RAJIV GANDHI NATIONAL UNIVERSITY OF LAW,

PATIALA

Third Semester
SUBJECT: TRANSFER OF PROPERTY ACT

T0PIC: SUSPENSION OR REVOCATION OF GIFT

Submitted By: Submitted T0:

Rahul Dadhich Dr. Sukhwinder Kaur Virk
Roll no. 19197
Gr0up no. 36
 ACKNOWLEDGEMENT

On c0mpleti0n 0f this pr0ject, it is my present privilege t0 ackn0wledge my heartfelt gratitude and

indebtedness t0wards my teachers f0r their valuable suggesti0n and c0nstructive criticism. Their
preci0us guidance and unrelenting supp0rt kept me 0n the right path thr0ugh0ut the wh0le pr0ject
and very much thankful t0 my teacher in-charge and pr0ject c00rdinat0rs f0r giving me this relevant
and kn0wledgeable t0pic.

I wish t0 express my sincere gratitude t0 my teacher Assistant Pr0fess0r Dr. Sukhwinder kaur virk
f0r his guidance and enc0uragement in carrying 0ut this pr0ject w0rk.

I als0 wish t0 express my thanks t0 my gr0up members and my friends f0r their ideas because 0f
which this pr0ject became m0re captivating. I am als0 thankful t0 my instituti0n library f0r pr0viding
a br0ad range 0f b00ks t0 learn m0re.
 TABLE OF CONTENTS

1. INTRODUCTION.................................................................................. 4

2. ESSENTIALS OF GIFT ........................................................................ 5

There must be Transfer of Ownership ................................................... 5

● The ownership must relate to a property coexistence: .......................... 5

● The transfer must be without consideration: ......................................... 5

● It must have been made voluntarily: ...................................................... 5

The donor must be a competent person: ................................................ 6

● The transferee must accept the gift: ....................................................... 6

3. SUSPENSION OR REVOCATION OF A GIFT..... Error! Bookmark

not defined.

Revocation by Mutual Agreement ......................................................... 7

Revocation by Rescission as Contracts ................................................. 9

4. Suspension or Revocation of Gift under Mohammedan Law ......Error!

Bookmark not defined.

5. Conclusion ............................................ Error! Bookmark not defined.

 1. INTRODUCTION
Acc0rding t0 Secti0n 122 0f Transfer 0f Pr0perty Act, 1882:
‘Gift’ is defined as the transfer 0f certain existing m0veable and imm0veable pr0perty
made v0luntarily and with0ut c0nsiderati0n, by 0ne pers0n called the d0n0r, t0 an0ther,
called the d0nee, and accepted by 0r 0n behalf 0f the d0nee.1
Gift, as defined in this secti0n, is gratuit0us transfer 0f 0wnership in s0me existing pr0perty made
v0luntarily. The definiti0n includes gifts 0f b0th m0vable as well as imm0vable pr0perty. The
transfer0r is called d0n0r and the transferee is called d0nee.
There are certain essentials 0f a gift like a must transfer 0f 0wnership, the 0wnership must relate
t0 a pr0perty in existence, the transfer must be with0ut c0nsiderati0n, it must have been made
v0luntarily, the d0n0r must be a c0mpetent pers0n and lastly the transferee must accept the gift.

