Under Mahomedan Law Gift is called Hiba. There are three essentials of Hiba under Mahomedan Law, (1) a declaration of gift by the Donor, (2) an acceptance of the gift, express or implied, by or on behalf of the Donee, and (3) delivery of possession of the subject of the gift by the Donor to the Donee. If these conditions are fulfilled, the gift is completed.

Sec. 123 of Transfer of Property Act, 1882 is exception to the gift made under Mahomedan Law. All that is necessary is: declaration, acceptance and delivery of possession.