What is basic concept of onerous gift? Explain this concept with examples

 The concept of an "onerous gift" is outlined in Section 127 of the Indian Transfer of Property Act, 1882. This section deals with situations where a gift is subject to certain obligations or conditions that the donee must fulfill. A gift may not always be of a beneficial character, but may at times burdened with an obligation. Said gift is known as onerous gift.

Where a gift is in the form of a single transfer to the same person of several things, of which one is ,and the others are not burdened by an obligation, the donee can take nothing by the gift unless he accepts it fully.

Onerous gift to disqualified person

If a donee who is not competent to contract accepts property burdened by any obligation, he is not bound by his acceptance. But if after becoming competent to contract and being aware of the obligation, he retains the property given, he becomes so bound.

• Section 127 of the Indian Transfer of Property Act, 1882, states:
  • "Where a gift in the form of a single transfer is made to the same person of several things, of which one is, and the others are not, burdened by an obligation, the donee can take nothing by the gift unless he accepts it fully."

Examples

1. Single Transfer:

   • If multiple items are gifted in a single transaction, and at least one of them has an obligation, the donee must either accept all items along with the obligation or reject the entire gift.
   • Example: If A gifts B a piece of land and a house in a single transaction, and the land has a mortgage on it, B must accept both the land with the mortgage and the house or reject the entire gift.

2. Acceptance and Rejection:

   • The donee must explicitly accept the gift along with its obligations. If the donee accepts the onerous gift, they are legally bound to fulfill the obligations attached to it.

Conclusion

An onerous gift, as per Section 127 of the Indian Transfer of Property Act, 1882, involves a gift with attached obligations. The donee must decide to accept or reject the gift in its entirety if it is a single transfer. This provision ensures that the donee is fully aware of and agrees to any burdens or obligations attached to a gift before accepting it.

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