Section 122 of TPA: Conditional Gift, Legal Insights

Introduction

In Indian property law, Section 122 of the Transfer of Property Act, 1882 (TPA) is a cornerstone provision that governs the law relating to gifts. This section defines a gift as the voluntary transfer of ownership of property, without consideration, from one person to another, accepted by the donee during the lifetime of the donor.

But the reality is far more complex. When gifts are conditional—especially in family arrangements or disputes—lawyers often face intricate challenges regarding validity, enforceability, revocation, and intention of the donor.

For advocates and legal professionals in India, mastering Section 122 TPA is essential for advising clients on property transfers, litigating gift disputes, or drafting deeds that prevent future litigation.

In this blog, we’ll break down:

🔎 Section 122 of TPA explained in simple terms
⚖️ Real-life case laws from Indian courts
🧾 Sample Conditional Gift Deed (with cash/property)
💡 Actionable strategies for advocates handling property disputes
📚 Comparative insights: Conditional Gift vs Will vs Sale
🚀 How Handyy Law Practice Management helps lawyers in handling gift and property-related cases

Section 122 of the Transfer of Property Act, 1882 – The Legal Text

“Gift” is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.”

Key Elements of Section 122 TPA:

The property must be existing (not future property).
The transfer must be voluntary.
The transfer must be without consideration.
The donor must have competency to contract.
The donee must accept the gift during donor’s lifetime.

Conditional Gift under Section 122

While Section 122 defines a gift as absolute, the courts have recognized conditional gifts, provided the condition is not contrary to law.

Example of Conditional Gift:

A father gifts property to his son on the condition that the son must maintain him during old age.
If the condition is not fulfilled, the father can seek revocation under Section 126 TPA.

Case Laws Interpreting Section 122 & Conditional Gifts

K. Balakrishnan v. K. Kamalam (Kerala HC, 2004)

The Kerala High Court held that a gift can be conditional, but conditions must be clear and enforceable.

Thakur Raghunathjee Maharaj v. Ramesh Chandra (SC, 2001)

The Supreme Court clarified that acceptance of gift must be during donor’s lifetime; otherwise, the transfer fails.

Ponnusami v. Perumal (Madras HC, 2013)

Held that if the donee fails to fulfill conditions (like maintenance), the donor may seek revocation under Section 126.

Renikuntla Rajamma v. K. Sarwanamma (SC, 2014)

Established that a gift need not be accompanied by delivery of possession if the donor shows clear intention.

Real-Life Example – Family Dispute over Gift

🔹 A widowed father in Hyderabad executed a gift deed of his ancestral property in favor of his elder son, on the condition that the son would take care of his two sisters.
🔹 After the father’s death, the sisters filed a suit challenging the gift deed alleging breach of condition.
🔹 The Telangana High Court upheld the conditional nature of the gift and allowed the sisters to claim rights.

📌 Takeaway for Advocates: Always advise clients to draft clear clauses in conditional gifts to prevent disputes.

Sample Template – Conditional Gift Deed

Here’s a generic template :

DEED OF CONDITIONAL GIFT

This Deed of Gift is made on this ___ day of ______ 20__, by [Donor’s Name], aged ___, residing at ____________, hereinafter called the Donor, in favor of [Donee’s Name], aged ___, residing at ____________, hereinafter called the Donee.

WHEREAS the Donor, out of natural love and affection, desires to gift the property described below, subject to the condition stated herein.

Property Description: [Details of immovable property or cash].

Condition: The Donee shall ensure maintenance and welfare of the Donor during his lifetime. In case of failure, the Donor reserves the right to revoke this Gift under Section 126 TPA.

Acceptance: The Donee hereby accepts the gift with full knowledge of the condition attached.

IN WITNESS WHEREOF, both parties have signed this Deed on the date and year mentioned above.

(Donor Signature) _______
(Donee Signature) _______

Advocates’ Strategies in Gift Disputes

For Donor-side Advocacy

Ensure revocation clauses are added clearly.
Argue failure of acceptance if the donee never formally accepted.
Use Section 126 to revoke conditional gifts.

For Donee-side Advocacy

Show clear acceptance (signatures, possession, revenue records).
Argue that conditions are void if they are unlawful (e.g., restraining marriage).
Highlight donor’s intention to make the transfer irrevocable.

Preventive Drafting Strategies

Always add maintenance, welfare, or family settlement conditions.
Register the gift deed properly with witnesses.
Where cash is gifted, ensure bank records reflect transfer.

Comparative Chart – Gift vs Will vs Sale

Aspect	Gift Deed (Sec 122 TPA)	Will	Sale Deed
Consideration	No	No	Yes
When it takes effect	Immediately	After death	Immediately
Revocation	Only under Sec 126	Revocable before death	Generally not
Registration	Mandatory if immovable	Optional	Mandatory

Case Studies

Case Study: Conditional Gift of Cash in Hyderabad

A businessman gifted ₹10 lakhs to his nephew with the condition that the nephew should fund his younger cousin’s education.
The nephew failed. The Hyderabad Civil Court ordered partial revocation.
Lesson: Even cash gifts can carry enforceable conditions.

Case Study: Property Gift for Maintenance (Delhi HC, 2017)

An old mother gifted property to her son on the condition of maintenance. Son abandoned her.
Delhi High Court allowed revocation under Sec 126.

FAQ’s

Q1. Can a conditional gift be revoked automatically if the donee fails to perform?
Not automatically. The donor must seek revocation under Section 126 TPA before a court.

Q2. Is acceptance necessary in conditional gifts?
Yes, acceptance is mandatory during donor’s lifetime (Section 122).

Q3. Can future property be gifted?
No. Only existing property can be transferred as per Section 122.

Q4. What happens if the donee dies before acceptance?
The gift becomes void.

Q5. Do cash gifts require registration?
No. But for proof, written records or bank statements are advisable.

Handyy Law Practice Management – How It Helps

For advocates handling gift disputes, Handyy offers:

Drafting Assistance: 4000+ ready-made templates, including gift deeds, revocation deeds, and conditional clauses.
Case Law Search: Integration with IndiaKanoon API to pull latest judgments on Section 122 TPA.
Document Management: Upload deeds, link with case files, and access anytime.
Court Fee Calculator: Estimate registration and court fees for property suits.
AI-based Case Support: Get suggestions on revocation, drafting strategy, and litigation steps.

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