• Revocation of settlement deed

Respected Sir / Madam, I had recently initiated process for buying a flat.. Going through the documents i noticed that initially the property was transferred by the owners via a settlement deed (conditional - after death of sellor) to their son / daughter and their respective spouse and children.. Subsequently they cancelled the documents through another revocation deed (mutually agreed and signed by the settlees - majors), however, in the document for cancellation the childrens (grand children - minors) name were not included in the revocation deed (their names were part of initial settlement document)..subsequently the settlor executed a sale deed to a flat promoter from whom i am purchasing the flat..Please let me know if this (not including minors name in revocation deed) will cause any legal binding or problems in the future... Thanks and regards - Jose
Asked 2 years ago in Property Law from Chennai, Tamil Nadu
1) once gift deed is made donee becomes absolute owner of the property . 

2) cancellation of gift deed can be made by mutual consent of parties . gift deed / cancellation deed cited by you has to be perused to advice . 

3) if property has been gifted to minors for sale of their share court orders would be necessary . 

4) title is not clear and marketable dont  purchase said property
Ajay Sethi
Advocate, Mumbai
23405 Answers
1230 Consultations
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Hi,
If the family settlement deed was revoked by some of the signing parties to the deed, it is  revoked legally. The minors in the deed were not signing and they were not required to sign in the revocation deed. The settlers have later on sold it to the present promoter , whether the claims of the minors are effective or not in the land beneath , will not affect your rights in the flat.
A settlement deed if it is not registered is legally disputable and in your case it has been revoked by the parties who signed and the minors have been represented by their guardian. No need to worry about your legal rights as the owner  in the flat and also about the legal enforceablity  of the purchase.
S J Mathew
Advocate, Mumbai
1954 Answers
66 Consultations
5.0 on 5.0
1. The revocation deed was not signed by the settlees,


2. The above fact makes the revocation deed invalid,

3. Buying this property will be risky.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
234 Consultations
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1) dont  purchase the said property as the donees have not signed the cancellation deed 

2) title to the property is not clear and marketable .
Ajay Sethi
Advocate, Mumbai
23405 Answers
1230 Consultations
5.0 on 5.0
1. After the gift deed is made the donee assumes absolute ownership of the property gifted to him.

2. Gift deed, once made, cannot be cancelled unilaterally by the donor. The only legal recourse available to the donor to cancel the gift deed, in the event that the donee does not consent to cancellation, is to file a lawsuit for cancellation of gift deed in the court, which the donee can contest by engaging his lawyer.

3. In the facts and circumstances furnished by you, when the names of the grand children were included in the original deed, they ought to have been included in the cancellation deed as well. Hence, purchasing this property will be a risky proposition.
Ashish Davessar
Advocate, Jaipur
18266 Answers
451 Consultations
5.0 on 5.0
1. Registrar has no authority to cancel an instrument of property transfer.

2. Guardians have not signed the cancellation deed. The minors can sue you on attaining majority if the cancellation deed does not take within its ambit their rights. 

3. Get the settlement deed and cancellation deed vetted by your lawyer to obtain a clear picture.
Ashish Davessar
Advocate, Jaipur
18266 Answers
451 Consultations
5.0 on 5.0
1) by mutual consent of parties settlement deed can be revoked . you dont need to approach the court in this regard . cancellation deed must be mentioning reasons for cancellation of settlement deed . 

2) as mentioned earlier if settlement deed is made in favour of minor for revocation of settlement deed you would need court orders 

3) as advised earlier title to property is not clear and marketable . 

4) get settlement deed / revocation deed vetted by a local lawyer
Ajay Sethi
Advocate, Mumbai
23405 Answers
1230 Consultations
5.0 on 5.0
1) Section 126 specifies circumstances under 
which a gift can be suspended or revoked :-

"126. When gift may be suspended or revoked.  The 
donor and donee may agree that on the happening of any 
specified event which does not depend on the will of the 
donor a gift shall be suspended or revoked; but a gift which 
the parties agree shall be revocable wholly or in part, at the 
mere will of the donor, is void wholly or in part, as the case 
may be.

A gift may also be revoked in any of the cases (save want or 
failure of consideration) in which, if it were a contract, it 
might be rescinded.
 2) Section 127 throws light on the question of validity of transfer 
of property by gift to a minor. It recognises minor's capacity to 
accept the gift without intervention of guardian, if it is possible, or 
through him.

