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House building loan from axis bank

(Querist) 25 September 2016 This query is : Resolved 
Sir, I given settlement 900sq.ft. out of 2400 sq.ft. vacant land to my daughter on june 2015. For giving best settlement purpose, i cancelled the settlement deed with her consent on Aug 2015.
Now, after applying house building loan in my name in AXIS Bank, the legal advisor told that cancellation deed is not valid and insisted to apply with resettlement deed from my daughter. Is it correct? kindly suggest for further action to get housing loan in my name only in full land 2400 sq.ft.kindly advise me.
Raj Kumar Makkad (Expert) 25 September 2016
If settlement-deed means gift-deed then the opinion of legal advisor is absolutely correct and if the settlement-deed was just for the use of the property then the cancellation is suffice.

You shall have to go through the contents of alleged settlement-deed and then shall have to decide future course of action in consonance with my reply.


Gift once given cannot be cancelled.
Rajendra K Goyal (Expert) 25 September 2016
full language of the so called settlement and cancellation deed need to be referred to know the exact position.

whether both are registered?

You can approach other Bank may be a PSU Bank.
Kumar Doab (Expert) 25 September 2016
It seems that opinion of legal adviser of the bank is correct.


As advised you may show the docs to a very able counsel.

Guest (Expert) 25 September 2016
Legal advisor is correct in his observation.
Ms.Usha Kapoor (Expert) 26 September 2016
Agree with experts.
R.K Nanda (Expert) 26 September 2016
Nothing to add more.
MJ UDHAYASHANKER (Querist) 26 September 2016
Thanks a lot for kindness and prompt appropriate information. As per your advice and bank legal officer advice, i will contact my daughter to make ready for resettlement deed for housing loan. Is it correct way. please advice.Thanks.
Raj Kumar Makkad (Expert) 26 September 2016
You are always welcome. You can update all of us on this similar thread.
Guest (Expert) 26 September 2016
In spite of clear advice by the bank's lawyer and the experts, do you still feel the need for any confirmation, as you stated, "Is it correct way"?
Rajendra K Goyal (Expert) 26 September 2016
Since the documents not produces for reference, even author did not confirmed it was a gift deed or not, first discuss with Bank, show the relative documents to them.
Raj Kumar Makkad (Expert) 26 September 2016
Once the author has thanked to the experts and has told that he is going to follow the advice, where was the reason to further extend the query by continuing the replies?
MJ UDHAYASHANKER (Querist) 26 September 2016
Respected sir, settlement documents and cancellation documents both registered. As per bank legal officer advice, sub-registrar not accepting to register resettlement deed. Sub-registrar told after cancellation deed,the only way to resister consent of cancellation deed and stamp paper charges Rs.25,000-00 and registration fees Rs.4500-00. My daughter is ready to help and give consent me to get loan in my name. (I am in confusion so i feel sorry to ask anything wrong please forgive me.) please advice me what to do further to register in what type of deed title and to get bank loan. please help me. I am in confusion. please.

Raj Kumar Makkad (Expert) 26 September 2016
In the given facts, I sincerely advise you to take help of local civil lawyer and show him documents and obtain his opinion. As nothing is clear about the contents of alleged settlement-deed so no definite opinion can be offered to you.
Guest (Expert) 26 September 2016
Dear Udayshankar,

This fact was to be revealed much earlier while raising your query. You should know that varied response of the experts to any casual query in the absence of facts may confuse the author more than finding a solution.

Now, as advised by Shri Raj Kumar Makkad, you may bettertake help of some loval lawyer to get your work done as per the legal requirements after examination of your documents.
Rajendra K Goyal (Expert) 26 September 2016
The author may explore the scope of loan from other Bank / PSU Bank.
Kumar Doab (Expert) 26 September 2016
An error can happen while discussing the query.


If noticed the query can be discussed from fresh perspective, even if author has thanked.


There is no point in sending him home with erratic advise, due to any any reason/oversight.



Certainly online discussions have its own limitations and the author may show all docs on record to a very able counsel specializing in such/revenue matters.
Kumar Doab (Expert) 26 September 2016
Author posted that;


"I given settlement......................i cancelled the settlement deed with her consent on Aug 2015."




Expert Mr. Makkad's impression was; "If settlement-deed means gift-deed"




Can it ( whatever it is settlement or gift) be not cancelled by consent of both say: donor and donee?



First of all get it clarified what exactly you have signed twice?



Therefore show all docs to a very able counsel.
Kumar Doab (Expert) 26 September 2016
More so now you have issues on amounts spent by you and to be spent on charges/fees/duties etc etc
MJ UDHAYASHANKER (Querist) 27 September 2016
Respected Sirs, I have signed in both registered documents ( Settlement deed and Cancellation deed). I contact bank lawyer and make necessary documents as per their wish. Apart from bank loan, Kindly advice me what type of title deed / Deed name to be prepared for legally safety for me in future.
Raj Kumar Makkad (Expert) 27 September 2016
@Doab! The gift-deed cannot be cancelled even if both parties mutually want it to do. Once gift accepted the donor loses all his rights in the property gifted and thereafter the donee becomes its exclusive owner.
Raj Kumar Makkad (Expert) 27 September 2016
If settlement-deed is actually a gift-deed then the only solution is that the daughter bequeaths the same property in favour of her father by way of further gift-deed in the given facts.
Guest (Expert) 27 September 2016
Yours is purely an academic query, not a problem, as revealed from your varied statements in different posts.

However, if really there is any problem and interested in loan, you will have to fulfill the requirement of the bank. Otherwise, if you think there is no need for such things, why hanker after only Axix Bank. You may approach other banks. The opinion of lawyer of Axis Bank may not be the precedent to be followed by the other banks or their lawyers.
Rajendra K Goyal (Expert) 27 September 2016
Without going through full documents, nothing fruitful can be suggested at this stage.
Kumar Doab (Expert) 27 September 2016
@ Makkar,The author can benefit from the suggestions rendered to him by experts in this thread,bank's lawyer,or his own counsel.


Or reject everything and proceed on his own by his own wisdom.


Certainly he may show all docs on record to a very able counsel, before proceeding further.

Raj Kumar Makkad (Expert) 28 September 2016
I do agree with the noble and wise advice of Doab.
MJ UDHAYASHANKER (Querist) 28 September 2016
Respected sir,
can we have to register deed of ratification ( My daughter ready to give deed of ratification) for registered cancellation deed.It will give any legal problem to me in future.
Actually i have given RS.12,000.00 for housing loan process to AXIS bank.
Awaiting for your reply. Thanks.
Raj Kumar Makkad (Expert) 28 September 2016
As repeatedly advised to you, halfhearted advice shall not serve your purpose. If settlement deed was actually a gift-deed then your daughter shall have to get registered further gift-deed in your name if terms are not otherwise.

Banker can be got requested to mortgage the entire property as your daughter is also ready to mortgage her share without doing all such exercise.
Rajendra K Goyal (Expert) 29 September 2016
No advice can be extended without referring the related documents in the referred matter. Please discuss with your lawyer.


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