Can a Gift Deed be challenged in India?

हिंदी में पढ़ें
June 17, 2021
By Advocate Chikirsha Mohanty

What is a Gift Deed?

According to section 122 of the Transfer of Property Act, 1882, you can transfer immovable property through a gift deed. Like a sale deed, a gift deed contains details of the property, the transferrer and recipient. But it allows you to transfer ownership without any exchange of money.
Registering a gift deed with the sub-registrar is mandatory as per section 17 of the Registration Act, 1908, and as per section 123 of the Transfer of Property Act. If you don’t do this, the transfer will be invalid.

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Besides that, once a gift deed is registered in the name of the recipient, only then can she/he apply for mutation of the property. Mutation is necessary to transfer utility connections in the name of the recipient. Also, for the recipient to be able to further transfer the property, a registered gift deed will be required.

Can a Gift Deed be challenged?

The gift deed can certainly be questioned in the court of law by filling a suit for such declaration. However, it will be challenged only if you are able to establish that the execution of the deed was not as per the wish of the donor or was executed under misrepresentation, fraud etc. Some grounds on which a gift deed can be challenged are stated below:
1. If the consent for transfer of gift was not free,
2. If the gift deed was not executed and registered as per the legal requirements,
3. If either party to the gift was not competent to contract,
4. If the gift is conditional and the condition is not fulfilled by the recipients. In such a case, the gift deed can be revoked.
5. If the gift deed includes any consideration for the gift, such gift deed would not be valid.

What is Suit of Declaration?

A "Declaration" is legal pronouncement by a court of law in respect of a person's right to property or his status.
Any person entitled to any legal character, or to any right to a property may institute a suit against any other person denying or interested to deny, his title to such character or right, and the court may in its discretion make therein a declaration that he is so entitled, and the plaintiff need not in such a suit ask for any further relief.

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The Suit for declaration is to declare a right of the party/plaintiff and when the right is pertaining to property, the suit is for declaration title/ownership and also for recovery of possession.

What is the procedure of revocation of a Gift Deed?

Section 126 of the Transfer of Property provides for conditions where a gift can be revoked. the following are essential ingredients for revocation of gift:

  • there must be an agreement between the donor and donee that the gift shall be suspended or revoked on the happening of a specified event;

  • such event must be one which does not depend upon the will of the donor;

  • the condition as to the suspend or revocation should be agreed to by the donee at the time of accepting the gift. And,

  • there must exist a ground , except want or failure of consideration, on which a contract may be rescinded.

  • the condition should not be illegal, or immoral and should not be repugnant to the estate created under the gift.

  • Section 126 is controlled by sec. 10. As such, a clause in the gift deed completely prohibiting alienation is void in view of the provisions contained in sec. 10.

  • A gift, which was not based on fraud, undue influence or misrepresentation nor was an onerous one, cannot be canceled unilaterally. Such a gift deed can be cancelled only by resorting to legal remedy in a competent court of law.

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How can a lawyer help in executing a gift deed?

A gift deed being a legal document requires the supervision of a legal expert for the purpose of drafting and executing. A documentation lawyer, owing to his years of experience in handling gift deeds, can guide you through the procedure of drafting and registration of the same. He can get the gift deed drafted on your behalf and can ensure that your other rights or assets are not affected by executing a particular deed. He can make sure that all the legal formalities are fulfilled while gifting property and no legal harm is done to the transferor during the transaction.You can also use LawRato'sFree Legal Adviceservice to get free advice on your case from expert propertylawyers.



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My property taken in false gift deed How can I get back?

Shalini on Aug 08, 2021

Is there a time period for gift deed registration?

Vipul on Aug 06, 2021

what are the documents required for gift deed registration?

Radha on Aug 25, 2021

Well written article. Please share the procedue to register a gift deed.

Surendra on Sep 09, 2021

how to apply for mutation of property received in gift?

Jitendra on Aug 14, 2021

needed a lawyer….what is the procedure?

Nitish on Sep 08, 2021

nice one. Please share more info

Manjula on Aug 24, 2021

needed legal help…whom shall I contact?

Sapna on Aug 29, 2021

A well written article.

Santhosh on Aug 25, 2021

thank you for the information

Kamal on Aug 21, 2021

good work

Sagar on Aug 22, 2021

learned all the basics about the legal issue. Good article. Keep it up.

Vivek on Sep 11, 2021

great advice. Thanks

Navin on Aug 14, 2021

very well written

Harpreet on Aug 08, 2021

Nice piece on the subject.

Subhash on Jul 31, 2021

excellent article. Very informative

Bhavesh on Aug 16, 2021

Detailed and informative.

Bhavesh on Aug 20, 2021

Written in a very simple language.

Ruchi on Aug 04, 2021

nice work with the article.

Satya on Aug 25, 2021

very good article. Can you tell me more about the law?

Gaurav on Jul 31, 2021

needed more information. Where to call?

Laxman on Aug 11, 2021

thanks for the information

Mamta on Aug 19, 2021

amazing article

Shilpa on Sep 12, 2021

good article. Can you share more detail

Nitin on Aug 09, 2021

great legal advice

Komal on Jul 31, 2021