofHibaoraMohammedangiftwithreferencetothevariousrulesofMohammedanlawrelating
togiftsandjudicialinterpretationalsoformsanintegralpartoftheproject.Thisprojectalsodealswithadonatiomortiscausaoragiftmadein
contemplationofdeathwithreferencetotheIndianSuccessionAct,1925.Inordertoachieveagreaterunderstandingoftheconceptofgiftsthe
transactionofgifthasbeencomparedanddifferentiatedfromotherformsoftransferofproperty.Theprojectalsocomparesthelawofgiftsunder
theTransferofPropertyAct,1882andtheMuslimLawofgifts.Thispartoftheprojectisextremelyimportantasitisherethattheconflict
betweenMohammedangiftsandGiftsundertheTransferofPropertyAct,1882isdiscussed.Theresearcherhasendeavouredtostudytheconflict
ingreatdetailfromvariousviewpointsandhasalsogivensomesuggestionsaboutthesame.
Therighttogiftawayonespropertywhethermovableorimmovableisanimportantrightandanimportantelementofpropertylaw.Althougha
giftinvolvesnoconsiderationinthelegalsenseitinvolvestheconsiderationoflove,affection,spiritualandreligiousbenefitetc.whose
importancecannotbeoverlooked.Thusthelawrelatingtogiftshasahumaneelementinitandassuchthelawofgiftsshouldbeclearand
unambiguouswithoutanyscopeformisuseandcontroversy.Thisobjectivemightbeidealistbutultimatelythelawrelatingtogiftsshouldalways
strivetoprotecttheinterestsofthedonee,donorandthepropertyinvolvedinthegreaterinterestsofjustice.
ResearchMethodology
AimsandObjectives
TheaimofthisProjectistoprovideacomprehensiveanalysisandcomparisonbetweenGiftsundertheTransferofPropertyAct,1882and
MohammedanGifts.TheprojectaimsatexplainingandanalyzingtherelevantprovisionsoftheTransferofPropertyAct,1882andalso
understandingtherulesofMuslimLawrelatingtogifts.TheprojectalsoaimsatdifferentiatingGiftsfromotherformsofTransferofPropertyand
studyinggiftsundertheSuccessionAct.Thecontroversyregardingtheinterpretationofsection129oftheTransferOfPropertyAct,1882hasalso
beenhighlightedintheprojectandsuggestionstoendthecontroversybetweenHibaandtheTransferofPropertyAct,1882havealsobeengiven.
Natureofproject
Theprojectisdescriptiveaswellasanalyticalinnature.Howeverthemajorityoftheprojectisanalyticalinnature.
SourcesOfData
Thesourcesofdatausedaremainlysecondaryinnature.AhostofleadingtextbooksonPropertyLawaswellascasereporterslikeAllIndia
Reporter(A.I.R),SupremeCourtCases(SCC)etc.andjournalslikeAnnualSurveyofIndianLawhavebeenreferredto.
ScopeandLimitation
ThescopeofthisprojectislimitedtothelawofgiftsprevailinginIndiaonly.Areasoffocusandconcentrationhavebeentheprovisionsofthe
TransferofPropertyAct,1882relatingtogiftsandtherulesofMuslimLawrelatingtogiftsinIndia.Owingtothevastnessandcomplexityofthe
rulesunderMuslimLawjustthebasicconceptsandfundamentalsofthelawofgiftshavebeenfocusedupon.
Researchquestions
Theresearchquestionsare:
WhatisagiftunderMuslimLawandtheTransferofPropertyAct?
Whataretheconceptsofpropertyassociatedwithgifts?
WhatarethevariousaspectsofPropertylawthatmuslimLawandtheTransferofPropertyActdealwithinrelationtogiftsandhoware
thesevariousaspectsdealtwith?
WhatarethedifferencesbetweenMahomedangiftsandGiftsundertheTransferofPropertyAct,1882?
WhatarethemainissuesinthecontroversyandconflictbetweentheTransferofPropertyAct,1882andtheMuslimLawofGifts?
Howhasthiscontroversybeendealtwith?
Howcanthisconflictberesolvedsoastopreventinjusticeofanysort?
ModeofCitation
Auniformmodeofcitationhasbeenadoptedthroughouttheproject.
GiftsUnderTheTransferOfPropertyAct,1882
Section122oftheTransferofPropertyAct,1882definesaGiftas
Giftisthetransferofcertainexistingmovableorimmovablepropertymadevoluntarilyandwithoutconsideration,byone
person,calledthedonor,toanother,calledthedonee,andacceptedbyoronbehalfofthedonee.
Inordinarylegaleffecttherecannotbeagiftwithoutagivingortaking.Thegivingortakingaretwocontemporaneous,reciprocalacts,which
constituteagift.Theessentialelementsofagiftare:[2]
TheAbsenceofConsideration
TheDonor
TheDonee
TheSubjectMatter
TheTransfer
TheAcceptance
AbsenceofConsideration
TheconceptofGiftisdiametricallyopposedtoanypresenceofconsiderationorcompensation.Theessenceofagiftisthatitisagratuitous
TheconceptofGiftisdiametricallyopposedtoanypresenceofconsiderationorcompensation.Theessenceofagiftisthatitisagratuitous
transfer.BlackstonesaysGiftsarealwaysgratuitous,grantsareuponsomeconsiderationorequivalent.[3]ThewordvoluntarilyinSection122
oftheTransferofPropertyAct,1882isusedinitspopularsensedenotingtheexerciseofunfetteredwillandnotinitstechnicalsenseofwithout
consideration.[4]
InShakuntalav.StateofHaryana[5]theSupremeCourtstatedthatitisoneoftheessentialrequirementsofagiftthatititshouldbemadeby
thedonorwithoutconsideration.ThewordconsiderationhasnotbeendefinedintheTransferofPropertyAct,1882butwehavenodoubtthatit
hasbeenusedintheActinthesamesenseasintheIndianContractAct,1872andexcludesnaturalloveandaffection.Ifitweretobeotherwisea
transferwouldreallyamounttoasaleoranexchangeforeachpartywillhavetherightsandbesubjecttotheliabilitiesofasellerastowhathe
givesandhavetherightsandbesubjecttotheliabilitiesofabuyerastowhathetakes.Itistheessenceofagiftthatitshouldbewithout
consideration.TheprincipleslaiddownintheIndianContractAct,1872relatingtofreeconsentwouldapplyindeterminingwhetheragiftis
voluntary.Lawastoundueinfluenceisthesameinthecaseofagiftintervivosasinthecaseofacontract.InShakuntalav.StateofHaryana[6]
itwasheldthatagiftmadeunderundueinfluenceandnotvoluntarilywasvoid.Thecourtstatedthatwhiletryingacaseforundueinfluenceit
mustconsidertwothings:(a)Whethertherelationbetweenthedonoranddoneeissuchthatthedoneeisabletodominatethewillofthedonor.