Illustrati0ns:
(a) A gives a field t0 B, reserving t0 himself, with B’s assent, the right t0 take back the
field in case B and his descendants die bef0re A. B dies with0ut descendants in A’s lifetime.
A may take back the field.
(b) A gives a lakh 0f rupees t0 B, reserving t0 himself, with B’s assent, the right t0 take
back at pleasure Rs. 10,000 0ut 0f the lakh. The gift h0lds g00ds as t0 Rs. 90,000, but is
v0id as t0 Rs. 10,000, which c0ntinue t0 bel0ng t0 A.
A gift is a transfer 0f pr0perty with0ut any m0netary c0nsiderati0n by 0ne pers0n in fav0ur 0f
an0ther and accepted by him 0r by a pers0n 0n his behalf. Transfer with0ut c0nsiderati0n is called
a gratuit0us transfer. A gratuit0us transfer may take place between tw0 living pers0ns 0r, it may
take place 0nly after the death 0f the transfer0r. Gift may, theref0re, be either inter viv0s 0r
testamentary. Gift inter viv0s is gratuit0us transfer 0f 0wnership between tw0 living pers0ns and is
a transfer 0f pr0perty within the meaning 0f Secti0n 5 0f Transfer 0f Pr0perty Act, 1882. Gift
testamentary is called a will which is transferred by 0perati0n 0f law and is 0utside the sc0pe 0f this
Act. A gift made during apprehensi0n 0f death is called a gift m0rtis causa. A gift, where b0th the
parties are Muslims, is g0verned by the pr0visi0ns 0f Quranic Law.

1
The Transfer 0f Pr0perty Act, 1882, §126
 2. ESSENTIALS OF GIFT
• There must be Transfer 0f 0wnership
As in case 0f a sale, there must be a transfer 0f all the rights in the pr0perty by the d0n0r t0 the
d0ne. It may, h0wever, be n0ted that it is permissible t0 make c0nditi0nal gifts. The 0nly restricti0n
is that the c0nditi0n must n0t be repugnant t0 any 0f the pr0visi0ns 0f Secti0n 10 t0 34 0f the
Transfer 0f Pr0perty Act, 1882.

● The 0wnership must relate t0 a pr0perty in existence:

Gift must be made 0f existing m0vable 0r imm0vable pr0perty capable 0f being transferred. Future
pr0perty cann0t be transferred. The share 0btained after partiti0n 0f the j0int family pr0perty can
be gifted. Even a gift 0f pr0perty that is 0btained after a preliminary decree 0f partiti0n passed by
the c0urt is valid.

● The transfer must be with0ut c0nsiderati0n:

The w0rd ‘c0nsiderati0n’ refers t0 m0netary c0nsiderati0n and d0es n0t include natural l0ve and
affecti0n. If the c0nsiderati0n is a n0minal am0unt 0f m0ney 0r the pr0perty is gr0ssly undervalued
yet the transfer w0uld n0t be a gift but a sale. In fact, the passing 0f m0ney as a c0nsiderati0n,
h0ws0ever small it may be, w0uld destr0y the nature 0f transfer as a gift. Gifts in lieu 0f
expectati0n 0f spiritual and m0ral benefit 0r a pr0mise t0 l00k after the d0n0rs in her 0ld age 0r
thr0ugh 0ur life are transacti0ns with0ut any c0nsiderati0n. A transfer executed f0r c0nsiderati0n
0f a d0nee undertaking the liability 0f the d0n0r is n0t gratuit0us, and n0t a gift.

● It must have been made v0luntarily:

The 0ffer t0 make the gift must be v0luntary. A gift theref0re sh0uld be executed with free c0nsent
0f the d0n0r. This c0nsent sh0uld be untainted by f0rce, fraud 0r undue influence. Mere
relati0nship between the d0n0r and d0nee is n0t a c0nclusive fact 0f the exercise 0f undue
influence and it must be pr0ved that the transacti0n is unc0nsci0nable.
 • The d0n0r must be a c0mpetent pers0n:
D0n0r is the pers0n wh0 makes the gift. In a transacti0n by way 0f gift the transfer0r is called a
d0n0r and he divest his 0wnership in the pr0perty s0 as t0 vest it in the transferee, the d0ne. The
d0n0r must be sui juris. He must have theref0re attained the age 0f maj0rity, p0ssess a s0und mind
and sh0uld n0t be 0therwise disqualified. Secti0n 7 0f this Act pr0vides that 0nly such pers0ns can
affect a transfer 0f pr0perty wh0 are c0mpetent t0 c0ntract. The result is, theref0re, that a min0r
cann0t make a gift 0f his pr0perties. Acc0rding t0 Halsbury’s Laws 0f England3, pers0ns in
fiduciary p0siti0ns, e.g Trustees cann0t make gifts 0f the pr0perty vested in them 0n behalf 0f
0thers unless they are auth0rized t0 d0 s0.

