Supreme Court Affirms Daughter’s Ownership in Gifted Property: Landmark Ruling on Irrevocability of Gift Deeds

Supreme Court reinforces that gift deeds, once accepted, are final—clarifying key distinctions in Indian property law.

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A 30-Year Battle Ends with a Landmark Win for the Sister

After nearly three decades of legal battles, the Supreme Court of India has delivered a precedent-setting judgment upholding the irrevocability of a gift deed in a family property dispute. A woman who received her late father’s property through a registered gift deed in 1985 was declared the rightful owner, even though her father later attempted to cancel the deed and transfer the property to her brother.

The Dispute: Gift Deed vs. Will

The crux of the case hinged on whether the 1985 document was a gift, a settlement, or a will. While the brother argued it was a will (and therefore revocable), the sister insisted it was a gift deed—a claim the Supreme Court ultimately upheld.

Supreme Court’s Key Interpretation

The Court ruled that the deed constituted a “gift by settlement” under Section 122 of the Transfer of Property Act, 1882. It clarified that a gift deed, once executed and accepted, cannot be unilaterally revoked—particularly when the donor has no legal clause for cancellation and has divested their interest in the property.

Critical Observations by the Apex Court

  • A registered gift deed, even with postponed physical possession, remains valid if accepted by the beneficiary.
  • The transfer of ownership in the present time (in praesenti) is the determining factor distinguishing a gift or settlement from a will.
  • The deed’s nomenclature is not as important as its content and intent.

Timeline of Legal Proceedings

  • 1985: Father gifts the property to daughter, possession effective after parents’ death.
  • 1993: Father cancels the deed, executes a sale deed in son’s name.
  • 1994–2003: Lower courts side with the brother.
  • 2004–2019: Kerala High Court rules in favor of the sister.
  • 2023–2025: Supreme Court upholds the High Court’s decision.

Why This Verdict Matters

This judgment reinforces that once a gift deed is registered, delivered, and accepted—even if physical possession is delayed—it cannot be revoked without proper legal grounds. This provides legal certainty in familial property transfers and safeguards the rights of donees from unilateral revocation attempts.

Practical Implications for Property Owners

If you’re involved in property gifting or receiving property from a family member, this ruling highlights the importance of proper documentation, acceptance, and legal understanding. Tools like the Legal Opinion Service and Certified Copy Service by Verified.RealEstate can assist in verifying the authenticity and status of property documents before disputes arise.

Lawyers Weigh In on Legal Takeaways

Legal experts affirm that the court’s interpretation now sets a definitive standard:

  • No delivery of possession? Still valid.
  • No clause to cancel? Irrevocable.
  • Clear intention and acceptance? Legally binding.

This interpretation protects the integrity of gift deeds and shields beneficiaries from potential legal chaos.

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