Summary on the Grounds, Deadlines and Lis Pendens
Many Donors later face situations where the Donee’s conduct forces them to reconsider a gift they once believed to be final. Although an irrevocable deed of gift is generally intended to be permanent, Sri Lankan law recognizes specific circumstances—cases of gross ingratitude—where a Donor may seek legal relief. The Article examines the legal principles governing the revocation of irrevocable deeds of gift in Sri Lanka and how these have evolved over time.
An irrevocable deed of gift is a voluntary gratuitous transfer of property or assets by the donor to the donee for no monetary consideration which once executed and accepted by the donee cannot be revoked, reclaimed, except under specific legal circumstances such as gross ingratitude proven in court.
Legal Position Prior to 2017
Under Roman-Dutch Law, an irrevocable deed of gift could be revoked only in limited and specific circumstances, namely:
- On the ground of gross ingratitude by the donee;
- If the donee failed to give effect to a direction as to the application of the gift (donatio sub modo);
- If the deed of gift includes a reserved power of revocation, it may be revoked by a subsequent deed;
- When the donor of a gift of great value subsequently has children.
Under Roman-Dutch principles, such revocation could only be effected through legal proceedings initiated in court on the above grounds.
However, in D.B. Wilson & Sumanawathie and Others (CA 535/95 (F)), the Court of Appeal upheld a District Court decision permitting a donor to revoke an irrevocable deed of gift by executing a Deed of Revocation, without obtaining a court order.
This ruling effectively enabled unilateral revocation of irrevocable gifts, creating uncertainty in property ownership and causing practical difficulties—particularly reluctance among financial institutions to accept such properties as security.
In response, and to restore the pre-existing legal position that revocation requires judicial intervention, the Law Commission recommended reforms, leading to the enactment of the Revocation of Irrevocable Deeds of Gift on the Ground of Gross Ingratitude Act, No. 5 of 2017.
Subsequent judicial decisions have treated D.B. Wilson & Sumanawathie and Others as having been decided per incuriam, and the Revocation of Irrevocable Deeds of Gift on the Ground of Gross Ingratitude Act, No. 5 of 2017 expressly reinstated the requirement of a court order for revocation on the ground of gross ingratitude.
Legal Position Post-2017
The Revocation of Irrevocable Deeds of Gift on the Ground of Gross Ingratitude Act, No. 5 of 2017 introduced a statutory framework providing that:-
- An irrevocable deed of gift may be revoked on the ground of gross ingratitude only by an order of a competent court, following an action instituted by the donor against the donee;
- Such action must be filed within ten years from the date of execution of such deed of gift and within two years from the date on which the cause of action arose;
- The donor is required to register a lis pendens with the relevant Land Registry where the deed of gift is registered or in the event the deed of gift sought to be revoked is not registered where the land is situated;
The above legal provisions help protect donors’ rights while also ensuring that gifts are not revoked arbitrarily without just cause demonstrated in court.
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