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Gifts are governed by the Indian Contract Act, 1872. The law provides that any gift that is made and accepted by the donee is final and cannot be revoked later on. So, if all the conditions of a valid gift are present, the same cannot be annulled by the donor later on, except on the ground that the consent of the donor was obtained by fraud, undue influence or coercion. The Supreme Court has held many times that a gift once validly made, cannot be cancelled later on, under any circumstances.
In order to ensure that parents and senior citizens are taken care of properly by their children or legal heirs, the central government passed ‘The Maintenance and Welfare of Parents and Senior Citizens Act, 2007’ (The Maintenance Act), which provides for certain circumstances under which gifts of property made by parents and senior citizens can be cancelled, at the option of the parent/senior citizen. This provisions is contained in Section 23 of The Maintenance Act and it reads as under:
As Section 23 of The Maintenance Act specifically provides that where the property has been gifted on the understanding that the transferee child/legal heir shall provide the basic needs and maintain the senior citizen or parent, any failure on the part of the child to honour such promise made, is tantamount to fraud. Such promise may be express or may be implied and may be inferred from the circumstances surrounding the transaction. Under such circumstances, the agreement to transfer the property shall be deemed to have been obtained by way of fraud and can be voidable by the aggrieved parent/senior citizen.
As the provisions of The Maintenance and Welfare of Parents and Senior Citizens Act, 2007 override the provisions of any other law in force in India, Section 23 will prevail and in such instances, the gifts/transfer of property that is made after coming into force of The Maintenance Act, becomes voidable at the option of the transferee. However, if the property had been transferred before The Maintenance Act came into force, it would be difficult for the parents to get the property back from their children.
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