(b)Hasthedoneeusedthatpositiontoobtainanundueadvantageoverthedonor?
Donor
Thedonoristhepersonwhogives.Anypersonwhoissuijuriscanmakeagiftofhisproperty.Aminor,beingincompetenttocontractis
incompetenttotransferandagiftbytheminorwouldthereforebevoid.Trusteescannotmakeagiftoutoftrustpropertyunlessauthorizedbythe
termsofthetrust.[7]
Donee
Thedoneeisthepersonwhoacceptsthegift.Agiftmaybeacceptedbyoronbehalfofapersonwhoisnotcompetenttocontract.Aminormay
thereforebeadoneebutifthegiftisonerous,theobligationcannotbeenforcedagainsthimwhileheisaminor.Thedoneemaybeaperson
unabletoexpressacceptance.Thusagiftcanbemadetoachildenventresamereandcouldbeacceptedonitsbehalf[8].Thedoneemustbean
ascertainablepersonandsothepubliccannotbeadoneeunderSection122ofTransferofPropertyAct,1882.Gifttoanunregisteredsocietyand
atransferofpropertytoGodisalsonotavalidgiftwithinthemeaningofSection122.InShriRamKrishanMissionv.DogarSingh[9]dedicationof
propertybyaHindutoadharmasalawasheldnottobeagiftasthedoneewasnotalivingperson.
SubjectMatter
Thesubjectmatterofthegiftmustbecertainexistingmovableorimmovableproperty.Itmaybeland,goodsoractionableclaims.Itmustbe
transferableunderSection6oftheTransferofPropertyAct,1882.Howeveritcannotbefutureproperty.Agiftofarightofmanagementisvalid
butagiftoffuturerevenueofavillageisinvalid.Thereleaseofadebtisnotagiftasitdoesnotinvolveatransferofpropertybutismerelya
renunciationofarightofaction.Howeveranactionableclaimsuchasaninsurancepolicymaybethesubjectofagift.Inagiftdeedthemeaning
ofthewordmoneyshouldnotberestrictedbyanyhardandfastrulebutshouldbeinterpretedhavingregardtothecontextproperlyconstruedin
thelightofallrelevantfacts[10].
Transfer
ThiselementofagiftisexplainedlaterinthecontextofSection123oftheTransferofPropertyAct,1882inthissection.
Acceptance
Inordertoconstituteavalidgiftthepivotalrequirementisacceptance.InN.MThakkerv.P.MThakker[11]itwasheldthattheexecutionofa
registeredgiftdeed,acceptanceofthegiftanddeliveryofthepropertytogethermakethegiftcomplete.Noparticularmodeofacceptanceis
required.Circumstancesofthecasewilldeterminethemodeofacceptance.Atransactionofgiftinordertobecompletemustbeacceptedbythe
doneeduringthelifetimeofthedonor.Ifthedonordiesbeforeacceptancethegiftbecomesvoid.Factumofacceptancecanbeestablishedby
differentcircumstancessuchasdoneetakingpossessionofthepropertyorbeinginpossessionofthegiftdeedalone.[12]
Trusts
AninterpretationofSection122willrevealthatagiftmaybemadebytheequitablemachineryofatrustandtheinterpositionofthetrustees
enablesagifttobemadetoapersonnotyetinexistenceandthereforeincapableofbeingthedoneeofadirectgift.
Section123oftheTransferofPropertyAct,1882stateshowthetransferofagiftiseffected.ThisSectionmaybestudiedunderthefollowing
heads:
ModeofTransferImmovableProperty
Agiftofimmovableproperty,nomatterwhatthevalueoftheproperty,canonlybemadebyaregisteredinstrument.Thisprovisionexcludesevery
othermodeoftransferandeveniftheintendeddoneeisputinpossessionagiftofimmovablepropertyisinvalidwithoutaregisteredinstrument.
[13]
Signatures
Thegiftdeedmustbesignedbyoronbehalfofthedonorinordertoeffecttransfer.Merelythesignatureoftheintendeddoneeonthegiftdeed
willnoteffectthetransfer.[14]
Attestation
Agiftdeedmustbeattestedbyatleasttwowitnessesandagiftdeednotattestedbywitnessesisvoid.Theessentialconditionsofavalid
attestationunderSection3oftheTransferofPropertyAct,1882arethat,twoormorewitnessesmusthaveseentheexecutantsignthe
instrumentorhavereceivedfromhimpersonalknowledgeofhissignature,andwithaviewtoattestortobearwitnesstothisfact,eachofthem
hassignedtheinstrumentinthepresenceoftheexecutant.InBrijRajsinghv.SewakRam[15]itwasheldthatnoparticularformneedbe
followedforeattestationofagiftdeed.Inthiscaseagiftdeedwasexecutedbytheoriginalowner,presentedforregistrationbyadulyauthorized
powerofattorneyandattestedbytwowitnesses.Itwasheldtobevalid.Attestationwasprovedbyoneofthewitnessesbycategoricallystating
thathehadsubscribedhissignaturesonthegiftdeedinthreedifferentcapacitiesie.Scribe,attestingwitnessandidentifyingwitnessbeforethe
registrar.
Registration
ThewordRegisteredinthisSectiondoesnotmeanregisteredinthelifetimeofthedonor.Iftheotherconditionstothevalidityofthegiftare
compliedwiththedeathofthedonorisnotagroundforrefusingregistration.Ifagiftofimmovablepropertyismadebyaregisteredinstrument
thatisdulyregisteredthenthepreexistingright,titleandinterestofdonorstanddivestedinthedoneeebytheoperationofSection17ofthe
IndianRegistrationAct,1908.InKuppuswamiChettiarv.A.Chettiar[16]itwasheldthataregisteredinstrumentstyledasareleasedeed
releasingright,titleandinterestofreleasorwithoutconsiderationmayoperateastransferbywayofgiftwhenthedocumentclearlyshows
releasingright,titleandinterestofreleasorwithoutconsiderationmayoperateastransferbywayofgiftwhenthedocumentclearlyshows
intentiontoeffecttransferandissignedbyoronbehalfofreleasorandattestedbyatleasttwowitnesses.Agiftofimmovableproperty,whichis
notregistered,isbadinlawandcannotpassanytitletothedonee.Anoralgiftofimmovablepropertycannotbemadeundersection123ofthe
TransferofPropertyAct,1882.InGomtibaiv.Mattula[17]itwasheldthatmereintentiontogiveawaythepropertyisnotenoughtoeffectthe
transferofgift.Therehastobearegisteredgiftdeedinorderforthegifttobecompleteintheeyesoflaw.
TheeffectofaninsufficientlystampedandunregisteredgiftdeedwasconsideredinBalwantSinghv.MeharSingh.[18]Itwasheldthatan
unregisteredgiftdeedcannotbeusedtoprovetitle.ItwasalsoheldthatunderSection36oftheStampActonceagiftdeedisadmittedin
evidenceitcannotbecalledintoquestionlateronthegroundsofinsufficiencyofstamp.