"127. Onerous gifts  Where a gift is in the form of a single 
transfer to the same person of several things of which one is, 
and the others are not burdened by an obligation, the donee 
can take nothing by the gift unless he accepts it fully.

Where a gift is in the form of two or more separate and 
independent transfers to the same person of several things, 
the donee is at liberty to accept one of them and refuse the 
others, although the former may be beneficial and the latter 
onerous.

Onerous gift to disqualified person.  A donee not 
competent to contract and accepting property burdened by 
any obligation is not bound by his acceptance. But if, after 
becoming competent to contract and being aware of the 
obligation, he retains the property given, he becomes so 
bound."


The last part of Section 127, underlined above, clearly indicates 
that a minor donee, who can be said to be in law incompetent to 
contract under Section 11 of the Contract Act is, however, 
competent to accept a non onerous gift. Acceptance of an onerous gift, however, cannot bind the minor. If he accepts the gift during his minority of a property burdened with obligation and on attaining majority does not repudiate but retains it, he would be bound by the obligation attached to it. 

3) case of Sundar Bai vs. Anandi Lal [AIR 1983 
Allahabad 23], the donee was a child and in the care of the donor 
himself. The High Court held that in such circumstance, express 
acceptance could not be insisted upon. In the case of Ponnuchami Servai vs. Balasubramanian [AIR 1982 Madras 281], the father himself was the donor and executed a gift deed in favour of his minor son. The parties continued to stay together in the said property even after the gift. In these circumstances it was held that the gift in favour of the minor would be deemed to have been accepted as the father himself was the guardian and had himself executed the gift-deed.
Ajay Sethi
Advocate, Mumbai
23405 Answers
1230 Consultations
5.0 on 5.0
A. Settlement deed can be cancelled by entering all parties who were participated in the same at the time of execution of deed before the Sub Registrar's office.

B. Minor interest can be represented by natural guardian for the benefit of the children or legal necessity subject to permission of the Court. Else minor can question the same within 3 years from the date of  attaining majority or date of the knowledge of a transaction subject to condonation of delay from the court.

C. Gift Deed cannot be cancelled once executed by legal manner. However, it can be cancelled by decree of the court.

D. Kindly contact local legal expert for  scrutiny of legal documents.
B.T. Ravi
Advocate, Bangalore
738 Answers
31 Consultations
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1.	Settlement deed can be revoked by the mutual consent of the concerned parties without the intervention of the court.
2.	In so far as the deed deals with the rights of the minor a court order is required to revoke it, else the minor can on attaining majority challenge the cancellation deed in the court which can hold it to be illegal.
Ashish Davessar
Advocate, Jaipur
18266 Answers
451 Consultations
5.0 on 5.0
As advised earlier, get the documents vetted by a lawyer. The final picture which may emerge after the vetting of documents may be at variance with what any of us is projecting now as we have not perused the documents.
Ashish Davessar
Advocate, Jaipur
18266 Answers
451 Consultations
5.0 on 5.0
1. The revocation of the settlement deed required inclusion of  the names of the minors whose names had featured in the settlement deed,

2. So, the subsequent deed executed in connection with the said property is invalid,

3. Buying the said property will be risky.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
234 Consultations
5.0 on 5.0
Yes.Its a ground against promoter,i,e.you too.(not including minors' name)  

Thanking you,
Subash M R
Advocate, Bangalore
176 Answers
8 Consultations
3.6 on 5.0
1. owner of the property did not give absolute ownership on hid heirs, they have only life interest so thay can't transfer the property or make settlement or revoke after the death of owner. sec 14 of TPA act applicable on this issue and that property can be transfer by the son of last heir alive during life of owner if owner died, means at the time of transfer owner's legal heir were present, that legal heir can't transfer that property because they have only life interest. so settlement done by them are void. if owner alive then he can transfer that property but in your case he is died. minor son of the last heir can transfer that property after attaining age of majority (sec 14 TPA) because property can't be bind for infinite period. person having life interest has no right to alienate by settlement deed.
Shivendra Pratap Singh
Advocate, Lucknow
2798 Answers
41 Consultations
4.9 on 5.0

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