How To Challenge A Gift Deed In Court?

Gift deeds are more than legal instruments; they are often acts of love and trust, especially within families. Parents transferring property to children, siblings share ancestral assets, and elders pass on their legacy. But when such transfers are marred by coercion, manipulation, or misunderstanding, they can leave heartache and disputes amongst family members. If you suspect that a gift deed was obtained unfairly, through fraud, undue influence, or lack of proper consent, it’s vital to understand that the law does not leave you powerless. Indian courts provide clear legal remedies to set things right, but the path isn’t always simple. Challenging a gift deed demands more than just a grievance; it requires legal awareness, timely action, and emotional strength, especially when family relationships are involved. This blog will guide you through that complex journey with clarity, care, and legal precision.

What This Blog Covers:

• Legal meaning and essentials of a gift deed
• Who can challenge a gift deed, and on what grounds?
• The step-by-step process of challenging a gift deed in court
• Time limits and exceptions under the Limitation Act
• Key legal and practical considerations before filing.

What Is A Gift Deed?

A gift deed is a legal document used to voluntarily transfer ownership of property or assets from one person (donor) to another (donee) without any monetary consideration. It is governed by Section 122 of the Transfer of Property Act, 1882, and is often used in India to transfer property within families for love, affection, or support, during the donor’s lifetime.

Key Elements of a Valid Gift Deed

• Voluntary Transfer Without Consideration: The transfer must be made willingly, without expectation of money or compensation. As any exchange of value would make it a sale, not a gift.
• Types of Property Gifted: Gifts can involve movable property (such as jewellery, vehicles, or money) or immovable property (land, house, flat). The donor must own the property at the time of gifting; future property cannot be gifted.
• Acceptance by the Donee: The donee must accept the gift during the donor’s lifetime. Without acceptance, the gift is void.
• Donor’s Legal Competence: The donor must be an adult, of sound mind, and capable of understanding the implications of the gift.
• Mandatory Registration (for Immovable Property): Under Section 17 (1)(a) of the Registration Act, 1908, gifts of immovable property must be registered to be legally valid.
• Proper Attestation: The gift deed must be signed by the donor and attested by at least two witnesses, ensuring the gift is made voluntarily.
• Delivery of Possession: While not a strict legal requirement for immovable property, courts often look for symbolic or actual delivery of possession to confirm the genuineness of the gift.

Legal Effects of a Registered Gift Deed

• A registered gift deed generally becomes irrevocable, except on grounds such as fraud, coercion, or undue influence.
• The donee obtains absolute ownership of the gifted property.
• The donor cannot unilaterally revoke or cancel the gift once the deed is registered.

Can A Gift Deed Be Challenged In Court?

While a registered gift deed is generally considered legally valid and irrevocable, Indian laws allow for challenges under specific circumstances where the deed may not have been executed fairly or voluntarily.

When Can a Gift Deed Be Challenged?

A gift deed can be contested if there are serious legal flaws, such as:

• Lack of free consent due to fraud, coercion, undue influence, or misrepresentation.
• Donor’s incapacity, such as unsound mind or minority, at the time of executing the deed.
• Non-compliance with legal formalities, including registration for immovable property.
• Conditional gifts where the donee fails to fulfil the stipulated conditions.

Note: Challenges must be based on substantive evidence rather than mere dissatisfaction or family disagreements.

Who Can Challenge a Gift Deed?

• The Donor: The person who made the gift can challenge the deed if it was signed under pressure, fraud, or when mentally incapable.
• Legal Heirs: Heirs can contest the deed, especially after the donor’s death, if they believe the gift unjustly bypassed them, or was made when the donor lacked capacity.
• Interested Third Parties: Beneficiaries under a will or persons with a legal interest in the property may challenge the deed if they can prove standing and valid cause.

Common Scenarios for Challenges

• Property gifted to one child, excluding others, without a clear reason.
• The donor was critically ill, mentally weak, or under the influence at the time of gifting.
• Donee held a dominant position (caretaker, family member), exploiting the donor.
• Sudden execution of a gift deed without prior family discussion or disclosure.

