Week 06: the Legal Effects of Hiba/ Gift and others kinds of Gift

Gifts (hiba), in Muslim law, are of the following four kinds:

1. Sadaquah

2. Hiba-bil iwaz

3. Hiba-ba-shart-ul-iwaz

4. Areeat

1. Sadaquah:

Where the object of the donor is to acquire merit in the eyes of the Lord and a recompense in the next world, the gift is called Sadaquah. It is a gift with a religious motive. Like hiba, it is not valid unless accompanied by delivery of possession. Unlike hiba, it cannot be revoked, the reason being that the object of such a gift is acquisition of religious merit and that has already been acquired.

Sadaquah is a transfer of property or rights in all respects like a hiba, except that —

1. In the case of hiba, the object is to manifest affection towards the donee, or win his regard or esteem. In the case of sadaquah, the object is to acquire merit in the sight of the Lord and a recompense in the next world.

2. Unlike hiba, a sadaquah, once completed by delivery of posse­ssion, cannot be revoked, whether made to a rich or poor man.

3. Unlike hiba, sadaquah need not be expressly accepted.

Like hiba, sadaquah is not valid unless accompanied by delivery of possession; nor is it valid if it consists of an undivided share (mushaa) in property capable of division. It is not invalid if made to two or more persons, all of whom are poor.

2. Hiba-Bil-Iwaz:

Hiba-bil-iwaz is a gift for a consideration. It resembles a sale in that (a) transfer of title is complete without delivery of possession, and (b) all the incidents of sale attach to it, including —(i) the liability of being pre-empted, where the law of pre-emption is in force, and (ii) the right to return a thing for a defect.

To constitute a valid Hiba-bil-iwaz, the following two conditions must be present:

(a) Actual and bona fide payment of consideration (iwaz) on the part of the donee; and

(b) A bona fide intention on the part of the donor to divest himself in praesenti of the property, and to confer it upon the donee.

A hiba-bil-iwaz literally means a gift for an exchange. It is of two kinds, namely (i) the hibS-bil-IWa2 followed in India, and (ii) the true hiba-bil-iwaz, as defined by older jurists. The true hiba-bil-iwaz of older jurists consisted of two independent acts, namely, (a) hiba, or gift, and (b) iwaz or return gift, not stipulated at the time of the gift.

But in the hiba-bil-iwaz as practised in India, there is only one act, the iwaz or exchange being involved in the contract of gift as its direct consideration. Thus, in the illustration given above, if A says to В “I have given this book to you in consideration of your paying me a rupee,” it is a hiba-bil-iwaz of India.

Thus, it is in reality a sale, while the true hiba-bil-iwaz is not a sale either in its inception or completion. In fact, the Calcutta and the Lahore High Courts have held that a transaction of this character is nothing but a sale, and that where it affects immovable property of the value of a hundred rupees and above, it must be effected by a registered instrument, as required by S. 54 of the Transfer of Property Act.

The hiba-bil-iwaz of India was introduced here by Muslim lawyers as a device for effecting a gift of mushaa in property capable of division.

3. Hiba-ba-Shart-ul-Iwaz:

Where a gift is made with a stipulation (shart) for a return it is called hiba-ba-shart-ul-iwaz. As in the case of hiba, in the case of hiba- ba-shart-ul-iwaz also, delivery of possession is necessary, and the gift is revocable until the iwaz is paid. On payment of iwaz (consideration) by the donee, the gift becomes irrevocable. The transaction, when completed by payment of iwaz is, however, not very common in India.

4. Areeat:

An areeat is the grant of a licence, revocable at the grantor’s option, to take and enjoy the usufruct of a thing.

The four essentials of an areeat are that (i) can be revoked; (ii) it must be a transfer of ownership in the property; (iii) it must be for a definite period, and (iv) it does not devolve upon the heirs of the donee on his death.

Download Files

lesson-no-06.pdf (4.88 MB )