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Supreme Court Mention maintenance against property in the gift deed

By Rishabh Chamoli | 2023-01-30

It is not uncommon that parents gift their self earned properties to their children. While there are no expectations attached from this property transfer, parents still have a right to approach court if the children fail to look after them in their old age. However, it is now mandatory for parents to mention this clause in gift deed to protect their rights.

Senior citizens generally gift properties to their children with the understanding, hope and expectation that they would be looked after in their old age. In a recent ruling, the Supreme Court (SC) has urged parents to put the condition in writing in the gift deed to take care of them in their old age while gifting their property to children. In the absence of such a disclaimer, the property gift cannot be revoked in the event of children neglecting their parents.

On what grounds can a gift deed be challenged?
Under Sector 23 of the 2007 Act, the following conditions must be fulfilled in order to challenge the gift deed in the court:

A. The transfer must have been made subject to the condition that the transferee shall provide the basic amenities and basic physical needs to the transferor

B. The transferee refuses or fails to provide such amenities and physical needs to the transferor.

In this case, a transferor will be a parent who has willingly transferred the property to the children, referred to as transferee here. If both conditions are met, the transfer can be challenged in the court by the parent. The deed will be considered void and will be deemed to have been made by fraud or under influence.

How can a gift deed be revoked?
Under the Act, the revocation of a gift deed is possible through a maintenance tribunal. Parents can move to dedicated tribunals to raise a complaint against their neglectful children as mentioned in the Maintenance and Welfare of Parents and Senior Citizens Act, 2007.

What is the recent ruling of Supreme Court in gift deed cases?
A Gurgaon based mother moved the Maintenance Tribunal requesting the revocation of the gift deed alleging that her children are not taking care of her. The tribunal, on delving deep into the case, found the allegations to be true and annulled the gift deed. However, the Punjab and Haryana High Court (HC) disagreed with the tribunals decision. They pointed out that the gift deed cannot be revoked because the deed did not express a condition of maintenance in lieu of her property gift to her children. To put an end to such scenarios, the Supreme Court has made it essential for parents to include such a clause in writing to protect their rights and to revoke the gift deed, in case they are neglected by children.