Exceptions to Irrevocability

Though gift deeds are typically irrevocable, under Section 126 of the Transfer of Property Act, 1882, revocation or suspension is possible in limited cases:

• Mutual Agreement on a Specific Event: The donor and donee can agree that the gift will be revoked or suspended if a particular event occurs, provided this event does not depend solely on the donor’s will.
• Conditional Gifts: If the gift is subject to a lawful, clear condition and the donee fails to fulfil it, the donor may revoke the gift.
• Contractual Grounds: A gift can also be revoked for reasons that would allow setting aside of a contract, such as fraud, undue influence, or misrepresentation.

Note: A gift cannot be revoked simply at the donor’s pleasure; any such clause is void.

Legal Presumption and Burden of Proof

A registered gift deed enjoys a presumption of validity under Indian law. This means courts generally accept it as genuine unless proven otherwise. The burden of proof lies on the challenger to establish that the gift deed is invalid due to fraud, undue influence, incapacity, or any other reason.

Legal Grounds To Challenge A Gift Deed In Court

A registered gift deed carries legal weight; challenging a gift deed is not a simple matter of expressing dissatisfaction. The challenger must establish specific legal grounds, backed by evidence, to convince the court to set aside the deed. Indian courts have repeatedly held that it can be declared void or voidable if executed under unlawful or inequitable circumstances. Below are the primary legal grounds upon which a gift deed can be challenged:

1. Fraud or Misrepresentation

A gift deed can be invalidated if it was executed under false representations or fraudulent acts by the donee, misleading the donor about the deed’s true nature or contents.

Legal Basis:

• Fraud includes any act committed with the intent to deceive, and it is defined under Section 17 of the Indian Contract Act, 1872.
• When Consent to an agreement is taken by coercion, fraud or misrepresentation, the agreement can be voidable at the option of the party. Such a contract is voidable under Section 19 of the Indian Contract Act, 1872.

Example: If an elderly donor is told that they are signing a power of attorney, but it turns out to be a gift deed, the document can be challenged for misrepresentation.

Relevant Case Law:

Case Name: Krishna Mohan Kul @ Nani Charan Kul And ... vs Pratima Maity And Ors on 9 September, 2003

Parties: Krishna Mohan Kul @ Nani Charan Kul (Appellant) vs. Pratima Maity & Ors. (Respondent)

Facts:

• The suit concerned a registered deed of settlement allegedly executed by Dasu Charan Kul, who was 106 years old, illiterate, and suffering from ailments.
• Plaintiffs (including Pratima Maity) claimed the deed was forged and procured by fraud to deprive them of their rightful property.
• No credible witnesses were produced to prove the execution or the identification of the thumb impression on the deed.
• Plaintiffs argued that the donor was misled about the nature of the document he was signing.

Issues:

1. Whether the deed of settlement (gift deed) was validly executed.
2. Whether the deed was obtained by fraud, misrepresentation, or undue influence.

Judgment: The Supreme Court in the case of Krishna Mohan Kul v. Pratima Maity held that when a donor is old, illiterate, and vulnerable, and the transaction is suspicious, the burden shifts to the beneficiary to prove the deed was executed freely and genuinely.

In this case, the Court found the execution of the deed was not proved and held the deed void due to suspicious circumstances and lack of evidence.

Impact: The judgment established that if a donor is deceived into signing a document under the impression that it is something else, it amounts to fraud, making the gift deed voidable. It reinforced that courts will closely scrutinise transactions involving vulnerable donors and require strong evidence to uphold such deeds.

2. Undue Influence or Coercion

When a donor is compelled to execute a gift deed due to pressure, emotional, psychological, or physical, their consent is not free, and the deed becomes challengeable.

Legal Basis:

• Undue influence is a situation where a party uses their position to dominate another’s will to obtain an unfair advantage. This is defined under Section 16 of the Indian Contract Act, 1872.

Example: A bedridden parent pressured by a caregiver child into transferring property via a gift deed could be a classic instance of undue influence.

