Author - Pro .

Prakash k
-~oirfl,
d .. 11111110 yable .. means. pcnnanent fi
I Author - Prof. Prakash K. Mokal .
... , Ih.: "or bl property penn ' 1J\e,, 7.
.. ,f th,· ",,rd .. 1111111<" -1 " .: ·h.:d lO 11111110\·a e anent]y ", I\,
'\,,k' :\lc Jn~n"" < ·J d the pr,)pl'fl\ mu,1 b.: a1tal '/R 2005 Kami 287 'S~t h m1 Aci extends u.'lder lDe
1b1c 1 b, r, 111<'\'
10 Bank LJd., " ~. (d) "regis tered " means. registered many pan of the tcmtoncs to °"h1c "
\~cu \111I f' I rd. ii<. Bharat Oi-cr<<'al , law for the time bcmg m force rcgulatmg the reg1strnt1on of documents;

Drrinitions of ·immo, able properh, (e) "attached to the earth" mean!., -

a) rooted m the earth. as m the case of trees and shrubs,
fhc (,rncral Clau~cs \ct. !S97 !Section J (26/)[ : ro anse out of land. and things Ollachec1 b) imbedded m the earth as m the case of walls or bu1\dmgs. or .
1
, ' r1 ,r.,n ,!tall mclud<' land bene ,rsd 1/ e earth·•. to lh c) attached to what 1s so' embedded for the permanent beneficial enJoymcnt of that to which it ~
. - . I a11ache 10 I
e Transfer of Property Act,
I 882
.
e
attached,
,anh. or p,nn,111,111 ,;a.11oud to a,nl ung
T''.c ~t'<'\ ,. dc•~muon 1s also made applicable to th 0
"actionable claim" means a claim to any debt, other than a debt secured b)' mortgage ;
3 • ditai , allowances, rights to ways, light (j) immovable property or by bypothecat1on or pledge of movable property, or to an)' ')cne:'cia_
The Indian Registration Act, 1908 (Sc~tion 1:
th ~
', 11,11 ,1,1c propern mcludes lands: b111/d111gs, he1e th~n s attached to earth, but does n s,J_err;es mterest m movable property not in the possession, of either actual or constructive, of
;isl:, n, ,, or an_, 01h.:r benefits 10 arise our of la nd afld g 01 1
nc/11d' claimant, which the Civil Courts recognize as affordmg grounds for relief. \~ hether such debt
0

s1.:i11J111g umber. gro,1 mg crops or grass"_ e beneficial interest be existent, accruing, conditional or contmgent,

The meaning of certain words used in the above definitions : (g) "a person is said to have notice" of a fact ':"hen he actually kno,.., s that fact, or w 11en. but for
willful abstention from enquiry or search which he ought to have made, or gross negligence. he
"land" - The term ' land ' 10cludes the following elements : would have known it; . . . d
a) determinate port10n of the surface of the earth: Expl,anation I - Where any transaction relatmg to unmovable propert1 1s required by la,, to be an
b) column of atr space above the surface; has been effected by a registered instrument, any person acqumng such property or an) part of. or
c) the ground beneath the surface; . share or interest in. such property shall be deemed to have notice of such mstrument as from the date
t
d) all objects which are on or under the surface in its natural states including minerals I of registration or. where the property 1s not all situated in one sub-district, or where the regiS ered
ponds, rivers within its boundary, buildings, walls, fences. ' akes, instrument has been registered under sub-section (2) of Section 30 of the lnd1an Registration Act.
\ 908 (16 of 1908), from the earliest date on ,,hich any memorandum of such registered mstroment
"benefits to arise out of land" - Every ?enefit arifilng out of immovabl_e prope~y an? every intere bas been filed by any Sub-Registrar within \vhose sub-district any part of the property ,, h1ch is being
msuch p_roperty IS _also regarded as Immovable ~~operty.. The Indian Reg'.~_tration Act, 19
st acquired, or of the property wherein a share or mterest is being acquired_ 1s situated :
~xpressly mcludes - 1) benefits to anse out of land, u) hereditary allowances, 111) right of w 8, ? Provided that - th e
lights. v) femes and fisheries, in the definition of immovable property. vi) A debt secure:Y, IV) 1) the instrument has been registered and its registration completed m the manner prescnbed b)
mortgage of immovable property (i.e the interest of mortgagee in immovable property) is • by a lndian Registration Act, 1908 ( I 6 of I 908). and the rules made thereunder,
th e la nd , and is therefore, regarded as immovable property. vii) the right 2) the instrument or memorandum has been dul) entered or filed. as the case may be. in books kept
IIl 10 coll ant interest
immovable p rt .. .) h · ec rent 0f
house_ ro~e Y vm l e right to collect lac from trees, ix) a right to take minerals, x) rent fi under Section SI of that Act, and
xi) A are all mstances of benefits to anse out of land, and hence, regarded as immovable rorn a 3) the particulars regarding the transaction to which the mstrument relates have been correct\)
;heref; gras_s is movable property, but a right to cut grass would be a benefit arising out f ]property. entered in the indexes kept under Section 55 of that Act.
ore, immovable property. o and, and Explanation II - Any person acquiring any 1mmo\ able property or an) share or mterest m an) "-Uch
property shall be deemed to have notic~ of the title. 1f an-:,. of any person,, ho 1s for the time being m
"altaclzed to earth" Th "
shrubs· ii th · . - e term attached to earth" includes. i thin s ro actual possession thereof
· mgs 1mbedded in the earth h . · Explanation III - A person shall be deemed to ha,e had notice of any fact 1f his agent acqU\rC'>
grass - these are re d d - ouses and buildin s· iii stand
ar e as severable from the land and hence movable nol1ce thereof whilst acting on his behalf m the course ofbusmess to \\h1ch that fact 1s matenal
(b) "instrument" mea Provided that. if the agent fraudulent\) conceals the fact, the pnncipal shall not be charged
ns. a non-testamentary instrument· with notice thereof as agamst any person who,, as a party to or otherwise cognizant of the fraud.
(c) "a/tested" in relation to . ' [Please refer answer to Question No. 23 given in this Book].
by two or more witne an mstrument, means and shall be deemed
instrument or has sses each of whom has seen the exe t always to have meant attested S . 4 : Enactments relating to contracts to be taken as part of Contract Act and supplemental to
of the exec,utant o:~en some other person sign the instrume ct u anht sign or affix his mark to the the Registration Act - The Chapters and Sections of this Act which relate to contract:;. shall b.::
, as received fro tl n m t e presence d b h
or mark, or of the signatu f m 1e executant a personal kn
the presence of the execu;: o_ ~uch other person, and each of:~ an y t e direction
owled~ement of his signature
shall have been present at thnt, ut It_ shall not be necessary th t om has signed the instrument in
taken as part of the Indian Contract Act, I 872
And S . 54, paragraphs 2 and 3. Ss. 59. 107 and 123 shall be read as supp\ementa\ to tho:: lnd1:m
Registration Act, I 908. [Short notes and Two sentence Answers can be asked 011 S. 3 above/.
e same time a d a more than O O f .
' n no particular fo f . ne such witnesses
nn o attestation shall be necessary;
 Author - Prof. Prak
8.
------------- ~
-~ n,

