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Concept of Gift
Concept of Gift
Introduction
A Muslim can devolve his property in various ways. Muslim law permits the transfer of
property inter vivos (gift) or through testamentary dispositions (will). A disposition
inter vivos is unrestricted as to quantum and a Muslim is allowed to give away his entire
property during his lifetime by gift, but only one-third of the total property can be
bequeathed by will. Conventionally, a gift, being a transfer of property is governed by
the Transfer of Property Act, 1882. But Chapter VII of the Transfer of Property Act, 1882
regulating the gifts does not apply to the ‘Muslim Gifts’ or the ‘Hiba’. Although there is
no such difference between a gift made by a non-muslim or a Muslim yet, the formalities
of Hiba are different from that of a gift made by a non-muslim. Therefore, Hiba is
governed by the Muslim Personal Law.
Meaning and Definition of Gift
A gift is generally a transfer of ownership of a property by a living person to another
living person without any consideration. In Islamic law, gifts are known as ‘Hiba’. To
be very precise, gift implies to an extensive overtone and appertain to all kind of
transfers of ownership not involving any consideration. On the other hand, the term
‘Hiba’ includes a narrow connotation. It is basically transferred inter vivos i.e. between
living person.
According to Fyzee– “Hiba is the immediate and unqualified transfer of the corpus of
the property without any return.”
After anatomizing the definitions and meaning, some prominent features of Hiba
emerge as follows:
1. Hiba is a transfer of property by act of the parties and not by operation of law.
It means that any transfer of property done by the court of law or any transfer of
ownership by the Muslim law of inheritance will not be considered as Hiba.
2. Under Hiba, a living Muslim voluntarily transfers the ownership of any property
to another living person. Hence, it is a transfer inter vivos.
3. The transferor transfers ownership of the property in absolute interest and the
transferee gets the complete title in respect of the property given to him.
Conditions, restrictions or partial rights in the gifted property are averse to the
concept of Hiba under Islamic law.
4. Hiba is operative with immediate effect and deprives the transferor of his
control and ownership over the property. Moreover, as the property is passed
immediately to the transferee, the property must be in existence at the time when
the gift is made. A gift made for a property which will exist is future is termed as
void.
5. A Hiba is a transfer of property without any consideration. If anything of
any value is taken by the transferor in return or exchange, such a transfer of
property is not a gift.
In the case of Hussaina Bai v. Zohara Bai AIR 1960 MP 60 the validity of a gift
made by parda-nasheen ladies was declared by the court. In this case, a parda-nasheen
Muslim lady was brought from Nagpur to Burhanpur on an excuse that her brother-in-
law was seriously ill. After reaching the place, she had a fit of hysteria, and soon after
it, she was made to sign a gift deed without informing her the content of the deed and
no opportunity was given to her to take an independent decision. The court held that-
However, a Muslim has a right to gift away all his properties which are under his
ownership at the time of declaration of the gift. The transfer of the property by the donor
must be in the absolute interest of the donee. Therefore, it is imperative that the donor
himself has the ownership of that property which he intends to pass on to the donee.
Competency of the Donee
The person in whose favour the gift is made is known as the donee. For being a
competent donee, the only essential requirement is that a donee must be any person in
existence at the time of the making of a gift. He may be a person of any religion, sex, or
state of mind. Thus, a Muslim can make a lawful Hiba in favour of a non-muslim,
female, minor or an insane person.
Child in Womb: A child in the mother’s womb is a competent donee provided that it is
born alive within six months from the date on which the gift was made. If after the
declaration of the gift the child dies in the womb or an abortion takes place, the gift
becomes void. Also, the child must be in existence in the mother’s womb at the time of the
making of the gift. If a child is not in the mother’s womb or the conception takes place
after the declaration of the gift, such a gift is void ab initio.
Two or more Donees: A donee may be an individual or a class of persons. In case the
donee is a group of people, all the people in that particular group must be ascertainable.
Formalities of a Hiba
It is often supposed that the word ‘gift’ connotes the exact identical meaning as the term
‘Hiba’. A gift is a broad and generic concept whereas Hiba is a narrow and well-defined
legal concept. Juristically, in Islamic law, a Hiba is treated similar to a contract
consisting of an offer to give something on the part of donor and acceptance on the part
of the donee. Thus, to make a Hiba three essential formalities have to be fulfilled.
