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2026 Supreme(Jhk) 195

IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY PRASAD, J.
M/s Shakambari Builders Private Limited - Petitioner
Versus
State of Jharkhand – Respondent 
W.P. (C) No. 724 of 2025
Decided On : 07-01-2026

Advocates Appeared:
For the Petitioner:Mr. Rajendra Krishna, Advocate, Mr. Parth Jalan, Advocate
For the Respondent:Mr. Mohan Kr. Dubey, Ac To Ag, Mr. Anil Kr. Ganjhu, Advocate

A unilateral cancellation of a registered gift deed without the donee's consent is void ab initio, reaffirming that rights pass to the donee upon valid execution of the gift.

Headnote:(A) Transfer of Property Act, 1882 - Sections 122, 123, and 126 - Cancellation Deed - Petitioner's challenge to the cancellation of a registered gift deed executed in favor of the petitioner’s vendor - Court held that the unilateral cancellation was void ab initio as it violated statutory provisions, failing to inform the donee - Subsequent sale deed was also declared null and void - The right, title, and possession passed to the donee upon the execution of the gift deed, and the donor had no authority to unilaterally revoke. (Paras 1, 4, 16, 36, 54, 82)

Facts of the case:
The petitioner acquired the property via a gift deed recognized on 21.02.1986. The donor later attempted to cancel this deed unilaterally in 1990 without notifying the donee, followed by a sale deed made in 1992 to another party. The petitioner sought to nullify these actions, claiming they were illegal and void.

Findings of Court:
The cancellation deed was invalid due to the lack of notification to the donee, making it unauthorized and non-binding. Thus, the petitioner retained rightful ownership established by the original gift deed.

Issues: The primary issue was the validity of the cancellation of the gift deed without the donee's knowledge and the legality of the subsequent transaction.

Ratio Decidendi: The court ruled that a valid gift deed could not be unilaterally revoked without the consent of the donee, and that statutory processes under the Transfer of Property Act must be adhered to, validating the gift deed's continuance.

Result: Writ Petition allowed. Cancellation of the gift deed and subsequent sale declared null and void.

Table of Content
1. petitioner's prayer for declaratory relief. (Para 1 , 2)
2. arguments regarding cancellation of gift deed. (Para 3 , 4 , 5)
3. legal grounds citing the t.p. act. (Para 6 , 7 , 8)
4. respondent's arguments against maintainability of the writ. (Para 9 , 10 , 11)
5. counterarguments regarding prior litigation. (Para 20 , 21)
6. court's background on transaction history. (Para 22 , 23 , 24)
7. findings on revocation and legal effect of cancellation. (Para 70 , 76 , 82)
8. writ petition is allowed. (Para 83)

JUDGMENT :

SANJAY PRASAD, J.

The petitioner has made the following prayer in this writ petition:

“a. For issuance of appropriate writ(s), order(s) or direction(s) to hold and declare that the Respondent Authorities particularly Respondent No.2 do not have jurisdiction to cancel Registered Gift Deed No. 2159/86 dated 21st of February 1986 and to further hold the Deed of Cancellation bearing No. 7849 dated 11th of July 1990 is null and void and subsequent sale deed no. 6683 dated 24th of June 1992 by the Donor of Gift Deed No. 2159/86 dated 21st of February 1986 is null and void in the eye of law.

b. For issuance of appropriate writ(s), order(s) or direction(s) as this Hon’ble Court may deem just and proper in the facts and circumstances of the case doing conscionable justice to the petitioner."

2. Heard Mr. Rajendra Krishna, learned counsel for the petitioner, Mr. Mohan Kr. Dubey, learned counsel for the State and Mr. Anil Kr. Ganjhu, learned counsel for the respondent no.3.

3. Learned counsel for the petitioner has submitted that Cancellation Gift Deed by Kedar Nath Sahu dated 11.07.1990 (Annexure-4) in the office of Respondent No.2 is illegal, arbitrary and not sustainable in law. It is submitted that Cancellation of Gift Deed unilaterally by Kedar Nath Sahu is complete in violation of the judgment passed in the case of “ N. Thajudeen Vs. Tamil Nadu Khadi and Village Industries Board " reported in 2024 SCC OnLine SC 3037 and also in violation of Section 126 of the Transfer of Property Act. It is submitted that Cancellation Deed dated 11.07.1990 (Annexure-4) is void and ab initio and could not have been done unilaterally without informing the Donee in whose favour Gift Deed dated 21.02.1986 (Annexure-1) was executed.

4. It is submitted that initially Kedar Nath Sahu has executed a Registered Gift Deed dated 21.02.1986 in favour of Roshan Lal (Vide Annexure-1) with regard to the Scheduled Property. It is submitted that Gift was registered in the name of the petitioner on 21.02.1986 by Registered Gift Deed No. 2159/86 dated 21st of February 1986 in favour of Samrendra Kumar @ Roshan Lal by Kedar Nath Sahu (i.e. Annexure-1). Thereafter said Samrendra Kumar @ Roshan Lal sold the Scheduled Property to the petitioner by Registered Sale Deed dated 11.06.2020 (Annexure-2) on the consideration amount of Rs.95,00,000/- (Ninety Five Lakhs Only).

However, inadvertently, in the sale deed dated 11th of June 2020 (Annexure-2), the deed number of Gift Deed was inadvertently mentioned as 2154 instead of 2159 and therefore a Deed of Rectification bearing No. 5505 dated 5th of September 2022 was executed to correct the deed number of the Gift Deed. Thereafter, the Petitioner got his name mutated in the scheduled property vide order dated 20th of September 2022 passed in Mutation Case No. 120R27/2022-23.

5. However, the petitioner learnt recently that Kedar Nath Sahu, after execution of the Gift Deed bearing No. 2159/86 dated 21st of February 1986 (Annexure-1), executed a unilateral Cancellation Deed bearing No. 7849 dated 11th of July 1990 by which the Gift Deed No. 2159/86 dated 21st of February 1986 (Annexure-1) was cancelled.

Thereafter, Kedar Nath Sahu executed a Sale Deed bearing No. 6683 dated 24th of June 1992 (i.e. Annexure-5) by which Kedar Nath Sahu sold the Scheduled Property in favour of his son Manoj Kumar Gupta (father of the Respondent No. 3).

6. It is submitted that Section 123 of the T.P. Act (in short, T.P. Act) 1882 provides th

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