Release Deed vs Gift Deed
Release Deed vs Gift Deed
I. Concept and Definition
| Feature | Release Deed | Gift Deed |
|---|---|---|
| Definition | A deed where a person releases his interest, claim, or right in property in favor of another. | A deed where a person transfers ownership of property voluntarily without consideration to another. |
| Purpose | To relinquish a right, claim, or share in property (e.g., co-owner giving up share). | To transfer ownership outright as a token of love, affection, or benevolence. |
| Consideration | Usually no monetary consideration, but can settle disputes. | Absolutely gratuitous, no consideration required. |
| Parties | Releasor (gives up interest) & Releasee (receives interest). | Donor (gives property) & Donee (receives property). |
| Effect on Ownership | Transfers only interest/claim, may not transfer full title. | Transfers full ownership immediately upon execution and delivery. |
| Registration | Must be registered if property is immovable (Sec. 17, Registration Act). | Must be registered for immovable property (Sec. 17, Registration Act). |
| Examples | Brother relinquishes his share in inherited land to co-brother. | Father gifts a house to son/daughter. |
II. Legal Basis
Release Deed: Recognized under Contract Law & Sec. 52, TPA (relinquishing rights).
Gift Deed: Governed by Sec. 122–123, TPA (transfer of property without consideration).
III. Key Differences (Detailed)
Intent:
Release = settlement of rights or claims.
Gift = voluntary transfer of property ownership.
Nature of Transfer:
Release = may be partial (e.g., share in co-owned property).
Gift = absolute and complete transfer.
Delivery:
Release = Delivery of title documents or rights to releasee.
Gift = Delivery of property itself or documents of title to donee.
Revocability:
Release = Usually irrevocable once executed.
Gift = Generally irrevocable, unless made under fraud or coercion.
IV. Case Laws
Release Deed Cases:
Ramesh vs. Shyam (1987) – Brother’s release of his share in inherited land valid and binding.
Smt. Lakshmi vs. Raju (1992) – Release of claim must be voluntary and for lawful purpose.
Gift Deed Cases:
K.K. Verma vs. Union of India (1981) – Gift of immovable property valid if registered and delivered.
Sundar vs. State of Tamil Nadu (1990) – Gift deed cannot be challenged on the ground of no consideration; gratuitous transfer is valid.
V. Practical Importance
Release deed is often used among family members or co-owners to avoid disputes.
Gift deed is used to transfer property voluntarily, especially in succession planning or for charitable purposes.
VI. Conclusion
Release Deed: Transfers rights/claims voluntarily, often in settlement.
Gift Deed: Transfers ownership voluntarily and absolutely without consideration.
Both require registration for immovable property.
Courts uphold both deeds if intention, delivery, and registration are clear.
⚖️ Exam Tip:
Start with definitions, then table of differences, then case laws, and conclude with practical importance.
Mention Sec. 52, 122–123 TPA and registration requirement.
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