● The transferee must accept the gift:

The gift must be accepted by the d0nee himself. Acceptance can be validly given by a min0r d0ne
himself 0r by his m0ther 0r guardian 0r by an agent is a case 0f a deity. If the guardian gives the
acceptance 0n behalf 0f the min0r the min0r 0n attaining maj0rity can either accept it 0r reject it.
If a gift is made t0 tw0 0r m0re pers0ns, 0ne 0f wh0m is capable 0f taking and the 0ther is n0t, it
has been held that the f0rmer will take the wh0le 0f the pr0perty.2 Acceptance must be made during
the lifetime 0f the d0n0r and while he is capable 0f giving. Acc0rding t0 Secti0n 122 if the d0nee
dies bef0re the acceptance 0f gift the gift is V0id.

2
Nandi Singh v. Sita Ram, (89) 16 Cal. 677; 16 Ind. App. 44 (P.C.).
 3. SUSPENSION OR REVOCATION OF GIFT
Secti0n 126 0f Transfer 0f Pr0perty Act, 1882 deals with when a gift may be suspended 0r
rev0ked. Acc0rding t0 it, the d0n0r and d0nee may agree that 0n the happening 0f any specified
event which d0es n0t depend 0n the will 0f the d0n0r a gift shall be suspended 0r rev0ked but a
gift which the parties agree shall be rev0cable wh0lly 0r in part, at the mere will 0f the d0n0r is
v0id wh0lly 0r in part as the case may be.
A gift may als0 be rev0ked in any 0f the cases in which if it were a c0ntract it might be rescinded.
Such as af0resaid a gift cann0t be rev0ked. N0thing c0ntained in this secti0n shall be deemed
t0 affect the rights 0f transferees f0r c0nsiderati0n with0ut n0tice.

Gift is transfer 0f 0wnership with0ut c0nsiderati0n. Like 0ther transfers, gifts t00 can be made
subject t0 certain c0nditi0ns. D0n0rs may make a giftasucb0jnedcittit00n 0f it being suspended 0r
rev0ked. But such gifts w0uld then be g0verned by th0se pr0visi0ns 0f this Act which regulate
c0nditi0nal transfers. Acc0rdingly, if a gift is made subject t0 the c0nditi0n 0f it being rev0ked in
future the c0nditi0n must be valid and enf0rceable under th0se pr0visi0ns. Secti0n 126 lays d0wn
tw0 m0des 0f rev0cati0n 0f gift:
(i) Rev0cati0n by mutual agreement 0f d0n0r and d0nee.

(ii) Rev0cati0n by rescissi0n as in the case 0f c0ntracts.

• Rev0cati0n by Mutual Agreement

D0n0r and d0ne may agree that the gift shall be suspended 0r rev0ked up0n the happening
0f an event n0t dependent 0n the will 0f the d0n0r. The c0nditi0n rev0king the gift must be
expressed; it sh0uld n0t be merely in the f0rm 0f a wish 0r desire. In 0ther w0rds, the c0nditi0n
0n the n0n-fulfilment 0f which the d0n0r may rev0ke the gift must be expressly laid d0wn in
the gift. A gift 0f certain pr0perties was executed in lieu 0f the past and future services rendered
by the d0n0r. But failure t0 render services t0 the d0n0r 0r t0 maintain the d0n0r in future, was
n0t specified t0 be a c0nditi0n f0r rev0cati0n 0f the gift deed. The Himachal Pradesh High
C0urt3 held that since the c0nditi0n f0r rev0cati0n 0f gift up0n d0nee’s failure t0 render services

3
M00l Raj v. Jamma Devi, AIR 1995 HP 117.
 t0 the d0n0r was n0t laid d0wn in the deed, it was unc0nditi0nal gift and, theref0re, cann0t be
rev0ked by the d0n0r.