, Elaborate tl1e different kind

(}. I: \n:il_, SC the ('()fll'C/JI of 'PropcdJ . s Of t>t 9. Author- Prof. Prokash K. Maka/.
nith their diffaent fr:itures. O~~~
l ii) ·1ang1blc and 111lang1blc property,
iii) lnlcllcc1ual property;
iy) Copyright-patents and designs-trademark\,
v) Geographical indicalJons
Concept and 'k:mino of propcrt1;
,,The kinds of properly arc summanscd as under
The· tc·mi ·rrnpcrt_, · means. anything that is capable of being owned. It i ncludes material
.1bstrJct 1/11ng.
11 di JS .
1h1ng
, ~I
1) Movable and Immovable Property:
I he Act docs not delme movable property"
The· rcnn ·Proper1) · has not been defined under the Transfer of Property Act. Howeve . propc!:!}'." as under -
used mus· 111dest sense. Even though the term 'Property' has not been explained w·ri• I rt ts b - "Movable property 1s the property of every descn.E_tlon ~Ce.l).Llm_movable [J.roperty".
defirntion. it includes an actionable claim and the riuht to conveyance of a land, but do lhc Proel!Jg The Indian Re21strat1on Act defines "movable property as _ -
I . o " d . J d es nor 1. Per . "Movable property mcludes property of every descnption exeludmg immovable roperty but
t ie pr~pert) 11 h1ch 1s non-e>.istent. In other words, "Properly oes no'. me u e such a propert 1lcJUde
is not m e\1stence at the time when the transfer is effected. Properly mcludes every k'in d of Y\i,h mcludmg standmg timber growmg crops and grass". - -- p
. Ju . ich Growmg crops are not limited to annuai'croostiut also mclude..fil!. vegetables
re Iauon to a t ng which is known as assets. tight 1
,,,---- ~ The term '1mmgyable p_rQ2.e_rty' 1s not defined under the Act ScilionJ. of the Act merely st:uc,
that, "Immovable property does not include standing timber e.rowmg crops or grass"
In R. C. Cooper vis. Unio11 of India, (AIR 1970 SC 564, 591 , para 40) the Supreme Cou
T1 has &ive
The General Clauses Act defines "immovable property" as under -
a com.frehens1ve definition of the term 'property, as under:-
"Immovable property shall include land, benefits to arise~of land, things attached to th.:
Property means, the highest right a man can have to anything, being that right on h n ea~th, or permanently fastened to anythmg attached to the earth" -
ort rteneruedn!s. goods or chattels which does not depend on another's courtesy- it includee as to land The Indian &;ggjlration Act defines "immovable property" as -
es a es an mterests in co . . ' s own
e\'e . , . rporea 1 thrngs, and also nghts, such as, trademarks, copyrights ership
n ng,11s m personam c bl f . . , patent '
right to or a thin a c . apa e o tra~sfer o r ~ , such_ as deb'.s; and signifies a b sand "~movable property mcludes land. bmldmgs. hereditary allowances. casement nghts, such as.
successio d t \ ?nsidered as havrng a money value, especially with reference t enefic1a/ right to way, right to light, femes, fisheries or any other benefits which come mto existence out of
n, an o t e1r capacity ot;_~ " - o transf~r land and thin~s which are attached to earth, but not standm!! timber growmg crops or grass"
Real and Personal Property : / Immovable property does not mc111de standillg timber. gro,, mg crops o.:. grass. for example.
~ d1strnction betw R 1 . when a person sells limber, such timber 1s to be cut and taken a\\ay, then 1t has no connecllon ': 1th
~ilJ¥ The - ee~UJroperty and Personal propeI1Y_ 1s based on historic 1
. rea 1 property meant h t b. fi d a reaso the land, bec~use. it becomes separ~t~he land, and 1"its. therefore, regarded as seEah:_
Personal property meant w 'w a was su ~eel to ~i.QSJ pr~ailing in En 1--=--n tn
_such period oriain~- , hatdwas not so subject to feudal perifili: The interests in land g and and eropcrty as movable property. But, if a person gives a right to another person to r~moYe a\\ the tree,
-· "' y_ create were called 'real pro , peculiar 1 which may grow m his land for the ne:--t five years, this will not be considered as transfer of mo,ablc
~ bsequently created were c;;jJtd ' I as . perty and other interest wh1cl1 o property, but 1t will be considered as transfer of interest m land. and as such, can be cons1derc<l as
--- ' persona prop:rty'. Were
liiiffiOVable pro~y, because, the trees flourish on the land and continue to be dependent on the land
In the period of feudal s stern h . for (he fi vc years
have only a n ~ ~ d ~he ~ng was the only owner of ili_e land, and a subJcct In order to ascertain whether the things which arc ~ed. from the land, are mo,ablc or
ownership. A subject could h _ , n ere_ ore, the Real property was not the sub cct could 1mmovab~rnJ_:>.erty, tt is necessary to ensure that, whethe_r there 1s_any intention to separate them
s~bject to absolute ownership a~~ o~y a /1m1ted right i.e. estate, therefore Per$on~/ ~ro of absolute immediately from the land for the purpose of sale. If a person sells his house 1t wt\\ be treated as s:ttc
alienated. The Real . e ea/ property was original/y such a ro . pcrt_y was the of immovable__propcrty, but 1f he demolishes ~ouse and sells the tiles, wood. bncks. etc. that will
available fo property was ~ / a o f e Tor th p perty, which could not be
r payment of debts 1 . . ~nent of debts J-Jo . be treated as sale ofmovabl~ro~f!L
of Estate Act 1838" d h on y m Nrneteenth Centu_ry with thee . . - . wever. ti became ~ d1s1mctioo between "movable" and "tmmovable" property has been defined by ~
-- ' 'an t e "Land Transfer Act, 1897". rncrgcncc of the "Admini~J@lion
Holloway as under - .
Real property was such "Movability may be defined to be a capactjy ma thmg of surfenng altcrnl!on of the re\atlon ol
r~/axation to this rule with t property which could not be willed ~ c . lmmo~bil1ty 1s incapacity for such altera~n lf, however. a thmg cannot change_its pla~c
alienable by will. he e~rgence of Statute of Wills away. However, there was without injury to the quality by virtue oL which 1t is, what 1t 1s, 1t 1s_11111no,able. Certam thmgs. such
in / 540 and the propertueca~ as, a piece of land, are in all circumstances i~ova~le Other things. such as, trees atta:hc~ to t~c
_Kinds of Ptopetty.t ground are, so long as they arc so attached, immovable; ,, hen the severance has been ~lectcll, the)
i) ~vab/e and i m m o v a ~ becorriein'o, ab le",
In Sukry Kurdepa vis. Goondakull, ( 1872) the Madras High Court ohsmcd as folloM -
 Author - Pro . Prakash I(
10. • [}?Oh
91
. though attached to earth are not r
5
"StandnH! t111iber, gro,, rng crops and g,as r tO trees which are grown for cutt· egarc1" 11. Author Prof. Prakash K. Mokal.
.,_ - •• d 1·1111 bcr" rcters ing ,q
1111mm able property 1 he 1mn st:m mg ( b .Id . l ~ u, e s<hhtt ~' ms, etc . or for manur:iactu anc1 l •·~
11
used as limber. c.l!. - used for ll!f._purposc O u, be cu t an d used as timber , are ~ not 1· r eOl"I T~e copyright proteQ:ts nghts over certam ob1ects such as, literary, musical, dra ~ works.
etc. Trees "h1ch an: rn such_a state that _11icy can round, growing and not meant 1 rn111ov . p~ntom~ choreogr~h1f works, pictona~_ gr~h1c__,_ architectural and sculptural works, motion
proper! ) llo" c,er, trees which are standing on th~ g_ tended to be cut, and used as /1 be us/hi, pictures and other aud10-v (sual works and sound recordmgs, computer soft-wares, email, etc
t1111 bcr. 110111d be 1111mov:ih!c propc~ty. These trees, if ll1 11lber~ Patents: -
~ y''. ()\\\~ Paten~ is an ex.du~ive ri , l granted to an inventor to exploit and market the fruit of his mnovallv_:!
tech~1ca: or scien~iflc t~llmt for a penod of twenty years computed from the date of the film_g_ of the
~pphcation. ln this peno,3 of twenty years, he has also got nght to prevent others from_co211gg his
2) CorporeaLproperty or Iaugiblc Property: . . 11 .
T~gi~le or corporeal prop~ has a body o: a ~ ex~•.1 mcludes all ma . invention After the explliY of twenty years of moD.QP.cly , the nght p ~ the publtc domam.
Tracle-mark: -· -
obJects or things. such a~ uildings, car, machID_er taoist mm~ey, COl lS , gold, o~anientstet:ta]
"Trademark" mea~s, a mark capable of being represented graphically and which 1s capable of
Thus, anything that can be seen, touc11e i !£It, or perceive~ 1s a mat_enal or corporeal ~bJect. A ' etc
nd distinguishing the goods or services of one person from those of others and may mclude shape of
can own a ri "0 ht over such obiect to the full use of-such ob~t or !lungI a h not. lo the Iunited UsePerso.
0 ,,
A person who ha~ly a limited right to use of the~ for examp e, ~ e nghl to draw water f1t,
J ~
goods, their pa<;;kWn . and combination of colours·
Mark:
someone else 's well. Such a person is not the owner of that thmg, b_~t he IS only an encum~r°lll "Mark includes a_ devi :e, bra~d, _heading, label, ticket, name signature word. le\!_er.,_ numeral~e__
Corporeal pr..opertµ divjded into: i) Mo't'able prop.eiiy, and 11) Immovable property. of goods, packagmg o combination of colours or any_ combination thereat'' .
or Tangible property has a body or . a material existence.·
It includes all rnate 11·
. Corporeal . Graphical repr •sentation:
ob1ects or t~mgs, such as land, buildings,_ca_!:i__l.nach11]f[YJ-l_QQls_, j11o~ey, corns, gold , ornaments ~1 "Grfil)hica\ representa 'ion means, a repr(ls_elltation of a trademark in a paper form" . ln a paper form
Thus, a~lung_that can be seen.1. touched, felt, or perce1ved~ m_at_enal or corporeal object. A ~ etc. does not mean that it nust be on a piece of paper or must be wntten or printed on a piece of papec it
can own a nght over such object to the full use of s ~ r thmg and not to the Iimited p rson1 simply means that, thi~ ~ad.emark shou_ld be c~pable of bemg put on th_e Register m th,; 1,1b)'s1cal form
A~son who has only a lim.i.Mr.ig)1t to use of the thing, for example, the right to draw w~of 1 and also capable ofloemg published m the 1ourna\. Thus, the gra2hic represen.\.a..ti..o_n__fac1\itates the
~ I
else 's well. Such a person is not the owner o!Jhat _!hjng, but he is only an encumb~lll
I r; ·b . . ncer
registration of a\\ td demarks. ln other words, a\\ trademarks can be registered by their graph1~
ncorporea _\!ntang1 le)-12!9.11.~ includes property or proprietary _nghts, such as intell~~ representations.
property =-:opy-nghts, patents, des1@S and trade-marks, and personal nghts capable of tran 5 ~ tua1
transm1ss1_on such as debts, etc. er or Tangible Immovable propertv:
Under Eng\isl1 \aw the tangible immovable property is called co_!llorea\ hereditamen\, and the
intangible immova ~le property is calledm.corporea\ hered1tament.
3) Incorporeal Property or Intangible Property: T~m, in his "New Law of Real Proper.Jy" explains the distmction between the corporeal
and incorporeal hlreditament as follows - "A corporeal hereditament is an mterest m land m
Property" and "Proprietary rights", and Intangible Property: possession, i.e. a -g~ sent rig_ht to enjoy the possession of \and. An mcorporeal hered1tament 1s a n g~t
riThehtsterm •
· 0f_ w1·de import.
of a"property" is 1n the widest se~e of the term , property includes al 1 1, over \and in the pc ssess1on of another, which may be a future nght to possession, or a nght to use \or
g . P~- Thus, mcorporeal nght, such as, 'right to life' , 'right to personal libcrt , WI a special purpose ' and in the possession of another, eg. a nght of way".
mamage, etc. IS t)le mcorpo;eal roperty of the person. y ' rtghljo
The tenn "prope:!Y:_
proprietary rightsconc~rnin _or t 1e _Q_U!]JOSes of I~ Transfer of Property Act , can be used to tnclude
as, land, buildings, machine~/01:0~:ea\ or rncorpore~l property, for instance, corporea l property, such
CHAPTER-II
ownership of a tangible (mate/ial) obj:;t:~~/oodwdl. ln other words, corporeal ri ght is the nght of
.
mtelleclual property - conv-rigl
h· =1
y t
Incorporeal (mtangible) pro ert incl d .
u es I) the ownership of intangible Obj ects such as
1 s, paten.ts. gpod will desiPn d d ' ·
"T ' NSFERS OF PROPERTY BY A.CT OF P AR1'\ES"
(Ss. S to 53A)
0 wners_ 'P of a right in someone else's r; , ~ s-;_n Ira c-marks, etc. and ii) the
Sccunt1cs, Trusts, etc. p perty (}tira 111 re a/1e11a) , such as, Lease, Servitudes,
Sections 5 to 12 :
Intellectual Property : _ th
Copyright: Q. 2 : Exp~ain the !!!eaning of "~{er of 'Pr~"• Enumerate e ty"Qe
Section 14 of the Copyijg_ht Act 19 property that can be trans{erred.
an adaptation and . --'-' -2!, defines copyright as "an . .
OR
dramatic, musical, a;~:;tse_ of other rights, with referenc~ to ;:cl~1s1ve nght to make a copy, and f- d d the "irans
fhc term 'co . l c: c_mematograph films and sound re d' ng1ble ,,orks, examples, literary, Illustrate fnd ~~~~.~s what property cannot be trans erre un er
pyng 11 simply mca , . h cor mo"
ns, ng I to copy'. It com~·
of the works to make co
by law
·
pies thereof, and to exclus1vcly_ e _P ises the exclusive right of the owner
xerc1se vario h . - --
Proper ~
~ us ot er nghts granted t2_hlg)
 ---------
lll\ll'l'r:
12.
Al)thor - Pro . Prakash I<
. ~o~ - 13
At1thor-Prof Prakash K Mokal

