Home  /  Transfer of Property Act  /  Section 124

Section 124: Gift of existing and future property

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882
Section 123 All 137 Sections of Transfer of Property Act Section 125

Legal Commentary & Landmark Judgments: Section 124

Section 124 mandates that a gift comprising both existing and future property is void as to the future property, codifying the fundamental rule that property must be in existence to be gifted.

  • Existing Property Rule: A gift must comprise existing property in which the donor has a present ownership or vested interest.
  • Future Property Gift Void: A gift comprising both existing and future property is void as to the latter.
  • Severability of Dispositions: The gift remains valid as to the existing property; only the portion attempting to transfer after-acquired property is rendered void.
  • Contrast with Wills: Wills can dispose of future property acquired after execution; inter vivos gifts under Section 124 cannot.
Key Landmark Precedents:
  • K. Balakrishnan v. K. Kamalam, (2004) 1 SCC 581: The Supreme Court authoritatively analyzed Section 124, holding that a gift of property which the donor does not own or which is yet to come into existence is void ab initio.
  • Bhavani Amma Kanakadevi v. C.S.I. Dakshina Kerala Maha Idavaka, (2008) 3 SCC 73: Affirmed that inter vivos gifts require present, existing title under Section 122 and 124.
Courtroom Practice & Strategic Litigation Guidance:

Never draft a gift deed transferring 'properties that may be inherited or acquired in the future'; such clauses are void under Section 124. Limit gifts strictly to existing, identified assets.

Section 123 All 137 Sections of Transfer of Property Act Section 125