Can a Gift Deed be Cancelled?

Table Of Content

• Who can file a Gift Deed Cancellation?
• What are the Grounds for Cancellation of Gift Deed?
• How to Cancel a Gift Deed?
• What is the Court Fee for Cancellation of a Gift Deed?
• What are the Limitations of Gift Deed Cancellation?
• Supreme Court Judgement on Cancellation of a Gift Deed
• Can I Cancel a Gift Deed without going to Court?
• Conclusion

As many of you might know, a Gift Deed is made when an individual decides to give out his belongings to another person. It may be a family member, relative or a friend who is trustworthy in the eyes of the donor. There are various aspects that a Gift Deed has. A very serious question that donors ask themselves is that while gifting can they revoke the deed half way if they don’t want to continue with the process due to second thoughts coming in their mind? So yes it can be done but on what grounds that we will be disclosing below:

Who can file a Gift Deed Cancellation?

The Gift Deed can be cancelled by the donor only. If the donor wants to change his decision then he can appeal for the cancellation but the Gift Deed cancellation procedure only takes effect when the donor has actual reason to do it. Cause if he has gifted the Gift Deed to the donee and the donor has accepted the gift. Then nothing can be done in that case.

What are the Grounds for Cancellation of Gift Deed?

The reasons for Gift Deed cancellation are simple and to the mark. They are as follow:

Deceptive Move

One of the reasons for Gift Deed cancellation is fraudulent activity with the donor. As per the Section 19 of the Indian Contract Act, 1872, the Gift Deed is considered as voidable since the donor’s consent was taken by deception and trickery. 

Mutual Agreement

Due to some circumstances if both donee and donor come to a mutual agreement of cancelling the Gift Deed. If both the parties think that cancelling the deed would be better than Gift Deed can be cancelled.

Rescission

According to the agreement reached by the decision made by the donor and donee, the Gift Deed may be revoked. The agreement states that the Gift Deed may be cancelled under specified circumstances and conditions. It’s important to keep in mind that a Gift Deed cannot be revoked unilaterally. Also, the gifts that fall under this basis must be revoked within three years of the donor becoming aware of it.

Donor Holds the Title

The title to a Gift Deed stays with the giver during this time, thus the donor may cancel it at that point. If the Gift Deed is not registered, the staff duty payment is insufficient, the Gift Deed’s attestation is incorrect, the donee fails to sign the Gift Deed, the donee rejects the Gift Deed, or the gift was not accepted while the donor was still alive, the Gift Deed is incomplete.

Forgery

If the deed is forged then the Gift Deed cancellation procedure will take place. As per both the acts, Transfer of Property Act, of 1882 and the Indian Contract Act, of 1872, can be revoked in terms of forgery. It is a yes. Revocation of Gift Deed transfer of property act is only possible if the requirement is fulfilled of this act otherwise if the Gift Deed is registered.

How to Cancel a Gift Deed?

The procedure of Gift Deed cancellation are as follows:

• Petition: To cancel the Gift Deed, firstly the donor is required to write a petition to the court. In the petition the clauses for cancelling the deed should be mentioned.
• Notice for the parties: After the petition is filed in the court. A notice will be dedicated through court for the donor and the parties involved.
• Evidence: To prove their case for cancellation, the petitioner must provide supporting Documentation. This may consist of records, witnesses, and other kinds of proof.
• Proceedings of Court: Before issuing a ruling, the court will hear the arguments from both sides and weigh the available evidence. The Gift Deed will be revoked by the court if it decides the grounds for cancellation are legitimate.
• Cancellation of Gift Deed: The petitioner may get a certified copy of the court’s ruling cancelling the Gift Deed and deliver it to the registration office where the Gift Deed was registered. The Gift Deed will thereafter be removed from the registration office’s files.

By following these outlined steps you can skillfully get the Gift Deed revoked.

What is the Court Fee for Cancellation of a Gift Deed?

The court fee charged in accordance with the TNCF and suit valuation act under section 25(b) is one-half of the market value of the property if the purpose of the lawsuit is to have the claimed Gift Deed declared void.

What are the Limitations of Gift Deed Cancellation?

A Gift Deed cannot be revoked without consent. A genuine gift can only be revoked by the court. A Gift Deed has a 3-year statute of limitations, which means that it can no longer be used after the completion of the registration Document. Also a Gift Deed cannot be cancelled by a third party. The interference of a third party is strictly restricted. Only the donor and donee are needed to be present while the cancellation procedure of the Gift Deed.

Supreme Court Judgement on Cancellation of a Gift Deed

According to a ruling of the Supreme Court on the cancellation of Gift Deeds by mutual consent, the cancellation must take the form of an unambiguous declaration and cannot be founded on a wish or desire. Also cancellation of registered Gift Deed under Senior Citizen Act 2007 can be revoked. Every state has a maintenance tribunal where a senior citizen can file the case and take their property back.

Can I Cancel a Gift Deed without going to Court?

Certainly yes, you can cancel your Gift Deed without the court interference. In cases like recession, mutual agreement and incomplete The complete authority lies with the donor. The cancellation of Gift Deeds by court when the cases are related to forgery.

Conclusion

For Gift Deed cancellation there is a range of three years in . Under the Section 126 of Property Transfer Act, deed can only be revoked by the donor and no other party. But if you are looking for making Gift Deeds and not for revoking then we highly recommend our Gift Deed service.