The Section of 126 of the Transfer of Property Act (1882) covers the suspension or cancellation of the gift deed. The Section provides two methods of revocation, namely the mutually agreed revocation and revocation with the rescission.

The gift deed can be suspended or terminated upon the occasion of an unpredictable incident that is not in the donor’s realm of responsibility. The gift deed cannot be revoked exclusively on the basis of a will. The requirement for revoking a gift in these circumstances must be explicitly stated rather than implied. In the case of Mool Raj v. Jamna Devi (1995), the Court confirmed that unconditional gifts cannot be revoked by the donor. A clause in separate agreements with the giver and donee that deal with the gift agreement is legal and enforceable. They can therefore be grounds to revoke the gift. This was affirmed in the Court in the case of Thakur Raghunath Ji Maharaj v. Ramesh Chandra (2001).

Another way to revoke the gift deed is to do so by the process of rescission, which is akin to a contract. Because it is an uninvolved transfer of ownership from donors to the recipient, the evidence that consent from the recipient was not granted freely is the basis for revoking the gift. The section 126 in the Transfer of Property Act (1882) stipulates that gift documents could be invalidated on all grounds that the contract may be canceled. Section 19 of the Indian Contract Act (1872) is applicable in cases where the donor’s consent is obtained by coercion, fraudulent influence, or false representation. The contract for the gift can be canceled at the discretion of the person who gave it. In the event of the donor’s death, if a gift they made is going to be canceled for these reasons, their legal heirs can be sued on their own behalf. Any gift that is revoked due to this basis must be completed within three years from when the donor is informed of the decision. In addition to the above reasons, there aren’t any other methods by the process of a gift deed to be removed.

Relinquishment deed: an overview

The term “relinquishment” refers to the procedure by which the legal heir to the deceased person will transfer their property to another legal heir. It’s typically used when an individual dies without cause or without making an estate plan. In this case, the deceased’s property is automatically transferred to their legal inheritors. Therefore, the legal heirs now have the authority to decide on what is to be done with the property that was inherited. Property is relinquished at the time that the legal heirs of the property decide to sell the house instead of holding it. The legal document that the legal heir officially gives up their rights to the property they inherit and transfer the property to another person is known as a relinquishment deed.

Fundamental elements of a relinquishment of the deed

In order for a surrender deed to have validity, there must be certain fundamental characteristics it must have. These include:

1. The document must be in writing

The deed of relinquishment must be signed in writing in the case of the immovable properties by all parties concerned.

2. Witnesses

The surrender deed must be written and witnessed by two witnesses to be legally valid

3. Multiple inheritors

To allow a deed of relinquishment to have validity, it must not be less than one person inheriting the property that was relinquished.

4. Should be in favor of co-ownership

A relinquishment document cannot be executed in favor of any third person. The recipient of a deed of relinquishment must always be a co-owner of the property. In simpler terms, a surrender deed must be carried out of the legal estate of one heir. If that isn’t the scenario, then the transfer will be considered more of a gift than a transfer of property.

5. Effect

The process of relinquishment of property is completed with the signature of the deed of relinquishment, and the part that the legal heir has in who is transferring the property is decreased. The portion of the belongings held to the legal heir who benefits from the relinquishment grows immediately.

6. Irrevocability

Once it is formalized, a surrender document cannot be reverted or canceled even if parties assert that the transfer was in error.

7. Consideration is not mandatory

A surrender deed that is not accompanied by or without consideration is valid and can be recorded. It could or might be devoid of consideration.

The process of making a relinquishment 

Anyone who holds an interest in a property may be able to surrender the property. All the fundamentals of a legally valid contract, as outlined in Section 10 of the Indian Contract Act (1872), are applicable to relinquishment documents. A few other elements which must be specified in a relinquishment declaration are listed below.

The constituents of a relinquishment act

1. Introduction and title

Every relinquishment deed must include a name. This could be a “Relinquishment Deed” or “Deed of relinquishment’. The document should also contain an introduction and clearly indicate the date of its creation.

2. The executors’ details

The relevant information regarding the person who is signing the relinquishment declaration, which is the legal heir to the property concerned, must be identified. They are usually known as the executor or releasor. Relevant details include the full address, name, spouse, and so on.

3. Information about the shares

All parties involved must be able to clearly state the percentage of shares they hold prior to surrender, along with any other relevant information about their shares.

4. The statement of the release of the executor

The executor must clearly state that they have released their share of the inheritance property to the beneficiary of their own volition and with no financial transaction. In addition to declaring this, the description of the property must be re-stated, and the executor should declare that they do not have any right over the property they have relinquished in the future.

The registration of a relinquishment deed

In accordance with section 17 of the Registration Act (1908), A surrender deed is legally binding and valid for the parties concerned only when it has been recorded. It is also mandatory that the registration be done in the Sub-Registrar’s office, which is close to the location at issue. The cost for registration varies according to the state that the property being relinquished is in.

Revocation of a relinquishment deed

It is impossible to cancel the surrender deed. If the circumstances warrant it, people involved can contest the deed in Court under certain circumstances of law. This is the case in situations where the act is done by fraud, coercion, or any other unlawful methods. If one party doesn’t be in agreement with the terms, then the issue will be resolved by an administrative court. The cancellation of a relinquishment decree must be done within the first three years following the date of registration.

Conclusion

The process of succession and estate planning is a complex one that must be evaluated attentively. The decision must be made after considering all possibilities and determining the most efficient and effective solution.

The most commonly used instruments for the estate plan are trusts, wills deeds, and relinquishing deeds. It is a matter of making a decision between these three options depending on the particulars of the particular situation and is a matter of opinion. In the case in which the inheritance of property following dies, the deceased testator would be the most suitable option to be done, and a will would be the best choice. In contrast, if the donor would like to leave the property’s interest immediately during the life of the donor, a deed of gift will be the most appropriate option. But, the individual’s motives alone won’t be the determining factor.

In order to achieve the best result when dealing with the planning of succession and estates, the person must be aware of other elements, including the costs associated with the planning and tax implications.