A gift of immovable property made by a Muslim is valid even if it is not registered under the Transfer of Property Act or the Stamps and Registration Act, the Supreme Court today ruled. The apex court said though the TP Act mandates registration of a gift, the same would not apply to a Muslim donor as the community has been exempted from the provision.
A bench of justices R M Lodha and S S Nijjar in a judgement quashed a ruling of the Andhra Pradesh High Court that the property gifted by late Shaik Dawood to one of his sons Mohammed Yakub was not valid as it was not registered under the law.
The bench said the three essentials of a gift under Mohammadan Law are (i) declaration of the gift by the donor (2) acceptance of the gift by the donee and (3) delivery of possession.
“Though the rules of Mohammadan Law do not make writing essential to the validity of a gift, an oral gift fulfilling all the three essentials make the gift complete and irrevocable. However, the donor may record the transaction of gift in writing.