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When Can a Gift Deed be Canceled in India and What is The Procedure

Introduction:

There are many ways to transfer property from the owner (donor) to the donee such as by gift, will or sell. The common process to transfer the property to the family members is by way of the gift deed.

Meaning of Gift Deed:

Gift Deed is a legal document that defines the transfer of gift from the donor to a donee without any exchange of money.

Properties of Gift:

1. It must be movable or immovable property.

2. It should be transferable.

3. It should not be a future property and it must exist today.
4. It must be tangible.

Explanation of Cancellation of Gift Deed and its Procedure:

The Transfer of Property Act, 1882 provides section 126 which deals with suspending or revoking a gift. Section 126 provides that the donor and donee may agree that on the happening of any specified event which does not depend upon the will of the donor, a gift shall be revoked or suspended.

Registration:

A gift of immovable property must be registered under section 123 of the Transfer of Property Act, 1882, otherwise a gift of immovable property cannot provide any title to any person. A gift of property during registration and post-registration must be attested by two witnesses, only then the transfer of title is possible.

Documents required for registration:

When the Gift Deed is signed, attested by two witnesses and necessary stamp duty, then you need the following documents:

  • Original Gift Deed
  • Aadhar Card
  • ID Proofs
  • PAN Card
  • A document is required like Sale deed to prove donor title to the Property. 

You may require other documents like certificates pertaining to the value of your property.

Cancelling a Gift:

Section 126 provides two modes of revocation of Gift:-

  1. Revocation by mutual agreement:- A gift may be revoked upon the happening of an event which is not dependent on the donor where the donor and donee may agree. The revocation must be in express form and not of a wish or desire.
    2. Revocation by rescission:- The gift is a transfer of ownership without any exchange of money or any consideration which is made voluntarily. So, where there is no free consent of the parties, the gift can be revoked or if it is obtained by coercion, undue influence or fraud then the gift is voidable.

CASE

S. Sarojini Amma v. Velayudhan Pillai Sreekumar 2018 SCC OnLine SC 2200

“In this case, the Supreme Court observed that there was no completed gift of the property which is in question to the respondent by the appellant and the appellant had right in cancelling the deed.”

Conclusion:

The Transfer of Property Act, 1882 lays down provisions relating to gift deed and cancellation of the gift deed. Any person who is the real owner of the property can transfer his or her property to anyone by way of gift. A gift deed actually says that any person who is the owner of the property can transfer the property to another person without any consideration. Similarly, there are provisions for cancellation of the gift deed as well.

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