The Supreme Court has clarified that an oral gift (Hiba) under Muslim law is valid only if three essentials are satisfied: a clear declaration of gift by the donor, acceptance by the donee, and delivery of possession.
The Court emphasised that an oral declaration alone, without proof of possession, cannot establish ownership transfer.
Citing precedents, the Court held that possession is the critical element distinguishing a valid Hiba from an incomplete one.
The ruling arose from a property dispute where the donee failed to prove actual possession, resulting in rejection of the claimed oral gift.
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