Once a valid gift is complete, it generally cannot be taken back merely because the donor has changed their mind. The grounds for cancellation and the procedure to be followed must be established separately.
Section 126 of the Transfer of Property Act provides for suspension or revocation in specified circumstances. A gift may be challenged on grounds such as coercion, fraud or another valid basis. Special legislation may also be relevant where a transfer is made subject to a condition that a senior citizen will be cared for. The requirements are not the same for all gifts or under all personal laws.
What should you do now?
- Review the gift deed, its acceptance and the terms relating to possession.
- Identify the actual grounds for cancellation and the evidence supporting them.
- Before arranging a unilateral cancellation, check the competent forum and the effect of doing so.
Which documents should you keep?
The registered gift deed, relevant messages, and evidence of possession and of any breach of conditions.
Avoid this mistake
Do not assume that a family dispute alone is sufficient grounds to cancel every completed gift.
A hypothetical example
A father made a valid gift without any revocation condition and now there is only a disagreement. In another situation, the gift may have been obtained through fraud. The legal grounds in the two situations are not the same; review the deed and the evidence.
Can parents seek relief if they are not cared for?
In an eligible case, Section 23 of the Senior Citizens Act may be useful; the terms of the transfer and the facts are important.
Legal basis and useful sources
- Transfer of Property Act, 1882 — Sections 54, 106–108, 122–126
- Maintenance and Welfare of Parents and Senior Citizens Act, 2007
This is general legal information. Advice may differ depending on your facts, the applicable law and state rules.