7. ‘A’ gifted his house to his son under registered gift dead which was accepted by the son. Latter, on father cancelled the gift deed unilaterally. Discuss the validity of gift.

1. Facts of the Case

‘A’, the father, gifted his house to his son under a registered gift deed, which was duly executed and accepted by the son in accordance with Section 123 of the Transfer of Property Act, 1882.

Subsequently, A attempted to cancel the gift deed unilaterally, claiming that he changed his mind and wished to retain ownership of the property. The son disputes this cancellation and seeks confirmation of the gift.

The legal question arises: Can a donor unilaterally cancel a valid registered gift deed once it has been accepted by the donee?

2. Issues in the Case

1. Whether a gift deed executed under Section 123 of the Transfer of Property Act, 1882 can be revoked unilaterally by the donor after acceptance by the donee.
2. Whether acceptance by the donee gives the gift irrevocable status under Indian law.
3. Whether the donor has any legal remedy to cancel the gift after registration and delivery.
4. Determine the validity of A’s unilateral cancellation.

3. Legal Principles Covered

A. Applicable Law

1. Transfer of Property Act, 1882 – Section 123
   • Definition of Gift: A gift is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by a person (the donor) to another (the donee), who accepts it during the lifetime of the donor.
   • Essentials of a Valid Gift:
     1. Donor capable of giving
     2. Donee capable of accepting
     3. Transfer made voluntarily
     4. Acceptance by the donee
     5. Transfer executed in writing (for immovable property) and registered
2. Section 126 – Delivery of Gift
   • Gift of immovable property must be registered, and delivery of possession or constructive possession completes the gift.
   • Once accepted, the gift cannot be revoked at the donor’s whim.

B. Irrevocability of Gift

• Rule under Indian Law:
  • A gift, once accepted by the donee, is complete and irrevocable, unless:
    1. The gift was conditional and the condition fails.
    2. The gift was obtained by fraud, coercion, or undue influence.
• Judicial Precedent:
  1. Vijay Laxmi v. V. Mohan (AIR 1964 SC 1827) – The Supreme Court held that a completed gift accepted by the donee cannot be revoked unilaterally by the donor.
  2. Girish Chandra v. Basanti (AIR 1972 Cal 371) – Emphasized that a registered gift deed, once delivered and accepted, is binding and irrevocable.

C. Application to the Present Case

1. A gift deed was registered and accepted by the son.
2. The father’s unilateral cancellation attempt is legally invalid, as there is no provision under the Transfer of Property Act allowing revocation of a completed and accepted gift.
3. The son, as the donee, has full ownership rights and can claim possession or seek judicial enforcement to protect his property.

4. Possible Judgement

A. Court’s Likely Finding

1. The gift deed executed by ‘A’ in favour of his son is valid and complete under Sections 123 and 126 of the Transfer of Property Act, 1882.
2. The acceptance by the son makes the gift irrevocable.
3. The donor (A) cannot unilaterally cancel the gift after acceptance and registration.
4. Any attempt to cancel the gift deed is void and unenforceable in law.

B. Legal Remedy for the Donee

• The son is entitled to:
  1. Possession of the gifted house.
  2. Declaration of ownership in his name.
  3. Injunction to restrain the donor from interfering with the property.
  4. Recovery of possession if any unlawful attempt is made by the donor.

Final Judgment Summary

Legal Issue	Court’s Decision
Validity of gift deed	Valid and binding under Sections 123 & 126, Transfer of Property Act
Can donor revoke after acceptance?	No, unilateral cancellation is void
Donee’s rights	Full ownership, possession, and protection against donor’s interference
Conditions for revocation	Only if the gift was conditional or obtained by fraud, coercion, or undue influence

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