Under the Transfer of Property Act, 1882, a gift is defined in Section 122 as the voluntary transfer of property from a donor to a donee without consideration.

For a gift to be valid, the following essential requirements must be met:

1. Existence of Donor and Donee: Both the donor and the donee must be competent to contract. The donor must be the lawful owner and have the intent to transfer the property. A minor or a person with an unsound mind cannot make a valid gift.
2. Subject Matter of Gift: The property being gifted must be specific, tangible, and transferable under the Act. The Act allows the gifting of both movable and immovable property, provided it is lawful and identifiable.
3. Transfer Without Consideration: A gift, by definition, involves a transfer of property without any consideration. If consideration exists, the transaction may be treated as a sale rather than a gift.
4. Acceptance by the Donee: The donee must accept the gift during the lifetime of the donor and while the donor is capable of transferring it. This acceptance is crucial, and failure to do so renders the gift void.
5. Registration for Immovable Property: For gifts involving immovable property, the law mandates that the gift deed be registered as per Section 123 of the Act. Registration ensures the validity and enforceability of the gift.

Case References:

• Naramadaben Maganlal Thakker v. Pranjivandas Maganlal Thakker, AIR 1997 SC 448: The Court emphasized the importance of acceptance by the donee.
• Renikuntla Rajamma v. K. Sarwanamma, (2014) 9 SCC 445: The Court held that registration is essential for gifts of immovable property, affirming the requirement for a legally binding transfer.

These essential elements ensure that gifts are made with full intent, legality, and clarity, securing the rights and obligations of both parties involved.

Written By: Prithwish Ganguli, Advocate
LLM (CU), MA in Sociology (SRU), MA in Criminology & Forensic Sc (NALSAR), Dip in Psychology (ALISON), Dip in Cyber Law (ASCL), Dip in International Convention & Maritime Law (ALISON), Faculty, Heritage Law College, Kolkata