Unregistered gift deeds not valid, rules HC

Gift deeds will be valid only after they have been registered, the stamp duty is paid, and all other formalities are completed, the Bombay High Court recently said in a ruling. The ruling came in a battle between two sisters over their mother’s bungalow in a prime location in Chembur.

Leena D’Souza who had claimed her family had been gifted the bungalow by her mother was stopped from selling or creating any third party rights over the property. The reason: the gift deed reportedly made in 1985 was registered only in 2009, 10 years after Esther’s death in 1999.

Justice Roshan Dalvi last week rejected Leena’s plea to vacate its interim orders on a petition filed by the other sister, that the bungalow must come to all heirs according to the mother’s will. The judge noted that all gift deeds have to be compulsorily registered and it is only after stamp duty and other formalities are complete that it becomes valid.

The Gift Deed is a document compulsorily registerable. A document can be registered only after payment of the necessary stamp duty. The stamp duty would have to be adjudicated by the stamp authority. The document lodged for registration would remain at that until the necessary adjudication of the requisite stamp duty is applied for and made if the document did not show the payment of adequate and sufficient stamp duty from the inception. If, therefore, an executant of a document does not pay sufficient, adequate and requisite stamp duty, the document would remain unregistered. The Gift Deed which is unregistered cannot be acted upon and is not a valid gift. It is only upon registration that it would assume validity in law. That would be only when the necessary stamp duty along with penalty is paid and the document is registered. Edna had passed away before registration. Edna, who was the donor, had not paid requisite stamp duty during her lifetime. The Gift Deed could not take effect during her lifetime. She, therefore, continued to be the owner of the suit property during her lifetime. She has executed a will and codicil for which probate has now been applied for and is pending.

User

  Loading...
  Loading...

To continue


Please
Sign Up or Sign In
with

Email

We are listening!

Solve the equation and enter in the Captcha field.

Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
img
Debashis Basu
Founder