Caveat India

Can Gift Deed Be Revoked?

Here, the query is, Can Gift Deed Be Revoked? “Is it possible to revoke a gift deed?” Indeed! If the title transfer is not completed at the time of the deed’s registration, the gift deed may be withdrawn. According to the law, this renders the Gift Deed null and void. However the Hon’ble Supreme Court has also held in many or several of its judgments that if the conditions are not fulfilled by the donee then in such circumstances it can be revoked. The gift deed cannot unilaterally be cancelled unless there are grounds mentioned therein specifically in the gift deed itself. Kindly refer to the judgment of  Sridhar & Anr. Versus N. Revanna & Ors  passed by the Hon’ble Supreme Court.Hence, Section 13 of the Transfer of Property Act cannot be applied in the said case

What are the essentials to make a gift deed valid ?

A movable or immovable property can be transferred by way of a Gift Deed  and not necessarily that the person in whose favour the gift deed is being executed is a blood relative or not. The person who gives the gift is called the Donor and the perceiving the gift is called the Donee and there must be  consent of both  to sign  the  Gift Deed.

Supreme Court of India on revocation of gift deed?

The Hon’ble Supreme Court has held in several judgments that if the consent of the donor was obtained by fraud, undue influence, or coercion a gift deed can be cancelled and also if the donee has failed to comply  with any conditions of the gift.
The Hon’ble Supreme Court in K.Balakrishnan vs K.Kamalam. & Ors on 18 December, 2003 held that the donor cannot  by just his own will and choice revoke a gift deed  as it would be in violation of Section 126 of the Transfer of Property Act, which prohibits the revocation of a validly executed gift except in certain circumstances.

A gift deed is always made for gratuitous purpose

There is no exchange of money or anything and the whole process is given out of own free will. The transfer should be  Voluntary  and without there being any fraud or force or coercion .  The Supreme Court judgment on registered Gift Deeds has elaborated on this essential of Gift deeds and it is  given while both are alive.

Procedure for revocation of a Gift Deed

Conditions where Gift Deed Can be revoked are provied in Section 126 of the Transfer of Property   also refer to section 10 of the Transfer of Property Act . Both complement each other.Agreement between donor and donee  and the clause should be mentioned in the gift deed and also there should not be any undue influence or fraud while the same is being executed.

Conclusion on Can Gift Deed Be Revoked?

There was a certain case wherein a mother filed a case before the Maintenance Tribunal against her children for not taking care of her and her plea was accepted and the gift deed was cancelled. But since the gift deed did not contain any such clause the order was reversed by the Hon’ble Supreme Court. Therefore it is important that such clause must be mentioned in the Gift Deed wherein parents gift their property to their children with the hope that they will take care of them. The bench was headed by Justice Sanjay K Kaul and  Justice A S Oka. The  transfer of property, is done by a  registered instrument as contemplated under section 17 of the Registration Act of 1908.

It is also essential that One must get the Deed of Gift registered  which is required for enforcing it in the court of law. For consultation on registration of a gift deed kindly click here

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