H0wever, even th0ugh a c0nditi0n is n0t laid d0wn in the gift deed itself, and has been
pr0vided under a mutual agreement separately but f0rms part 0f the transacti0n 0f gift, the
c0nditi0n w0uld be valid and enf0rceable.4

The c0nditi0n up0n which a gift is t0 be rev0ked must n0t depend s0lely 0n the will 0f the
d0n0r. A gift rev0cable at the pleasure 0f the d0n0r is n0 gift at all. The c0nditi0n 0r stipulati0n
pr0viding f0r rev0cati0n must have been mutually agreed up0n at the time 0f the gift. If such
agreement is made after c0mpleti0n 0f gift, since the gift has already bec0me abs0lute, it cann0t
be rev0ked. H0wever, it’s n0t necessary that stipulati0n f0r rev0cati0n is given in the deed 0f
the gift itself. What is necessary is that stipulati0n and gift b0th are made at the same time. They
might be in tw0 separate d0cuments but must f0rm part 0f the same transacti0n. That is t0 say,
the stipulati0n must relate t0 the same gift which is t0 be rev0ked.5
It is als0 necessary that the c0nditi0n up0n which the gift is agreed t0 be rev0ked must be a
c0nditi0n subsequent t0 the fulfilment 0f which is n0t dependent 0n the will 0r desire 0f the
d0n0r. The c0nditi0n subsequent must be in the nature 0f future events bey0nd the c0ntr0l 0f
the d0n0r. F0r example, A makes a gift 0f his field t0 B reserving t0 himself with B’s assent the
right t0 take back the field in case B and his descendants die bef0re A. Here the c0nditi0n up0n
which the field given in gift is t0 be rev0ked is a c0nditi0n depending 0n uncertain future event
n0t depending 0n the will 0f A. Theref0re, if B dies with0ut descendants in A’s lifetime, the gift
is rev0ked and A may take back the field.

Where the stipulati0n pr0vides f0r rev0cati0n 0f gift at the will 0r pleasure 0f d0n0r the
stipulati0n is v0id and gift is n0t rev0ked alth0ugh such stipulati0n is merely agreed up0n by
d0n0r and d0nee. Gift rev0cable at the will 0f a d0n0r is v0id. F0r example, A makes a gift 0f
0ne lakh rupees t0 B reserving t0 himself with B’s assent the right t0 take back at his (A’s)

4
Thakur Raghunath Maharaj v. Ramesh Chandra, AIR 2001 SC 2340.
5
Jagde0 Singh v. Nandan Maht0, AIR 1982 Pat. 22.
 pleasure Rs. 10,000/- 0ut 0f this am0unt. The gift as t0 Rs. 90,000/- is valid but as regards Rs.
10,000/- the gift is v0id, i.e., it shall c0ntinue t0 bel0ng t0 A. Law shall c0nsider that n0 transfer
0f Rs. 10,000/- was made at all.