RevocationofGiftbyDonor
ThePrivyCouncilhaslaiddownthatafterdeliveryofthedeedofgiftandbeforeregistrationthedonorcannotrevokethegift.InBhagatraiv.
Ghanshyamdas[19]itwasheldthatwhereagifthasbeeneffectedbyaregisteredinstrumentdulyattestedandthegifthasbeenacteduponby
thedonee,thetitlelegallypassestothedoneeandcannotbedefeatedbyanyintentionofthedonortothecontrary.
ModeofTransferMovables
WithregardtomovablepropertythisSectionallowstwoalternativemodesoftransferviz.Registereddeedsignedbyoronbehalfofthedonorand
Deliveryofpossession.
Delivery
Inorderthatagiftisvalidunderthissectionthedonorshouldhavedoneallthathecantoputthesubjectmatterofthegiftwithinthepowerof
thedoneetoobtainpossession.Avalidgiftmustordinarilybefollowedbypossession[20].InBabyAmmalv.RajanAsari[21]thecourtheldthat
theremustbeproofofdeliveryandpossessionofthegiftedproperty.Intheabsenceofsuchproofthedeedcannotbeconstruedtobeagiftdeed.
InTaraknathv.SushilChandraDey[22]therewasnoactualdeliveryofthepossessionpursuanttothegifthavingbeenmade.Itwasheldthatthe
circumstancesdidnotwarrantphysicalpossessionandconstructivedeliveryofthepossessionwasenoughtoholdthegiftvalid.
ActionableClaims
Giftdeedstransferringactionableclaimslikeshares,insurancepolicieshavebeenheldtobevalid.InVasudevv.Pranlal[23]agiftdeedrelating
tosharesinacompanywasregistered.Itwassignedbyboththedonoranddonee.Thedonorundertooktohavethesharestransferredinthe
booksofthecompanytothenameofthedonee.Thesharecertificatesandthegiftdeedweredeliveredtothedoneealongwiththeblanktransfer
formsdulysigned.Beforethetransfercouldbeeffectedinthebooksofthecompanythedonordied.Thequestionarosewhethertherewasa
completegiftorwhetherthedonorsheirscouldclaimtheshares.Itwascontendedthatthegiftwouldnotbecompletebeforecomplyingwiththe
formalitiesprescribedbytheCompaniesAct,1956.TheSupremeCourtheldthattherequirementsoftheTransferofPropertyAct,1882werefully
satisfiedandthedoneewasclothedwitharighttogethisnameenteredinthecompanysbooksasthedonee.Thisrightwouldprevailoverthe
claimsoftheheirsofthedonor.
Extent
ThisSectiondoesnotapplytoterritoriesexcludedfromtheoperationoftheIndianRegistrationAct,1908.
Section124oftheTransferofPropertyAct,1882statesthatagiftoffuturepropertyisvoid.Therecannotbeagiftoffuturepropertyforsucha
giftcanonlybeapromiseandapromisenotsupportedbyconsiderationisinvalidasacontract.Therecannotbeagiftoffuturepropertyeither
underHinduorMohammedanlaw.InCITv.R.SGupta[24]thecourtlaiddownthatinordertoconstituteavalidgifttheremustbeexisting
property.Inthiscaseagiftwasgivenbyinstructinganonbankingcompany,firmorHinduUndividedFamilyinwhichthedonorhadanaccountto
giveeffecttothegiftbydebitinghisaccountandcreditingtheaccountinthenameofthedonee.Itwasheldthatmereentriesinthebooksof
accountwouldnotconstituteavalidgiftunlessthecompany,firmorHinduUndividedFamilyhassufficientcashinhandoroverdraftfacilitieswith
anybank.Thecourtdecidedthatonfactsthegiftinquestionwasinvalidinabsenceofcashbalanceoroverdraftfacilitiesinthecompany.
Section125oftheTransferofPropertyAct,1882appliesonlywhenthegiftistotwoormoredoneesastenantsincommon.Therefusalofone
doneewillnotpreventthegifttakingeffectasregardstheshareoftheothers.
Section126ofthetransferofPropertyAct,1882laysdownthatconditionalgiftsareallowedbylaw.Therequirementsastovalidityof
conditionsare:[25]
Aconditionshouldnotbevague.
Aconditionshouldnotbeinherentlyimpossibleofperformance.
Theconditionshouldnotbeillegal.
Theconditionshouldnotbeimmoral.
Theconditionshouldnotbeopposedtopublicpolicy.
Iftheconditionsattachedtoagift,whetherasconditionsprecedentorasconditionssubsequent,satisfytherequirementsmentionedabove,they
arevalidandcanbegiveneffectto.Ifthereisavalidconditionprecedent,thegiftwillnottakeeffectuntiltheconditionisfulfilled.Ifthereisa
validconditionsubsequent,thegiftceaseswhentheconditionissatisfied.InN.MThakkerv.P.MThakker[26]aconditionalgiftdeedwasexecuted
bywhichpossessionandenjoymentofthepropertywereretainedduringthedonorslifetime.Therewasnorecitalofacceptanceandnoevidence
inproofofacceptance.Thegiftwastobecomeoperativeafterthedeathofthedonor.Asubsequentdeedwasexecutedbythedonorwithina
monthcancelingthegiftdeedowingtononfulfilmentofconditionssubjecttowhichtherewasanoralunderstandingbetweenthedonorand
donee.Thecourtheldthatthegiftdeedwasvalidlycancelledowingtononfulfillmentoftheconditions.AResumableGiftisonewhichis
revocableatanytimeatthemerewillofthedonor.Suchagiftisvoidabinitio.[27]
Section127oftheTransferofPropertyAct,1882dealswithOnerousGifts.Theeffectofanonerousgiftisthatthedoneeisliabletotheextent
ofthegiftedpropertyinhishandstomeettheobligationwithwhichthegiftisburdened.Thissectiongrantsaminortherighttorepudiatean
onerousgiftafterattainingmajority.
AccordingtoSection128oftheTransferofPropertyAct,1882auniversaldoneeisadoneewhoreceivesthewholeofthedonorspropertyby
wayofgift.Onaplainreadingofthissectionitisclearthattheliabilityoftheuniversaldoneeistotheextentofthepropertyacquiredbyhimby
virtueofthegiftdeedfromthedonorhoweverinrealitySection128fastensthepersonalliabilityupontheuniversaldoneeforalldebtsduebythe
donoratthetimeofthegift.
Section129oftheTransferofPropertyAct,1882excludesMohammedanLawofgiftsandgiftsmadeincontemplationofdeathfromthepurview
ofthelawofgiftsintheTransferofPropertyAct,1882.Thissectionisextremelycontroversialanditsconstitutionalityhasbeenchallenged.Ithas
beendiscussedingreaterdetaillaterinthisproject.