Relevant Case Law:

Case Name: Subhas Chandra Das Mushib vs Ganga Prosad Das Mushib And Ors on 14 September, 1966

Parties: Subhas Chandra Das Mushib (Appellant) vs. Ganga Prosad Das Mushib & Others (Respondent)

Facts:

• The donor (Prasanna Kumar), aged 90, executed a deed of settlement transferring property to his grandson (the defendant), citing love and affection.
• The plaintiff (another son) alleged the deed was obtained by undue influence due to the donor’s age and dependence.
• The donor later stated he had no further interest in the property, suggesting full awareness of the transaction.
• The High Court presumed undue influence based on the donor’s age and the familial relationship.

Issues: Whether the deed of gift was brought about by undue influence.

Judgment: The Supreme Court in the case of Subhas Chandra Das Mushib vs Ganga Prosad Das Mushib and Ors held that mere relationship or old age does not automatically raise a presumption of undue influence. To prove undue influence, it must be shown that the donee was in a position to dominate the will of the donor and actually used that position to gain an unfair advantage.

In this case, no such unfair advantage or domination was proven; the donor’s active involvement indicated free consent.

Impact: The case clarified that for gifts, especially among close relatives, undue influence is not presumed solely due to age or relationship. Concrete evidence of domination and unfair advantage is required for a court to set aside a gift deed on this ground.

3. Mental Incapacity or Unsound Mind of Donor

A gift deed is void if the donor lacked the mental capacity to understand the nature and legal consequences of their actions at the time of execution.

Legal Basis:

• A contract is only valid when the person is of sound mind, not a minor, and is capable of understanding the nature and consequences of the act; this requirement is stipulated under Section 11 of the Indian Contract Act, 1872.
• The person transferring the property must have the legal authority and mental competence to do so, as outlined in Section 7 of the Transfer of Property Act, 1882.

Evidence Required:

• Medical records showing conditions like dementia or psychosis.
• Expert medical opinions or witness testimonies.

Example: If a donor was under psychiatric treatment or had documented mental decline, and evidence shows they were incapable of informed decision-making, the gift deed can be declared void.

Relevant Case Law:

Case Name: Smt. Nur Bhanu And Ors. vs Abdul Amin Bhuinya And Ors. on 30 September, 2005

Parties: Smt. Nur Bhanu & Others (Appellants) vs. Abdul Amin Bhuinya & Others (Respondents)

Facts:

• Plaintiffs challenged a registered gift deed executed by Ajgar Ali Bhuinya in favour of his son, claiming it was forged and that Ajgar Ali was mentally imbalanced at the time.
• Plaintiffs argued the donor was not of sound mind and incapable of understanding the nature of the transaction.
• Defendants maintained the donor was mentally fit and executed the deed voluntarily, having already distributed land to his daughters.

Issue: Whether the gift deed was valid, considering the donor’s alleged mental incapacity at the time of execution.

Judgment: The court in the case of Nur Bhanu v. Abdul Amin Bhuinya held that unless there is clear, convincing evidence of unsoundness of mind, a registered gift deed cannot be set aside on this ground. The burden of proof lies on the party alleging mental incapacity.

In this case, the evidence did not establish that the donor was of unsound mind; thus, the gift deed was upheld.

Impact: This case illustrates that to void a gift deed on the grounds of mental incapacity, strong medical and factual evidence is required. It reinforces the legal principle that a person must be of sound mind to execute a valid gift deed.

4. Lack of Free Consent

Even in the absence of coercion or undue influence, consent must be voluntary, informed, and conscious. A gift deed signed without the donor fully understanding its implications is voidable.

Legal Basis:

• For a gift deed to be legally valid, the donor's consent must be given freely, without any coercion, fraud, misrepresentation, or mistake. This principle is established under Sections 13 and 14 of the Indian Contract Act, 1872.

Common Scenarios:

• Donor signs a deed in a language they cannot read or under the impression that it is a different type of document.
• Lack of legal consultation before execution.

Example: An uneducated donor signs the deed, assuming it’s an agreement for temporary occupancy; this qualifies as a lack of free consent.

