Can a Gift Deed Be Challenged in Court After 10 Years of Execution?
A gift deed is a legal document that transfers movable or immovable property from a donor to a recipient. If this document is not challenged within a specific time frame, its enforceability may be further secured. However, questions can arise regarding the possibility of challenging a gift deed even after a decade.
Understanding a Gift Deed
A gift deed is an instrument used to transfer property, either movable or immovable, for free from one person to another. It is governed by legal provisions, such as the Transfer of Property Act, 1882, and the Limitation Act, 1963. A duly executed and registered gift deed is considered irrevocable, unless certain grounds are met to invalidate it.
Key Provisions and Challenges
Gift deeds have specific conditions for registration. For immovable property, they must be compulsorily registered under Section 171a of the Registration Act, 1908, and Section 123 of the Transfer of Property Act, 1882. Failure to register, sign, or stamp the deed can render it null and void. Once a gift deed is signed by the donor or any person authorized on their behalf, and attested by at least two witnesses, it becomes a legal document.
Legal Grounds for Challenging a Gift Deed
Several legal grounds can be grounds to challenge a gift deed, including non-acceptance by the transferee, improper execution, presence of consideration, non-registration, improper or non-payment of stamp duty, and non-attestation. Additionally, challenges can include non-signing by the donor, gifts relating to future property, and gifts by minors. Challenges can also arise due to non-transfer of title or ownership, forgery of the gift deed, and lack of acceptance by all transferees.
Time Limits and Applications for Condoning Delay
The Limitation Act, 1963, provides specific time frames for challenging gift deeds. An application for condonation of delay can be made to excuse the delay, especially when suit is not filed within the stipulated three-year period. Under Section 5 of the Limitation Act, if there is a valid ground to challenge the gift deed and you are not past the three-year mark, you can still contest it. If more than three years have passed, you can file the suit with an application for condonation of delay. Section 64 and 65 of the Limitation Act further extend the period to 12 years for challenging the possession of property under an invalid gift deed once you discover that it is invalid.
Case Law Example
A landmark case, Sainath Mandir Trust vs. Vijaya (2011 1 SCC 623), highlighted the situation of an unregistered gift deed in a religious context. The Supreme Court ruled that gift deeds in the nature of dedications to God, considered religious trusts, do not require registration. However, this case concerns gift deeds under civil law, where registration is a fundamental requirement.
Conclusion
While a gift deed is often irrevocable, certain legal grounds exist that can still challenge its validity. Time is a critical factor, and the Limitation Act, including provisions for condoning delay, offers a buffer for those who are not aware of the grounds for challenge in a timely manner. Understanding the specific requirements and grounds can help individuals protect their legal rights.