02 October 2009
Father gifted the house to ist son with regd gift deed with love and effection and no conditions mentioned. After 6 months of gift deed, father revoked the gift deed with revocation of gift deed with mentioning that the son is not taking care and not providing food etc. Immediately after 1 week, father executed transferred the house with sale deed on second sons name. Please let me know/advice: Is it right that revocation of gift is correct and further steps to be taken.
Section 126 of the Transfer of Property provides for conditions where a gift may be revoked.the following are those conditions- (1) That the donor and donee must have agreed that the gift shall be suspended or revoked on the happening of a specified event; (2) such event must be one which does not depend upon the donor's will; (3) the donor and donee must have agreed to the condition at the time of accepting the gift; and (4) 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 totally 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 cancelled unilaterally. Such a gift deed can be cancelled only by resorting to legal remedy in a competent court of law.
02 October 2009
Mr. Sekhar From the facts you have given, the gift revocation is not in order. The donee having been given the gift without condition, donor has no right to revoke the gift, as there were no conditions.
02 October 2009
A gift can be revoked in all cases where any contract can be revoked except for lack of consideration.
In other words, in all cases where a contract can be avoided or revoked under the Indian Contract Act, 1872, a gift can be revoked by the donor on these grounds. In most cases, it is done only on the grounds of undue influence and fraud committed on the donor to make the gift.
In this regard, the term `undue influence' means that the influence over the donor by another person is of a coercive nature which forces the donor to act against his own will and willingness in making gifts. `Fraud,' on the other hand, suggests concealment of facts, misrepresentation of facts and some other camouflage to obtain certain benefits.
The charge of undue influence and/or fraud is in the nature of criminal charge which must be pleaded clearly and proved by cogent and reliable evidence.
Except in the above cases, a gift once made cannot be revoked.
However, where a gift is made irrevocable by specific recitals in the Deed of Gift itself, such a gift cannot be revoked by the donor under any circumstances.
When a gifted property transferred to a third person for consideration is revoked without any notice of revocation, the transferee (the present purchaser) shall not be affected by the same and his rights acquired for consideration shall be valid (Section 126).