Relevant Case Law:

Case Name: Puthiyapurayil Janaki vs Puthiyaveettil Smitha on 1 June, 2021

Parties: Puthiyapurayil Janaki (Mother/Donor) (Appellant) vs. Puthiyaveettil Smitha (Daughter/Donee) (Respondent)

Facts:

• Elderly, visually and hearing-impaired mother executed a gift deed in favour of her daughter.
• She claimed she only intended to gift 10 cents of land, but was made to sign a deed gifting her entire property.
• Alleged that she was unaware of the deed’s full contents due to her dependence and impairment.

Issues:

1. Was the gift deed executed with free and informed consent?
2. Did misrepresentation or lack of understanding vitiate the donor’s consent?

Judgment: The Kerala High Court in the case of Puthiyapurayil Janaki vs Puthiyaveettil Smitha held that a registered deed carries a presumption of valid execution. However, if the donor proves a lack of free consent or misrepresentation, the deed can be set aside.

In this case, the court found insufficient evidence to prove a lack of free consent or misrepresentation; the deed was upheld.

Impact: This case confirms that a gift deed can be challenged for lack of free consent if the donor was unaware or misled about its contents. The burden of proof lies on the person alleging a lack of consent.

5. Absence of Delivery of Possession

A gift deed, especially concerning movable property, is not complete without delivery of possession. Continued control or use by the donor may indicate the gift was not genuine.

Legal Reference:

• A gift is not legally valid unless it is accepted by the donee and the ownership is transferred through delivery. This requirement is under Section 122 of the Transfer of Property Act, 1882.

Judicial View: Courts often consider actual or symbolic transfer of possession as strong evidence of the donor’s intent. If possession remains with the donor, it weakens the donee’s claim.

Example: A donor registers a gift deed transferring a car, but continues to drive and maintain exclusive control over it; the donee's claim may not hold in court.

Relevant Case Law:

Case Name: N.P. Saseendran vs N.P. Ponnamma on 24 March, 2025

Parties: N.P. Saseendran (Son) (Appellant) vs. N.P. Ponnamma (Daughter/Donee) & Others (Respondent)

Facts:

• Father executed a registered gift deed in 1985 in favour of his daughter.
• Later, the father executed a cancellation deed and a sale deed in favour of his son, claiming he retained possession and the document was actually a Will, not a gift.
• The daughter asserted the gift deed was valid and that she had accepted it as per law.

Issues:

1. Is the delivery of possession necessary for the validity of a registered gift deed of immovable property?
2. Was the gift deed valid even if the donor retained some rights or possession?

Judgment: The Supreme Court in the case of N.P. Saseendran v. N.P. Ponnamma & Ors. held that delivery of possession is not required for the validity of a registered gift deed of immovable property. Registration and acceptance by the donee during the donor's lifetime are sufficient to complete the gift under Section 122 of the Transfer of Property Act, 1882. The donor cannot unilaterally revoke the gift deed once it is executed and accepted.

Impact: This judgment clarifies that for immovable property, actual delivery of possession is not required; what matters is registration and acceptance. It strengthens the position of donees who have accepted a registered gift, even if the donor continues to occupy or use the property for some time.

How To Challenge A Gift Deed? Step-By-Step Legal Process

Challenging a gift deed isn't as simple as making an allegation, it involves proving that the deed was executed unlawfully. Since a registered gift deed holds a strong legal presumption, the court requires clear and convincing evidence to invalidate it. Below is a concise step-by-step guide to navigate this legal process effectively.

Step 1: Hire a Property Lawyer

Start by consulting a lawyer experienced in property and civil disputes. A legal expert will:

• Evaluate if your claim meets valid legal grounds (e.g., fraud, coercion, mental incapacity).
• Identify the right jurisdiction and draft a strong civil suit.
• Advise on your legal standing, especially important if you’re not the donor.

Note: Choose a lawyer with local court experience, as real estate disputes are governed by territorial jurisdiction and local documentation practices.

