Regarding to gift deed valid

Murali Krishna (Querist) 16 December 2022 This query is : Resolved
Hi All,

I am Murali Krishna, could you please clear my doubts

My father wrote 1/2 of the property as gift deed to me in 2009. I got the job in AUG 2008, i cleared his personal debts around 15 lacs in 2013.

Later I married with my money,

In Nov 2022, again my father said I have 17 lacs debt please clear it so that I can write another 1/2 of property as gift deed. He wrote the remaining property as gift deed to me. Now I am planning to clear his debts.

I have three sisters, one of the sister is not accepting and planning to go to court.

what is the best option?
Can I cancel both gift deeds and re-register with the sale deed?
Any other option I have to stay with gift deed lands?

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Quick Summary

This discussion addresses the validity of gift deeds when there's an element of consideration, such as clearing the donor's debts. According to property law, a gift must be voluntary and without consideration; otherwise, it may be treated as a sale. If debts were repaid in exchange for the property, the gift deed could be deemed invalid. The advice suggests cancelling any proposed second gift deed and opting for a registered sale deed instead, especially if a sibling is contesting the transfer.

kavksatyanarayana (Expert) 16 December 2022
A repeated query. Why repeated for an answer.

Dr J C Vashista (Expert) 18 December 2022
Repeated query.
Read reply in original thread and avoid repetition.

Sudhir Kumar, Advocate (Expert) 18 December 2022
repeated

https://www.lawyersclubindia.com/experts/regarding-to-gift-deed--746211.asp

T. Kalaiselvan, Advocate (Expert) 20 December 2022
If the property is transferred by gift deed was done for any consideration received by the donor then the gift deed is invalid. It is settled law that a gift cannot be made in lieu of consideration. If there is consideration in the Transfer of Property by way of gift then it shall be treated as a sale under section 54 of the Transfer of Property Act. Section 122 of Transfer of Property Act defines a gift as the transfer of an existing moveable or immovable property. Such transfers must be made voluntarily and without consideration. The transferor is known as the donor and the transferee is called the donee In the above circumstances, if the repayment of the donor's debts as exchange of this proeprty transferred by gift deed, would render the gift deed as invalid. Hence it is advisable that you cancel the proposal of second gift deed and can ask your father to execute a registered sale deed in your favor towards the loan amount that you have agreed to settle in due course.

Dr J C Vashista (Expert) 25 December 2022
The definition of gift deed under the provisions of Section 122 of the Transfer of Property Act, which reads as under;

"Gift" defined, - "Gift" is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called donee, and accepted by or on behalf of the donee."
Acceptance when to be made, - Such acceptance must be made during the lifetime of the donor and while he is still capable of giving.
If the donee dies before acceptance, the gift is void."
On careful perusal of the provisions of Section 122 of Transfer of Property Act, makes it clear that in order to transfer of any movable or immovable properties by way of gift the requirement of any consideration shall not be existing between the donor and the donee. The gift is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee. Accepted by or on behalf of the donee and such acceptance must be made during the lifetime of the donor and while he is still capable of giving.

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