Sections 127-129 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Not every gift is a pure benefit. Some come with an obligation, such as a lease whose rent exceeds the property's worth, or shares that attract heavy calls. Section 127 says when a donee must take the burden with the benefit. Section 128 makes a donee of the donor's whole property liable for his debts, and section 129 sets two things the gift Chapter leaves alone. This is explained as per the text of the Act consulted.
If a gift is one single transfer of several things, some burdened by an obligation, the donee must accept it fully or take nothing. If it is separate and independent transfers, he may accept one and refuse the others. A donee not competent to contract is not bound by his acceptance of a burdened gift unless, once competent and aware, he keeps the property. A universal donee is personally liable for the donor's debts and liabilities at the time of the gift, to the extent of the property received.
Source note
The text consulted is a publisher's print of the Act showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003); later amendments should be checked. In section 128 the words "and liabilities of" are in square brackets, and in section 129 "[ *]" marks omitted words. Illustration (a) to section 127 is printed "A shares in X, prosperous joint stock company", with a verb missing after "A" and an article missing before "prosperous"; it is flagged and retold below. These sections follow the formalities in our article on sections 123 to 125 and the revocation rules in our article on section 126.
If you are planning a gift that carries an obligation, a legal consultation before the deed is signed can avoid surprises for the donee.
Section 127: onerous gifts
One transfer, several things
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. He cannot pick the benefits and drop the burden.
Separate and independent transfers
Where a gift is in the form of two or more separate and independent transfers to the same person of several things, the donee is at liberty to accept one of them and refuse the others, although the former may be beneficial and the latter onerous.
| Form of the gift | Burdened and unburdened things | The donee's choice |
|---|---|---|
| Single transfer of several things | One burdened, others not | Accept all, or take nothing |
| Separate and independent transfers | Some burdened | May accept one and refuse the others |
A donee not competent to contract
A donee not competent to contract and accepting property burdened by any obligation 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. Competence is a contract-law subject; see our article on Section 11 of the Indian Contract Act, 1872 on who is competent to contract, and check the current law for the corresponding provision of that Act.
The Act's illustrations
- (a) A holds shares in X, a prosperous joint stock company, and also shares in Y, a joint stock company in difficulties, on which heavy calls are expected. A gives B all his shares in joint stock companies. B refuses to accept the shares in Y. He cannot take the shares in X. (A single transfer.)
- (b) A has a lease of a house for a term of years at a rent which he and his representatives are bound to pay, and which is more than the house can be let for. A gives B the lease and, as a separate and independent transaction, a sum of money. B refuses the lease. He does not forfeit the money.
Section 128: universal donee
"Subject to the provisions of section 127", where a gift consists of the donor's whole property, the donee is personally liable for all the debts due by and liabilities of the donor at the time of the gift, to the extent of the property comprised in the gift.
So the donee who receives everything the donor owns takes the debts with it, but the liability is limited to what he received. The text does not say what happens where the donor keeps something back; it speaks only of the donor's whole property.
Example. Nalini gifts all her property, worth Rs. 30 lakh, to her son Dev by a registered deed. At that time she owes a supplier Rs. 8 lakh. Section 128 makes Dev personally liable for that debt, up to the value of the property he received. If Nalini had owed Rs. 50 lakh, Dev's liability would still be limited to the extent of the property comprised in the gift.
Section 129: what the gift Chapter does not cover
As printed, nothing in the Chapter relates to gifts of movable property made in contemplation of death, or shall be deemed to affect any rule of Muhammadan law, with some words omitted in the copy. Gifts in contemplation of death are the subject of the printed words and are not dealt with by sections 122 to 128.
The Act deals with transfers between living persons, as section 5 says; see our article on section 5. Transfers that take effect on death are a different subject and are not covered here.
Practical points
- Donors: if you want the donee to be at liberty to choose, make separate and independent transfers; if you make one transfer, the donee takes all or none.
- Donees: read the schedule of what is given, with every obligation, before accepting.
- Minors and others not competent to contract: acceptance of a burdened gift does not bind them until they become competent, are aware of the obligation and keep the property.
- Universal gifts: a gift of the whole property carries the donor's debts and liabilities, up to the value received.
- Creditors: section 128 gives a personal claim against the universal donee, limited to the property received.
- For drafting, see our guide on gift deeds with onerous and conditional terms, listed under Read next.
Need help with a gift that has strings attached?
Whether a donee can pick and choose, or takes the donor's debts along, turns on how the gift is framed. Our legal consultation team can look at the structure and suggest how to word the deed.
Key takeaways
- A single transfer of several things, one burdened, must be accepted fully or not at all.
- Separate and independent transfers can be accepted or refused one by one.
- A donee not competent to contract is not bound by accepting a burdened gift until, once competent and aware, he retains the property.
- A universal donee is personally liable for the donor's debts and liabilities at the time of the gift, to the extent of the property comprised.
- Gifts of movable property in contemplation of death are outside the Chapter.
Read next
- Section 126: when a gift can be suspended or revoked
- Sections 123 to 125: how a gift is made
- Gift deed: onerous gift, conditional gift and revocation
- Specimen gift deed for movable and immovable property
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.