Step 2: Gather Documentary Evidence

Evidence is the backbone of your claim. Courts will not entertain mere allegations.
Essential documents include:

• The gift deed (original or certified copy).
• Witness affidavits (especially attesting witnesses).
• Correspondence (letters, emails, chats) indicating pressure or deception.
• Donor’s medical records to show incapacity (if applicable).
• Records showing donor retained possession (e.g., tax or electricity bills).
• Police complaint/FIR, if fraud has already been reported.

Why this matters: You carry the burden of proof, as you are the one who challenged the gift deed. Strong documentation increases your credibility and chances of success.

Step 3: File a Civil Suit in the Appropriate Court

With your lawyer’s help, you must file a civil suit for cancellation may be ordered under Section 31 of the Specific Relief Act, 1963.

• Jurisdiction: District or Civil Court where the property is situated.
• Reliefs sought:
• • Declare the gift deed void/voidable.
  • Cancel its effect on record.
  • Seek an injunction to prevent further sale/transfer.

Note: If the deed has already been acted upon (e.g., mutation), urgent reliefs like a stay/injunction become critical.

Step 4: Court Proceedings & Burden of Proof

Once filed, the case progresses under the Civil Procedure Code:

1. Defendant(s) file a written reply.
2. Both sides present evidence and witnesses.
3. Cross-examinations are conducted.
4. Final arguments are heard, and judgment is delivered.

The court evaluates:

• Was the gift deed voluntary and legally compliant?
• Was the donor of sound mind and free will?
• Is there credible proof of coercion, fraud, or undue influence?

Remember: If the donor is deceased, the court will rely entirely on circumstantial and documentary evidence. The scrutiny is more stringent.

Time Limit to Challenge a Gift Deed in Court

Even if there are valid grounds to challenge a gift deed, a delay in taking legal action can defeat the claim. Under the Limitation Act, 1963, courts dismiss any suit filed after the limitation period, even if the defendant does not object or raise the issue of limitation as specified under Section 3 of the Limitation Act, 1963.

Note: The time limit begins when you become aware of the reason for challenging the document, not just when the document was made.

Specifically, under the schedule (periods of limitation) of the Limitation Act, 1963, Part IV-59, a suit to cancel or set aside a deed (including a gift deed) must be filed within three years from the date you first learn about the facts that give you the right to ask the court to cancel or set aside the instrument, decree, or contract.

Exceptions:

• Section 5 of the Limitation Act, 1963 allows courts to condone delay in filing appeals or applications (not suits) if the applicant shows “sufficient cause” for not filing within the prescribed period.
• For suits, extension of limitation due to legal disability (such as minority or mental incapacity) is governed by Sections 6, 7 and 8 of the Limitation Act, 1963. In such cases, the limitation period begins only after the disability ceases.
• If fraud or concealment is involved, the limitation period starts from when the plaintiff discovers, or could have discovered with reasonable diligence, the fraud or concealment can be governed under Section 17 of the Limitation Act, 1963.

Note: To claim any exception to the limitation period, the party must specifically prove both the reason for the delay and when it was discovered or disability ceased.

Judicial Approach: Courts are strict about limitations and generally do not entertain claims. Exceptions are made only when the plaintiff provides a convincing and reasonable justification for the delay, such as genuine fraud or concealment that prevented timely action

Important Considerations

Challenging a gift deed is not just about alleging fraud or undue influence, it requires a thorough evaluation of legal, factual, and emotional elements. Here are the key factors that courts and litigants must consider:

1. Relationship Between Donor and Donee

• Courts consider whether a natural bond of affection existed, especially in close family relationships like parent-child.
• A presumption of voluntariness arises in such cases, but this can be rebutted with evidence of coercion, undue influence, or deception.
• The closer the relationship, the stronger the presumption; hence, stronger proof is needed to contest it.

2. Donor’s Age and Mental/Physical Health at the Time of Execution

• If the donor was very old, ill, bedridden, or mentally impaired (e.g., Alzheimer’s, dementia, stroke), courts will scrutinise the gift deed closely.
• Legal capacity is a key requirement; medical documentation from the time of execution can make or break the case.
• Lack of clarity or recent medical history suggesting reduced capacity raises valid legal doubts.

