Cancellation of a Gift Deed
✅ Cancellation of a Gift Deed: Complete Explanation
A gift deed is a legal document used to voluntarily transfer movable or immovable property from one person (donor) to another (donee) without any consideration (i.e., free of cost). Once executed and registered, a gift deed is usually irrevocable. However, under certain conditions, it can be cancelled.
🔍 Legal Grounds for Cancelling a Gift Deed
Cancellation can occur in two main ways:
1. Mutual Agreement (Donor and Donee)
The donor and donee can mutually agree to cancel the gift deed.
A registered deed of cancellation must be executed and registered.
Consent of both parties is required.
2. By Court Decree (Unilateral Cancellation)
The donor (or legal representative) can approach the court for cancellation if any of the following applies:
a) Gift Obtained by Fraud, Misrepresentation, or Coercion
If the gift deed was signed under duress, fraud, undue influence, or misrepresentation, it can be challenged and cancelled in court.
b) Non-Acceptance by Donee
A gift must be accepted by the donee. If not accepted during the lifetime of the donor, the deed is invalid and can be cancelled.
c) Violation of Conditions (Conditional Gift)
If the gift was made with certain conditions (allowed under Section 126 of the Transfer of Property Act, 1882) and those conditions are violated, it may be revoked.
d) Lack of Proper Registration
A gift deed of immovable property must be registered under the Registration Act, 1908. If not, it is void and can be cancelled.
e) Donor’s Mental Incompetency
If the donor was not of sound mind at the time of execution, it can be challenged in court.
📜 Section 126 – Transfer of Property Act, 1882
This section allows revocation of a gift in the following cases:
By agreement: If both parties agree that the gift can be revoked under certain conditions.
For cause: The gift may be revoked for the same reasons a contract can be rescinded (fraud, coercion, etc.).
❌ When Cancellation is NOT Possible
Once a valid and unconditional gift is executed, accepted, and registered, it cannot be revoked just because the donor changed their mind.
Personal disputes, anger, or regret are not valid grounds unless accompanied by fraud or coercion.
🔁 Process of Cancellation
| Method | Steps Involved |
|---|---|
| Mutual Consent | Execute a registered deed of cancellation signed by both donor and donee. |
| By Court Order | File a civil suit for cancellation of gift deed under relevant provisions (e.g., Transfer of Property Act, Indian Contract Act, Specific Relief Act). |
📄 Documents Required for Cancellation
Copy of the gift deed
Identity and address proofs
Proof of fraud/coercion (if claimed)
Deed of cancellation (if mutual)
Court decree (if contested)
⚖️ Case Example:
A father gifts property to his son. Later, the son abandons or mistreats him. Unless the gift was conditional or obtained by fraud, the father cannot revoke the gift unilaterally—even if morally justified.
🧾 Summary Table
| Aspect | Details |
|---|---|
| Who Can Cancel | Donor (with donee’s consent or by court order) |
| Grounds for Cancellation | Fraud, coercion, undue influence, breach of condition, non-acceptance, donor’s incapacity |
| Mutual Cancellation | Allowed with registered deed signed by both parties |
| Court Cancellation | Requires civil suit and court decree |
| Irrevocability | Valid, unconditional, accepted gift deed is generally irrevocable |
| Legal Basis | Section 126 of the Transfer of Property Act, 1882 |
Do write to us if you need any further assistance.
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