m
' ,..Dcfin1tion ol 1 ran,fer or Proper!\ : \, , · , · Section 6 of the I r:in,fcr of Pro rrt~ \rt. there arr nine kind, of r
, h, , •mi ·Tran,fcr ot Pror"m • a\ 11ndcr ,\hir • tran,frrrrd .
1 fl p rty included m ny on f the n ne x p r.,
1,cction :i of the tran,fci of Property ,\ct Jcfi!_!S, l c
be
T, ,11 1/1 r uf f'/'//fJCr/\ mcm11, lh
1) 11110,1 '" 11/urh " an a,wca1on or ah "dnuf/ra/
ii) a /11111g ,,u 1m1 (111clud1111: o I ompa11, (
1111 orporrw d 111 11011
iii)~
fr) l!.!!.!I!I.!ll,
v) Ill {If(\( Ill(}/ rn /itlllfl'

l'l)!Q_
a) om 01 more olhn It, till! 110 wn1 , or
b) to lum~d{ (a\ [01 I11I1anrt. ~h111 11 I
tnntrc to l11m1elf 111 !,11 111d111d11al
p1 non tramfrn pr'!f]J:.rt, J1r11T1 h 111 1 If 11
/11\((Jll((•, {I Korta of 1/J,, Ill [ Ill l,11 ropa
11111hcn 011 ncrntor ,if (I Will 1m11i/1rrn
/us pmat1 rapa1111 01"frr,0/1'11 01
c) to h111filfl..I!11!.lf!!lt' OI mrm othrr /11,,!l.JI< rm

, In other\\ ord , lr<1n,k1 of propL"TlY unplie~ ch

prCSllll or future property to one or more o'ha p
means lo pct fon11 the ,il I ol lrim,kr
1 he ,~ord pcr\on indudn, not only hum
body of pc1'om 11!1cthl'.r 1morpor,1tcd 01 110•
1 r n,ft I of propcrt} 11npl1c, 1h~ tr n fir

tr ll, fer ol 0\\ ncrsl11p of movable' pwperty l'I ,

L a b propcn.} 111 good, 1s rnv~1rd nd ohm db}

I 1 :1n,1t1 of Prop(', 1, indudt , .

