Recently the SC in the case of “N. Thajudeen v. Tamil Nadu Khadi and Village Industries Board” (2024), looked at the questions regarding the revocation of a gift deed. Given in terms of Section 126 of the Transfer of Property Act, 1882 (“TOPA”).
At the beginning the Hon’ble Supreme Court concluded that the gift deed in question:
(a) It was accepted by the donee, as it is stated in the deed itself;
(b) There is no provisions available for any agreement on its revocation under any circumstances; and
(c) also it was not in the form of a contract which could otherwise be rescinded.
Accordingly, the test under Section 126 of TOPA was not satisfied for valid revocation. Hence, the Supreme Court conclude that revocation of the gift deed in this matter was void ab initio. The court dismissed the appeal on that and other grounds.
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When can a gift deed be revoked in India?
Mainly the Indian law recognizes revocation by Section 126 of the Transfer of Property Act, 1882. This lays down two key routes by which a gift deed be revoked in India:
1) Revocation on the condition agreed by parties at the time of gift
A gift can be revoked if the donor and donee agreed on that it will be revoked on the happening of a specified event. But it should not be depends on the donor’s will.
Example: “This gift will said to be revoked if the donee fails to comply a specified act by a fixed date,”. To be noted that it should be properly drafted and does not depend solely on donor discretion.
2) Revocation on grounds that would allow rescission of a contract
Section 126 also permits revocation in cases where, if the gift were a contract, it could be rescinded (for example, fraud, coercion, misrepresentation, undue influence).
Important legal note: this route is generally pursued through a competent civil court seeking cancellation/declaration, not by simply executing a “cancellation deed” privately.
When is revocation NOT allowed?
If your reason is one of the following, revocation usually will not be permitted merely on that basis:
“I changed my mind after registration”
“Family relations deteriorated”
“I need the property back”
“The donee is not cooperating” (without a legally enforceable condition or legal ground)
Courts have repeatedly held that once a gift is complete (including acceptance), it is irrevocable except as permitted by Section 126.
Does registration alone on make it irrevocable?
Registration is a major compliance step, but the legal position hinges on completion of gift, which includes acceptance by the donee.
If acceptance is valid and the gift is complete, revocation becomes legally narrow.
If acceptance is genuinely absent (fact-specific), the gift may be challenged as incomplete, but this typically requires evidence and adjudication.
Is a “deed of cancellation” valid after a registered gift?
Usually, no – unilateral cancellation is not legally sustainable once the registered gift is complete and no valid right of revocation exists. The Supreme Court has reiterated that a gift deed is not ordinarily revocable, especially when no revocation right is reserved consistent with law.
Practical implication: If you are trying to revoke, you typically need:
Donee’s consent (mutual cancellation where legally permissible), or
Court/Tribunal relief based on recognised legal grounds.
Special situation: Senior citizens and cancellation under the Senior Citizens Act
If the donor is a senior citizen, there is an additional statutory route under Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007.
In simplified terms, if a senior citizen transfers property subject to the condition that the transferee will provide basic amenities and physical needs, and the transferee fails to do so, the transfer can be declared void by the Tribunal (subject to legal requirements and facts).
Courts have also discussed how these disputes are assessed and when relief may or may not be granted.
This route is not the same as ordinary civil cancellation under the Transfer of Property Act.
What is the correct process if you want to revoke?
The process depends on the ground:
Revocation condition exists in the gift deed (valid under Section 126)
You usually still need proper legal steps to give effect to revocation, often involving formal notice and documentation, and sometimes court clarity depending on dispute.
Fraud / coercion / undue influence / misrepresentation
Typically requires a civil suit seeking cancellation/declaration and related relief.
Senior citizen neglect (Section 23 route)
Typically pursued before the Maintenance Tribunal under the 2007 Act.
Conclusion
Can gift deed be revoked in India? Only in limited situations—primarily where Section 126 conditions are met, contract-rescission grounds exist (like fraud/coercion), or specific statutory protection applies (such as the Senior Citizens Act). Otherwise, a registered and accepted gift deed is ordinarily not revocable at the donor’s discretion.