Oral or Written: The donor may declare a gift of any kind of property either orally
or through a written deed.
In the case of Md. Hesabuddin v. Md. Hesaruddin AIR 1984 Gau. 41, a Muslim
woman made a gift of her immovable properties in favour of her son. The gift was
written on ordinary paper and was not a registered deed. The court held the validity of
such gifts in this case as-“ Under Muslim law, writing is not essential for the validity of
a gift whether it is moveable or immovable property. Therefore, the gift, in this case,
was held to be valid because writing and registration of a gift are not mandatory
requisites to make a valid gift.”
In Maimuna Bibi v. Rasool Mian AIR 1992 Pat. 203 it was held that-“ It is
necessary that the donor divest himself completely of all the dominion and ownership
over the property of gift. The donor must express his explicit intention to transfer the
ownership to the donee clearly and unequivocally.”
Free Consent: The consent of the donor in making the gift must be free. A declaration
of a gift must be made voluntarily by the donor. Any gift made by a donor under threat,
force, coercion, influence or fraud is not a valid gift.
For the validity of a gift, it must be accepted by the donee. Acceptance manifests the
intention of the donee to take the property and become its new owner. Without
acceptance, the gift is considered to be incomplete. Since under Islamic law, Hiba is
treated as a bilateral transaction, therefore, it is important that the proposal made by
the donor to transfer the ownership of the property must be accepted by the donee.
Minor: In case the donee is minor, the acceptance on behalf of a minor can be given by
the guardian of the property of the minor.
Juristic person: If a gift is made in favour of any institution or any other juristic
person, the acceptance of the gift is made by either manager or any other competent
authority.
Two or more Donees: Gift made in favour of two or more donees must be accepted
by each and every person separately. If the share of each person is explicitly specified
by the donor then, they will get the separate possession in the same way as declared by
the donor. But if the share under a gift is not specified and no separate possession is
given by the donor, then also the gift is valid and the donees will take the property as
tenants-in-common.
Delivery of Possession
The formalities laid down for gifts under Section 123, Transfer of Property Act, 1882,
are not applicable to Muslim gifts. Under Islamic law, a gift is complete only after the
delivery of possession by the donor and taking of possession by the donee. Thus, it is
obligatory that the declaration and acceptance must be accompanied by the delivery of
possession of the property.
The gift takes effect from the date when the possession of the property is delivered to the
donee and not from the date when the declaration was made by the donor. Delivery of
possession is an overriding facet in Islamic law. The importance is to such an extent that
without the delivery of possession to the donee, the gift is void even if it has been made
through a registered deed.
The donor must divest himself of not only the ownership but also the possession in favour
of the donee in order to make a gift complete. Muslim law does not presume transfer of
ownership rights from donor to a donee without the explicit delivery of possession of the
property.
In Noorjahan v. Muftakhar AIR 1970 All. 170, a donor made a gift of certain
property to the donee, but the donor continued to manage the properties and takes the
profit himself. Till the death of the donor, no mutation was made in the name of the
donee. It was held by the court that since no delivery of possession was made, the gift
was incomplete and ineffective in nature.
The mode of delivery of possession totally depends upon the nature of the property
gifted. Legally, the donor is required to do something by which the donee gets the
physical control over the property in order to constitute the delivery of possession.
Actual delivery means when a property is physically handed over to the donee. This type
of delivery is possible only with tangible properties (movable as well as immovable)
which are capable of being physically possessed and given.
Where the property is movable, it must be actually transferred and handed over to the
donee.
For example, if a donor gifts a car to the donee, he must give the keys of the car and
all other documents of the car to the donee so that he can use it. Mere declaring the gift
on a document is not enough. The property must be handed over immediately.
When the possession of the movable property is delivered, the exact time of delivery of
possession can be easily determined. The problem arises in the case of immovable or
incorporeal properties where it is onerous to prove the exact time of the delivery of
possession. However, in India, there are two judicial views regarding the exact time of
the completion of delivery of possession.
This approach lays more emphasis on the facts of donee’s benefits from the gifted
property instead of the act which symbolises constructive delivery of possession.
For example, if a donor gifts a rented house to the donee, the delivery of possession is
considered to take place from the date on which the donee gets the rent from the tenants.
