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Transfer of Property Act, 1882 · Chapter VII: Of Gifts

Section 126: When gift may be suspended or revoked

In plain words

Once complete, a gift generally cannot be revoked, with some exceptions.

  • The donor and donee can agree that it will be suspended or revoked on a specified event not depending on the donor's will.
  • A term letting the donor revoke at mere will makes the gift void to that extent.
  • A gift can be revoked on grounds that would let a contract be rescinded, such as fraud or coercion, but not for lack of consideration.
  • Buyers for value without notice are protected.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Read the in-depth explanation, with key Supreme Court rulings ↓

Official text

The donor and done may agree that on the happening of any specified event which does not depend on the will of the donor a it shall be suspended or revoked; but a gift which the parties agree shall be revocable wholly or in part at the mere well of the donor is void wholly or in part, as the case may be.

A gift also be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded.

Save as aforesaid, a gift cannot be revoked.

Nothing contained in this section shall be deemed to affect the rights of transferees for consideration without notice.

Illustrations

(a) a gives a field to B, reserving to himself, with B's assent, the right to take back the field in case B and his descendants dies before A, B dies without descendants in A's lifetime. A may take back the field.

(b) A gives a lakh of rupees to B, reserving to himself, with B's assent, the right to take back at pleasure Rs. 10, 000 out of the lakh. The gift holds good as to Rs. 90, 000, but is void as to Rs.10, 000, which continue to belong to A.

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Understanding this section

Section 126 says when a gift may be suspended or revoked. The donor and donee may agree that the gift will be suspended or revoked on a specified event that does not depend on the donor's will alone. A gift may also be revoked in any case where, if it were a contract, it could be rescinded, such as fraud or undue influence, but not for want of consideration.

No revocation at will

Once a gift is complete by a registered deed and acceptance, the donor cannot take it back by a later cancellation deed. A clause letting the donor revoke at their own pleasure is void. Unless the deed reserves a valid right of revocation on a specified event, or the gift was obtained by fraud or similar vitiating causes, a unilateral cancellation has no effect.

Gifts and wills

If the document shows that ownership was meant to pass only on the donor's death, it may be a will, which the maker can revoke. The wording and the conduct of the parties decide which it is.

Key Supreme Court rulings

Common mistakes

  • Assuming a donor can cancel a registered gift because the donee is ungrateful.
  • Treating want of consideration as a ground to revoke a gift.

Read with: Section 122 Transfer of Property Act, 1882, Section 123 Transfer of Property Act, 1882

Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.

Supreme Court judgments citing the section 126