Section 128 of TPA : Section 128: Universal Donee

Explanation using Example

Imagine that Mr. Sharma, an elderly man with no immediate family, decides to gift his entire estate to his caretaker, Priya, as a token of appreciation for her years of service. His estate includes a house, a car, and a small amount of savings. At the time of the gift, Mr. Sharma has an outstanding debt of Rs. 500,000 to a bank and owes Rs. 100,000 in medical bills. According to Section 128 of the Transfer of Property Act, 1882, when Priya accepts the gift of Mr. Sharma's whole property, she also becomes personally liable for his debts and liabilities, but only up to the value of the property she received. If the value of the property is enough to cover the debts, she must use it to pay them off. If the property is worth less than the debts, she is liable only to the extent of the property's value.