MohammedanGiftsOrHiba
AHibaoragiftunderMuslimlawliterallymeansthedonationofathingfromwhichthedoneemayderivebenefit.
EminentjuristsofMuslimlawhavedefinedgiftinvariousways.SomeoftheimportantdefinitionsofHibaorgiftare:[28]
EminentjuristsofMuslimlawhavedefinedgiftinvariousways.SomeoftheimportantdefinitionsofHibaorgiftare:[28]
MULLA:Giftisatransferofproperty,madeimmediatelyandwithoutanyexchange,byonepersontoanother,andacceptedbyoronbehalfofthe
latter.
FYZEE:Hibaistheimmediateandunqualifiedtransferofthecorpusofthepropertywithoutanyreturn.
ABDURRAHIM:Atransferofadeterminateproperty(mal)withoutanexchange.Juristicallyitistreatedasconsistingofproposalorofferon
partofthedonortogiveathingandofacceptanceofitbythedonee.Untilacceptancethegifthasnooperation.
TheimportanceofHibaorgiftinMuslimlawliesinthefactthatwhereasMuslimlawallowstestamentarydispositionwithinthelimitofonethird
only,agiftintervivosmaybemadewithoutanyrestriction.MuslimLawallowsapersontogiftawaythewholeofhispropertyduringhislifetime.
[29]
EssentialsofaHiba
TheessentialelementsofagiftunderMuslimLawareclearandwellsettled.Theyare:[30]
Declarationofthegiftbythedonor
Acceptanceofthegift,expresslyorimpliedly,byoronbehalfofthedonee
Deliveryofpossessionofthesubjectmatterofthegifttothedonee.
IfanyoftheaboveelementsismissingthegiftisnotcompleteandwillbeinvalidintheeyesofMuslimLaw.
Declaration
Declarationdoesnotsimplymeananannouncementofthegiftbutalsoentailsthatthedonorshouldhavearealintentionofmakingthegift.In
V.P.KUmmav.P.NKunhamu[31]ahusbandmadeagiftofimmovablepropertybyregistereddeedtohisminorwifewhohadattainedpuberty.The
giftwasacceptedbyhermotheronherbehalf.Therewasnoguardianalivetoacceptthegift.Thegiftdeedwashandedovertotheminorwifes
motherinwhosehousethehusbandandwifewereliving.Thecourtstatingthattherewasacompleteintentiontodivestownershiponthepartof
thehusband,thedonortotransferthepropertytothedonee(hiswife)heldthegiftcompleteandvalid.InStateofU.Pv.SayedAbdulJain[32]it
washeldthatdeclarationofgiftbythedonorisanessentialconditionforthevalidityofagift.Wherethereisnorealandbonafideintentionto
transfertheownershipofthesubjectofthegift,anallegedgiftmaybeofnoeffect.Agiftmadewithanintentiontodefraudthecreditorsofthe
donorisvoidableattheoptionofthecreditors.[33]
Acceptance
Thedoneemustacceptthehibaforittobevalid.Thisacceptancemustbeexpressorimpliedie.byconduct.Howeverthegiftofadebttoadebtor
orhisheirisvalidwithoutacceptanceandisnotinvalidatedbythedebtorsrefusaltoacceptthegift.Itshouldbenotedthatnoacceptanceis
requiredwhenagiftistoachildfromhisorhermotherorfatherorfromaguardiantoaward.[34]
DeliveryofPossession
Whenthedonormakesadeclarationofagiftandthedoneeaccepts,thenthepossessionofthethinggiftedshouldalsobegiventothedonee.
Suchdeliveryofpossessionmaybeactualorconstructive.ItwasheldinM.MKhanv.S.AKhan[35]thatitisessentialtothevalidityofagiftunder
Mohammedanlawthatthereshouldbedeliveryofsuchpossessionasthesubjectofthegiftissusceptibleof.Inotherwordsthetakingofthe
possessionofthesubjectmatterofthegiftbythedoneeeitheractuallyorconstructivelyisnecessarytocompleteagift.Incasethereismore
thanonedonee,possessionbyonedoneeispresumedtobeinthenameandonbehalfoftheothercodonees.
Registrationofagiftdeeddoesnotinanywaydoawaywiththeneedfordeliveryofpossession.
Therearecertaincaseswhendeliveryofpossessionisnotnecessaryandthegiftisvalidevenwithoutdeliveryofpossession.Theyare:[36]
Whenthedonoranddoneeresideinthesamehouse.
Agiftmadebyahusbandtohiswife.
Agiftfromaguardiantoawardorfromamotherorfathertotheirchild.
Whenthesubjectofthegiftisalreadyinpossessionofthedonee.
DonorsunderMuslimLaw
EveryMuslimmaleorfemale,whoisamajor,andsanemaymakeagift,providedheorsheisnotsubjecttoanyforceorfraud.AmarriedMuslim
femalecanalsomakeagift.[37]
DoneesunderMuslimLaw
Agiftmaybemadeinfavourofthefollowing:[38]
1.Anylivingpersonwhoiscapableofholdingproperty.
2.Agifttoachildinthewombisvalidprovidedthatthechildisbornwithinsixmonthsfromthedateofthegift,because,inthatcase,itis
presumedthatthechildwasactuallyexistingasadistinctentityinthewomb.
3.Agiftofalimitedinterestintheusufructofthepropertymaybemadetoanunbornpersonprovidedthatsuchpersonisinexistencewhen
theinterestopensoutforhim.
4.Giftsmaybemadevalidlytojuristicpersonssuchasmosques,dargahsandcharitableinstitutionslikeschools.
5.Giftsmaybemadetononmuslims.Thegiftpropertywillbesubjecttothepersonallawofthedoneeoncehegetspossessionofit.
SubjectsofHiba
Allmalorformsofpropertyoverwhichcontrolmaybeexercisedarepropersubjectsofgift.Theseincludeallmal,whetherancestralorself
acquired,movableorimmovable,corporealorincorporeal.
AgiftofanACTIONABLECLAIMisalsovalidunderMuslimLaw[39].AMuslimmortgagorcanmakeavalidgiftofhisrightofequityof
redemptionevenifthemortgageeisinpossession.Section38(7)oftheInsuranceAct,1938laysdownthatanypersoncanassignandtransfer
hisinsurancepolicyhispersonallawnotwithstanding.ThusbyvirtueofthissectionaMuslimcanmakeavalidgiftofhisinsurancepolicy.
