K. Balakrishnan v K. Kamalam (2004)

Transfer of Property · Gifts

Facts.

A donor executed a registered gift-deed of her share in property in favour of her minor son, the gift being accepted on his behalf. She later executed a deed purporting to cancel the gift, and then willed the same property to her daughter.

Issue.

Was the gift complete and irrevocable once executed, registered and accepted — or could the donor undo it by a later cancellation, and did retention of possession affect its validity?

Held.

The Supreme Court held the gift was complete and valid: acceptance by (or on behalf of) the donee of a duly executed and registered gift-deed passes ownership absolutely, and the donor’s retention of possession does not invalidate it. Once complete, the gift could not be revoked at the donor’s will; the later cancellation deed and will were ineffective (s.126 permits revocation only on an agreed contingency or on grounds that would rescind a contract).

Why it matters.

It fixes the completion point of a gift (execution + registration + acceptance) and the rule that a completed gift is irrevocable at will — the core of Unit IV’s gift topic.

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