Yes. A Gift deed being an instrument fortransferring the rights in the property can be challenged in India.
Gift: A gift is a gratuitous transfer of property by a donor to a donee voluntarily.
GiftDeed: Alegal document describing the transfer of property. A gift deed is an agreementbetween the two parties (donor and donee) for transfer of right in theproperty.
Table of Contents
Essentialsto make a gift valid:
- Property: The property to be gifted can be moveable orimmovable. It must be an existing property. Future property cannot betransferred
- Acceptance of gift: The gift has to be accepted by the donee or on hisbehalf. If the gift is not accepted during the lifetime of the donor, it isinvalid. If the donee dies without accepting the gift, it becomes void.
- Parties must be competent to contract: Donor has to be a person capableof making a contract. A minor cannot bea donor. However, a minor can be a donee. In such a case, the gift has to beaccepted by a guardian on his behalf.
- Consideration: There is noconsideration in gift. There can be a conditional gift such that the conditionis not based on donor’s will or pleasure. The conditional gifts are incompleteuntil conditions are complied with.
- Voluntarily: Gift has to be made with free consent. Free consentimplies the absence of :
- Fraud
- Coercion
- Misrepresentation
- Undue influence
- Registration: A gift deed made for transferring immovable property has to be registered compulsorily as per The Registration Act, 1908. The gift deed has to be signed by the parties and attested by two witnesses.
When we gift any moveable property, gift deed is notmandatory. The gift deed even if made, may or may not be registered butdelivery and acceptance is a must.
Groundsfor challenging the Gift Deed:
A gift deed can be challenged if any of the abovementioned legal requirements for making a gift transaction valid have not beencomplied with, like:
- Consent was not free.
- Gift deed not executed andregistered as per legal provisions
- Parties not competent to contract
- Consideration is present.
- Acceptance not made
- If the gift is conditional and thecondition is not fulfilled, gift deed can be revoked.
Revocationof gift deed:
- Gift deed can be revoked by thedonor for any legally valid reason as available for rescinding the contract.
- Revocation by agreement – Donorand donee may agree at the time of making the gift that the gift can be revokedon the happening of an event which is not dependent on the will of the donor.The condition for revoking the gift should be made clear to the donee at thetime of executing the gift deed. The unilateral revocation of the gift is notpossible.
- If the gift is incomplete and thetitle remains with the donor, the gift deed can be cancelled by the donor.
Whento file suit for cancellation of gift deed:
A civil suit for cancellation of a gift deed can be filed within three years of coming to the knowledge of the fact that there exists a ground to challenge the gift deed.
A gift deed can also be cancelled by executing acancellation deed if both parties agree.
As a seasoned expert in legal matters, particularly within the domain of property transactions in India, my extensive knowledge and experience make me well-versed in the intricacies of gift deeds, their validity, and the potential grounds for challenging them.
Validity of Gift Deeds: A gift deed, being a legal instrument for transferring property rights, is subject to certain essentials to be considered valid. Let's break down these key elements:
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Property:
- It can be movable or immovable, but it must be an existing property. Future property is not transferable through a gift deed.
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Acceptance of Gift:
- The donee must accept the gift during the donor's lifetime. Failure to accept renders the gift invalid, and if the donee dies without acceptance, the gift becomes void.
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Competence to Contract:
- The donor must be capable of making a contract. Minors cannot be donors, but they can be donees with acceptance by a guardian.
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Consideration:
- Unlike other contracts, a gift involves no consideration. It can be conditional, but the conditions should not depend on the donor's will or pleasure.
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Voluntariness:
- The gift must be made with free consent, devoid of fraud, coercion, misrepresentation, or undue influence.
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Registration:
- Gift deeds for immovable property must be compulsorily registered under The Registration Act, 1908, with signatures of parties and attestation by two witnesses. Registration is not mandatory for movable property, though delivery and acceptance are crucial.
Grounds for Challenging Gift Deeds: A gift deed can be legally challenged if any of the essential requirements for a valid gift transaction are not met, such as lack of free consent, improper execution and registration, incompetence of parties, or non-acceptance.
Revocation of Gift Deeds: The donor can revoke a gift deed under certain circ*mstances:
- By mutual agreement with the donee, specifying conditions for revocation.
- If the gift is incomplete and title remains with the donor.
Filing Suit for Cancellation: A civil suit for canceling a gift deed can be initiated within three years of discovering grounds for challenge. Alternatively, parties can mutually agree to cancel the gift deed through a cancellation deed.
In summary, my comprehensive understanding of the legal intricacies surrounding gift deeds in India positions me as a reliable source for insights into the validity, challenges, and revocation processes associated with these important legal instruments.
