Gift is a relinquishment without consideration of one's own right in property and the creation of the right of another. A gift is completed only on the other's acceptance of the gift. This article briefly analyses how Gifts are made, revoked, and governed under Hindu Law.
A gift under Hindu law need not be in writing. However, a gift under the law is not valid unless it is accompanied by delivery of possession of the subject of the gift from the donor to the donee. However, where physical possession cannot be delivered, it is enough to validate a gift, if the donor has done all that he could do to complete the gift, so as to entitle the donee to obtain possession.
A gift under the above act can only be effected in the following manner.
Under pure Hindu law, a gift cannot be made in favour of a person who was not in existence at the date of the gift. This rule has been altered by 3 acts namely -
The Hindu Transfers and Bequests Act 1914, Hindu Disposition of Property Act 1916, and the Hindu Transfers and Bequests (City of Madras)Act 1921
A gift of property is not invalid because the donor reserves the usufruct of the property to himself for life.
Where property is given subject to a condition absolutely restraining the donee from alienating it, or it is given to two or more persons subject to a condition restraining them from restraining it, the condition is void, but the gift itself remains good.
A gift once completed is binding on the donor, and it cannot be revoked by him unless it is obtained by fraud or undue influence.
A gift made with the intent to defeat or defraud creditors is voidable at the option of the creditors.Copyright 2023 – Helpline Law