Avtar made an unconditional gift of property to Ashok but continued in possession of the gifted property. Having possession of the gifted property Avtar revoked the gift and transfered it to Suresh. Ashok wants to recove

CS Executive · Economic and Commercial Laws · PYQS · December 2020
Avtar made an unconditional gift of property to Ashok but continued in possession of the gifted property. Having possession of the gifted property Avtar revoked the gift and transfered it to Suresh. Ashok wants to recover possession from Suresh. State in the context of the transfer of Property Act, 1882, whether Suresh can withhold the property ?

Answer & Explanation:

The most essential thing for the validity of a gift is its acceptance. If the gift is accepted but not registred it is a valid gift. The Privy Council in the case of Kalyan Sundram v. Kumarappa, A.I.R. 1925 P.C. 42 , decided that after acceptance of the deed of gift and before registration, the donor cannot revoke the gift. The gift which is accepted by the donee, will take effect from the date of the execution of the document by the donor, even though it is registered at a later date. If the deed of gift is executed but never communicated to the intended donee and remains in the possession of the donor undelivered, it cannot be compulsory registered at the instance of the donee. The reason is that the donee did not accept the gift, the donor can at any time before such acceptance revoke the gift. But once a gift is accepted by the donee, the donor cannot revoke it. A gift may, however, be revoked if it is brought about by a fraud or misrepresentation or undue influence. In the present case Avtar has made unconditional gift to Ashok but he remains in possesion of the gifted property and the fact provided it seems the gift was not accepted by the Ashok. Hence Avtar may transfer the property to Suresh. Therefore, Ashok can not recover possession of the property from Suresh as per Section 123 of the Transfer of Property Act, 1882.

Topics: Transfer of Property Act

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