Conditional gift deed
ASRAO
(Querist) 20 August 2012
This query is : Resolved
We have executed a conditional gift deed and transferred the ownership of the agriculture land to an Educational Society. We got the same registered also. There are two conditions:
1. The Society should use the proceeds of the agriculture income for the betterment of the education.
2. In the event of the educational institution promoted by the Society is closed or the Society is unable to provide education, the Society will transfer back the land at their costs.
The Society has not fulfilled the first condition. Can we revoke/ cancel the gift deed?
Regards,
AS Rao
ajay sethi
(Expert) 20 August 2012
126. When gift may be suspended or revoked.- The donor and done 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be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded.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
in your case conditional gift deed has been made . condition not fulfilled . it can be revoked with intervention of court
ASRAO
(Querist) 20 August 2012
Dear Shri. Ajay Sethi garu,
Thank you so much for a quick response.
This deed was executed in the month of Dec '06. While it may be difficult to define the timeline, I just want to get an idea on how much time does it take for the judgment, on an average?
What could be the potential counters the Donee can come up with?
Regards,
AS Rao
ajay sethi
(Expert) 20 August 2012
i am no guru .
depends upon pendency of court cases in court .
the donee will contend that agricultural income has been used for betterment of edication . it is advisable to see annual reports of educational institution . it must be containing detailed particulars of funds utilised during last few years
ASRAO
(Querist) 20 August 2012
That is very useful. One more point. Actually the donee has converted the agriculture land to commercial use and then constructed buildings. Isn't it a violation of the basic condition of the gift?
Sorry for taking up your time.
Regards,
Raja