3. Possession of the Property

• Genuine transfer of possession strengthens the validity of the gift.
• If the donee never took possession or the donor continued to live in and manage the property, it could suggest that the gift was not meant to be effective.
• Possession is often seen as a reflection of the donor’s true intention.

4. Mutation of Property Records

• Mutation(transfer) is not legally mandatory, but it supports the claim of ownership and proper completion of the transfer.
• Courts may interpret failure to mutate the property in the donee’s name as evidence that the gift was incomplete or not seriously intended.
• Lack of mutation can weaken the donee’s position in case of a dispute.

5. Availability of Alternative Legal Remedies

• Full cancellation of a gift deed isn’t always the most suitable or available option.
• Depending on the facts, parties may:
• • Claim compensation for damages resulting from fraud.
  • Seek a partition of the ancestral property if the deed affects their share.
  • Ask for revocation of the deed if conditions (such as care obligations) were not fulfilled.

Note: Choosing the appropriate legal remedy is crucial for effective relief.

6. Financial and Emotional Impact

• Gift deed disputes, especially among family members, are emotionally sensitive and financially burdensome.
• Litigation can take years and involve high legal costs, mental stress, and strained relationships.
• Mediation or settlement may offer faster and less damaging resolutions, particularly where preserving family ties is important.

7. Role of Witnesses

• Attesting witnesses are key to validating the deed.
• If witnesses confirm voluntary execution, the responsibility is on the challenger to disprove it with strong evidence.
• If witnesses were not present, appear unreliable, or contradict each other, the validity of the deed may be seriously questioned.
• Courts assess not just the presence of witnesses, but also their credibility and familiarity with the situation.

8. Documentation and Legal Compliance

• Courts closely examine whether all procedural requirements, such as registration, attestation by witnesses, and execution on proper stamp paper, were duly followed.
• Non-compliance can itself form grounds for challenging the gift deed.
• Sloppy or incomplete documentation may suggest that the deed was executed without due care or intention.

9. Donor’s Intention and Awareness

• Legal intention to gift the property is central to the validity of the deed.
• Courts look at surrounding circumstances, including the donor’s conduct before and after the execution, to assess true intention.
• A deed made under a misunderstanding, misrepresentation, or misapprehension may be set aside.

10. Family Dynamics and Practical Impact

• Since gift deeds often involve close relatives, the dispute can impact broader family dynamics.
• Courts and lawyers advise evaluating whether litigation is worth the emotional cost or whether a compromise can better serve everyone involved.
• Family reputation, future inheritance issues, and relationship breakdowns must be considered before initiating legal action.

Landmark Judgments On Challenging Gift Deeds

Understanding the law in theory is only half the equation. Courts across India have adjudicated numerous disputes involving challenged gift deeds, and their rulings offer crucial insight into how such matters are evaluated in practice. Below are some key judgments that illustrate the application of the principles discussed above.

1. N. Thajudeen vs. Tamil Nadu Khadi and Village Industries Board on 24 October, 2024

Parties: N. Thajudeen (Appellant) vs. Tamil Nadu Khadi and Village Industries Board (Respondent)

Facts:

• In 1983, Thajudeen executed a registered gift deed transferring property to the Tamil Nadu Khadi and Village Industries Board for Khadi manufacturing.
• The deed was absolute and unconditional, with no clause reserving any right of revocation.
• The Board accepted the gift, took possession, applied for mutation, and commenced construction.
• In 1987, Thajudeen attempted to revoke the gift, alleging non-use of the property for the stated purpose.
• The Board filed a suit seeking a declaration of title and possession; lower courts upheld the Board’s claim.

Issue: Whether a donor can unilaterally revoke an absolute gift deed without an express revocation clause or recognised legal grounds.

Judgment: The Supreme Court in the case of N. Thajudeen vs. Tamil Nadu Khadi and Village Industries Board held that the gift deed was irrevocable as per Section 126 of the Transfer of Property Act, 1882. Non-fulfilment of the stated purpose alone does not entitle to revocation. The appeal was dismissed, confirming the gift deed’s validity and irrevocability.

