In a significant ruling, the Supreme Court has reaffirmed that under Mohammedan Law, gifts—commonly known as Hiba—do not require formal registration to be deemed valid. The Court emphasized that adherence to the essential elements of a gift ensures its validity, irrespective of whether it is documented or registered.
Key Elements of a Valid Gift
For a gift to hold legal weight under Mohammedan Law, three essential conditions must be met:
- Declaration by the Donor: A clear, unequivocal intent to gift must be expressed by the person making the gift.
- Acceptance by the Donee: The recipient must accept the gift, either explicitly or implicitly.
- Transfer of Possession: Actual delivery of possession must follow the declaration and acceptance.
The Court underscored that these conditions must occur sequentially, as one cannot supersede the other. A gift fails to hold legal validity if any of these requisites are unmet.
Oral Gifts Are Valid
The judgment clarified that gifts under Mohammedan Law could be made orally without requiring written documentation or registration. The validity hinges solely on fulfilling the prescribed conditions, reinforcing that registration is not a substitute for the essential requisites of a valid gift.
Case Background
The ruling came in response to an appeal challenging a Karnataka High Court decision that upheld a trial court’s refusal to grant ownership rights based on an oral gift purportedly made by Sultan Saheb.
The appellants argued that the unregistered gift was valid under Mohammedan Law. However, the Court found that the essential condition of a clear declaration by the donor was absent. The bench, comprising Justice CT Ravikumar and Justice Sanjay Karol, dismissed the appeal, reaffirming that even oral gifts require strict compliance with the legal requisites to be valid.
This decision reinforces the importance of adhering to the foundational principles of Mohammedan Law in matters of gift execution, ensuring clarity and fairness in property transfers.