•I lrnn,frrofmatt 1 1 uch
ii/ l r1r f •ol r,ght
iit/ Tr mC r of debt

hinch ol (lrtl(ll'I"(\ that (,1!11101 hl' tr 1rn,rt1 reel

or
L\\l'lllial h·.11un, ul a, ulid tr.111\fu
 Author - Pro . Prakash I(
. Mo1r9,
. . s contincd ll1 the cntoynwnt only .•ind such casc111c 15. Author Prof. Prakash K. Maka/.
th, \.md l h,· ,·.1senw111.11, I ig~ll. there~OfL, ~-th;; ,crson l\t~t,,
rp•ht c.,mw1 b,· tr.m~ti:rred 111 l,1\ om 01 .,m t 1- -
10
r~ampk : , Ins a nght or way o, er an adJommg Plot or 9) Transfer opposed lo nature of lhc inlcrc~t affected for an unlawful ob1ecl or consideration
- \ 1s th~ \\ ucr .:,f .1 rcslik11t1,1l l1,111se .mJ h". : ; ~ bdong111g lll J\. and his nght of way ov. l.1~11 cnon legally disqualified:
2 Wnenthc property 1s dedicated to the reltg1ous purpo~I! or to th1.: public, ~uch property c a nnot
'-i-,;,1..:m,gm£.--l0--l~ I !ere. house is the Jo111111,rn~ ''.~:~~cannot sell/transfer only his nght of \Va er lh,
.1 J_1,, 1mnf: pl,,t 1,; l11s scr~,·nt henta_ge In '.his~· · ofwny would ;1lso pass on to A Y lo~ be transferred. because such transfer 1s opposed to the nature of in!£~t affected th~rcby :Vloreo vcr.
111
Hui 1t h,· ~,·lb lr.111,;fc·rs his house t,, "\., th1e11 th1e r1g if the obJect or cons1tlcrat1on of a transfer 1s un\m,\ ful, such property cannot b~ l~»l<=t!,£9
. . . ment to the O" ner ersonn ll v 8
-n \n in1e1,·st in the iro er!\ is 1·estricted 111 its en °' lld such s. 7 : Persons....Compelent to Transfer -
int,-r~st ca11111H be transfen-cd: restnctcJ to the cnJoymcnt of the Sccuon 7 of the Act lay:. down the capac11, of the per~on~ comp.:tem to transfer:
11 1 "' Every _pcr,,on competent to contract and entitled lo _tran,,ferabl~QJ;J.;rt)', or authon,cd to
l!_11s 1~c of pr_~ crl\ m "h1ch the mtere st 10 s ~ntc~cst O\\·ner 01
th.11 pr,,pcrty pcl'Son.1\1) . such owner cannot trnnsfcr hi. · dispose of transferable property not his 0\\n. 1s competent to 1ran,,fer such proi:,.£!]Y cnhcr ,, holl:,. or
part. and either ab~olutc!_y o_r:,::cmd~uonall)_. 111 the circumstances, to the e"tent ..intl m the manner .
E,:m111ll' : sc such crson cannot transfer h 10
If .1 room 1s g1, en or kn1 to a person for 111s D£_sonnl \1 . • as n gl~l of _pre-emption 1. e r is fight or allowed and prescnbed by an) law tor t.nell!Jle be111_82~--.
en_1oymen1 of ~at room 10 anQ!11er pcrsoJ\ The intereSl su~I~ ice ~enure and right \\ hich ~revent1on Of '\ person an a b s o l u t ~ t h ~ m u s t be comp.:\ent to contract un_tlcr Scc:l10n 11 o f t~_.:
1111r oduct10n ot strangers as co-share~. ~ a n c e n~. ,cf\ e trans!..:rrcd e restricted 1ncitar1Contract Act. 1872 - i) must ha\ e completed 18 1ea_D> Q.f a~e. ii) mu:.t be of sound mind , 111)
to 1he e.!:.lo.l.·ment of a ~on, nnd therefore. such nght cannot b must not be d1squali!Tea or prohtb;ted from contractmgltransfemng under any la,\ tor lune being 111
force, e g. msol\'ent. alien enemy cannot transfer
5) .\ ri 0 ht to future maintenance in" lrnte, er manner arisin" secured or determine d ca n not b
transferred: ~ S. 8 : Operation of transfer -
.--\ nght 10 mamtenancc i.e. right 10.futu[e mamtcnance anSmg m "hateYer manner, \\hethe Unkss a different mtention is e'l.pressed or necessanl) implied. ::i transfer of prop.:rt) pas,cs
secured or determin.ed, cannot be transferred m ra,our of another person. r forth\\ 1th to the transferee all the 111tereS!\\h1ch the transferor 1s then capable o{ pa,,:.mg m the
E'\.nmple: propert) and m the legal mc1dents thereof.
A mother cannot transfer her nghl of mamtenan~n tin our of her daughter. and if the mother lllak Such mc1dems 111c\ude. "here the propcrt) 1:. \and. the ea..,,cm.:nb annc,cd 1h.:rcw, the rem,-.
an a1temp1 Lo transfer her right of ~ure maintenance. such attempt to transfer her nght : and profits thereof accrumg after the transfer. and all thm 0 s attached lo the earth; .
mamtenance "11! be treated as 111valid under t11e pro\ 1s1ons of the Transfer of Property Act. 188 2 and. \\ here the propert) 1s machmeT) allached to the earth. the mo, abk pan» thcr.:ot:
and,\\ here the propert) 1s a house. the casements anne,eJ thereto the rent there,>! aecnn~ "
0
after the transfer and the locks ke,s. bars doors \\ mdo\\,. .md all other thm s pro, 1JeJ t,,r
6) A mere ri 0 ht to su e cannot be transferred :
A_ mere nght to sue cannot be transferred. because a person \\ ho 1s affected by a breach oerrnanent use there\\ 1th. .
and, \\ here the propcn, 1s a dg,t or ot_hcr act1onablc claim. the secunt1c~ thcl'.£!QI \e,_- cp~
comrac1. or by a tort. has a right lo s u ~ t h e ~rsonal t[)J.U[Y s.u.[(cn:.d b) him. and thcrefo , ~ \\ here 1hc, arc a\~o for other debts or claims not transt(:n:i.:J to the tr:msforcc). but m,t arrea r, ,ii
cannot transfer this nghL to another person to sue for the legal rnJury sustamecl tu_ luro re, e
E'\.nmpk: mtcrcst ac~rucd before the tr::msfec
0 1 1
and. "here the proper!) 1s monc) or o_ther pror.crtl ) 1e\Jmg im:omc. the mtcrest cH mc,,me
~~s~ ~ ~ ~its an assault upon B. In such s1tuat1on. B can file a suit and get dam ages. but B canno
thcreor acerumg a lkr th.: tr.ms fer tak.c.s.ctT.cct
g s nght Lo C to sue A for comm1ss1on of assault and allO\\ to obtarn the d ama ges t
Case La" :
7) A public office cannot be transferred: Katiliar Jute .\li/[s Ltd. ds. Calcutta .Hatch \\ orks India LJd. 1958 -
_\ sale of buildmg. \\ 1thout an, sp.:c1fic reference to the land \\ hereon 11 stanJ, canm•t 11.:c,·"-' n l}
A public office 01 t11e sala f bl ·
before or afler, it cannot be trnns~e:e a pu IC serYant IS not alienable \\ hether II becomes payabJ.i: con,c} the land along" 1th II
public servant should not be alienable _d. L ~_nterest of pllblic pol1c, . a public o ffice or »alan of a ,\!Is. Park \. iew Enterprfaes vis. Seate, 1990 -
This -\ct docs m>t accept - "\\ h.1te, er 1s affi,eJ to the s,111 belong, to the ,oil". 1t r.uhc r pr,1 cccJ, ,,n
\ public office is a pos1t1on \\ h1ch has a ubl d
holding it recel\ es any fee or sala Ii I p '.c uty atlached to ll . 1rrespcct1\ e \\ hether the person the basis that. m \,m. the O\\ ncrsh1p of a buildmg is 4!J~1.!_hSQ\\ ncrsh1p ,,f 1.md .md th.ll the
'ry or I ie performance of such dul) from Go\ emment or otb.t:.nusc Euildmg, and !_and cc>tild be 0\\ ncd ~ e r c n t pcr,;ons Ill the e,cs c1f l,rn -
8) ~~ ends nllol\ed to militan naval air . . . .
poh!Ical pensions cannot be transferred.' lorce and c1nl ensioncrs of the Go, crnment and S. 9 : Oral transfer - \ transfer Q!J>~!::'l..EP) he mad':..\\ 11h,1ut \\ nun:,: ll1 C\ c1, c.he 111 \\ h1eh .1
·t Stipends all~i11tary. atr ...f~e and . \\ ntmg 1s not c,pressh required b) la\\ 1
The lollo\, mg transfer,; are C'l.pressl) pcm11ncd b) this Act 10 be made ,,nlh ,,r "tth,1 111 "n ''lc
I 9~~n,1on is also e,emp1 from a1tachmen1 under ;e~~i:sn e6~edo
Scholarships meda.ls...r
l:~~\
~nc:I) personal m nature. and therefore. cannot b3 c~1.L;nd...JJolu1cal pens1one!] of GO\ emment are

