Gift |Suspension and Revocation Of Gift |Transfer of Property Act

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Suspension or revocation of gifts

 

Introduction-

 

A gift is a transfer of ownership without consideration. The gift is a gratuitous transfer. However, this gratuitous transfer can be suspended or revoked. Section 126 of the Transfer of Property Act talks about when a gift can be suspended or revoked, the donor and done may agree that on the happening of any specific event, which is independent of the will of the donor, shall be suspended or revoked; but a gift which both the parties agree shall be revocable wholly or maybe in part, at the will of the donor, will be considered void. A gift may also be revoked in any of the cases, where it was a contract (save want or failure of consideration), it might be rescinded. Save as aforesaid, a gift cannot be revoked. This Section shall not be deemed to affect the right of transferees for consideration without notice.

 

Like other types of transfers, a gift too can be made subject to certain conditions. The donor may make a gift subject to a condition of its being suspended or revoked, which then will be governed by provisions of Act that regulate conditional transfer. Section 126 lays down 2 modes of revocation of gift:

1) revocation by mutual agreement of donor and done. 

2) revocation by recission as in the case of contracts.

 

Donor and donee may agree that a gift shall be suspended or revoked upon happening of a certain event which will be independent of the will of the donor. The condition revoking the gift must be express and not merely in the form of a wish or desire. Revocation a gift must be expressly laid down in the deed. In the case of Mool Raj v. Jamma Devi, AIR 1995 HP 117, the Himachal Pradesh high court held that, where a condition has not been expressly laid down in the gift-deed, it might be treated as the wish or desire of donor and is not a condition upon the breach of which gift could be made revocable by the donor.

 

If a condition is not laid down in the gift-deed but has been provided under a mutual agreement separately but forms part of the transaction of the gift, the condition would be valid and enforceable.

 

The condition upon which a gift is to be revoked must not depend solely on the will of the donor. A gift revocable at the pleasure of the donor is no gift at all. Condition or stipulations for revocation of gifts should be mutually agreed at the time of making a gift, and not after completion of making gifts, as it will be taken as an absolute gift and irrevocable.

 

The condition totally prohibiting the alienation of property is void under Section 10 of the Act. If it could be proved that gift was not made out of free consent or will, the gift must be revoked. The gift is always preceded by an express or implied contract. After the donor’s death, it's his legal heirs who may sue for the revocation of gift on any of these grounds. The period of limitation for such revocation is 3 years from the date on which, a donor came to know about such facts.

 

The section also protects the interest of a bona fide transferee, for value without notice of donor’s right of revocation. A gift can be canceled, on the ground of non-acceptance of the same by the donee.

 

 

 

 

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