Supreme Court Clarifies Oral Hiba Rules, Overturns Karnataka High Court Ruling

Overview

• A bench of Justices Ahsanuddin Amanullah and S V N Bhatti reaffirmed that a hiba under Mohammedan law is valid without a written deed if there is a clear declaration by the donor, acceptance by the donee, and delivery of possession.
• Delivery of possession was identified as the decisive element, which may be proved through overt, public acts such as mutation in revenue records, rent collection, or control over title documents.
• Applying this standard, the Supreme Court set aside the Karnataka High Court’s decision that had recognized Syeda Arifa Parveen’s claim to 10 acres allegedly gifted in 1988 in Kusnoor, Gulbarga.
• The judgment warned that hiba cannot function as a secret or “surprise” transfer, noting that long silence by the donee or the donor’s continued control weighs against a completed gift.
• Citing Section 129 of the Transfer of Property Act and prior precedents, the court clarified that Mohammedan gifts are exempt from registration requirements and that a validly completed oral hiba is irrevocable.