6/3/22, 9:05 PM When Can a Gift Deed be Canceled in India and What is The Procedure

When Can a Gift Deed be

Canceled in India and
What is The Procedure

When Can a Gift Deed be Canceled in India and What is The Procedure

Introduction:
There are many ways to transfer property from the
owner (donor) to the donee such as by gift, will or sell.
The common process to transfer the property to the
family members is by way of the gift deed.

Meaning of Gift Deed:

Gift Deed is a legal document that defines the transfer
of gift from the donor to a donee without any
exchange of money.

Properties of Gift:
1. It must be movable or immovable property.

2. It should be transferable.
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6/3/22, 9:05 PM When Can a Gift Deed be Canceled in India and What is The Procedure

3. It should not be a future property and it must exist

today.

4. It must be tangible.

Explanation of Cancellation of Gift Deed and

its Procedure:
The Transfer of Property Act, 1882 provides section
126 which deals with suspending or revoking a gift.
Section 126 provides that the donor and donee may
agree that on the happening of any specified event
which does not depend upon the will of the donor, a
gift shall be revoked or suspended.

Registration:
A gift of immovable property must be registered under
section 123 of the Transfer of Property Act, 1882,
otherwise a gift of immovable property cannot
provide any title to any person. A gift of property
during registration and post-registration must be
attested by two witnesses, only then the transfer of
title is possible.

Documents required for registration:

When the Gift Deed is signed, attested by two
witnesses and necessary stamp duty, then you need
the following documents:

Original Gift Deed

Aadhar Card
ID Proofs
PAN Card
A document is required like Sale deed to prove
donor title to the Property. 

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6/3/22, 9:05 PM When Can a Gift Deed be Canceled in India and What is The Procedure

You may require other documents like certificates

pertaining to the value of your property.

Cancelling a Gift:
Section 126 provides two modes of revocation of Gift:-

1. Revocation by mutual agreement:- A gift may

be revoked upon the happening of an event
which is not dependent on the donor where the
donor and donee may agree. The revocation
must be in express form and not of a wish or
desire.

2. Revocation by rescission:- The gift is a

transfer of ownership without any exchange of
money or any consideration which is made
voluntarily. So, where there is no free consent
of the parties, the gift can be revoked or if it is
obtained by coercion, undue influence or
fraud then the gift is voidable.

CASE

“S. Sarojini Amma v. Velayudhan Pillai Sreekumar

2018 SCC OnLine SC 2200”

“In this case, the Supreme Court observed that there

was no completed gift of the property which is in
question to the respondent by the appellant and the
appellant had right in cancelling the deed.”

Conclusion:
The Transfer of Property Act, 1882 lays down
provisions relating to gift deed and cancellation of
the gift deed. Any person who is the real owner of the
property can transfer his or her property to anyone by
way of gift. A gift deed actually says that any person
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6/3/22, 9:05 PM When Can a Gift Deed be Canceled in India and What is The Procedure

who is the owner of the property can transfer the

property to another person without any
consideration. Similarly, there are provisions for
cancellation of the gift deed as well.

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