t.,)
th
our of ~ e r person.-
e Code of Ci, ii Procedure Code.
i) t,.!ortgages b) d.:pc1s11 oft1tle deeds and mortgages \\h.:re pnn_-1pl.: nwnc-.. ,.:.:ured 1, le,, 1),an R-..
l 00 - [Secllilll..:i.8..( f) and Sec11211,S'n, _ _
ii) Sales of1ang1b\c immo,able propert) ,,fa \aluc of less than Rs 100 - L~c-:1t, n ' ➔],
1
· e\\ ards als()_ cannQ1..2_e l r a ~ d --
iii) Leases of1mm,J\ab\c propert, not C'\.Ce~...9nc ,car iScc1 1,1n ~-1
 16.
Author - Prof Prakash k

h l l \,h.,ng.,· l'f 1mmo,abk propcil) of,\ \illll\'. k s ~/- [Section

118 ~
read wllh
~ - ¾, (,
17. Author Prof Prakash K. Mokal.
') G1'h \11 mo, abk propcrt, [Scc11on 123] c) A 1s the owner of property 'X' and property 'Y A sells his property 'X' to Bon condtllon
that B shou ld not construct on the property 'X' more than one storey so that A s rematntn{!
S. 10: Condition restraining alienation - property 'Y' which he has relatncd with him should have free ltghl and._a1r Such cond1l10n 1~
\\ here pr,1 pe11~ 1s lranskrrcd subJccl to a cond1t1on or l1m1lal1on absolutely reSlrarnrng the Ira valid ·
M .m~ person cla1m111<> under h,m from part111g w1lh or d1spos111g of 111 s interest Ill the pr nsfer~.
"' I d opert ._
.:ondllltln or lim1tal10n is , o1d. e\cepl 111 the case of a ~ c lie con 111011 IS for !he b Y, l~e S. 12 : Condition making interest determinable on insolvency or attempted alienation
,he k ~or lhosc ~11111ng under him ~Q[ Where property JS transferred subject to a cond11ton or ltmtlal!on maktng an1 tnleresl theretn,
Prm 1ded that. propcrt) ma) be transferred to or for the benefit of a woman not b re~erved or given to ~ for the benefit o f ~ , toceaseon his ·becomtng_ msolvent or
Hmdu, ~lahonuncd_an. or Budcfuis.t). so that she shall not have power dunng her m a r ~ lr~a endeavouring to transfer or dispose of the same, such cond11ton or hmtlatJon ,~d
or charge the same or her beneficial 1111cresl therem. ~ Nolhtng tn lh1s Secl!on appltes lo a cond11ton m a lease for the benefit of the lessor or those claimmg__
[\amplcs: under him - - --
a) A sells hts propcrt\ to:J3 with a cond,110n that ,f B sells the said property in futur h Exampie:
sell to A or lo an) member of A's family at the rate of which he purchased. This ise, e lllust A transfers his land ~B, and 1f B becomes msolvent, to C. This cond1t1on 1s ~
reSlratmng altenation, and therefore, the c~ndillon 1s not valtd.
nd
- co ition
b) Two brothers partitioned their ancestral property. The partition deed has a clause to th
th at if any one of the brothers want lo sell his share, he must sell his property to ll e effect
brothers The condilion is not valtd. le Other
c) A makes_a _gulof lhe_property to...B, with a cond1l1on that B must enjoy the property d .
Sections 13 to 18:
ltfeiime lf he'' ants to sell the property, he must sell to A only al the ha] f of the markunng his
The cond111on is not valid. et Value. 1
~Q. 3 : How can an unborn person be benefited under the Transfer of Property
d) ~ made a gift of a hou_se to B with a condition that if B sold during the lifetune of A, .
Act? When can a benefit conferred upon him be legally effective?
s e should ha,'.e an option lo purchase it for Rs. 10,000/-. The value of the house wa lsOwife,
Th e cond1t1on 1s not valid. s lacs.
The abo,e rule that absolute restraint is void as laid down in Section IO above 15 sub· Answer:
excepuon that _ · ' ~ect to the
Section 13, 14 and 18 of the Transfer of Property Act deal with the law relatmg 10 lransfcr of
~:;~,~~rt~ay~~ transferred to a woman who is not a Hindu, Buddhist or Mahommedan ·1
same or her boe:e~,~~1~::s~ : : ~,~~! have power during her marriage lo transfer or char;:~
property for the benefit of unborn persons.
A transfer of property cannol be made directly lo the unborn person, because accordmg 10
Section 5 of the Transfer of Property Act, one of the essentials of a valtd transfer ts thal, the
S. transferee (i.e the person 10 whom the property ts lo be given) must be a hvmg person In other
Wh11 : Restriction repugnant to rnterest
.
created - words, a transfer of property must be made to the livmg person It cannot be made d1recrly lo an
ere, on a transfer of 11ro12erty .
ihe terms of transfer direct Iha; an mteresl theretn is created absolutely in favour of any person but unborn person.
manner, he shall be entitled lo rece~~'~ha~~t~:esl shall be applted or enjoyed by him in a parti~ular However, an mteresl in such properly may be created tn some orher person for 1he benefit of an
unborn person, subject lo certain restncl10ns or conditions sel out 111 Sections 13 and 14 of the A.cl
Where any such direction has been made ~:~:: of such ~ a s if tl'.ere were no such direction.
The interest created for the benefit of the unborn person must be ·the whole of the rc1na111ing inlercsl
purpose of securing the beneficial en·o nenl rel of O_f!.e piece of nnmovable property fiirthe
of the transferor in the property'. The tnterest so created mother person passes to an unborn person
Sec11011 shall be deemed to affect any ri~I~ whichotl a~olhe~ ~ of such property, nothing in this
any re,~edy which he may have in respect of breact hrans eror may have lo enforce such direction or when such unborn person comes mto existence.
In other words, Section 11 lays d I I ereof. [See example (c) given belowj
transferor impose own t iat condt11on in restrai l f . . Section 13 of the Act lays down that - . b fil fa
:~~~ ~c:tratnt by
1
1~1 :~~~~f~~~~~~ enj;;:~~n~/~h~o~~~~~~~
voo~di_h:,~~a~~f:,~~~ :e~~:1ni~g him fr~,~o person
"Where on a transfer of property, an mterest Ill such property ts created for the cne ~ oh
who i~ nol in existence al the dale of the transfer, subject lo a pnor mtere~I c~tlcd t t 1~
Exampl~e .was no cond111on at all. Thus, the transfer is val~d I et11ans:er '~ ~ee1~1ed to have been made same transfer, the interest created for the benefit of such unborn person, shall ,~ot ta~c cl eel. un css
a · . ~ void. -- extends to the whole of the remaimng m1eresl of the transferor ,n the property
) A sells l11s house to B a d . -
The transfer is v I'd n imposes a condition on B that B I .
b) /\ k a I 'but the cond,11011 is void a one should reside m the house
ma es an absolute gift of a house to .. . Illustratio11 - . B trnsl for A (as the trnstec for A) and l11s
vaftd anclllicchreclio - . . B Wllh a d1rec11on that B \, . . . A transfers properly, of which he is 1he o;::r;:~ de~~h of the survivor, for 1he ddest son of the
n ,s v01d. B may ltve in the ho S.ilallr~s,de 111 II The gift is intended wife successively for their ltves. and, , d The mteresl so m:ateil for the
intended marriage for life, and afler his death for ~
use or not as he pleases.
 Author-Prof. Prakash I( h
18,

c 11 docs not extend lo

~
the who(
bcnc/it of the cldc,t son docs nol lake effccl bccau, e or~
rc111au11ng 111lere,1 111 the properly 19 Author - Prof Pro/cash K Molca