Intention Theory: This approach supports the view that the delivery of
possession is completed on the date on which the donor intent to transfer the
possession to the donee. The intention of the donor can be proved on the basis of
the facts and circumstances which vary from case to case. In correspondence to
the intention of the donor, some potent facts must be established which exhibit
that the donor has physically done everything he could in the given circumstances.
In other words, the court accepts that the delivery of possession is deemed to have taken
place only when the bona fide intention of the donor to complete the gift is thoroughly
established and it is not important to prove that from which date the donee reaps the
benefits of the property given.
For example, if the donor and donee are living in the same house which constitutes the
subject-matter of the gift, the donor’s intention to transfer the possession to the donee is
sufficiently proved if the donee has been authorised to manage the house.
It is not at all necessary to prove separately in each and every case that the delivery of
possession has been completed until and unless the validity of gift is challenged by the
donor, the donee or any person legally authorised to claim on behalf of them.
In the case of Y. S. Chen v. Batulbai AIR 1991 MP 9o , a Muslim woman made a gift
of a portion of her house to her daughter. The gifted portion of the house was occupied
by a tenant who used to pay the rent regularly to the daughter (donee) recognising her
as the landlady. After some time, the tenant refused to recognise the daughter as his
landlady on the ground that the gift made in her favour was void because there was no
delivery of possession. It was held by the court that –
“Any objection as to the validity of gift on the ground of absence of delivery of possession
cannot be raised by the tenant who is a stranger to the transaction of a gift.”
Revocation of Hiba
Although Prophet was against the revocation of gifts, it is a well-established rule of the
Islamic law that all voluntary transactions, including Hiba, are revocable. Different
schools have different views with regard to revocation. The Muslim law-givers classified
the Hiba from the point of view of revocability under the following categories:
All gifts are revocable before the delivery of possession is given to the donee. For such
revocation, no orders of the court are necessary. As discussed above that under Muslim
law, no Hiba is complete till the delivery of the possession is made, and therefore, in all
those cases where possession has not been given to the donee, the gift is incomplete and
whether it is revoked or not, it will not be valid till the delivery of possession is made to
the donee.
It implies that the donor has changed its mind and not willing to complete the gift by
delivery of possession.
For example, X, a Muslim, makes a gift of his car to Y through a gift deed and no
delivery of possession has been made to Y. X revokes the gift. The revocation is valid.
Mere declaration of revocation by the donor or filing a suit in the court or any other
action is not enough to revoke a gift. The donee is entitled to use the property in any
manner until a decree is passed by the court revoking the gift.
Gift to Minor
Any gift made in favour of a minor or insane person is valid. They may not have the
capacity to understand the legal consequences but they are persons in existence and
thus, are competent donee. But such gifts are valid only if accepted by the guardian of
the minor or insane donee. A gift is void without the acceptance by the guardian.
For the purpose of acceptance of the gift, the guardian of a minor or insane donee are
as under in the order of priority:
1. Father
2. Father’s executor
3. Paternal grandfather
4. Paternal grandfather’s executor
Therefore, in the presence of the father, the paternal grandfather is not allowed to accept
the gift on behalf of the minor or insane and so on. If all the above-mentioned guardians
are not present, then the gift is accepted by the ‘guardian of the property of minor or
insane’.
If a guardian himself makes a gift in favour of his ward, he will declare the gift acting
as a donor and has the capacity to accept the gift as the guardian of the minor or insane.
It is to be noted here that the mother is not recognized as the guardian of the
property of her minor child. Hence, she is not entitled to accept the gift on behalf of
her minor child.
Where a gift is made to a minor or lunatic, the gift is complete only if the guardian has
taken the actual or constructive delivery of possession of the property on behalf of such
persons. If the possession is taken by any other person who is neither a legal guardian
nor a de facto guardian, the gift becomes ineffective and void.
Facts: In this case, a Muslim husband made a registered gift to his wife who was a
minor. The gift was accepted by the donee’s mother. Unfortunately, after two years, the
husband died and soon after it the donee (wife) also died. The validity of the gift was
challenged by the elder brother of the donor (husband) on the ground that there was no
delivery of possession as a gift to the minor was accepted by her mother who is not a
legal guardian according to the Islamic law.
