The Supreme Court of India recently clarified that gift deeds, once executed without any specified revocation right, remain irrevocable, as per Section 126 of the Transfer of Property Act. This ruling emerged from a case in which a gift deed was initially granted by a donor to enable the production of Khadi Lungi and Khadi Yarn, stipulating that the property could not be used for personal gain and relinquishing all donor rights to the land.
In this 1983 agreement, the donor handed over the property to the donee, expressly omitting any provision for revocation. Despite this, the donor sought to revoke the gift in 1987, sparking a legal dispute. The donee argued that the deed’s terms were clear: the gift was absolute, with no provision for return to the donor. The court ultimately ruled that the deed was indeed irrevocable, reinforcing the principle that a validly executed gift cannot be annulled in the absence of an explicit right of revocation.
The court outlined three key conditions under which a gift deed could be rescinded. First, the donor and donee must have mutually agreed upon revocation based on a specified event. In this case, no such contingency was noted. Second, a gift deed might be revoked if it includes a provision for revocation at the donor’s will, which was absent here. Lastly, revocation could occur if the gift took the form of a rescindable contract, a condition also unmet in this case.
With all exceptions ruled out, the court concluded that the 1987 attempt to revoke the gift deed was void from the outset, rendering the deed irreversible. Consequently, the appeal was dismissed, solidifying the irrevocability of gift deeds lacking revocation clauses.