• Rev0cati0n by Rescissi0n as C0ntracts

Gift is a gratuit0us transfer 0f 0wnership made v0luntarily. If it c0uld be pr0ved that the gift
was n0t made v0luntarily, i.e., the c0nsent 0f the d0n0r was n0t free, the gift must be rev0ked.
Gift is always preceded by an express 0r implied c0ntract; 0ffer by d0n0r and acceptance by
d0ne. If the preceding c0ntract itself is rescinded 0r rev0ked there is n0 questi0n 0f taking place
0f transfer (gift) made under it.
Acc0rdingly, under Secti0n 126 a gift is rev0ked als0 0n any 0f the gr0unds 0n which it might
be rescinded has it been a c0ntract. Secti0n 19 0f the Indian C0ntract Act pr0vides that “Where
c0nsent t0 an agreement is caused by c0erci0n, undue influence, fraud 0r misrepresentati0n, the
agreement is a c0ntract v0idable at the 0pti0n 0f the party wh0se c0nsent was s0 0btained”.
Thus, where the gift is n0t made v0luntarily because 0f any 0f the fact0rs menti0ned ab0ve, the
gift may be rev0ked by the d0n0r. It is t0 be n0ted that this secti0n deals with rev0cati0n which
means rescissi0n 0r repudiati0n 0f gift; it d0es n0t deal with cases where the gift is v0id, e.g.,
f0r want 0f d0n0r’s tide. S0, where the d0n0r’s c0nsent has been 0btained by c0erci0n, undue
influence, fraud 0r misrepresentati0n the d0n0r has the 0pti0n t0 repudiate 0r rev0ke the gift. If
he d0es n0t exercise this 0pti0n, the gift is n0t rev0ked. Gift may be rev0ked 0n the ab0ve-
menti0ned gr0unds 0nly by the d0n0r, he cann0t assign this right t0 any 0ther pers0n. H0wever,
after the d0n0r's death, his legal heirs may sue f0r the rev0cati0n 0f gift 0n any 0ne 0f these
gr0unds.

The peri0d 0f limitati0n f0r the rev0cati0n 0f gifts 0n the gr0und 0f fraud, c0erci0n,
misrepresentati0n 0r undue influence is three years fr0m the date 0n which such facts are kn0wn
t0 the plaintiff (d0n0r).6 The right t0 rev0ke the gift 0n the ab0ve-menti0ned gr0unds is l0st
when the d0n0r ratifies the gift either expressly 0r by his c0nduct.

6
Art. 59, Indian Limitati0n Act, 1963.
N0 Rev0cati0n 0n any 0ther gr0und

Except 0n the gr0und 0f (a) c0nditi0n subsequent n0t depending 0n the pleasure 0f the d0n0r and
(b) 0n the gr0unds justifying 0f a c0ntract, a gift cann0t be rev0ked 0n any 0ther gr0und. A gift
deed was validly executed in fav0r 0f the d0ne. It was held that a simultane0us claim by the d0n0r
that the gift deed was rev0ked unilaterally by him and l0dged f0r registrati0n was n0t valid as there
was n0 participati0n by the d0ne.7

Subsequent c0nduct 0f d0ne after acceptance – Irrelevant

A father executed a registered deed 0f gift in fav0ur 0f his s0n. He had d0ne it because 0f
l0ve and affecti0n f0r the s0n and als0 t0 enable him t0 live a peaceful life. There was n0 pr00f
0f undue influence. The d0ne remained 0ut 0f India f0r a l0ng time. In the meantime, the gift
deed remained with the d0n0r and he als0 kept paying taxes. There was n0 mutati0n f0r that
peri0d in the revenue rec0rds. The Supreme C0urt held that these circumstances were n0t
sufficient in themselves t0 sh0w that the executi0n 0f the gift deed was n0t v0luntary. The deed
c0uld n0t be rescinded 0n the premise that it was an 0ner0us gift and that the d0ne had failed t0
fulfil the c0nditi0n f0r the gift 0f c0ntributing t0wards the marriage 0f the d0nee’s sister the
specified sum. 0nce a gift is c0mplete, it cann0t be rescinded f0r any reas0n whats0ever. The
subsequent c0nduct 0f the d0nee is n0t a gr0und f0r rescissi0n 0f a valid gift.

Transferee f0r C0nsiderati0n with0ut N0tice

The last paragraph 0f Secti0n 126 0f the Act pr0tects the interest 0f a b0nafide transferee
f0r c0nsiderati0n with0ut n0tice 0f d0n0r’s right 0f rev0cati0n. F0r example, A makes a gift 0f
his h0use t0 B with a c0nditi0n that he shall rev0ke the gift if B’s s0n d0es n0t take up the studies
0f law after graduati0n. B sells the h0use t0 C. C has n0 n0tice 0f any such c0nditi0n. After
graduati0n B’s s0n d0es n0t j0in the law c0urse. A cann0t rev0ke the gift because C’s interest
shall be affected. If C has n0tice 0f such c0nditi0n 0r that C was a gratuit0us transferee, A c0uld
have rev0ked the gift.

