Oral Muhammadan gift of immovable property is valid without registration if declaration, acceptance and delivery of possession are proved.

A valid Muhammadan gift of immovable property may be made orally without registration if the donor's declaration, the donee's acceptance, and delivery of possession are proved. Writing and registration are not essential, and the Transfer of Property Act does not control a valid Mohammedan gift. On the facts stated, oral gift of the agricultural lands was accepted as proved, including where the donees were the wife and minor children, so the lands were excluded from estate duty valuation. A prior will over the same property was treated as displaced by the later gift, because a subsequent gift of the same property can revoke an earlier testamentary arrangement by implication.

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Issues: (i) Whether the will set up by the deceased was valid under Mohammedan law. (ii) Whether the alleged oral gift of the agricultural lands on 2-4-1970 was a valid gift under Mohammedan law so as to exclude the value of the lands from the estate duty assessment.

Issue (i): Whether the will set up by the deceased was valid under Mohammedan law.

Analysis: The document relied upon as a will could not prevail as a valid testamentary disposition in the facts found. The deceased had later dealt with the same properties by an oral gift, and the later disposition was treated as inconsistent with any prior testamentary arrangement. The governing Mohammedan law principles recognized revocation by implication where the testator subsequently makes a gift of the same property.

Conclusion: The will was invalid and could not operate against the later disposition.

Issue (ii): Whether the alleged oral gift of the agricultural lands on 2-4-1970 was a valid gift under Mohammedan law so as to exclude the value of the lands from the estate duty assessment.

Analysis: Under Mohammedan law, a gift is complete on declaration by the donor, acceptance by the donee, and delivery of possession of such possession as the subject-matter is susceptible of. Writing or registration is not essential, and the provisions of the Transfer of Property Act, 1882 governing registered gifts do not control a valid Muhammadan gift. On the evidence, the oral gift was spoken to by witnesses, acceptance was proved, and delivery of possession was accepted as sufficient in law, including in the case of gifts to the wife and minor children.

Conclusion: The oral gift was valid, and the value of the lands was correctly excluded from the estate duty assessment.

Final Conclusion: The department's challenge to the exclusion of the agricultural lands failed, and the assessment was upheld only to the extent consistent with the valid oral gift.

Ratio Decidendi: A valid Muhammadan gift of immovable property may be made orally without registration if declaration, acceptance, and delivery of possession required by the applicable Mohammedan law are proved; a later gift of the same property can revoke an earlier will by implication.

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