Impact: This case affirms that once a gift deed is validly executed, accepted, and acted upon, it cannot be revoked unilaterally unless the deed or law expressly permits it. Mere non-compliance with the gift’s purpose is insufficient for revocation.

2. Ghisalal vs Dhapubai (D) By Lrs on 12 January, 2011

Parties: Ghisalal (Appellant) vs. Dhapubai (Dead) by Legal Representatives and Others (Respondents)

Facts:

• Gopalji (husband of Dhapubai) executed several gift deeds transferring ancestral property to his wife, Dhapubai.
• Ghisalal, the adopted son, challenged these gift deeds, alleging they were fraudulent, not accepted by the donee, and that Gopalji, as a Hindu karta, could not gift away ancestral property except for religious purposes.
• Ghisalal sought partition and his share in the ancestral property, claiming the gifts were intended to deprive him of his rights as a coparcener.

Issue: Whether a Hindu karta can gift ancestral property to his wife, and under what circumstances such a gift deed can be challenged by an heir or coparcener.

Judgment: The Supreme Court in the case of Ghisalal vs Dhapubai (D) By Lrs held that a Hindu karta cannot gift away ancestral property except for pious purposes or within his own share. The Court also emphasised that acceptance by the donee is essential for a valid gift. The challenged gift deeds were found invalid to the extent they exceeded Gopalji's own share or lacked proper acceptance.

Impact: This case is a leading precedent on the validity and challenge of gift deeds under Hindu law, especially regarding ancestral property and the rights of heirs. It clarifies that gifts of ancestral property by a karta are void beyond his own share and must be accepted by the donee to be valid.

3. Pratima Choudhury v. Kalpana Mukherjee & Anr on 10 February, 2014

Parties: Pratima Choudhury (Appellant) vs. Kalpana Mukherjee & Anr. (Respondents)

Facts:

• Pratima Choudhury acquired a flat in a Kolkata cooperative society.
• She later requested the society to transfer the flat and her membership to her close relative, Kalpana Mukherjee, citing poor health and inability to stay in Kolkata.
• Pratima sent letters confirming her intention to transfer; Kalpana applied for membership.
• Before the transfer was fully approved by the authorities, Pratima withdrew her consent and notified the society.
• Despite her withdrawal, the society proceeded with the transfer, resulting in a legal dispute.

Issue: Whether the transfer of the flat and membership to Kalpana Mukherjee was valid after Pratima Choudhury withdrew her consent, and whether the transaction was affected by undue influence.

Judgment: The Supreme Court in the case of Pratima Chowdhury vs Kalpana Mukherjee restated the two-fold test for undue influence:

1. Whether one party was in a position to dominate the will of the donor.
2. Whether that position was used to obtain an unfair advantage or control the donor’s will.
   The Court held that mere suspicion or a close relationship is not enough; clear evidence is required. Since Pratima had withdrawn her consent before final approval, the transfer was not legally complete and was invalid.

Impact: This case underscores the necessity of free, informed, and continuing consent in property transfers. It highlights that courts will scrutinise transactions for undue influence but require clear evidence. Withdrawal of consent before completion of the transfer is legally effective.

Conclusion

A gift deed is an expression of love and trust, but when that trust is breached through coercion, fraud, or undue influence, Indian laws recognise the injustice and empower the victims to seek justice. The courts recognise that such transactions, though seemingly voluntary, can mask serious injustices. Challenging a gift deed is not merely a legal process, it’s often a deeply personal decision rooted in the need to restore fairness and protect one's rightful interests. But the law demands precision: strong evidence, legal expertise, and timely action.

This blog has guided you through the legal grounds, procedures, and judicial insights necessary to contest a gift deed in India. If you believe a gift was not freely given, know that the law offers a remedy, but it must be pursued with diligence and care.

Frequently Asked Questions

To help clarify common doubts and provide quick insights, here are answers to some frequently asked questions about gift deeds and their legal aspects.

Q1. What is a gift deed, and how does it differ from a will or sale deed?

