“Gift Revocation and Suspension”

Project submitted to the School of Excellence in Law in partial fulfillment of

the requirement for the Degree of B.C.A.LL.B(Hons.) ;(Sub-Transfer of
Property)

By

P.ANISHVIJAY
HD17017
 Under the Supervision

DR.RADHUKA

SCHOOL OF EXCELLENCE IN LAW (SOEL)

THE TAMIL NADU DR.AMBEDKAR LAW UNIVERSITY

CHENNAI

OCTOBER – 2020
 DECLARATION

I hereby declare that the project entitled on “Revocation and

Suspension of gifts…” submitted by me for the partial fulfillment
of the Internal process of the Semester Examination , is a bonafide
work done by me and to assure that the same will not be submitted
for any other Internal process of this Semester Examination

Date: Signature

26/10/2020 (P.ANISH VIJAY)

PERFORMANCE REPORT
TRANSFER OF PROPERTY ACT
 Name: P.ANISH VIJAY
Register Number: HD17017
Course: B.C.A.LL.B.,(Hons.)
Section -A

Date of Signature Faculty Signature Marks Remarks

Submission (Student)

26/8/2020 P.ANISH
VIJAY

CONTENT
 Chapte Title Page
r Number

I 7
Introduction

II Revocation by Agreement 8

III Revocation by Rescission as Contracts 11

Related Case laws

IV 12

V Conclusion 14

Introduction:

Gift in general is the transfer of certain property whether it may be movable or immovable
property which is made by voluntary action by certain person who shall be referred as donor to
another person, called done and accepted by or on behalf of donee. Such acceptance must be
made as such during the life time of donor and while he is capable of presenting. In case if done
donee dies before the acceptance he gift is void. A gift is a transfer of ownership and therefore
where the owner of certain government promissory notes endorsed them to his son but reserved
tp himself the right of enjoying the right of enjoying the interest during his lifetime and in his
will treated them as his own, charging the income, with certain bequests to be paid after his death
are held as benami transaction and not as gift. 1 Gift defines the term voluntary which bears
ordinary popular meaning of free will and not the technical meaning of ‘without consideration’. 2
When a gift is made, it should satisfy the condition that the donor knew what he was doing and
understood the contents of the instrument and its effects and it should not be coercive or fraud.
Here the delivery of possession can prove the assent of donor. 3 If it is under any influence the
burden is upon the donor.

The donor and donee may agree that on happening of such event which do not depend upon the
will of donor, the said gift shall stand revoked or suspended. But a gift which the parties agree
shall be revocable wholly or in part at mere will of donor is held to be void.

Gift shall be revocable in case of save want or failure in which if it rescinds it was a contract.
This project deals about the concept related to suspension or revocation of said gift.

To attract these provisions thereof, certain conditions are to be satisfied which are

 Donor and done shall agreed to the condition that the gift shall be suspended or revoked
on happening of some events.
 Such specified event occurs with no dependency on donor’s will.
 This condition should have agreed at the time of accepting the gift by done and donor.
 The condition stated should not be illegal or immoral and should not be reougnant to the
estate created under the gift.4

Transfer of Property accompanied by conditions:

1
Nawab Ibrahim Ali Khan V Ummat -ul -Zohra AII267 (PC)
2
U. Thita V Areseinna (1939)199 IC 903,AIR 1939 Rang 76.
3
Mukhtiar V Golab AIR 1977 Punjab 257
4
Subramanian V Kanni Ammal AIR 1953 Tr-Coch 115.
 It is common knowledge that a transfer of property or creation of interest shall have
certain conditions, covenants or restraints. Those conditions shall be condition precedent-
Which must be performed before the grant or alienation takes effect to create an interest
in property or condition subsequent which has the effect of defeating the interest already
created or vested. In both the cases the condition will be annexed with the estate and
would run with the same5.
A covenant is not annexed with the estate and runs independently of it which may give
rise to a cause of action for specific performance or for an action in damages. A restraint
or limitations has the effect of curtailing of quantum of the estate.6

Revocation by Agreement:
The general rule is that it is not a gift if the person purports to give and at same time
retains at his liberty of revoking the gift at his pleasure, but this has exception that power
of revocation would be valid if the event on happening of some event does not depend
upon the will of the donor. But there should be a express condition stated rather than
some wish which is explained in one of the cases explained below. The condition for
revocation of gift is a condition subsequent. It must be valid under. The condition totally
Prohibiting alienation of property is void under Section 10 of this Act. Therefore, if the
gift is made revocable with such condition, the condition itself being void, the gift isn't
revoked.
Where the donor has the power of revocation of a gift and validity revokes it, he becomes
the owner of the property intended to be gifted. If he has no such power he ceases to have
any interest in the property gifted, in which there is no question of donor continuing as an
ostensible owner within sec 41.7 Donor can revoke to the condition that donee accepted to
maintain the donor and fails to do so. A deed of gift was executed in consideration of past
and future services rendered or to be rendered by the donee. Here there is no provision
regarding the failure to render the services to the donor amounts to revocation of gift.8

