Universal Donee

Meaning of Universal Donee  -

    The universal Donee is one to whom the donors  whole property is given and who consequently become liable for all the debts due by and liabilities of the donor at the time of the gift to the extent of property comprised in the gift.

Definition of Universal Donee section 128 -

Section 128 of Transfer of Property Universal Donee...

   Subject to the provisions of section 127, where a gift consists of the donor's whole property, the donee is personally liable for all the debts due by and liabilities of the donor at the time of the gift to the extent of the property comprised therein.

Essential

   

   All the properties of Donor should have been transferred to the donee. In order that a person maybe Universal Donee, all the properties both movable and immovable of the donor must be given to him. Universal Donee is personally liable for all the debts and liabilities of the doner at the time of the gift to the extent of the property comprised therein. The object of section 123 is to protect the interest of the creditor, similar like section 53. for example fraudulent transfer.

      In Universal Donee  under section 128 all the properties of the donor should have been transferred to the donee. It has been held that even if the life interest in the part of the property is retained by the donor, the donee  is Universal donee . However if only all the immovable properties are transferred the donor continue to hold movable , the donee cannot be called as universal Donee. But if only the doner retain a small insignificant part of the property, the donee will be treated as a universal Donee.