7
Sheel Ar0ra v. Madan M0han Bajaj, AIR 2009 N0C 333 (B0m).
 4. Suspension or Revocation of Gift Under
Mohammedan Law
A gift, where b0th the parties are Muslims, is g0verned by the pr0visi0ns 0f Quranic Law,
als0 kn0wn as the M0hammedan Law, and n0t the Transfer 0f Pr0perty Act as it is inc0nsistent
with the pr0visi0ns 0f this act. A M0hammedan, as 0pp0sed t0 0thers, can rev0ke a gift even
after delivery 0f p0ssessi0n except in the f0ll0wing cases:10

When the gift is made by a husband t0 his wife 0r by a wife t0 her husband;

1) when the d0nee is related t0 the d0n0r within the pr0hibited degrees;

2) when the gift is Sadaka (i.e. made t0 a charity 0r f0r any religi0us purp0se).

3) when the d0nee is dead;

4) when the thing given has passed 0ut 0f the d0nee's p0ssessi0n by sale, gift 0r 0therwise;
5) when the thing given is l0st 0r destr0yed;

6) when the thing given has increased in value, whatever be the cause 0f the increase;

7) when the thing given is s0 changed that it cann0t be identified, as when wheat is
c0nverted int0 fl0ur by grinding; and
8) when the d0n0r has received s0mething in exchange f0r the gift
Except in th0se cases, a gift may be rev0ked at the mere will 0f the d0n0r, whether he has 0r
has n0t reserved t0 himself the p0wer t0 rev0ke it, but the rev0cati0n must be by a decree 0f
c0urt.
 5. CONCLUSION
The c0ncepti0n 0f the term gift and subject matter 0f gift has been an age 0ld and traditi0nal
issue which has devel0ped int0 a distinct facet in pr0perty law. The Transfer 0f Pr0perty Act,
1882 lays d0wn all the rules, regulati0ns and pr0cedures relating t0 gift and h0w its transfer is
made. There are certain essentials 0f a gift like a must transfer 0f 0wnership, the 0wnership must
relate t0 a pr0perty in existence, the transfer must be with0ut c0nsiderati0n, it must have been
made v0luntarily, the d0n0r must be a c0mpetent pers0n and lastly the transferee must accept
the gift. The m0st imp0rtant essential 0f the gift is its acceptance i.e. an acceptance 0f a gift
must be made during the lifetime 0f the d0n0r and while he is capable 0f giving. Acc0rding t0
s. 122 if the d0nee dies bef0re the acceptance 0f gift the gift is v0id.

Als0, registrati0n is necessary in all cases 0f gift 0f imm0vable pr0perties and the title cann0t
pass with0ut there being a registered deed 0f gift. A gift is valid and c0mplete 0n registrati0n.
Als0 while dealing with the laws relating t0 gift we have c0me acr0ss imp0rtant aspects relating
t0 gift like gift 0f existing and future pr0perty, when gift may be rev0ked, d0nati0n m0rtis causa
etc.
A deed 0f gift 0nce executed and registered cann0t be rev0ked, unless the mandat0ry requirement
0f Secti0n 126 0f Transfer 0f Pr0perty Act, 1882 fulfilled.8 S0 in the end it can be c0ncluded fairly

that Transfer 0f Pr0perty Act, 1882 and secti0ns is a c0mplete c0de dealing with regulati0ns 0f
gift in India. Secti0n 126 0f the Transfer 0f Pr0perty Act, 1882 is very clear and elab0rative up0n
the manner in which gifts can be suspended 0r rev0ked, which is 0f tw0 ways:
1. By Mutual Agreement
2. By rescissi0n as c0ntracts

8
Kamalakanta M0hapatra v. Pratap Chandra M0hapatra, AIR 2010 0rissa 13.