5
Subbegowda V Thimmegowda (2004)9 SCC 734.
6
Phillip John V CIT AIR 1964 SC 557.
7
Ankamma V Narasayya AIR 1947 Mad 127 (1946)2 MLJ 357.
8
Mool Raj V JAmna devi AIR 1995 HP 17.
 The above mentioned maintenance circumstances there was a contrary view has been
taken in Tila bewa v Mana Bewa cas law which stated that a gift deed, subject to the
condition that donee should maintain the donor, cannot be revoked under section 126,
and similar view is dealt in the case law where the property gifted by the mother to her
only children who promised to look after and maintain mother. 9 In another instance there
was a gift of land by registered deed. It was an unconditional gift. But there exists a
separate written contract between donor and done which stipulated that unless certain
things could be done on the gifted land, the donor shall take appropriate action against the
donee for taking the possession of land. It was held that the gift was not valid as it is not
absolute or unconditional. The derived concept is that the gift deed and the agreement
forming part of same transaction are to be read together and shall act accordingly.
The above stated maintenance circumstances is best explained here, that when there is an
mere transfer by gift followed by the direction to done for maintenance is just a pious
wish so donee shall have no binding force of nature. But if the gift deed expressly states
that it has the object of providing for maintenance of donor, and this statement is
followed by operative clause, it is subject to maintain the donor. Then it shall have the
validity to revoke a gift.10 The gift shall not have the necessity to be done on one gift
deed the condition is that it should be done at same time, it might be on different
documents thereof as it should be related.

The legal position has stated that unless gift is condition one, acceptance of gift in
absence of the revocation powers is a conclusive. And in the absence of revocation
power reserved for the settler the gift deed cannot be revoked. The court shall draw a
presumption of acceptance from the conduct of the parties and from the factual materials.

Merely because there doesn’t exists formal parting, it cannot be said that it is a factor against the
11
acceptance of the settlement. Held in Shakuntala devi V aman devi that if the gift is not based
on fraud ,undue influence or misrepresentation ,its cancellation is not valid under Sec 126.
Similar view is held Vannathi V Puthiya 12, it has been held that after acceptance of the gift and

9
Munni devi V Chhoti AIR 1983 AII 144.
10
Gangadhara iyer V Kulathu AIR 1952 Trav –CO 47.
11
AIR 1985 HP 109
12
AIR 1985 Ker 110.
taking the delivery of possession of the gifted property by the done, there cannot be revocation of
gift.

Revocation of irrevocable gift, if permissible –

A conjoint reading of sec 124 and 127 we shall acknowledge that once the property has
been gifted to the donee which is a valid gift along with the recital it is revocable and the
donor has no right to revoke the gift donated. This was held in Palanisamy gounder V
Raja manickam13

Revocation of gift, when possible :

To answer when a gift deed can be legally revoked, one has to consider the cumulative
effect of sec 126 adn 42 of transfer of property act and sec 34(3) and the registration act,
which casts an obligation upon the registrar to make inquiry at the time of registration of
a deed. In Balai Chandra V daya Bala14 has exhaustively dealt with situations which
would be legally sufficient for revocation of a deed of gift, which gives stress to role of
registrar It was held that there is no scope in normal course for revocation of a deed gift
when the said deed of gift was executed by the donor ,accepted by the done by such
authority. From the provision of registration act it is clear that the registering authority
shall enquire. This term “shall enquire” is important here. Transfer of property act also
provides that normally deed of gift cannot be revoked. The registering authority shall
identify person himself. Therefore identification and enquiry about the execution of deed
of gift completes the deed.
By implementing the section 42 and 126 of transfer of property act, the proportion which
comes out is that the deed of gift can be revoked, if there is an agreement for
revocation. In such circumstances the deed of gift is not at all a gift because if somebody
agrees to gift some property where the donor retains the power to revoke the deed then it
shall not be called a deed of gift. The registration act also gives the support to the
conditions that registration or execution of the deed is done after the satisfaction of
registered regarding the identification. And the last condition as stated above due to
under influence or committing fraud, the gift can be revoked. It shall be stated that
13
AIR 2003 Mad 27.
14
AIR 2004Cal 276.
imperfect knowledge of the donor cannot be treated as his consent. Mere allegation of
fraud or coercion wpould not be enough , these allegations have to be proved, court are to
be inferred from the proved facts and circumstances that these allegation are happened.