Before understanding how to challenge a gift deed, it’s important to know how it legally compares with other common instruments of property transfer, like wills and sale deeds. Each serves a different purpose and operates under different legal principles. The table below offers a quick comparison to clarify these differences:

Q2. What are the legal requirements for a valid gift deed in India?

For a gift deed to be legally valid in India, the following requirements must be fulfilled:

• Voluntary transfer: The donor must transfer ownership voluntarily, without any coercion, fraud, or undue influence.
• Existing property: The property being gifted must exist and be transferable at the time of the gift.
• No consideration: The transfer must be made without any monetary exchange or compensation.
• Competency: Both donor and donee must be legally competent (i.e., of sound mind and of legal age).
• Acceptance: The donee must accept the gift during the donor’s lifetime and while the donor is capable of giving.
• Registration: For immovable property, registration of the gift deed is mandatory under the Registration Act, 1908.
• Stamp Duty: The gift deed must be executed on appropriate stamp paper as per state laws.
• Delivery of possession: Actual or constructive delivery of the property to the donee is essential.

Q3. Who can execute a gift deed, and who can receive property as a gift?

A gift deed is executed by the donor, the person who voluntarily gives away the property, and is received by the donee, the recipient of the gift.

• Donor: Must be competent to contract, meaning they are of sound mind and legal age.
• Donee: Can be any person or entity capable of accepting the gift. There are no restrictions on the relationship between donor and donee, and the donee can be a minor (though acceptance would be through a guardian).

Q4. What kind of evidence is required to prove that a gift deed was obtained by fraud or undue influence?

To challenge a gift deed on the grounds of fraud or undue influence, the following evidence is typically required:

• Medical records: To demonstrate the donor’s mental or physical incapacity at the time of execution.
• Witness testimonies: Statements from those present during the execution or aware of the circumstances can be crucial.
• Communications: Letters, messages, or other documents showing coercion, manipulation, or lack of free consent.
• Expert opinions: In some cases, expert testimony regarding the donor’s mental state or the authenticity of signatures may be relevant.
• Other circumstantial evidence: Any proof that shows the donor did not act voluntarily or was misled about the nature of the transaction.

Q5. Can a gift deed be challenged if the donor was illiterate or did not understand the contents of the deed?

Yes, a gift deed can be challenged if the donor was illiterate or did not understand the document.

• The donee (beneficiary) must prove that the donor fully understood the deed’s contents and implications.
• If the donor was illiterate or mentally incapable of understanding, this raises doubts about the deed’s validity.
• Courts look to see whether the deed was properly explained to the donor before signing.
• If it’s established that the donor did not comprehend the document, the gift deed may be declared invalid.

Q6. Can a gift deed be challenged if the donor did not deliver possession of the property to the donee?

Delivery of possession is a crucial aspect of a valid gift. If the donor did not deliver actual or constructive possession of the property to the donee, the gift deed can be challenged. The absence of delivery may indicate that the transfer was not completed as required by law, making the gift deed void or voidable

Q7. What happens if the court finds the gift deed invalid, and what are the consequences for the property?

If a court declares a gift deed invalid, the transfer of property is considered void. The property reverts to the donor or, if the donor is deceased, to their legal heirs as per succession laws. The donee loses all rights and claims to the property, and any further transactions based on the invalid gift deed are also rendered null and void.

Q8. What are the exceptions under which a gift deed can be revoked or suspended as per law?

Generally, a registered gift deed is irrevocable. However, exceptions exist under Section 126 of the Transfer of Property Act, 1882, which allows revocation or suspension of a gift deed in the following circumstances:

• Mutual agreement: If the donor and donee have agreed upon certain conditions at the time of the gift, and those conditions are not fulfilled, the gift can be revoked.
• Fraud or undue influence: If the gift was obtained by fraud, coercion, or undue influence, it can be set aside by the court.
• Failure of condition: If the gift was conditional and the condition is not met, the gift can be revoked.

In all cases, revocation must be supported by clear evidence and, generally, requires a court order.

Disclaimer: The information provided here is for general informational purposes only and should not be construed as legal advice. For personalised legal guidance, please consult with a civil lawyer.