Issue: The question before the court was whether a gift by a Muslim husband to his
minor wife and accepted by the mother on behalf of the minor wife, is valid?
Held: The court, in this case, held that it is a well-established rule under Islamic law
that mother is not a legal guardian of the minor’s property, therefore, she is incompetent
to take the delivery of the possession on behalf of the minor donee. But, in case there is
no legal guardian to accept the gift, the completion of the gift for the benefit of the minor
has the utmost significance.
If the donee had already attained the age of puberty, the gift is valid even if it is accepted
by a person who has no authority to accept the gift on behalf of a minor. In this case, the
gift was held to be valid although the delivery of possession was not accepted by any
competent guardian on behalf of minor but since the minor had reached the age of
discretion (fifteen years) and was competent to accept the gift herself.
Islamic law of gift binds great significance to delivery of possession especially in case of
immovable property. The other essentials of Hiba will have no legal effect unless
accompanied by delivery of possession. But there are certain exceptions to this general
rule. The following are the situations under which a gift is valid without actual or
constructive delivery of possession:
Donor and donee live jointly in the gifted house: Where the subject-matter
of a gift is a house in which the donor and donee both resides together, any formal
delivery of possession is not necessary to complete the gift. Since the donee is
already continuing the possession of the house in some other capacity, there is no
need to give the donee the same possession again in a different capacity.
But, there must be some conspicuous act or apparent activity on the part of the donor
that indicates the bona fide intention of the donor to transfer the possession.
In Humera Bibi v. Najmunnissa 1905 28 All. 17, a Muslim lady executed a gift
deed of her house in favour of her nephew who was living with her in the same house.
The property was transferred in the name of the nephew but she continued to live with
him as before. But after the making of the gift, the rents were collected in the name of
the donee. It was held that “ the gift was valid although there was neither any physical
transfer to the donee nor any physical departure of the donor from the house.”
In the case of Fatmabibi v. Abdul Rehman AIR 2001 Guj. 175, the husband
made an oral gift of a house to his wife. Later, the deed was also registered. The
stepson, who lived with his wife in the gifted house, challenged the validity of the gift
on the ground that there was no delivery of possession of the house. It was held that
–“Oral gift in presence of two persons amounts to the declaration, mentioning the
name of the wife in the registration deed amounts acceptance and mutation in the
name of the wife at the instance of the wife amounts sufficient delivery of possession
keeping in view the relationship between the parties.”
Doctrine of Mushaa
The word ‘Mushaa’ has an Arabic origination which literally means ‘confusion’. Under
Islamic law, Mushaa denotes an undivided share in joint property. It is, therefore, a co-
owned or joint property. If one of the several owners of such property makes a gift of
his own share, there may arise confusion in regard to what part of the property is to be
given to the donee. Practically, it is too difficult to deliver the possession of a joint
property if a gift is made by a donor without partition of the joint property.
To circumvent such confusion, the Hanafi Jurists have developed the doctrine of
Mushaa. Gift of Mushaa i.e gift of a share in the co-owned property is invalid without
the partition and actual delivery of that part of the property to the donee. If the co-
owned property is not capable of partition, the doctrine of Mushaa is impertinent. A
Mushaa or undivided property is of two kinds:
Mushaa Indivisible
It includes the property in which the partition is not possible. A gift of an undivided share
(Mushaa) in a property which is incapable of being divided or where the property can
be used for better advantage in an undivided condition, is valid. The doctrine of Mushaa
is not applicable where the property constituting the subject-matter of the gift is
indivisible. All the schools of Islamic law accept the view that a gift of Mushaa indivisible
is valid without partition and the actual delivery of possession.
For example, a staircase, a cinema hall, a bathing ghat etc. comprises indivisible
Mushaa properties. If these kinds of properties are divided, then their original identity
will be lost.
Mushaa Divisible
Mushaa divisible is the property which is capable of division without affecting its value
or character. If the subject-matter of a Hiba is Mushaa divisible, the doctrine of Mushaa
is applied and the gift is valid only if the specific share which has been gifted, is
separated by the donor and is actually given to the donee. However, a gift without
partition and the actual delivery of possession is merely irregular and not void ab initio.
Basis of
Gift Will
Comparison
A man can give away his whole property Only one-third of the net estate
Quantum
during his lifetime. can be bequeathed.