Legal Guide

Recent Supreme Court Judgment on Cancellation of Gift Deed

by Bhavya Choudhary · 3 min read

supreme court judgement on cancellation of gift deed

Gift Deed

Gifting is the Act of freely offering property to your dear ones. According to Indian regulations, you may donate your property to anybody you wish. According to the Supreme Court Judgment on Cancellation of Gift Deed, a Gift Deed is a legal document that outlines the transfer of a gift from the donor to the recipient without receiving any money in return. 

Nevertheless, a person may sometimes rethink their choice to offer something meaningful. The donor may cancel his gift transaction with the donee for various reasons, including the donee’s failure to keep his pledge or refusing to accept a gift. In this blog, we will discuss the Supreme Court Judgment on the Cancellation of Gift Deeds.

Cancellation of Gift Deed

The donee is required to restore ownership of the property to the donor as part of revoking a gift, which also involves revoking the gift deed. 

The rules regarding the cancellation of gift deeds for immovable property are discussed in Section 126 of the Contract act in Supreme Court Judgment on Cancellation of Gift Deed.

  • Following the provisions of this section, a donor may provide their consent to cancel a gift transaction. This may occur due to a requirement outlined in the Supreme Court Judgment on Cancellation of Gift Deed, a mutual agreement between the two parties, or an event outlined in the doing. 
  • It is also possible to void a gift transaction if the donor signed a deed due to coercion or undue influence, such as being intoxicated at the time of the signing. Suppose the donee refuses to return the property that was donated to them. 
  • In that case, you can contact a lawyer who might assist you in pursuing a lawsuit in Court to win back the property that was gifted to them.

Properties of a gift

  • It must be either moveable or immovable property to qualify as a gift.
  • You should be able to give it to someone else.
  • It cannot be a property built in the future, and it must be in existence right now.
  • According to the Supreme Court Judgment on Cancellation of Gift Deed, the gift has to be a physical object.

Registration 

  • A gift of immovable property must be registered following section 123 of the transfer of property act, 1882; if it is not reported, a gift of immovable property cannot be given to any person with a title to the property. 
  • Only after a gift of property during the registration process or after it has been completed and certified by two witnesses is it possible to transfer ownership of the property.
  • In order to get the Supreme Court Judgment on Cancellation of Gift Deed, registration of Gift deed is a must.
  • Gift deed registration must be done to get it enforced in the Court of law. Legal advice must be taken for gift deed registration. Legal advice makes your work easier. 

Original Gift Deed

  • PAN Card Aadhar Card Other Forms of Identification
  • A document similar to a sale deed is necessary to prove the donor’s ownership of the property.
  • There is a possibility that you may need additional documentation, such as certifications relating to the market value of the property.

The Supreme Court Judgment on Cancellation of the Gift Deed might be due to the following reasons:

  • By Mutual Agreement- A gift transaction may be terminated or revoked if both the donor and the donee agree. Including stipulations of this kind in the donation, a deed is one way to achieve this goal.
  • When the recipient of the gift does not accept it, to complete the process of giving the property, the donor must first transfer ownership of the asset into the donee’s name, and the donee must then accept the parcel.
  • A gift, much like a contract, may be made contingent upon fulfilling a set of predetermined requirements and may be revoked if those requirements are not met.
  • When the permission of the donor was gained via improper means (such as deception or undue persuasion),
  • A gratuitous transfer made freely by the giver is known as a gift. A transaction of this kind may be voided, similar to how a contract can be nullified if it can be demonstrated that the donor’s permission is coerced.

Other reasons for the Supreme Court Judgment On Cancellation of Gift Deed include the fact that it was forged, which is a legal Supreme Court Judgment On Cancellation of Gift Deed consultation reason for its cancellation. 

Additionally, the gift deed might be revoked if it is not registered with the appropriate authorities.

There are two ways to revoke a gift, both of which are outlined in Section 126:

  1. A gift may be revoked with the occurrence of an event that is independent of the donor, provided both the donor and the donee agree to the terms of the revocation. 

Supreme Court Judgment on Cancellation of Gift Deed by mutual agreement the cancellation must be in the form of an unequivocal statement and cannot be based on a wish or a desire.

  1. The Supreme Court Judgment on Cancellation of Gift Deed can be given if the gift deed is rescission: The gifting is a transfer of ownership performed willingly and does not include the exchange of money or any other kind of remuneration. 

Therefore, if one of the parties did not freely agree to the present being exchanged, the gift can be revoked. Similarly, if the advantage was gained via force, undue influence, or fraud, then it is also possible for the facility to be invalid, and Supreme Court Judgement on Cancellation of Gift Deed may be given.

CONCLUSION

The transfer of a property act of 1882 contains laws relating to gift deeds, and the Supreme Court Judgment on Cancellation of Gift Deed is given on the basis of the Act. Any individual who is the legal owner of the property can give away any portion of that property to anybody they want. 

Once a gift deed of immovable property has been executed in favor of any recipient, the donor doesn’t have the right to revoke or revoke the deed at a later stage unless a particular provision is mentioned in the Act. This is the case even if the clause states that the donor retains the right to revoke or cancel the deed at any time. 

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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