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Health Minister Rajitha Senaratne said issues have been raised on the rights of donees as the Court of Appeal upheld a judgment of a District Judge wherein the court had held that a donor can revoke an irrevocable deed of gift by executing a deed of revocation without filing action and obtaining a decision of court. “It also effects on lending institutions who are now placed in a disadvantaged position as they can lose the security on which the loan was granted, on a unilateral revocation by the donor,” Senaratne said.
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Accordingly the Cabinet of Ministers had approved a proposal by Wijayadasa Rajapaksa, Minister of Justice, to draft legislations to make provision for revocation of irrevocable deeds of gifts can be done only on the order of a competent court as recommended by the Law Commission.
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When elderly people transfer property ownership to their kith and kin on irrevocable deeds of gifts to obtain “benefits from lending institutions”, on certain occasions the donees act in a gross ingratitude manner towards the doner rendering the person helpless if unilateral decision is not exercised by him or her in revoking the the deed of gift. In the sighted case the district court used it discretion given the pathetic plight of the donor in accepting the revocation in issue and the appellet court upheld the decision too. Further the SC comprising a three judge bench then, led by former CJ Sarath N Silva did not rule in favour when an appeal was made against the very same judgement.Hence the provision to revoke a deed of gift unilaterally, made to benefit a doner should remain and on such occasion the liability incurred upon such security by financial institutions should transfer on to the original doner who effected the revocation. By this way the helpless will stand an opportunity to settle the matter with the institution concerned or redeem some money after an auction process for rest of his or her survival( in a situation where the doneer opts to default he financial institution due to the revocation by the doner). On the contrary,out of ordinary knowledge of the of the public, is it that easy to get a decree from a district court to annul a deed of gift made on “irrevocable” clause even under present provisions of law in case of gross ingratitude.Can the elderly and the feeble survive until a present day court decide to annul a such a deed of gift after a full trial? Hence do not act alone for the benefit of financial institutions only. The law shoul protect the most effected and leave allowance for special cases without laying a blanket on existing case law.This is once again a good avenue for those who earn a living through frustrations of the effected parties.I urge the law makers to think twice before implimenting these draft proposals.
Nicely said, Out ministers need to consider all the avenues instead of trying to protect the interest of the powerful only.
What will happen if the recipient of an irrevocable gift of Land, who is married, dies before the donor of the gift dies? Can the donor revoke the gift or has it got to pass on to the wife of the dead recipient.
This is a very good decision. A friend of mine was gifted a land by her father and she built a house on it with the help of her husband obtaining a personal a loan and is still paying it back.The father was living with them peacefully but the other siblings of her mislead the aged father and revoked the gifted property but the donee was totally unaware of it.
Today her family has broken up due to this issue. By being able to revoke gifted land without the knowledge of the donee aged parents are deceived by the other siblings who are not benefiting by the gift and are revoking deeds. And many cases where due to this the unity of many families been affected.