Transfer of Property Act, 1882 / Chapter VII - Of Gifts
Section 126 of the Transfer of Property Act, 1882: When a Gift May Be Suspended or Revoked
A completed gift generally cannot be withdrawn merely because the donor changes their mind. Section 126 sets out limited grounds for suspension or revocation, including an agreed event independent of the donor's will and grounds analogous to rescission of a contract.
Section 126 - Full statutory provision
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be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded.
Save as aforesaid, a gift cannot be revoked.
Nothing contained in this section shall be deemed to affect the rights of transferees for consideration without notice.
Illustrations
(a) A gives a field to B, reserving to himself, with B's assent, the right to take back the field in case B and his descendants die before A. B dies without descendants in A's lifetime. A may take back the field.
(b) A gives a lakh of rupees to B, reserving to himself, with B's assent, the right to take back at pleasure Rs. 10,000 out of the lakh. The gift holds good as to Rs. 90,000, but is void as to Rs. 10,000, which continue to belong to A.
The two illustrations are integral to the provision. The wording above retains all four operative paragraphs and both illustrations. The minor grammatical correction in illustration (a), "die" for "dies", follows the intended plural subject.
Meaning of revocation and suspension
Revocation means setting aside or withdrawing a gift on a legally recognised ground. Suspension means the operation of the gift is subject to an agreed condition. Section 126 must be read with Section 122, which defines a gift as a voluntary transfer of existing property without consideration, accepted by or for the donee, and Section 123, which governs how gifts are made.
When can a gift be revoked?
1. Agreed condition based on a specified event
The donor and donee may agree that a gift will be suspended or revoked upon a specified future event, provided that event does not depend merely on the donor's will. The agreement and the event must be established on the facts. A donor cannot reserve an unrestricted right to cancel the gift at pleasure: such a clause is void to the extent provided in Section 126.
2. Grounds on which a contract could be rescinded
A gift may also be challenged on legally applicable grounds analogous to rescission of contracts, such as fraud, coercion, undue influence or material misrepresentation, where their requirements are proved. Want or failure of consideration is expressly excluded, since a gift is by definition made without consideration. Allegations alone do not automatically revoke a completed gift; an appropriate legal remedy may be required.
3. Rights of an innocent transferee
The last paragraph protects a transferee who acquires the property for consideration and without notice. A dispute between donor and donee therefore does not automatically defeat the protected rights of such a subsequent transferee.
4. Other applicable legal provisions
Section 126 is not the only law potentially relevant to cancellation or avoidance of a transaction. For example, Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 may apply to certain transfers made subject to a condition to provide basic amenities and physical needs, where the statutory requirements are met. Personal law, special statutes and applicable state amendments also require separate consideration.
Explanation of the statutory illustrations
Illustration (a): A transfers a field to B with B's consent to a condition allowing its return if B and B's descendants die before A. When the specified event occurs, A may reclaim the field under the agreed condition. The triggering event is not at A's mere discretion.
Illustration (b): A gives B Rs. 1,00,000 but reserves an unrestricted right to take back Rs. 10,000 whenever A wishes. The gift remains effective for Rs. 90,000, while the attempted gift of Rs. 10,000 is void because revocation depends solely on A's pleasure.
Practical considerations
For immovable property, examine the registered gift deed, the wording and validity of any revocation condition, evidence of acceptance, and whether a subsequent transfer has occurred. A unilateral declaration or later change of mind should not be treated as sufficient by itself to cancel an otherwise valid completed gift. Any instrument or decree affecting title must also comply with applicable registration, property and procedural law.
Official legal resources
Consult the India Code official legislation database for the Transfer of Property Act, 1882, the Legislative Department and the Maintenance and Welfare of Parents and Senior Citizens Act, 2007. Verify applicable amendments and judicial interpretations before relying on the provision in a particular case.
General legal information. The validity of any gift or revocation depends on its terms, proof, applicable personal or special law, and the facts.