The gift deed can certainly be questioned in the court of law by filling a suit for such declaration. However, it will be challenged only if you are able to establish that the execution of the deed was not as per the wish of the donor or was executed under misrepresentation, fraud, etc.

Some grounds on which a gift deed can be challenged are stated below:

1. If the consent for the transfer of gift was not free,

2. If the gift deed was not executed and registered as per the legal requirements,

3. If either party to the gift was not competent to contract,

4. If the gift is conditional and the condition is not fulfilled by the recipients. In such a case, the gift deed can be revoked.

5. If the gift deed includes any consideration for the gift, such gift deed would not be valid.

Who can file a Gift Deed Cancellation?

The Gift Deed can be cancelled by the donor only. If the donor wants to change his decision then he can appeal for the cancellation but the Gift Deed cancellation procedure only takes effect when the donor has actual reason to do it. Because, if he has gifted the Gift Deed to the donee and the donor has accepted the gift. Then nothing can be done in that case.

What are the Grounds for Cancellation of Gift Deed?

1.Deceptive Act: The Gift Deed may be revoked under Section 19 of the Indian Contract Act, 1872, as it is deemed voidable if the donor’s permission was obtained via fraud and dishonesty

2. Mutual Agreement: The Gift Deed may be cancelled if the donor and donee concur on the cancellation for a particular reason.

3. Revocation: The Gift Deed may be withdrawn in accordance with an agreement made between the donor and donee under certain specific situations. Importantly, gifts covered by a Gift Deed must be withdrawn within three years of the donor becoming aware of the necessity for cancellation. A Gift Deed cannot be unilaterally revoked.

4. Title Remains with Donor: During this period, the title to a gift deed remains with the donor, allowing for possible cancellation. This is true if the gift was not accepted during the donor’s lifetime, the gift deed was not registered, the stamp duty payment was insufficient, the donee failed to sign it, the donee rejected it, or the gift was not accepted during the donor’s lifetime.

5. Forgery: The cancellation procedure may be started if it is determined that the Gift Deed was forged. If the relevant conditions are satisfied, the Transfer of Property Act of 1882 and the Indian Contract Act of 1872 both provide cancellation in instances of forgery. A crucial step in this procedure is the registration of the gift deed.

How to Cancel a Gift Deed?

*Draft a petition and submit it to the court to start the procedure. Indicate in this petition exactly which clauses the cancellation of the deed is justified by.

*Following the filing of the petition, the court will send notices to the donor and any pertinent parties informing them of the proceedings.

*In order to prove their case for cancellation, the petitioner must provide supporting paperwork, which may include records, witnesses, and other types of evidence. The court will arrange hearings to take into account arguments from both sides and assess the offered proof. The Gift Deed will be revoked by the court if it decides that the grounds for cancellation are legitimate.

*The petitioner may acquire a certified copy of the judgement following the court’s judgement. The registration office where the Gift Deed was first registered should thereafter get this copy. The Gift Deed will then be expunged from the registration office’s files.

What is the Court Fee for Cancellation of a Gift Deed?

The court fee for a lawsuit seeking the declaration of a claimed Gift Deed as void in accordance with the Tamil Nadu Court Fees and Suits Valuation Act, under section 25(b), is typically one-half of the market value of the property in question.

What are the Limitations of Gift Deed Cancellation?

According to Article 59 of the Limitation Act, 1963, a plaintiff has three years from the moment they become aware of the grounds for revocation to revoke a gift deed. After this, they are eligible to request a time extension under Section 5 of the Limitation Act. Articles 64 and 65 set a maximum 12-year time limit for the cancellation of a gift deed and the recovery of possession, even with a justification for the delay. Notably, only the giver and donee may take part in the cancellation of a gift deed; third parties are not permitted.

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