The Supreme Court on Thursday declined to entertain a petition challenging Section 129 of the Transfer of Property Act, 1882, which exempts Muslim gifts (hiba) from the requirement of compulsory registration. The petitioners had argued that the provision leads to non-payment of stamp duty and violates Articles 14 and 15 of the Constitution by allegedly granting a benefit only to Muslims.

Appearing before the Court, the petitioners contended that the provision, when read with the Registration Act and the Stamp Act, effectively exempts Muslims from paying stamp duty on certain gift transactions, causing both revenue loss to the public exchequer and alleged discrimination against non-Muslims.

However, the bench of Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice Vipul M. Pancholi questioned why the petitioners had approached the Court directly to challenge a law enacted in 1882, pointing out that such concerns could first be brought to the attention of lawmakers or expert bodies.

“First of all, what prevented you from approaching a parliamentarian and pointing out that this pre-Constitution law may have an element of discrimination, as you claim?… A law enacted in 1882 has been in force for decades after the Constitution came into effect. Suddenly, in 2026, you say it violates Article 14,” the Court observed.

The Court further indicated that questions involving interplay between the Transfer of Property Act, Stamp Act and Registration Act, as well as issues relating to personal law and legislative policy, are better examined by expert bodies.

“The appropriate course would be to approach the Law Commission of India, which is entrusted with recommending structural amendments and changes to existing laws,” the bench said.

Observing that the Law Commission is presently functional, the Court said there was no reason to entertain the petition at this stage. The plea was accordingly disposed of with liberty to the petitioners to approach the Law Commission to raise their concerns regarding the legal framework governing gifts under Muslim personal law.