Revocation by Rescission as Contracts:

Gift is transfer made by the donor voluntarily without any coercion. Gift is made by a
contract of offer by donor and acceptance by the done, if it is proved that the contract
itself is made without the consent due to some coercion or fraud or any intent to deceive,
the contract shall held voidable and rescinded. If this condition is proved then the gift can
be revoked. Section 126 of this act deals about this concept which is also supported by
contracts act that any agreement made by coercion, misrepresentation, fraud are held to
be voidable and shall decide according to the party concerned. As it is voidable option if
he uses the option gift shall be revoked and contract shall stand rescinded or if he doesn’t
used this option, it shall not be declared as revoked. The revocation shall be done only by
the donor as he doesn’t have any right to assign his right to someone to process this.
Donor loses his right to revoke if he expressly or by his act ratify such act. Limitation
period to approach the court regarding these grounds are three years.
As stated above conditions are the only means to revoke the gift as other means are not
accepted thereof. And moreover there remains a concept that subsequent act of done does
not affect the rescission of a gift as stated above. There exists a circumstances where the
donor makes a condition to done that happening of certain events the gift shall be
revoked, but if there is no notice regarding that condition is received by the done the gift
shall not be revoked.

Related Case laws

  Ram Sarup V Bela15 stated that the agreement referred must be entered at the time
of the gift, for the gift which is complete and absolute at the time when it is made,
and cannot be modified by some condition subsequently added.
 In Forbes V Mir Mohammed16, it was stated that a grant of land, subject to
rendering of services can be resumed on the grantee performing the services
In Venkata narasimha V Sobhanadri17,held that as so long as the grantees are
willing and able to perform the services, the grantor has no right to put end to the
contract.
 Venkat sabba V Subba Rama18, it was stated that once a deed of gift is executed
and delivered to the done the gift is completeso far as the donor is concerned and
donor cannot even before registration revoke the gift on the plea that gift is not
complete until it is registered. This case law was an important reference and made
a clear concept that donor shall not use this reason to escape.’
 Beharilal V Sindhubala19, it was opined that grounds on which a gift may be
ordinarily set aside are coercion, undue influence, fraud ,mistake,
misrepresentation.
 Henry V Armstrong 20
stated that the above mentioned grounds are to be proved
by the persons who want to set aside.
 In Ram Chander V sital prasad21, in this case done was in illicit connection with
donor’s only daughter and was residing with donor and his daughter the following
grounds made the presumption that gift deed was brought on undue influence –
The daughter and the done have been in a position to dominate the donor’s will,
gift of the entire property to done ignoring the daughter made the transaction
doubted.

Hindu Law and Mohammedan Law relating to revocation of rights:

15
AII 313 (PC)/
16
BLR 529 (PC) Hurrogobind V Remruton 4 Cal 67.
17
29 Mad 52 (PC).
18
AIR 1927 PC 42.
19
45 Cal 434,22 CWN 210 (212).,41 IC 878.
20
(1881) 18 Ch D 668.
21
AIR 1948 Pat, 130 1947 PWN 42.
 Under Hindu law, unless it was obtained by fraud or undue influence a gift once
completed is binding upon the donor and it cannot be revoked by him,
In dealing with undue influence the first thing we should consider is relation of
parties.22
Here referring to rules of Mohammedan law, it is entirely different as it states
they can revoke a gift even after the delivery of possession except few instances
such as
 The Gift given to Husband and vice-versa ( Wife to husband)
 If the parties to the gift are related within prohibited degrees
 Gift given is referred as sadaka (the gifts which are made to a charity or
for any religious purposes)
 In case if the person receives the gift is dead
 In case the gift given to the done has left out of his possession by mode of
sale, gift or any other manner.
 In case the gift which was gifted is not found due to lost or destroyed
thereof.
 In case the gift which was presented has increased its value as compared
to the time of transfer.
 In case the gift is totally changed and the identity looks different as when
crop is converted into finished products such as rice.
 In case, the person who gives the gift receives something in return as a
exchange for it.
Except the above mentioned circumstances the gift shall be revoked by
whatever may be the situation with or without the reservation. But it
should be accompanied by a decree of court.
Gift Cancellation of:
Gift which was not based on fraud, representation to deceive was an onerous one, cannot
be cancelled unilaterally. Such a gift deed can be cancelled only by resorting to legal
remedy in competent court of law.

22
Afsar sheikh V Soleman bibi AIR 1976 SC 163 (169).
Where a gift deed is obtained by fraud, is cancellation at the instance of the donor is legal
and valid.

Conditional Gift and its cancellation:

For becoming valid and complete gift there,must be execution of registered gift deed, the
gift stated should be accepted, there should exists a delivery of the gift. Once these
conditions are satisfied the done becomes absolute owner. But in conditional gift, he shall
Be entitled for absolute ownership once the said condition is satisfied. If such condition is
not satisfied, it shall amount to cancellation. Here the gift may not be complete with the
execution of the deed.

Conclusion:
Gift as briefly explained above is transfer made by donor to donee of property which
shall be classified as both movable and immovable which is made voluntarily and done
without any consideration. Such acceptance should be made during the lifetime of the
donor and if there arises a situation that the donee dies before the acceptance the gift
mentioned shall be void and there are few grounds in which the gift shall be revoked
which is mentioned above and this project also covers the Hindu and Mohammedan law
provisions regarding the revocation of gift.