RegistrationofGifts
UnderMuslimLawagiftmaybeoralorwritten.AsMuslimlawrecognizesoralgiftsthusagiftunderMuslimlawneednotberegistered.Assection
129oftheTransferofPropertyAct,1882exemptsMuslimsfromtheprovisionsofSection123ofthesameactagiftunderMuslimlawcannotbe
invalidatedforwantofregistration.InMohammedHesabuddinv.MohammedHesaruddin[40]thecourtobservedthatitcannotbetakenassine
quanoninallcasesthatwhereverthereisawritingaboutaMohammedangiftofimmovablepropertytheremustberegistrationthereof.Thefacts
andcircumstanceshavetobetakenintoconsiderationbeforedeterminingwhetherthegiftrequiresregistrationornot.InNasibAliv.Wajed
Ali[41]itwasheldthatagiftdeedexecutedbyamuslimwhohasmadeagiftinaccordancewiththeprovisionsofMuslimlawismerelyevidence
ofacompletegiftandassuchisnotcompulsorilyregistrableandisadmissibleinevidencenotwithstandingtheembargolaiddownbysections17
and49oftheIndianRegistrationAct,1908.InRamNiwasTodiv.BibiJabrunnissa[42]theSupremeCourtofIndiaupheldthevalidityofan
and49oftheIndianRegistrationAct,1908.InRamNiwasTodiv.BibiJabrunnissa[42]theSupremeCourtofIndiaupheldthevalidityofan
unregisteredoralgiftandlaiddownthatMuslimpersonallawsoverridetenancylawsandotherspecificlegislationsunlessitisspecifically
mentionedtothecontraryinthelegislation.
GiftofCorpus(Ayn)andUsufruct(Manafi)
WhatMuslimlawdoesrecognizeandinsistuponisthedistinctionbetweenthecorpusofthepropertyitselfandtheusufructoftheproperty.Over
thecorpusofthepropertythelawrecognizesonlyabsolutedominion,heritableandunrestrictedinpointoftime,andwhereagiftofthecorpus
seekstoimposeaconditioninconsistentwithsuchabsolutedominiontheconditionisrejectedasrepugnant,butinterestlimitedinpointoftime
canbecreatedintheusufructofthepropertyandthedominionoverthecorpustakeseffectsubjecttoanysuchlimitedinterests.[43]
InJameelaBegumv.ControllerofEstateDuty,Madras[44]itwasheldthatareservationoftherightsinmanafisolongastheaynistransferred
doesnotrenderthegiftbad.
Conditional,ContingentandFutureGifts
ConditionalGiftsmaybeoftwotypes:
ConditionalGiftsConditionalGiftsorgiftsthataresuspendedonaconditionareinvalid,unlesstheconditionissuchthatitcanbe
fulfilledimmediately,inwhichcaseitconstitutestheacceptance.ThusifthedonorsayswhentomorrowcomesIwillgiveyoua
computerthegiftisinvalid.Aconditionwhichiscapableofimmediatefulfillmentbecomestheacceptanceifitisperformedandthegift
isvalid.Thusifapersonsaystoanotherifyouowememoneyyouareabsolvedfromitthenthegiftisvalidasexistenceofthedebt
wouldconstituteacceptance.
GiftswithconditionsIfagiftismadesubjecttoaconditionwhichcomesinthewayoffullownershipofthegiftedproperty,thegiftis
validbuttheconditionisvoid.Ifahouseisgiftedontheconditionthatitshallnotbesoldthentherestraintonalienationisvoidandthe
housebelongsabsolutelytothedonee.InMohammedNarizuddinv.GovindarajaluAppah[45]thecourtconsideredthevalidityofagift
withaconditionrestrainingalienationunderMuslimlawaswellasundertheTransferofPropertyAct,1882andheldthatitwasnot
possibletoputrestraintsonalienation.
ContingentGift
Ahibacannotbemadetotakeeffectonthehappeningofacontingencyorafutureuncertainevent.Allcontingentgiftsarevoid.[46]Onlyagiftof
aninsurancepolicywhichmaybecontingentinnatureisvalidowingtotheoperationofSection38(7)oftheInsuranceAct,1937.
FutureGift
Ahibamustbeofexistingproperty.Itcannotbemadetotakeeffectatanyfuturetime,whethersuchtimeisdefiniteorindefinite.Forexampleif
AmakesagifttoBofthefruitthatwillbeproducedbyhispalmtreenextyearthegiftisvoidasitisagiftoffutureproperty.[47]
Giftthroughthemediumoftrust
Agiftmaybemadethroughthemediumoftrust.Thesameconditionsarenecessaryforthevalidityofsuchagiftasthoseforagiftmadedirectly
tothedoneewiththedifferencethatinthecaseofagiftthroughthemediumoftrustthegiftshouldbeacceptedbythetrusteesandpossession
shouldalsobedeliveredtothetrustees.AMohammedancannotthroughthemediumoftrustsettlepropertyforthebenefitofpersonswhoare
incapableoftakingunderthelawofgift,norcanhethroughatrustcreateanestatenotrecognizedbythelawofgiftsofthesecttowhichhe
belongs.[48]
RevocationofGift
AccordingtoMuslimLawallvoluntarytransactionsarerevocable.Thusgiftsmayalsoberevoked.Agiftmayberevokedbythedonoratanytime
beforedeliveryofpossession.Thereasonisthatthegiftisnotagiftbeforedeliveryofpossessionandhencetherulesrelatingtogiftsdonot
applytoit.Whenagiftiscompleteandthesubjectmatterofthegiftisdulytransferredtothedoneerevocationofthegiftispossibleonlythrough
interventionofthecourtoflaworbytheconsentofthedonee.
Inthefollowingcasesacompletedgiftcannotberevokedevenbythecourtorthroughtheconsentofthedonee:[49]
Whereitismadebythehusbandtohiswifeorviceversa
Wherethedonoranddoneearerelatedtooneanotherwithintheprohibiteddegreesbyconsanguinity
Wherethedonorordoneedies
Wherethethinggivenisdestroyedorlost
Wherethethinggivenhaspassedoutofthedoneespossessionbygift,saleorotherwise
Wherethethinggivenhasincreasedinvalue
Wherethethinggivenhassochangedthatitcannotbeidentified
Wherethedonorhasreceivedareturn(ewaz)forthegift
Wherethegiftamountstoasadaqa
Hibabilewaz
Ahibabilewazasdistinguishedfromahibaisagiftforconsideration.Afterthegifthasbeenmadethedoneemayoffertomakeareciprocalgift
tothepersonmakingtheprimarygift.Thenthereciprocalgiftiscalledtheewazorreturnfortheprimarygift.Iftheewazisacceptedthenit
becomesahibabilewaz.[50]
InIndiathehibabilewazisnotrecognizedasagift.Itistreatedasasaleandhasalltheincidentsofacontractofsale.Ahibabilewazisthus
governedbythelawrelatingtosaleintheTransferofPropertyAct,1882.
Sadaqa
Asadaqaisagiftmadewiththeobjectofacquiringreligiousorspiritualmerit.[51]Itisexactlylikeahibawiththeonlyexceptionbeingthatit
cannotberevokedunderanycircumstance.
