Procedure for Cancellation Of Registered Gift Deed

It is important for anyone involved in property matters to understand the procedure for cancellation of registered gift deed. While this process may be complex, it is essential for ensuring clarity and legality when reversing a gift deed. By following the recommended steps and seeking legal assistance when necessary, individuals can effectively navigate through this procedure. Being diligent and following legal guidelines are crucial for protecting property rights.

Procedure for Cancellation Of Registered Gift Deed 2024

Table of Contents

What is Gift Deed?

A Gift Deed is a legal document that is used to transfer ownership of property or assets as a gift from one person to another. It represents a formal way of conveying ownership without the need for any monetary exchange. The document includes information about the giver (donor), the recipient (donee), a description of the property and any conditions or restrictions related to the gift. After the execution and registration of the gift deed, the recipient officially becomes the rightful owner of the gifted property.

Grounds for Cancellation of Gift Deed

There are several reasons why a gift deed may be cancelled and it is important to understand them clearly:

  • Deception: If the donor was deceived or coerced into signing the gift deed, it can be cancelled under Section 19 of the Indian Contract Act, 1872.
  • Mutual Agreement: If both the giver and receiver agree to cancel the gift deed due to changing circumstances or any other reason.
  • Rescission: The gift deed can be cancelled based on a mutual decision between the donor and receiver. This must be done within three years of the donor realizing the need for cancellation.
  • Donor Holds Title: The donor maintains ownership until the gift deed is finalized which allow them the option to revoke it in specific circumstances like incomplete registration or improper attestation.
  • Forgery: In the event of forgery, the gift deed can be invalidated according to the Transfer of Property Act, 1882 and the Indian Contract Act, 1872 as long as all legal criteria are satisfied.

Procedure for Cancellation of Registered Gift Deed

Here is a more detailed version of the procedure for cancellation of registered gift deed:

Step 1 - Submitting a Petition

To begin the process of cancelling a registered gift deed, the donor must first submit a petition to the necessary court. Within the petition, the donor should clearly explain the rationale behind their request to cancel the gift deed. It is important to include detailed clauses that support the decision to cancel.

Step 2 - Court Notice

After filing of the petition, the court sends notices to all pertinent parties mentioned in the gift deed. These parties typically include the donor, recipients and any other individuals or entities identified in the gift deed. The purpose of the notice is to officially notify them of the commencement of the cancellation proceedings and give them a chance to respond or present their perspectives on this matter.

Step 3 - Presenting Evidence

In preparation for the court proceedings, the person asking for the removal of a gift (the petitioner) collects the evidence to back up their argument. This evidence might consist of the original gift deed, records of communication, financial statements and other important documents. Witnesses who can speak to the situation of the gift deed may also be asked to share their experiences.

Step 4 - Court Proceedings

During court proceedings, both parties attend to present their arguments and evidence. The court thoroughly reviews all information and listens to arguments from both sides. The goal is to determine the validity of the reasons for canceling the gift deed and to protect the rights of all parties involved.

Step 5 - Cancellation Order

After careful consideration, the court has made a decision regarding the case. If there is enough evidence to justify cancelling the gift deed for the reasons given, the court will issue an order for cancellation. Then the petitioner can obtain a certified copy of this order from the court.

Step 6 - Submission to Registration Office

When the petitioner has the court’s cancellation order, they go to the registration office where the Gift Deed was first registered. They provide the court order and any other necessary documents to start the process of canceling the Gift Deed. After all the required steps are taken, the Gift Deed is officially canceled from the registration office’s records.

Important Points To Be Remember

Here are a few important points to keep in mind:  

  • A party can file a lawsuit for cancellation with minimal court costs.
  • Anyone can file a lawsuit to declare a Gift Deed invalid even if they are not a party to it.
  • A request can be made under section 5 of Limitation Act for a valid reason for the delay.
  • The plaintiff has up to 3 years from the time they become aware of reasons for cancellation to file a suit.
  • Cancelling a gift deed and reclaiming possession is only possible within a 12 year period from adverse possession.

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A Gift Deed is a formal method for transferring property such as land, belongings, or rights, from the donor to the donee. It is a wise decision to prevent potential conflicts within the family regarding inheritance. Once the gift deed is officially recorded, it serves as concrete evidence of ownership which eliminates the need for lengthy court proceedings. Gift deeds and their revocation are regulated by the Transfer of Property Act, 1882.

Disclaimer: Please note that the information provided on this website is for informational purposes only. It is important to seek legal advice from a expert in your jurisdiction.

Frequently Asked Questions (FAQ)

Yes, a gift deed can indeed be revoked following registration in specific scenarios like mutual consent, deceit or lawful reasons outlined in applicable legislation. This usually entails legal steps and seeking guidance from a legal professional is recommended.

Yes, in certain situations, it is possible to revoke a gift deed after the donor has passed away. The steps involved in the cancellation process may differ based on various factors like the laws in place, the contents of the deed itself and the presence of beneficiaries or heirs.

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