Revocation of Gift under Transfer of Property Act
Revocation of Gift under Transfer of Property Act
Meaning of Gift
A gift is the transfer of ownership of property, movable or immovable, voluntarily and without consideration, by one person (donor) to another (donee), accepted by or on behalf of the donee.
(Section 122, TPA, 1882)
Once a gift is validly made and accepted, ownership passes immediately to the donee. However, under limited circumstances, a gift may be revoked.
Grounds for Revocation of Gift
1. By Mutual Agreement – Section 126
Donor and donee may agree that the gift shall be revoked on happening of a specified event.
Such condition must not depend solely on the will of the donor.
Example: Gift subject to condition that if donee dies before donor, gift will be revoked.
Case Law: Thakur Raghunathji Maharaj v. Ramesh Chandra – Court held that revocation clause must be expressly agreed upon at the time of making the gift, not afterwards.
2. Revocation for Ingratitude
Donor may revoke a gift if the donee acts with gross ingratitude towards the donor.
However, mere quarrels or disagreements are not enough; conduct must be extremely ungrateful.
Case Law: Krishna Bihari Lal v. Gulab Chand – Allegation of ingratitude must be clearly proved; vague accusations do not justify revocation.
3. Grounds Applicable to Contracts (Fraud, Undue Influence, Misrepresentation)
Since gift is a transfer, if obtained by fraud, undue influence, or coercion, it can be set aside.
Case Law: K. Balakrishnan v. K. Kamalam – Gift obtained by misrepresentation or undue influence can be revoked.
When Gift Cannot Be Revoked
Once validly executed and accepted, gift cannot be revoked merely because donor later changes mind.
Condition depending solely on donor’s will is void.
Case Law: Renikuntla Rajamma v. K. Sarwanamma (2014) – Even if donor retains possession during lifetime, gift remains valid and irrevocable.
Essence of Revocation
Revocation is an exception to the rule that gifts, once made, are absolute.
Donor must strictly prove either:
Pre-agreed condition, or
Donee’s gross ingratitude, or
Grounds like fraud/undue influence.
Conclusion
The Transfer of Property Act ensures that a gift, once accepted, cannot be lightly revoked. Only in cases of mutual agreement, gross ingratitude, or fraud/undue influence can it be challenged. Courts have consistently held that sanctity of voluntary transfer must be respected while also protecting donors from deceit or betrayal.
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