GiftsUnderTheIndianSuccessionAct,1925
AdonatiomortiscausaorgiftincontemplationofdeathisdefinedbySection191oftheIndianSuccessionAct,1925as:Agiftissaidtobe
madeincontemplationofdeathwhereaman,whoisillandexpectstodieshortlyofhisillness,deliverstoanotherpossession
ofanymovablepropertytokeepasgiftincasethedonorshalldieofthatillness.Suchagiftmayberesumedbythegiverand
shallnottakeeffectifherecoversfromtheillnessduringwhichitwasmadenorifhesurvivesthepersontowhomitwas
made.
TherequirementsofaGiftinContemplationofDeathaslaiddownbySection191oftheIndianSuccessionAct,1925are:
Thegiftmustbeofmovableproperty
Itmustbemadeincontemplationofdeath
Thedonormustbeillandexpectstodieshortlyoftheillness
Possessionofthepropertyshouldbedeliveredtothedonee
Thedonormustbeillandexpectstodieshortlyoftheillness
Possessionofthepropertyshouldbedeliveredtothedonee
Thegiftdoesnottakeeffectifthedonorrecoversfromtheillnessorthedoneepredeceasesthedonor
TheserequirementsofavaliddonatiomortiscausawerelaiddownbytheSupremeCourtofIndiainComissionerofGiftTaxv.AbdulKarim
Mohammed.[52]InthiscasetheSupremeCourtinterpretingSection191oftheIndianSuccessionAct,1925statedthattherewasnothingnewin
therequirementsprovidedunderSection191oftheIndianSuccessionAct,1925.Theyaresimilartotheconstituentelementsofavaliddonatio
mortiscausa.TheCourtalsolaiddownthatSection191providedformeaningorrequirementsofagiftincontemplationofdeathandthissection
couldnotbeinvokedforclaimingexemptionfromgifttax.
AgiftmadeincontemplationofdeathiscalledaMarzulmautunderMuslimLaw.Amarzulmautsatisfiestheconditionsofsection191ofthe
IndianSuccessionAct,1925.
AdonatiomortiscausaorgiftmadeincontemplationofdeathisexemptfromtheprovisionsofTransferofPropertyAct,1882.Themain
differencesbetweenadonatiomortiscausaandagiftasdefinedintheTransferofPropertyAct,1882are:
Adonatiomortiscausaisonemadebyapersonexpectingthathewoulddieofanillness.Anordinarygiftmaybemadeatanytime.
Inagiftmadeincontemplationofdeaththeconditionthatthegiftshallnottakeeffectifthedonorrecoversfromtheillnessisimplied.In
anordinarygiftconditionsarenotimportedbyimplication.
Adonatiomortiscausaisresumableatthewillofthedonor.Anordinarygiftresumableatthewillofthedonorisvoid.
AgiftmadeincontemplationofdeathrelatesonlytomovablepropertywhereasagiftundertheTransferofPropertyAct,1882mayrelate
tomovableorimmovableproperty.
Anordinarygifttakeseffectimmediatelyafterthegiftdeediscompletelyexecutedwhileadonatiomortiscausatakeseffectonlyonthe
deathofthedonor.
GiftAndOtherTransfers
AGift,thoughatransferofproperty,isagratuityandanactofgenerosityanddoesnotcontainanyelementofconsiderationinanyshapeorform.
Completeabsenceofmonetaryconsiderationisthemainhallmarkwhichdistinguishesagiftfromagrantorothertransactionslikelease,sale,
mortgageetc.whichmaybeforvaluableoradequateconsideration.Wherethereisanyequivalentorbenefitmeasuredintermsofmoneyin
respectofagiftthetransactionceasestobeagiftandassumesadifferentcolour.Themotiveorthepurposeofmakingagiftshouldnotbe
confusedwiththeconsiderationwhichisthesubjectmatterofthegift.Love,affection,spiritualbenefitandmanyotherfactorsmayenterinthe
intentionofthedonortomakeagiftbutthesefilialconsiderationscannotbecalledorheldtobelegalconsiderationsasunderstoodbylaw.[53]
Thusinspiteofagiftbeingsuchauniqueformoftransferitisoftenconfusedwithotherformsoftransferofproperty.Thecourtshavedonetheir
bitinclearingtheconfusionanddifferentiatingbetweenagiftandotherformsoftransferofproperty.
GiftandLicence
InTheStateofU.Pv.SayedAbdulJalil[54]theplaintiffwasallottedahousebyHisHighnessNawabofRampur.AfterthemergerofRampurwith
U.Pin1949thishousewasgiventotheMunicipalboardofRampurbytheGovernmentofUttarPradesh.TheMunicipalBoardthereupondemanded
rentfromtheplaintiffthroughnoticesandonrefusaltopay,attachedthehouse.Theplaintifffiledasuitfordeclarationthathewastheownerof
thehouseinpossessionandinthealternativehewasalicencee,entitledtoremaininpossessionofthehouseforlifewithoutpaymentofany
rent.OnaperusalofthedocumentbywhichthishousewasallottedtotheplaintiffthecourtobservedthattheNawabmeanttodonothingmore
thantogivetotheplaintifffreeresidentialaccommodationinahouseownedbythegovernment.Foratransferofownership,thepurposeis
statedclearlytobethatthepropertygivenwillbeownedandpossessedhenceforthbythedoneeinsuchawaythathecanuseitordealwithitas
helikes.MereallotmentofaccommodationbytheorderoftheNawabwillnotconstitutetransferofownership.Transferofownership,inthe
ordinarycourse,isexpectedtobeevidencedbymuchmoreclearandunequivocallanguage.Thetransactionwasheldtobeagrantoflicence
revocableatthegrantorsoption.Intheabsenceofanydeclarationofgiftbythedonoritcannotbetakentobeagiftofthepropertyunderthe
TransferofPropertyAct,1882.
GiftandWill
Whetheradocumentoperatesasagiftorawillisoftenacontroversialsubject.IfitisaWill,itwillberevocableevenifitcontainsaclause
forbiddingalienation.Otherwisetherevocationwouldbeinvalidinthefaceoftheconditionforbiddingrevocation.Thequestionwasconsideredin
Duraisamiv.SarojaAmmal.[55]ThecourtpointedoutthattherealtesttodistinguishbetweenagiftandaWillwaswhetherornotthereisa
transferinpraesenti.Inthiscasetheexecutantreservedtohimselfarightinthepropertyforhislifetimeand,subjecttothis,gavethepropertyto
A(theplaintiff).Awasnottoalienatethepropertyduringtheexecutantslifetimeandthepattaforthelandwastocontinueinthenameofthe
executantduringhislifetime.Itwasconcludedfromthesedirectionsthattheexecutantintendedtoexecuteasettlementdeedoperativein
praesentiandsohissubsequentrevocationwasinvalidandthesubsequentalieneefromhimcouldnotacquireanytitle.
