Archive / Investment Adviser (Level 2) / Basics of Estate Planning
nism-series-xb-hiba-muslim-law-gift-three-essential-conditions[ INVESTMENT ADVISER (LEVEL 2) ]
Under Muslim Personal Law in India, what three (3) essential conditions are mandatorily required to validate an oral 'Hiba' (Gift)?
[ A ]1. Written signature of 100 corporate executives.
[ B ]1. Approval from the Reserve Bank of India.
[ C ]1. Clear Declaration (Ijab) of gift by the Donor, 2. Express or implied Acceptance (Qubool) by the Donee, and 3. Complete Delivery of Physical Possession (Qabda) of the gifted property.[ CORRECT ]
[ D ]Hiba requires payment of a 50% cash penalty.
Takeaway
The correct answer is C: a valid oral Hiba requires three conditions -- clear Declaration (Ijab) by the donor, Acceptance (Qubool) by the donee, and actual Delivery of Possession (Qabza) of the gifted property.
Derivation
Under Muslim personal law, a gift is fundamentally a transaction of intention followed by action, not paperwork. Unlike a gift of immovable property under the Transfer of Property Act (which needs a registered written instrument), a Hiba can be entirely oral provided all three elements are satisfied in sequence: the donor must clearly declare the intention to gift, the donee (or someone on their behalf) must accept it, and -- critically -- actual or constructive possession must genuinely pass to the donee. Absent delivery of possession, even a clearly declared and accepted gift remains legally incomplete, which is the element candidates most often overlook.
Why the others fail
A — 1. Written signature of 100 corporate executives.
Fabricated; no such condition involving corporate executive signatures exists among the three essential elements of a valid Hiba.
B — 1. Approval from the Reserve Bank of India.
Irrelevant fabrication; RBI approval has no role in the personal-law requirements for a valid Muslim gift.
D — Hiba requires payment of a 50% cash penalty.
Fabricated; no cash penalty is among the recognized essential conditions (Declaration, Acceptance, Delivery of Possession) for a valid Hiba.
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