Legal Guide

Can a gift deed be challenged in Court?

by Bhavya Choudhary · 3 min read

can gift deed be challenged in court

What is a Deed of Gift?

According to section 122 of the Transfer of Property Act of 1882, immovable property may be transferred by a gift deed. A gift deed, like a sale deed, is the transfer of the property but without consideration. The question that may arise is, can a gift deed be challenged in Court?

Registration of gift deeds with the sub-registrar is mandatory in accordance with sections 17 of the Registration Act of 1908 and 123 of the Transfer of Property Act. Not doing so will render the transfer void. If the gift deed is not registered, the Gift deed can be challenged in Court.

Moreover, after a gift deed is recorded in the recipient’s name, only then may the recipient request for a property change. A mutation is required to transfer utility connections in the recipient’s name. In order for the beneficiary to transfer the property further, a registered gift deed will be necessary.

According to the Registration Act of 1908 and the Transfer of Property Act, a gift agreement must be recorded with the sub-registrar. Transfers are null and invalid if this is not followed, and the Gift deed can be challenged in Court. In this blog, we will get the answer to the question of that can a gift deed be challenged in Court.

A Gift Certificate Transfer

A gift is an act of giving away one’s property or money, whether mobile or immovable, without expecting anything in return. It is necessary to record a possessor’s gift in order to transfer ownership to the receiver. In accordance with the Indian Registration, the registration of a gift deed with a sub-registrar is mandatory, or a Gift deed can be challenged in Court.

Both the donor and the donee are referred to as the transferor or transferee in a gift deed. Certain conditions must be satisfied for a gift to be declared authentic, or else a Gift deed can be challenged in Court.

These conditions must be satisfied for a donation to be legitimate:

  • The title is transferred;
  • Real estate ownership must be related to a particular parcel;
  • The transmission must be completely unrestrained and unaffected by any means.
  • An unintentional mistake would not have been acceptable;
  • Donors must be competent persons.
  • The receiver must accept the gift.

Gifts are transfers of property given without expecting anything in return from the transferee or donee. The receiver could accept the gift if they are underage. Uncompensated transfers are ones in which the receiver receives nothing. If any of the conditions of the gift is not fulfilled, the Gift deed can be challenged in Court. 

Can a gift deed be challenged in Court?

The answer to the question that Can a gift deed be challenged in court is that the gift deed can be challenged in court by filing an action for declaration of invalidity. However, it will only be contested if you can prove that the deed was not done in accordance with the donor’s wishes or was executed under deception, fraud, etc. 

Some reasons for which a Gift deed can be challenged in Court are outlined below.

  • A gift deed can be challenged in Court if the permission for gift transfer was not freely given,
  • If the gift deed was not performed and registered in accordance with legal requirements, it is invalid, and the Gift deed can be challenged in Court.
  • The gift deed can be challenged in court if either party to the gift was incompetent to contract; the gift is void.
  • If the condition of the gift is not met, the receiver is not entitled to the gift. In such a scenario, the gift deed is revocable and the Gift deed can be challenged in Court.
  • A gift deed can be challenged in Court if the gift deed contains any compensation for the donation; the gift deed is invalid.

What is a Declaration Suit?

  • A “Declaration” is a court of law’s proclamation on a person’s right to property or his status.
  • Any person entitled to any legal character or right to a property may file an action against any person rejecting or interested in denying his title to such character or right, and the court may, in its discretion, declare that he is entitled; the plaintiff need not seek additional remedy in such a suit.
  • The purpose of an action for declaration is to declare a party’s or plaintiff’s right; where the right pertains to property, the suit is for title/ownership declaration and recovery of possession.
  • Legal consultation must be taken to get your gift deed registered. Legal consultation makes the process easier. 

What is the method for revoking a Gift Deed?

Section 126 of the Transfer of Property Act specifies the circumstances under which a gift might be canceled and the Gift deed can be challenged in Court. The following are necessary components for gift revocation:

  • the donor and recipient must agree that the gift will be stopped or canceled upon the occurrence of a defined circumstance;
  • such an occurrence must not be contingent on the donor’s will;
  • the condition for the suspension or revocation must be agreed upon by the recipient at the time of gift acceptance. 
  • A contract may be canceled only if there is a valid reason, other than a lack or absence of consideration.
  • The condition should neither be unlawful nor unethical, nor should it threaten the estate formed by the gift, or else the Gift deed can be challenged in Court.
  • Section 10 controls section 126. Consequently, a phrase in the gift document that totally prohibits alienation is invalid in light of the restrictions of section 10, or else the Gift deed can be challenged in the Court
  • A gift that was neither the result of fraud, undue influence, or deceit, nor was it onerous, cannot be unilaterally revoked. Such a Gift deed can be challenged in Court.

Conclusion

People have been giving gifts for a very long time, and such objections did not exist before then. However, as a result of the change in thinking and culture, many individuals now consider the giving of assets as a secure and efficient method for averting future disputes. 

A gift deed can be challenged in Court if it is not registered. 

To get the gift deed enforced in the Court of Law, it must be registered. One must get the gift deed registered by an expert lawyer.

Bhavya Choudhary

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Bhavya Choudhary

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