Registration of Gift Deed

Introduction

Registration of a gift deed is an important legal requirement, especially for immovable property. The law ensures that such transfers are properly recorded and verified. However, courts have clarified the role of registration and acceptance in determining validity.

Meaning / Definition

Under Section 123 of the Transfer of Property Act, a gift of immovable property must be made through a registered document.
The document must be:

• Signed by the donor
• Attested (signed as witness) by at least two witnesses

Types of Registration Requirements

Gift of Immovable Property

• Must be made through a registered instrument
• Registration is compulsory for legal enforcement
• Must be signed and attested by two witnesses

Gift of Movable Property

• Can be made either by:
  • Registered instrument, or
  • Delivery (handing over possession)

Effect of Registration and Acceptance

Importance of Acceptance

Acceptance by the donee is the most essential requirement for a valid gift.
Without acceptance, even a registered gift is incomplete.

Gift Accepted but Not Registered

If:

• The donee accepts the gift, and
• The document is not yet registered

The gift is still considered valid in law, and the donee can compel (legally require) the donor to complete registration.

Effect of Registration Timing

Once accepted, the gift takes effect from the date of execution (signing), not from the date of registration.

Revocation Before Registration

After the donee accepts the gift, the donor cannot cancel (revoke) it, even if registration has not yet taken place.

Important Case Law

• Kalyan Sundaram v. Kumarappa (Privy Council)

Distinction / Comparison

Registration vs Acceptance

• Registration is a legal formality for enforcement
• Acceptance is essential for validity
• Without acceptance, gift is invalid even if registered
• Without registration, gift may still be valid if accepted (but may need registration for enforcement)

Practical Example

A executes a gift deed of his house in favour of B. B accepts the gift, but the document is not yet registered. Later, A tries to cancel the gift. This is not allowed. The gift is valid from the date of execution, and B can compel registration.

Summary

• Gift of immovable property must be registered
• Document must be signed and attested by two witnesses
• Acceptance is essential for validity
• Registered gift without acceptance is invalid
• Accepted gift without registration can still be valid
• Gift takes effect from date of execution, not registration
• Donor cannot revoke gift after acceptance