About The Author
Ann Varghese is a Member of Munsiff Magistrate Exam training program
Question
A’ makes a gift to ‘X’,’Y’ and ‘Z’. X and Y accept while Z refuses. What happens to the gift?
Sections involved
Section 122 of Transfer of Property Act -Gift Defined
Section 125 Transfer of Property Act-Gift to several of whom one does not accept
Solution
Definition of “Gift”
Transfer of Property Act,1882 defines gift under S.122 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.
Essentials of a Valid Gift
1.The transfer of ownership- The owner of the property while transferring the property to the donee must transfer all the rights in the said property.
2.Existence of property- The property which the donor intends to transfer by way of gift must be in existence at the time of transfer.
3.The transfer must be without consideration and done voluntarily
4.Donor must be a competent person
5.The transferee/ donee must accept the gift
6.Delivery of possession
Reasoning of the issue at hand
This is a clear illustration of S.125 of Transfer of Property Act, 1882. It states as follows:
“A gift of a thing to two or more donees, of whom one does not accept it, is void as to interest which he would have taken had he accepted.”
Thus, in simple words, if a gift is made to multiple donees and one of them rejects it, only that part of the gift becomes void and is returned to the donor.
Therefore, in this case, the interest of X and Y are valid and lasting while that of Z becomes void and returns to A.
(Question from Munsiff magistrate exam 2022 Main paper)