HibaV.GiftsUnderTheTransferOfPropertyAct,1882
AnalyzingtheconceptofGiftundertheTransferofPropertyAct,1882andHibaunderMuslimLawbringstolightthefactthatthereisnotmuch
differencebetweenMohammedangiftsandthelawofgiftsundertheTransferofPropertyAct,1882.Thebasicessenceofagiftanditsmain
conceptsaremoreorlessthesameunderbothsystemsoflaw.Howeverthereareafewareaswheretherearesomedifferencesbetweenahiba
andagiftasunderstoodbytheTransferofPropertyAct,1882.
AfterdeliveryofthegiftiscompleteandthegiftisinpossessionofthedoneeitcannotberevokedunderanycircumstanceundertheTransferof
PropertyAct,1882.HoweverunderMuslimLawahibamayberevokedevenafterdeliverythroughtheinterventionofthecourtorthroughthe
consentofthedonee.Therearehoweverexceptionstothisrulewhenafterdeliveryahibacannotberevokedunderanycircumstance.
TheTransferofPropertyAct,1882doesnotallowgiftstobemadetojuristicpersonsortononlivingthingshoweverunderMuslimLawagiftmay
bemadetoajuristicpersonsuchasamosque.
UnderMuslimLawahibabilewaz,atypeofgiftwhichhasanelementofconsiderationisvalid.HoweverundertheTransferofPropertyAct,1882
agiftwhichhasanyelementofconsiderationisvoid.ThehibabilewazisnotconsideredasagiftinIndiabutinClassicalMohammedanLawa
hibabilewazisavalidgift.
AdonatiomortiscausaorgiftmadeincontemplationofdeathcomeswithinthepurviewofSection191oftheIndianSuccessionAct,1925.A
donatiomortiscausaunderMuslimLawisknownasamarzulmaut.AmarzulmautsatisfiestheconditionsofSection191oftheIndian
SuccessionAct,1925.[56]Theonlydifferenceisthatthroughamarzulmautadonorcangiftawayonlyonethirdofhisestateandifhewishesto
exceedthislimitthepriorconsentofhisheirsisnecessary.
MohammedanLawallowsoralgiftswhereastheTransferOfPropertyAct,1882doesnot.Registrationisthusanessentialelementtoeffect
transferofagiftundertheTransferofPropertyAct,1882whereasunderMuslimLawRegistrationofagiftdeedisnotnecessary.Thisdifferenceis
themainboneofcontentionbetweenthelawofgiftsundertheTransferofPropertyAct,1882andMohammedanGiftsandhasstirredupahuge
controversywhichhasevenledtochallengingtheconstitutionalityofcertainprovisionsoftheTransferofPropertyAct,1882.
Section123oftheTransferofPropertyAct,1882laysdownthemannerinwhichagifthastobeeffectedandprescribestheneedforaregistered
instrumentsignedbyoronbehalfofthedonorandattestedbyatleasttwowitnessesifthesubjectmatterisimmovableproperty.
Section129oftheTransferofPropertyAct,1882providesthatNothinginthischapter(whichdealswithgifts).shallbedeemedtoaffectany
ruleofMohammedanLaw.
InGhulamAhmedSufiv.MohammedSidiqDareel[57]theFullBenchoftheJammuandKashmirHighCourtwasaskedtomakeanauthoritative
InGhulamAhmedSufiv.MohammedSidiqDareel[57]theFullBenchoftheJammuandKashmirHighCourtwasaskedtomakeanauthoritative
pronouncementonthepropositionoflawifinviewofsections123and129oftheTransferofPropertyAct,1882theMuslimLawonthe
questionofgiftsstandssupersededandwhetheritisnecessarythatthereshouldbearegisteredinstrumentasrequiredbysections123and129
oftheTransferofPropertyAct,1882inthecaseofgiftsmadeunderMuslimLaw.Onareviewofthecaselawandacloseexaminationofthe
wordingofsection129oftheTransferofPropertyAct,1882thecourtansweredboththequestionsinthenegative.ItpronouncedthatSections
123and129oftheTransferofPropertyAct,1882didnotsupersedeMuslimLawrelatingtooralgiftsandthataregisteredinstrumentwouldnot
benecessaryforagiftunderMuslimLaw.Accordingtothecourtonlyifaninstrumentwasexecutedanditsexecutionwascontemporaneouswith
themakingofthegift,theinstrumentshouldberegisteredasprovidedinSection17oftheIndianRegistrationAct,1908.Thisdecisionofthe
court,whichitcalledanauthoritativepronouncement,wasamererestatementofwhatisundoubtedlysettledlawonthepointatissue.Thecourt
itselfreferredinitsjudgmenttotheidenticaldecisionsinseveralearliercasesofothercourtswhichfortifieditspronouncement.
InBibiManiranv.MohammadIshaque[58]aDivisionBenchofthePatnaHighCourtrejectedtheargumentthatSection129oftheTransferof
PropertyAct,1882violatedArticle14oftheConstitutionthecourtheldthattheclassificationbetweenMohammedansandotherswas
reasonable,havingregardtothewellknownfundamentaldifferencesbetweenthereligionandcustomsofMohammedansononehandandthe
religionandcustomsofothers.
InMakkuRawtherv.ManahaparaCharayil[59]itwasheldthatSection129oftheTransferofPropertyAct,1882wasultravirestheConstitutionif
itwasheldapplicabletoallMohammedangiftsandshouldthereforebeconstruedaslimitedtoMohammedangiftsofacharitableorreligious
nature.JusticeKrishnaIyerinhisjudgmentstatedthatsecularMohammedangiftsaredifferentfromMuslimgiftsofareligiousnatureand
suchseculargiftsshouldconformtotherequirementsofwriting,attestationandregistrationaslaiddowninSection123oftheTransferof
PropertyAct,1882inordertosurvivethescrutinyofArticle14oftheConstitution.ByclassifyingMuslimgiftsintosecularandreligiouscategories
thisjudgmentimportedintothefabricofIslamiclawsomethingwhichwashithertounknown.InhisjudgmentJusticeKrishnaIyersaidthatMuslim
juristsdonotgiveanyhintanywhereofanytabooofaMussalmanreducingagifttowriting,togetitattestedortogetitregisteredbyanypublic
authority.HealsoassertedthatthereisabsolutelynoconflictbetweenSection123oftheTransferofPropertyAct,1882andtherulesofMuslim
Lawexceptmaybewherereligiousorcharitablegiftsaremade.Seeninthiscontextitisnotjustifiabletoclassifyvariouscommunitiesfor
purposesofdocumentation,attestationandregistrationofpurelyseculargifts.
JusticeKrishnaIyersjudgmentgoesagainstthesettledlawinIndiaonthepointoftheconflictbetweenMulimLawandtheTransferofProperty
Act,1882withrespecttogiftsandhascomeunderseverecriticism.Itisimpossibletodistinguishbetweenreligiousandseculargiftsbecause
HinduandMohammedanlawsaresointimatelyconnectedthattheycannotbereadilydisseveredfromit.MoreoverJusticeKrishnaIyers
classificationofgiftsintoreligiousandseculargoesagainstthenormsofinterpretingMuslimlawandifsuchclassificationwasadheredtoit
wouldshakethefundamentalsofMuslimLaw.