hole of the remaining rnlcrcst 1n the pr rhu,, a tr,1n~fcr cannot be made rn favour of nn unborn c, 1ld d rcct y b
/I may be ,een Ill the above example that: thew as after his death the prop..:rl y Wa\ \U oPt11y' which a111homc 1hc per on to effect the tran,fcr m fa1,o r of an unb
nol crca,lcd ,n lhe eldest son of/\ (an _unborn person), r the benefit of the ddc,t ,on doc PPci,cd I<, unhorn pcr~on
go lo /\ , ,ccond son, Therefore, the interest so created fo \ nci1 , ~
11 I he pnnc1plc undcrlymg the rule U"der Sect n 13
c/fet I
pcr~on d1 pom1g of pmpcrl.y lo anothct ,hould nol be
r of prope·ny /\cl • where on f r,1nsfcr ol Pr opcr1y
ol that property for m tancc a ~tated m
Acco,d,ng 10 ~cct,on JJ of the Trans,er
uilercsi JJ1u,1 be erealcd for the benefit of unborn person or pcr,ono; "ho 1' not Jrl existence on t property which come;; mto h1 hand a
property 1, suppo ed to go to the second son o A
dale of ltan,fc, and the inlere,t created for the benefit of the unborn person shall not lnkc ert ht
unless ,11d1 mtere,t extends to the whole of the transferor\ interc,1 m the property Ctt
s. 14: Ruic again,t per etuih:
The pcnod of perpct
/\11alysh of the provhion under Section 13: po tponed Th1\ rule has
I he most important condll1on of transfer of property 1s that the transfer of property rnu be property for a long pcno
I
:.nade 111 ,favo u;, of living person only. An unborn pcr,on docs not come within the dclint1ion or bcvond the I, fcllmc of
l,iv,og I crson , and therefore, tran,fer cannot be made d1n:c1ly lo such unborn per on exp.ration of pnor mter

_11 J\ therefore, mandatory that, on tran,lcr of properly an interest muq be treated for lhc ~cction 1~ 0(1h1~ Act lav,. do
henel,t of the unbo,n person rn rnme qthcr J2£!,on and ,uch 1n1crc,1 passes to Jch unborn pc :--.o lran fer of pr
when he comes 111!0 exi,tcncc. r • 1 f~t1mc of one or more
Cltl ten
In olhc, words, the transfer of property for lhe benefit of 11nhorn per on 1 ted I to
cu11d111on, ubJect r foll ~ 1 1ple bch
n,fcree
I) An 11llcre,1 of the u ib . erum
· r orn person mu,t be preceded hy a pr,or 1nterc,1,
2) At lhc lune of prior Jnlc • I I) , 1111 I
re, ie )Orn pcr,on 11111,1 he 111 cx1,tencc,
.1J I he 1111hom pc,,u IL
. n mu, ,ie ,n cxtslence when the pr,or 1111crc•~1 wm to an end
41 Whrn tli, /H 10 1 1111e1cs1 come, 1 . . l I
o .in cm. I 1c unborn pc,sou 1111, ,1 ,101 ht\ c tll.itn ll '11 nr
'i) It I\ m·c l'\',,try th,11 the intcrcsl ,n the Ho
th1 ,1 m.i111111i• u11e,e,t of II . . I I poly lr,JJJskrred lo rhe unborn per n u I be \\
ic Ir 111, CJOr 111 !he l .
propc,1y rn11/t·J\ on!} a /1fc11nll mt, , .' wpcrl} o, must be rntirc propcrt) I/ th tr 11 r
rnl/1 lrau,fu 11)11()1 do..:s nol l I c1cs1 on the 11nhorn pcr,on (a, \latctl rn th ibo, 11 Jt
11 Jc ,1 c lo ihc 1, 111,lcr c I I P
I opc,1y oi con lined lo only ldc11mc• I I· , '1 > en uc property rd confined to fl
n lie\! I 1en ,11th tram/er IS \Old
I he· 11nh.Q! JU!1•r,011 ,hou/c/ b1• in nisr, .
c·o11H•,Jo Ill «•11<1. l!Hc heforr !ht· aiu, inttn•,1 in tl t I
I J · -. - · H I Ill\ c11cd mi
IL hl'nt·I,, J,uy (unborn /lL' "onJ ii) l)
111 ult• ni11,1 l o,nL' 11110 CXl\tcnn: > Jo is not in e~"t,·11rc on t/'e clJI on \\hJL~ rh
rn,11t1011, cl (' c th,· /lt'J\011 to II ho,n ,';1. or b~·/orc· rh,• L'Xp11111011 of 1/1c ex, 1111
c proper!) 1, £11 ,·n fir,1) b\ th. I r
1J . c r ;1s,cror
H·1 ,, !'111111111 h1• r/11 l'!'I trM1,fc·1 of 110 )(•
It' 11cc ,s,1r} rh.ir ~u h I 'r, to 1111 u11horu a•, ,ou-
3) I h
lr rn Jcrrcd to su, Ii l,1111 , pe~,o,:c1::\IN IIIJJsl hr rn de firn ro a !11111£. ers n
Th
in ht l Jltd f >r the b1·11cfit of ill bchmudc lo pa,, lo 5Ulh unbomppcrson ,nd
hth n the pr pen)
11 r u I r. lime
11 un orn p, rson \\ h n r , "'
o t, "' ,n C\I !en e t t
Rule aga 1n,t perpctu11, undu Stction l 14 or tht Indian ~urcn,1<1n ,:\ct, IIJl~ r
 k~
r_-~ P~r o~t~ P~r =ak ~a~ sh
~
----- ----- --~- ---~ A~u ~ffl ~o~
20.
- 21. Author Pro( Prakash K. Mokal.
tune of one or m
· \,, hL·q11,·,11, ,.ih,I ,1had,1
d tie1 life ore Pers
delayed beyon d mmoritv the beguc~t
',llll~ ,,( 1/w tlun~• b,·,1uca1h.:d ni.1) be
On
he attamed the age of25 year~ 1e. beyon
1) hL I L
- ity of some perso n wh , son of B would get the bequest when
md , , d I , minor 0
111 m.,: ,ll t'iL' tL·,1.:1,,r·, ,k llh .. d bc)On tic . ~ II h h' sha11
b would be void.
'Jth.:d be delaye t e t mg b
h) h, 1,., '1~ ,,1 1h11H!• b.:qt1L age
111a1
l 111 1[ lie 'attarns 1u equeath c be m some
• ·
that penod, and to 11 10 ,
'
t perpetuity 1~ that, the property should
·1 L'\"'L' 'll'L' .11th.: L'\l'lr,lll{\11 of ed The policy of law behmd the rule agains Becau se, 1t would he detrimental to the
, ,, ','1,,n.,: " or stand abeyance.
body's use It shall not remain idle
111

