• Cancellation of gift deed after after execution of sale agreement

Sir,
mother executed regd gift deed in favour of her daughter unconditionally. agter 2 years daughter executed sale agreement to thitd party and mother stood as witness to the sale agreement . subsequently daughter not willing to execute sale deed  and filed compliant before legal service authority and return the money . the agreement holder ready with balance money and deposited money im her bank account and filed receipt before the dlsa and issued notice and filed suit. after issuing the notice the earlier regd gift deed is cancelled with the consent of her daughter.

pleease suggest legal position as iam agreement holder
Asked in Property Law from Warangal, Telangana
Religion: Hindu
The purchaser has full rights to enforce the sale agreement if it was registered. The revocation of gift deed by mother is invalid in law. Especially this appears to be a criminally motivated high handed fraudulent activity by both mother and daughter. 
A suit for specific performance of contract will be the remedy to the purchaser.  However the agreement should not has been barred by limitation.
T Kalaiselvan
Advocate, Vellore
18784 Answers
176 Consultations

5.0 on 5.0

No, earlier gift deed can not be cancelled anymore.
Since the buyer has filed a suit, most likely, a suit for specific performance of contract he will have to wait till outcome of the suit. Ask him to amend the prayer in the same suit to include a prayer for declaration that the deed of cancellation is not valid.
Devajyoti Barman
Advocate, Kolkata
7318 Answers
84 Consultations

4.9 on 5.0

If she is ready to return the money then it is now buyer's choice whether to accept it or to proceed with the suit.
Devajyoti Barman
Advocate, Kolkata
7318 Answers
84 Consultations

4.9 on 5.0

1. No this illegal . The mother-daughter duo seems to have connived to defeat the rights of the buyer. The gift deed could not be cancelled after its execution. 

2. The buyer can file a case in the local court against the daughter seeking that she be directed to execute the sale deed in her favour. 
Ashish Davessar
Advocate, Jaipur
19896 Answers
521 Consultations

5.0 on 5.0

1) what are the terms of agreement for sale? 

2) was time the essence of contract?

3) did you accept refund of advance payment ? 

4) did you file suit for specific performance ?

5) you will have to challenge the cancellation of gift deed as third party rights had been created by the donee ie the daughter . 
Ajay Sethi
Advocate, Mumbai
28606 Answers
1553 Consultations

5.0 on 5.0

1)if daughter is willing to return the advance amount accept the offer and file consent terms in court 

2) litigation is long drawn process and it may take some years for suit to be finally decided . 

3) in addition you would be  spending lot of money on ligation costs
Ajay Sethi
Advocate, Mumbai
28606 Answers
1553 Consultations

5.0 on 5.0

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