- A registered and accepted gift of property is final; regret or ingratitude is not a ground to cancel it.
- Section 126 of the Transfer of Property Act allows revocation only for an agreed condition or on grounds like fraud or coercion.
- Parents can ask the Maintenance Tribunal to declare a gift void if the child fails to provide the care promised as a condition of the gift.
- A cancellation deed signed only by the donor does not undo a gift; the court must cancel it.
- A suit to cancel a gift for fraud is generally due within three years of learning the facts.
On this page
When is a gift of property complete?
Sections 122 and 123 of the Transfer of Property Act set the rules. A gift of immovable property needs a registered deed, signed by the donor and attested by two witnesses. The donee must accept it while the donor is alive. Once these happen, ownership passes. Possession being handed over later does not change that.
Can a gift deed be revoked, and on what grounds?
| Ground | What it means |
|---|---|
| Agreed revocation condition | The deed itself said the gift ends on a specified event not depending on the donor's will alone, and both parties agreed |
| Fraud, coercion, undue influence or misrepresentation | The donor's consent was not free, the same grounds on which a contract can be set aside |
| Senior Citizens Act | A parent or senior citizen gifted property on condition of care, and the care was not given |
A gift cannot be revoked just because the donee became ungrateful, the relationship broke down, or the donor needs the property back.
Can parents cancel a gift deed given to a son or daughter?
Under Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, if a senior citizen transfers property by gift subject to the condition that the transferee will provide basic amenities and physical needs, and the transferee fails to do so, the transfer can be declared void by the Maintenance Tribunal. The Supreme Court has addressed this provision several times, including in Sudesh Chhikara v Ramti Devi; whether the condition must be written into the deed, or can be shown otherwise, has been examined in later rulings too. The safer course for any parent making a gift is to write the condition into the deed.
Can a gift deed be cancelled without going to court?
No. A donor cannot cancel a registered gift by executing a cancellation deed alone; such a deed does not take the property back, and sub-registrars in many states refuse to register one without the donee's consent. If both donor and donee agree, the donee can transfer the property back by a fresh registered deed, which attracts stamp duty as a new transfer. Otherwise, a civil suit for cancellation under Section 31 of the Specific Relief Act, or an application to the Maintenance Tribunal, is needed.
Time limits for challenging a gift deed
A suit to cancel an instrument is generally to be filed within three years from when the facts entitling the plaintiff to cancel it first became known, under Article 59 of the Limitation Act. Where fraud is alleged, time runs from when the fraud was discovered. A challenge after ten years is not automatically barred, but the person challenging must show when they learned the facts.
What to do next
- If you are making a gift: write any conditions clearly into the deed and register it. Our wills and succession page covers alternatives such as a will.
- If you want to challenge a gift: collect the deed, evidence of the circumstances, and the dates you learned the facts, and get advice before the limitation period runs.
- If you are a parent not being cared for: consider an application to the Maintenance Tribunal under the Senior Citizens Act.
For property disputes generally, see property lawyer.
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