nation's mterest and producllvity

llfilltratio,n: and afler B's death 14 -
life and afler his death lo B forhis life; of whom come under Sections 13 and
il ,\ li1nd is bequ,·:11h.:d to \ for his r. Here, the 10 Section 15 : Trans fer to class some it of a clas, of pcr<;ons
the age of 25. A and B survJv e the lestato
rty, an interest therein 1s created for the benef
' llLIi ,,f ti:.: ,,,ns ot B as ,hall first a11a111 . r; such so son Of
h of II1e testato - If, on a transfer of prope lamed 111 Sec; :10n, .U
• ,llt.im the age of 2) may be the son born after
- the deat st fails by reason of any of the rules con
"' 11 Ii,, ,.iJ,
I ' • ,-IN with regard to some of whom such intere whole class
of the longe r liver of A and; . ll!ay those persons only and not in regard to the
1;'~ ~u 'l'.1 ::.5 ~mtil mor.: than I 8 years hm·e elapsed from the death 0d anJL 14, such mterest fails 111 regard to
be delaye d beyon d the life time of A and B and the minority 0/
l,ll I es_ung ot the fund may. thus. Ute Exam ple:
Singh vis. Thakurain Bakhtraj Kuer,
(1953) SCR 232 TI1e
therefore, is void. Case Law - Raj Bajrang Baha dur
' ·'1h ,,~ B. l he bequest after B's death, of two ears of a e N althou gh no 1Dterest could be created in fa1 our of
an
1 ,,r m,tance. B died on l- 1-2007 /em in behind a son who was OWhe Supreme Court in this case obser ved that,
20 . be ond 18 ears from the. death made to a class of senes of person s some of whom v. ere m existence
i11llatta11- 1',y,a rsof age 1.c. ear 31 on! after 23 ears 1.e. of unborn person, but 1f gift was to tho~e \\ho \\Cre 111
Tl - c . · .
· case 1s dela ed be ond the life-time . of B and also be Ond lhe this case, the gift was \alid with regard
8 Hh. the I est1110~ of a fiun d in II11s
- and some were not 111 existence, ID !hose who were not 111 existence (1.e unborn
. es void with regard to
Th
m111on11 lie · berond 18 iea rs ) ofB' s son. erefore the bequest after B's death
becom existence and the gift was mvahd
persons).
· · . with a direction ti
ii) A fund i, bequeathed t A fior l11s life, and after /us death lo B for his life,
after B's death 't h lI b / shall atlain the age of l 8, but !hat ,taflI on failure of prior interest -
of B's children as Section 16 : Trans fer to take effect an 1Dterest created fur
no chtid of B s:ia~I a t e tJ1~1ded among st such
fund shall t C H h . of the fu d Where, by reason of any of the rules contained ID Sect10ns 13 and 14,
JI am iat aoe . the . . go o . ere, t e lime for the division n s fails in regard to such person or the whole
of ~uch
mus1 Jrrp c at the lat c'St at th e .,,expuation of 18 ye ars firam th e deat h of B, a person living at the the benefit of a person or of a class of person
valid. transa ction and 1Dtended to take effect after or upon failure of
te~IJtor's decease AIJ the bequests are class, any interest created in the same
, such prior interest also fails.
-
/ Principle and tbe scope of Section 114
. n-
lt is the po!,cy of the Ia,~ to discon tinue ti
rly cannot be lied up Section 17 : Direction for accumulatio g from the property shall
life i b i_e creatwn of perp~tuities Prope of property direct that the mcome arisin
/w11hout being Ill use) longer than for a years (111 England) after. This is called the (1) Wher e the terms of the transf er
a penod longe r than -
rule n fe1nbgl _and 2_1 dunog
rule .igarnst perpetuities. This rule is the o pu 1c policy.
' be accumulated either wholly or 111 part
a) the life of a transferor, or
of transfer,
The law does not favou r a ver Ion dela m vcstin f b) a penod of 18 years from the date the period
. after a testator's death . prO\ 1ded, be v01d to the extent to which
Therdore Ja1
um criod for which the ves~in r~f ertro ert ma be d I d such direction shall, sal'e as heremafter and
~cr t , n~av ~c ~:s~n_besb a maxim n 1s duect ed excee ds the longer of the aforesaid penods.
ac is dela e~ ~ e o;
b dunng which the accum ulat10
h m a e ance And
:~ t eb uest wherein the vestin of le last-m ention ed penod the prope rty and the mcome thereof ~hall be
t at ~a:>.1mum Jeriod is. therefore.· decla o e void. ' e on al the end of such
h1ch the accumulat10n has been direct
ed to be made
ndian La 11 howev II disposed of as If the period dunng \I
~lino to be dela ed be ond the life time of the
being_ and for the. eriod o:i ao;t; : l~~::~ 1· ersons in had elapsed.
of some erson born in their l'fi direction for accumulat10n for the purpo
se of -
The rules rn Sectrnns 113 an d 114 have lo b 1· I e une
. (2) This Section shall not affect any interest under
the pro1 f e app ied at the testato rs, deal] . b
l ut are sub1cc1 to of the transf eror or any other person takmg ::my
is1ons o Section 115 of the A Cl. i) the paym ent of the debts
The testator may I or
postpone the vestin g of egacy lo a number of livi the transferor; or of any other
post en or remoter issue of the transferor
. pone II rn perpe1u11y i e
. ng persons, but he cannot ii) the provis10n of porltons for childr
(1) bc)ond the Jifc;i,;1~ f person takmg any interest under the transf er; or
:ten ce at lhe testator's death and iii) the presm at1on or mamtenance of
the property transferred.
i, bom(~ .~1c mrnonty of som~ o~h~;r;~;:~~ o is not in existence at the ti '
last of ti dingly.
l: urc the death of the
s to whom a life estal . . me of testat
or's death but and such direction may be made accor
C Thu\ .i te,tatorm;iy say "/ . icto person A for life· after A, d e IS given. ,
/or Ille. alicr C's d, ti give eath to B fi /'fi _
for Jifi " . s e; after B's d h for benefit of public -
ca i,
rj i1s ,~av the le,1a1 to D c and so on. ' or I
eat . 10 Section 18: Trans fer in perpetuitv 17 shall
propert)
not apply m the case ot a transl er of 3
, or can go on gii in, 1 many persons for . . The restricl10ns in Sectio ns 14, 16 and
- g o as the advan ceme nt of rehg10 n, know ledge. commerce. health. , fct) or
. theJr lives, as he wants . for the benefit of the public in
J, I J wth_er_l.!1.£ lt:st11J..or ma , sa "J ivc to A /or life· ft ,
Lc,11_1 IQ .Lhc sun of 13 I h
. any other object beneficial to mankind.
er As death lo B fo · J'fi
- ~ - ~ ~1 i l l ~ l 7" . Buta if the testator would h~v~ e, . and after B's
said !hat the said
 Author - Prof Prakash I<.
~
22.
Author Prof. Prakash K. Mokal.
23

Sections 19 to 24: /\ person 1s said to have a vested interest in the property when he acquires the proprietary r .;ht
the property but the right of enJoyment to the property 1s deferred 1111 the future date flu, future
Q. 4 : Defin e and explain Vested Interest and Contingent Interest, and Dist' 10 1,
date , de pen den I on the happen mg of an event 1,1; h1ch certam to happen
1
between them. rngUh~
s. 20: Unborn person acquires vested interest on transfer for his benefit :
Section 20 of the ,'\c1 stak, that -
Sections 19 to 22 of th e Act deal with ves ted interest and contingent mtcr.:st. "\\ here, on a tran,fcr of property, an mrercst thcrem i, created for the benefit of a per;on not
th.:n living. he acquire, upon his birth. a w,ted mterest, although he may nOI be enutled to he
Vested Interest: cnJO)mcnt thercof1mmcdia1clyon his birth~
I hi, ",c,;(. 1011 ,tate, that. 1vherc an mterc,t 1, created m f;n,our of ~n unborn pcr,on. ht' acqU1r.,
Section 19 of the Transfer Of Property Act defines Vested Interest as unda _
a vc,tcd 11111.. r..:, 1 that property on birth, unlc,, a contrary mtentton .ippcJr, from the tcMb o
S. 19: Vested interest. tr. ,f..:r fh" ">-=l. 1011 further provide, that the t..:rm, of cnJo)mcnt may he unmcJ1ate on birth or
111
. "~here, on a lra;sfer of ro e p,i,tponeJ t II 1n1.. happening l>fa later event
specifying the lime whc ·1 . p p rty, an interest therem ,s created m f.wour of
I/ h n I is to lake effi · n pc~on I h
on ic appening of an event which cc;, or m tem1s spcc1fy111g th~t ,1 i, lo take cfTccl forth llf our
appears from the tenns of the lransfier::1us1 iappen. such ,n1erc, t ,s icstcd, unless a cont "1th or Contingent lntcrc,t:
. rnry 1n1cn1,on
:-..c11on 21 ol thc \ ,t cklinc, "Conllngent mterc,t" u, under
According lo this Section .
without specifying the ti , ,fan mtercst IS created m fa1our of ·1
:,Viii take immediate cf me when s_uch rnleresl will lake cffec

ves ted interest.