Itisofextremeimportancetolookatthiscontroversyfromanotherviewpoint.Registrationofagiftdeedisnotanantireligiousorsacrilegious
act.Itdoesnotinterferewiththeobservanceofreligiousrites.Itensuresaproperauthenticrecordofthepropertytransaction,whichisultimately
beneficialtothepartiesthemselves.AstheMuslimjuristshavethemselvesacknowledgedintheirdefinitions,hibaisregardedasapartofthelaw
ofcontracttheconceptofcontractunderscorestheconceptofhiba.JustasothersalesandcontractsbyMuslimsaresubjecttothecivillawsof
thecountry,thereisnothingunusualincoveringthesetransactionsalsoundertheordinarycivillaws.Theonlygrudgecanbeonaccountofthe
requirementofregistrationfeesbutnoMohammedanjuristhasclaimedorjustifiedimmunityfromseculartaxation.Anexemptionfromsomelegal
formalitiesshouldbeclaimedinsuchareaswhereitisessentialtokeepintactreligiousrites,ceremoniesorobservancesofessentiallyreligious
character.Toomuchinsistenceonimmunitiesfromgenerallawsofthelandbreedsseparatisttendencies.Insteadofadvancinghairsplitting
argumentstoclaimimmunity,theMuslimsocietyshouldwillinglycomeforwardtoclaimmaximumintegrationwiththegenerallegalsystemofthe
country.
Conclusion
HavingstudiedandcomparedtheMohammedanlawofgiftsandgiftsundertheTransferofPropertyAct,1882itcanbeaccuratelysaidthatthe
mostsignificantissueinIndiatodayregardingthelawofgiftsistheinterpretationofSection129oftheTransferofPropertyAct,1882andthe
applicabilityoftheprovisionsoftheActtothehibaorMohammedangifts.ThecourtsinIndiahaveupheldtheconstitutionalityofSection129of
theTransferofPropertyAct,1882andhaveinterpretedittomeanthattheprovisionsoftheTransferofPropertyAct,1882shallnotapplyto
MohammedangiftsandMohammedangiftswillbesolelygovernedbytherulesofMuslimlaw.HoweverJusticeKrishnaIyersjudgmentwhichhas
goneagainstthesettledlawofthelandandheldtheTransferofPropertyAct,1882tobeapplicabletoMuslimgiftsofasecularnaturehascome
underseverecriticismbuthasraisedquestionstooregardingtheharmonyoflawsrelatingtogifts.
JusticeKrishnaIyersviewsonthelawrelatingtogiftsaretoodrasticandifupheldwouldshakethefundamentalsofMuslimlaw.
ThepresentsituationofextremeuncertaintyovershadowingthelawofhibabringsnocredittoIndianjurisprudence.Itcreatesgreatdifficulties
andhazardsformuslimsdesiringtomakedispositionsoftheirproperty.Itisthusdifficultforlawyerstotendergoodadvicetotheirclientsorto
takesurestepinconveyancinggifts.
Anattitudeofcallousindifference,compoundedwithinadequateunderstandingofasystemoflawsometimesdecriedasoutdated,hasledsome
judges,sometimes,topassillconsideredjudgmentsthathaveinflictedneedlessinjusticeonpartiesandcreatedconfusioninlegaladministration.
ItisimperativethatthisfieldoflawbeconsideredingreatdepthbytheSupremeCourteitherinitsappellatejurisdictionoruponapresidential
ReferenceunderArticle143oftheConstitution,inorderthatclarity,certainty,andrationality,inthecontextoftheneedsofcontemporarysociety,
inaccordwiththeinnategeniusofMuslimLawandinharmonywiththegenerallegalfabricberestoredtoIndianJurisprudenceinthematterof
gifts.
Howevertillthisconfusioniscleareditisadvisableforconveyancerstobeonthesafesideandsatisfytherequirementsofregistrationas
envisagedbytheTransferofpropertyAct,1882andtherulesofMuslimLawinthecaseofallhibas.
Toendthiscontroversylegislativechangeisnecessary.SuchlegislativechangeshouldincorporateintheTransferOfPropertyAct,1882the
substanceofthehibaasunderstoodbytheMuslims,providediscountenaceoforalgiftsnotevidencedbyregistrationandprovidealegalfacilityto
everyone.ThiswilladvanceanintegrationoftheinstitutionsandlawsrelatingtogiftsinIndiaandbringaboutharmony.
Bibliography
BOOKS
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3.M.HidayatullahandArshadHidayatullah,MullasPrinciplesofMohammedanLaw(Bombay:N.MTripathiprivateLimited,1990).
4.Mulla,TransferofPropertyAct,1882SolilPauled.(9thed.)(NewDelhi:Butterworths,2000).
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[3]Ibidat1291.
[4]Id.
[5](1979)3SCC226.
[4]Id.
[5](1979)3SCC226.
[6]AIR1972HP117.
[7]Supranote2at1294.
[8]Id.
[9]AIR1984All72.
[11](1997)2SCC255.
[13]Section123oftheTransferofPropertyAct,1882.
[14]Id.
[15](1994)4SCC331.
[16]AIR1967SC1395.
[17](1996)11SCC681.
[18]AIR1974P&H130.
[19]AIR1948Nag326.
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[22](1996)4SCC697.
[23]AIR1974SC1728.
[24](1987)2SCC84.
[26](1997)2SCC636.
[28]SyedKhalidRashid,MuslimLaw(Lucknow:EasternBookCompany)216.
[29]Id.
[31]AIR1964SC275.
[32](1973)2SCC26.
[33]M.HidayatullahandArshadHidayatullah,MullasPrinciplesofMuslimLaw(Bombay:N.MTripathiPrivateLimited,1990)114.
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[40]AIR1984Gau41.
[41]AIR1927Cal197.
[42](1996)6SCC444.
[43]MohsinAliv.StateofMadhyaPradesh(1975)2SCC122.
[44](1991)Supp.(1)SCC136.
[45]AIR1971Mad44.
[52](1991)3SCC520.
[52](1991)3SCC520.
[53]SoniaBhatiav.StateofUttarPradesh(1981)2SCC585.
[54]AIR1990SC1272.
[55]AIR1981Mad351.
[56]CommissionerofGiftTaxv.AbdulKarimMohammed(1991)3SCC520.
[57]AIR1974J&K59.
[58]AIR1963Pat229.
[59]AIR1972Ker27.
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Legalsutra - Gifts Under Transfer of Property Act

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Legalsutra - Gifts Under Transfer of Property Act

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10/9/2016 Legalsutra|LawStudents'KnowledgeBaseLawSchoolProjects,mootcourtmemorials,classandcasenotesandmore!

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