Can Gift Deed Be Unilaterally Cancelled By Donor After Acceptance By Donee? Kerala High Court Discuses

The Single Bench of Justice K. Babu was dealing with an appeal in a suit for declaration of title. The petitioner in the original case had claimed that the concerned property was gifted to her by her mother, Kunhimatha. The 2^nd defendant, grandson of Kunhimatha claimed that the petitioner did not accept the gift. Therefore, the gift deed was cancelled by Kunhimatha and later she assigned the same property to him.

The Court had found that the gift was accepted by the petitioner. The Court considered whether a gift can be cancelled after it was accepted by the donee.

Section 126 of the Transfer of Property Act deals with the suspension or revocation of git. At the time of the gift, the donor and donee can agree that on the happening of a specified event, which is not dependent on the will of the donor, the gift can be suspended or revoked. The gift can also be revoked in any of the scenarios where a contract may be cancelled except for the need of consideration. A gift which the parties agree shall be revocable merely on the will of the donor will be invalid.

The Court relied on various Supreme Court and Kerala High Court decisions. In Thota Ganga Laxmi v Government of Andhra Pradesh (2010), the Supreme Court was dealing with the legality of a cancellation deed whereby a sale deed was cancelled. The cancellation deed was registered. The Court found that such a cancellation deed cannot be registered or executed. The Court said the only remedy available to a person to cancel a sale deed is to file a civil suit.

In Suresh Babu S. R. and Others v Beena and Another (2022), the Kerala High Court declared that unless there is a right of revocation in the deed itself, any unilateral cancellation of the gift deed is legally unsustainable.

The High Court in E. A. Pavithran and Others v Erayi Arakkalath and Others (2023) held that unilateral cancellation of gift deed which is complete is not legally permissible and such cancellation is void. The only exceptions in the provisions are when donor or donee agrees that the gift deed can be cancelled on the happening of a specific event, or in any of the cases where a contract could be rescinded (except for want of consideration).

The Court declared that the petitioner had the right over the concerned property.

Counsel for Appellants: Advocate R. Parthasarathy

Counsel for Respondents: Advocates M. A. Bindu, V. R. Kesava Kaimal, S. Venkatasubramonia Iyer

Case No: RSA No. 421/ 2003

Case Title: Kakkoth Radha and Others v Bathakkathalakkal Batlak Musthafa and Another

Citation: 2024 LiveLaw(Ker) 375

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