CAN A GIFT DEED BE CHALLENGED IN INDIA

INTRODUCTION

As indicated by section 122 of the Transfer of Property Act, 1882, you can transfer immovable property through a gift deed. The voluntary transfer of some existing property given without consideration is referred to as a “gift.” A legal instrument that can be used for this is a gift deed. The property in question may or may not be mobile. It must be physical, transportable, and existing by law. While the individual receiving the property is known as the donee, the person transferring it is known as the donor. The donee may accept the gift personally or on their behalf through another individual. A gift can only be transferred from a donor to a donee if the recipient accepts it within the giver’s lifetime. If the donee has not accepted the offer of transfer by the time the donor dies, it is no longer valid. Like a sale deed, a gift deed contains subtleties of the property, the transferrer, and the beneficiary. Be that as it may, it permits you to move possession with next to no trade of cash.

Registering a gift deed with the sub-registrar is obligatory according to section 17 of the Registration Act, 1908, and according to section 123 of the Transfer of Property Act. Only after being registered is a gift deed considered lawful and binding under the law. The following stamp duty that must be paid upon registration differs by state. According to this Section, a gift deed must be registered in order for immovable property to be legally transferred as a gift. The gift deed must also be signed by the donor and the donee, as well as having the signatures of two witnesses attested. The gift deed must be written on stamp paper, be signed by both parties, and include the attestations of two witnesses. According to this Act, even the stamp paper must be registered. On the off chance that you don’t do this, the transfer will be invalid. A object has to possess the following qualities in order to be considered a valid gift:

It must exist and be well defined (can be both movable or immovable),

It has to be transferable,

It should be present-day.

It shouldn’t be a potential asset, It must be observable. In addition, the beneficiary can only request a property change once the gift deed has been recorded in his or her name. To transfer utility connections under the recipient’s name, the mutation is required. A registered gift deed will be necessary for the receiver to be able to transfer the property further.

CHALLENGING THE GIFT DEED

By filing a lawsuit for such a statement, the gift deed may undoubtedly be called into question in a court of law. However, it will only be contested if you can prove that the deed was conducted against the donor’s wishes or under false pretenses, such as fraud or deception. Here are some justifications for contesting a gift deed:

GROUNDS

1. If the gift transfer consent was not freely given;

There are a number of purported instances where the individual giving the gift is coerced by the other persons, either emotionally or under duress, and as a result, the value of the consent and the document are terminated.

2. If the gift deed was not signed and recorded in accordance with the law;

A gift deed is legitimate even if it is not registered, however in the perspective of the law, an unregistered gift deed is worthless. By presenting an unregistered gift deed, one cannot assert the enjoyment of a gift deed.

3. If neither gifting party was legally capable of entering into a contract,

A gift from a minor is not legitimate, despite the fact that a present to a minor is. Additionally, the donor is not regarded as a competent party if he or she is not of sound mind or is unable of comprehending the nature of the act.

4. When the beneficiaries fail to meet a conditional gift’s requirements. In this scenario, the gift deed can be revoked.

Although it is sometimes misunderstood, contemplation and meeting a criterion are not the same thing. Fulfilling the condition is not, in any way, a return of favor; rather, it may be seen as security by the giver while transferring his property through a gift.

5. The gift deed would not be lawful if it contained any payment for the gift.

The transfer of property through a gift deed depends heavily on consideration. The gift deed is void if someone can show that it was given without receiving payment of any kind.

IN CASE OF MINOR

Since a gift deed is a legal contract and contracts with minors prevent entering into, minors are not permitted to be donors, hence a gift deed where the minor is the transferrer is invalid in the eyes of the law. A natural guardian has the authority to receive the gift on behalf of the donee when he or she is a minor.

DECLARATION SUIT

A court’s official declaration of a person’s property rights or legal status is known as a “Declaration.” Anyone who asserts they are not entitled to a legal character or a property right may be sued by an individual, and the tribunal may decide that they are at its discretion. The claimant is not required to request any more remedies. If the right relates to property, the lawsuit aims to declare the plaintiff’s ownership and title and restore possession in order to safeguard the plaintiff’s interests.

REVOCATION OF GIFT DEED

The Transfer of Property’s Section 126 specifies the circumstances under which a gift may be rescinded. The following conditions must be met in order to revoke a gift:

  • The gift must be agreed to be suspended or withdrawn upon the occurrence of a specific event between the giver and donee;
  • Such a circumstance must be independent of the donor’s will;
  • When receiving the gift, the donee must agree to the condition about the suspension or revocation. And,
  • A basis other than desire or lack of regard must be present for a contract to be cancelled.
  • The condition shall not be unlawful, immoral, or contrary to the estate established by the gift.
  • Section 10 controls Section 126. Therefore, a phrase in the gift document that expressly forbids alienation is invalid due to the restrictions of section 10.
  • A gift that was not the result of fraud, coercion, deception, or burdensomeness cannot be unilaterally revoked. Only a judicial remedy in a court of law with the appropriate jurisdiction may be used to cancel such a gift deed.

CONCLUSION

People have been giving presents to one another for a very long period, and such disputes didn’t exist previously. However, due to a change in thinking and culture, many now see asset gifts as a secure and reliable way to avoid such disputes. There are mechanisms for remedy that provide anyone who stand to lose if a gift deed is passed into law to contest a false gift deed.

REFFERENCES

https://lawrato.com/indian-kanoon/property-law/can-a-gift-deed-be-challenged-in-india-649

http://www.legalservicesindia.com/article/2462/Can-a-Gift-Deed-be-challenged-in-India?.html

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