Section 125 of Transfer of Property Act, 1882: Gift to Several, of Whom One Does Not Accept

Section 125 of the Transfer of Property Act, 1882 deals with a gift made to two or more persons when one of them does not accept it. The rule makes the gift void only as to the interest that the non-accepting donee would have received, rather than automatically invalidating the entire gift.

Section 125 - Exact statutory provision

125. A gift of a thing to two or more donees, of whom one does not accept it, is void as to the interest which he would have taken had he accepted.

Meaning of Section 125

A donor is the person giving the property, and a donee is the person receiving it. Under Section 122, a gift is a voluntary transfer of certain existing movable or immovable property without consideration, accepted by or on behalf of the donee. Acceptance must occur during the donor's lifetime while the donor is capable of giving; if the donee dies before acceptance, the gift is void.

Where several donees are named, acceptance is material to the interest of each. If one donee does not accept, Section 125 makes the gift ineffective as to that donee's intended interest. It does not, solely for that reason, invalidate the interests accepted by the others.

When does Section 125 apply?

1. The donor makes a gift of a thing to two or more donees.
2. At least one intended donee does not accept the gift.
3. The gift is void to the extent of the interest the non-accepting donee would have received if acceptance had occurred.
4. The effect on other interests is considered under the terms of the gift and the applicable provisions governing valid gifts.

Illustration

A voluntarily gifts a property to B and C in equal shares. B validly accepts the gift, but C does not. Under Section 125, the gift is void as to C's intended half-share. B's accepted half-share is not automatically void merely because C did not accept. The treatment of C's unaccepted interest depends on the donor's title, the instrument and other applicable legal rules; Section 125 does not itself provide that B automatically acquires C's share.

Non-acceptance, partial invalidity and transfer formalities

Non-acceptance by one intended donee must be distinguished from a defective gift as a whole. Section 123 generally requires a registered instrument signed by or on behalf of the donor and attested by at least two witnesses for a gift of immovable property. For movable property, it provides for transfer by a registered instrument signed as aforesaid or by delivery. The relevant provisions, including Section 129 where applicable, and any special or personal law must also be considered.

Section 124 separately provides that a gift comprising both existing and future property is void as to the future property. Section 125, by contrast, addresses a gift to several donees when one does not accept.

Frequently asked questions

Does refusal by one donee invalidate the gift to all?

No. Section 125 provides that the gift is void as to the interest the non-accepting donee would have taken. Valid acceptance by another donee is not defeated merely by the first donee's refusal.

Does the accepting donee receive the rejected share automatically?

No. Section 125 does not state that the unaccepted interest automatically passes to the accepting donee. The gift instrument and applicable law must be examined.

When must a gift be accepted?

Section 122 requires acceptance during the donor's lifetime and while the donor remains capable of giving. It also provides that if the donee dies before acceptance, the gift is void.

Official legal sources

Consult the India Code legislative database for the Transfer of Property Act, 1882, and the Gazette of India for relevant legislative notifications. State amendments and applicable personal laws should be checked for a particular transaction.

This article describes the general statutory framework; actual rights depend on the gift instrument, evidence of acceptance, applicable law and the circumstances of the transfer.