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Question: Write a note on the Universal donee. [BJS 1975, 1978, 1976]Find the answer to the mains question of Property Law only on Legal Bites. [Write a note on the Universal donee.]AnswerA universal donee is a person who receives, as a gift, the entire property—both movable and immovable—of another person (the donor). This concept is recognised under Section 128 of the Transfer of Property Act, 1882, which imposes a statutory obligation on the donee to discharge the donor’s...
Question: Write a note on the Universal donee. [BJS 1975, 1978, 1976]
Find the answer to the mains question of Property Law only on Legal Bites. [Write a note on the Universal donee.]
Answer
Liability of the Universal Donee
The donee is not personally liable beyond what is received. For instance, if a donor transfers assets worth ₹8 lakhs and has debts amounting to ₹5 lakhs, the donee must utilise the gifted property to clear these debts. However, if the debts exceed the value of the gift, say ₹10 lakhs, the donee’s obligation is capped at ₹8 lakhs—the value of the gift.
Purpose of Section 128
The provision prevents fraudulent transfers intended to defeat creditors’ claims. It ensures that donors cannot avoid liabilities by gifting away their entire estate, thereby securing the creditors' right to recover from the transferred assets.
Judicial Interpretation
In Vattijonnala Koti Nagamma vs Pagolu Sarojini [(AP HC)], the court affirmed that when a donor gifts all their property, the donee must bear the burden of the donor’s debts under Section 128.
Related Provisions
Section 127 of the Act deals with onerous gifts, which are gifts accompanied by obligations. When read with Section 128, it ensures that the donee is aware of the financial burdens attached.
Section 129 provides an exception for Muslims. Under Muslim law, oral gifts are valid and are not subject to the formal requirements of Section 123 of the Act, which otherwise mandates a registered instrument for the transfer of immovable property.
The concept of a universal donee under Section 128 of the Transfer of Property Act, 1882, ensures that when a person receives the entire property of a donor as a gift, they are legally bound to discharge the donor’s debts to the extent of the gifted assets. This provision protects creditors’ rights and prevents misuse of gift transactions to evade liabilities, balancing generosity with responsibility in property transfers.

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