• Re-gifting a conditionally gifted land

We have gifted a piece of land to  a Co-operative oilseed society about 30 years ago(In Andhra Pradesh). Before gifting there was some exchange of correspondence saying that they have to use it for their own and can’t sell etc. But in the registered deed only conditions  mentioned were like the land is for construction of a godown and the name of the donor should be written in bold on the building. Subsequently the godown was constructed spending Rs 1 lac (financed by some financial institute) the name also was written on it as agreed. However, there was encumberance created, land records were not mutated (still in donor name) and the society did not show the land as an asset in their books (only godown cost was shown as asset). All these were in line with our understanding that it is only for a specific purpose.

However, the society became inactive in next 3 years and never revived still a defunct. We (the donor) were in possession of the land and godown. 

About 2 years ago a liquidator was appointed by the Dep Registrar. Fearing that he may proceed against this property we have re-gifted this property to a different co-op society by a registered gift deed and delivered possession. We did not mention anything about earlier gift in this new gift deed. Nor we did cancel the earlier gift deed. The assumption we took was the earlier gift was failed due to non-compliance of conditions and the property reverted to us automatically as it was for a specific purpose (godown and a name on it).

We (the donor) have informed this to the Dep Registrar and also to liquidator in writing. We also mentioned that  if there are any liabilities on the godown we would pay them off.  In the internal correspondence Dep Reg endorsed this letter to liquidator and asked for a report. They have not acted on this intimation and we (the second society or the donor) have not received any notice of enquiry.

Now the liquidator has completed his proceedings and a members meeting was called yesterday to seek their suggestion on surplus assets. This property (godown and land) is shown as surplus asset and about to be transferred to vest in Dep Registrar as a reserve fund which he may use as prescribed in Act. So our gift to second society, their possession and our intimation have been ignored.
What is course of action now for the donor and also to the new society? We are thinking of below:
1.	See that the liquidation is not completed. This may be achieved by referring a dispute by the second society to the Dep Reg against liquidator. He may reject which can be appealed at Tribunal. This gives us time to think of other alternatives.
2.	Approach high court for some remedy – not sure on what basis
3.	Wait until the old society ceases to exist as corporate entity( i.e at the time when the assets vests with Dep Registar) and do something so the Dep registrar has to file a civil suit for possession.
4.	Giving a paper ad by the second society declaring that they have title and possession not to be disturbed. This can be done before the society is deregistered (in this case liquidator has to act like referring dispute to Dep Reg) or after (in this case the Dep Registrar has to act as there is no legal entity , this may be better as he has to proceed to civil court).
Which is the better path or are there any better option that can be pursued.
Asked 1 year ago in Property Law from Australia
Religion: Hindu
1) second society has no rights on said land 

2)once you had executed gift deed in favour of first society title on land passed on tho the first society 

3) your moving high court would be an exercise in futility 

4) giving paper ad that second society has title to land would not vest the said property in favour of second society
Ajay Sethi
Advocate, Mumbai
23230 Answers
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The second society has no  semblance of right, title or interest in your property as this registration is non est or nullity from the very beginning.
 No deed of gift lapses on non compliance of any of its terms as gift deed can't be conditional in any circumstances.
  Choose your options on this basis.
Devajyoti Barman
Advocate, Kolkata
5196 Answers
54 Consultations
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1. Even a conditional gift deed cannot be cancelled unilaterally by the donor as he ceases to have any right to deal with the property after the gift is complete. The only legal recourse available to him is to file a case for cancellation of the gift deed in the court. It is only a court of law which can cancel the gift deed regardless of whether it is conditional or unconditional.

2. The co-operative society to which you made the subsequent gift does not possess a valid title to the gifted property. The first donee can successfully maintain legal action for eviction against the co-operative society which is in possession of the property,

3. Referral of the dispute to the deputy registrar and a further appeal may stay the process of liquidation but this will not liquidate the claim of the first co-operative society,

4. The judgments of Supreme Court and High Courts are case specific and cannot be applied as a bible to every case.
Ashish Davessar
Advocate, Jaipur
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1) earlier gift deed was never revoked by you 

2) it is your own case that earlier gift was never cancelled by you 

3) if conditions mentioned in gift deed were not fulfilled you ought to have moved court for setting aside gift deed 

4) judgements depend upon facts of each case 
Ajay Sethi
Advocate, Mumbai
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Hi, once you have gifted the property you have no right to cancel the gift deed even though it is a conditional gift deed.

2.If there is any violation of gift deed you have to approach the civil court for cancellation of the gift deeds on the ground that  violated the conditions of gift deed.

3. Only after the cancellation of the gift deed by the court then only you have right to gift to  some other else.
Pradeep Bharathipura
Advocate, Bangalore
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Well, I found the case referred above doesn't apply in your case. In this there was an agreement which was considered in tandem with the gift deed. Here the gift was gratuitous in the nature of donation which is not in your case.
Devajyoti Barman
Advocate, Kolkata
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The conditional gift deed cannot stand cancelled automatically until the donor initiates any action to cancel the same due to the non-compliance of the imposed conditions by the donee. 
Your action of re-gifting the property without cancelling the previous registered gift deed is invalid and not maintainable in the eyes of law.  
If the society was defunct or has not complied with the conditions, what made you not initiate steps to cancel the gift deed based on the grounds relied upon for cancellation.  There was an encumbrance in this regard as well as th the property was shown as an asset in the books of the society, so the liquidator is right to initiate action on that basis declaring the assets of the defunct society as surplus assets and recommend to transfer the same to the Dy. Registrar of societies.
You can initiate the legal cases to drag on the issue but ultimately the property will remain with the proper person i.e., the Dy. Registrar' Reserve fund only. 
1.	See that the liquidation is not completed. This may be achieved by referring a dispute by the second society to the Dep Reg against liquidator. He may reject which can be appealed at Tribunal. This gives us time to think of other alternatives.
You can drag on the issue by this to buy time.

2.	Approach high court for some remedy – not sure on what basis
Which court and what remedy?, Your action may not be entertained if not having any specific application of law for the remedy sought.

3.	Wait until the old society ceases to exist as corporate entity( i.e at the time when the assets vests with Dep Registar) and do something so the Dep registrar has to file a civil suit for possession.
The Dy. Registrar will straightaway fling into action for possession without following the due process of law, if necessary. 

4.	Giving a paper ad by the second society declaring that they have title and possession not to be disturbed. This can be done before the society is deregistered (in this case liquidator has to act like referring dispute to Dep Reg) or after (in this case the Dep Registrar has to act as there is no legal entity , this may be better as he has to proceed to civil court).
Declaration of title through newspaper publication will invite legal troubles and criminal action against the society or its authorised signatory who may initiate such step.  What is the legal basis for such a declaration?, If aggrieved, the second society has to approach the court  of law for the relief desired. and cannot adopt such measure. 
T Kalaiselvan
Advocate, Vellore
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