I
, pcr,on on ll tran fer of pro
rn such circumstances ~~ct,_or such interest will lake dfec1 on ,i'. or.11 ,rh specifying th 11 u h
, ie interest created Ill favour of . ,1 pprn111g of "n c1cn1 \\h, 11 I tat.I
a pcr,on on ,1 1r,1nsft:r f
int:~ in,
'> ! I : Cont111!,!l'lll inla~,I -
\\ h.rc, ,,n u 1mnsfs·r tif prupert}, un mtere,t thcrcm h crc,1tcd 111 f.1wur of a pcr,,,n to take effect
only ,>n the h 1ppcrung nf a spcc.11ied uneertam event, nr tf t ,pcc1til'd unccrtatn c.:\ent ,hl!l not
h ,pp .. n, ,u~h p ·r,,,n thcreh~ ncqmrc, n contmgent 111terc,t, 111 the fom1er c<1,~. on lht' happent"g .i
n other words the . t o propcrt) I ud IO b
Jf no ti , . 111 cr~s! is said lo be vc,1cd
the C\~111 in the I 1t1cr. 11hen 1he happening of the C\ent bccom..:s 1111po,s1hle"
i) c
") me is spec1/1ed fo I k
'.'.. If it is expected lo lak r a 111g place, or \ cconlin • 10 11 , <; ·1..twn, ti .in mtcrc,t i- crc.1ted 111 1:1vuur ol u pcrsl,n on a trnn,fer ofpwpi!rtV
ur) If is lo lake cffi I , c effect 1m111cd1,11L'fy or 1u t 1kc cllcct only ,in n, h , ,p-.11m' of 11 ,pcc11i..:d unccrt.nn cwnt or lo 1,1ke effect onl) on l~e nrn
cc on the occurrence or h
1cath docs not defeat th e . appl'n1110 ol ,t L"I L'/1111 htch IS cert.Jin lo h I h..1ppdung nl 1 ,pel:1l1c.! uncert,un C\, nt. m ,uch c1Tcuuht mce~. such pcr-t>n m 11ho,r fo\our n
ves ted interest is ves ted int erest: ppcn ,ntcrc,t 1s crc:itetl t-,qmrc, ii contingent mti:rc,1 in the pmpi:ny
exampleA not defeated by the death of IIJc. lran,krc . h I

~
property ts give ' ,, c core he oh1a1us In other \\Ord,, the mtcrc,t 1s cunllngent
to possession so Ion to X for life and after h I po ,c s1on for
dies before •x·· h gas X' is li vmg. Buth' h' i, ( ca1h lo 'Y' llrrc ') , h 1) 11 s.1ch in1cre,l 111-.c, effect on the happ..:nmg of ,p.:c1liL'<l u1icl·rta111 e\cnl
'Y'. is 1111crcst w II e ,is I c,tcd 1111 ' "' nu 1mm d
s ictr will take II Tl , I go lo !us hcus, sine, ' 't t:rc,1111 lh<11 property I c 111c ngJ,r
the ves1 ted 1111 . 1ercfo1c, the vest , I . t: , llllt:rL·,1 " ' n ,u,h case if Y' ii) 11 ,u, h ,p..:, 1l!ed uncc1 t.111\ event ,hall not happ..:n or 111 othl'f wor,h
Elpla1111tion ~~c~'. ;~ l~critablc. Vested lll tc~~s:1~1e,~st is, not dcfc,llcu b~ :,~·~t~('. u;1em1, ctllcr h,~ dc,1th
"A n tnt . s d so tr<1nslcrabk c.it I uf lr<1n,/crce / h
cnt1on th at us, iii) \ rn11u11gc11: u11c.:r..:,1 d.:pcnu, upun luture um:crt.11n c1 ent
11 1iereby the cn10 , , an mten:s r shall not b
~~/c,cn ed to so~ii;e::1:~~rc~'.1s postponed. o~ ,: ~:':ct ,1s not to be tnkrrcJ mere/
. u111ul,1tcd 1111tJ/ !he t , p son, or \\ hcrl'by I , : a pnor tnlcn:st tn th, y lroru d prov h10
h) \n e,1.1tc b..:i;omc, conu ngcnt, 1, hen the nght tn enJ<l) 111.:111 .lel',nds llpon rhc hJpp 11 n

h,1ppl'n. tlw interest ,ha//1p1~ of cn1oymcn1 arm cs n,~01,~t: ans1ng .from tho.: proc ,anw Iproperty h gn
,1ss, to anoth er pcr,on".· · r rom a prO\ iswn that if dperty , J 1reo.:1eJ lo bc-
e; of the ,p..:c1fi..:d uncertarn event 1\h10.:h may or l11J\ lhlt happen

E\ample I: X' give, property to •Y' for hf<' .ind 1l1cr h" de3th t ~ ' ,)n 1ttmn1r, the P rt" 1
\ n lllll're,1 in panll·u/ar CH: I h ~
.igc Th,, h 1h.: .:-.;..11nple of ,1 con11ngent m1crc\l bccnu5e, the est.lie •t\cn to • '' h10.:li CC'!llC'
takl·, l'lfrct . th propc·rt, is said lob. n , all
l I l'r imml·cl1a1l'!_,. or lln th ,o.: ' L',tcd 11 hen II h n ex"tcnce on!) on • \ • ,1tt,1111111g 1he pMt11.ul,lf .igc
c happrmng of an , . o1 sub1cc1 lo .iny co d
n cnt 11 h1ch 1' c.:rta. n Ilion precedent It
tn lo h:1ppen
 ~f-'-..,_P'-'ra::.:.k:..ea~sh k {y/
______;2~4L.----~A:!-'u,_,_t'-'-h""or'---'-P~ro
-
____________
I he L
~ Autho r Prof. Prakas h K. Mokal .
his unborn son
d r , J is dcarh~d10such 25 .
. .
. /or Ille. an ~ lt:r 1, con tin en! 1111 'in 6orri I
Examp le 2: . \. !!" c, pn1p.:rl) Jo')n_t.dll mlcrcSl, a g crest bcco ll1' such memb ers only
in such C'\amp k )!l'h con1111gl'nl or co1111ngcnl 111\eresl therein 1, created m favour ot
IJit " Where. on a tran~fcr of proper ty an
1
membe r of the cla,, \lo ho
a, soon hc " born . age, such interest doc, not vest 111 any
vesled inlcrcsr of a class. a, sh al I atta111 a particu lar
,i-

has not allame d that age s, who attam a

Death defeat~ the contin ocnt interes
t: t 1, created m lil\ our of a cla5, of per,on
dies bcfor This Sectio n slates that, when an 111terc, will bl!come a ve,ted interest
ent interest, because. if the transfe ree conl111 gcnl mleres t and
Th~ dc,11h of 1ram.fcree dcfcars rhe conring c 1h particu lar age. in such case, lhc mlere~
t 1s a
n falls. that particu lar age.
\esiing of mlcrc,1 . the 1ransfr r in such si1ua11o when the memb er of the class attains
ning of specifi ed uncert ain event
Distin guish !Jen\ een: S. 23 : Trans fer contin gent on happe ,pec1fted person 1f a
an interest therein 1s to accrue to a
" Where , on a transfe r of proper ty. of that event, the
Intere st: shall happen , and no lime 1s mentio ned for the occurrence
\ ·est ed lntere st and Contin °ent specifi ed uncert am event intermediate or precedent
s before , or at the same lime a~. the
interes t falls unless such event happen
\ ested Intere st Cantin ent Intere st interes t ceases to ex1sl.
not specifi ed
person s as suniv e at some period
1 1. It 1s solely depend ent upon the S. 24 : Trans fer to such of certai n of certam per,on s as
lt does nor depend upon the an mteres t therem 1s to accrue to such
fulfillm ent of the conditi on, and if "Wher e, on a transfe r of proper ty, ed, the mleres t shall go to such of
fulfil/men! of any condition. , but the exact penod is not specifi
such condit ion is not fulfilled, then s hall be surv1vmg al some period lo exist. unle,s a contrary
ediate or preced ent mteres l ceases
them as shall be alive when the interm
there will be failure of interest. s from the terms of the transfe r.
intenti on appear
2. On transfe r of proper ty, an On transfe r of proper ty, an interes t
lllustr ation : 'D'. equall y to be d1v1ded
inrerest is created in favour of is not created in favour of a person life. and after lus death. to 'C' and
person - 'A' transfe rs proper ty to 'B' for dunng the hfc of 'B' 'D SUf\We~ ·B' At
'B's
1,or of them 'C' dies
betwe en them. or to the Sl.lf\
I i) \\ ithout specify ing the time
I i) to tak~ effect only on happen ing death, the proper ty passes to · D'.
I
I 11 hen such interest will take of a specifi ed uncertain event or
place. or
I ii) to _take effect only on' non-
I ii) specify ing that such interes t
happen ing of a specifi ed uncert ain
I :\1ll 1ake effect immediately, or event.
lll) such interes t will take ffi Sectio ns 25 to 34:
on the _happening of a even~ t;;tt
is certain lo occur. ition
Defin e and Distin guish betwe en '·cond
The presen t or immed iate right is / Q. 5 : What is 'Cond ition al trans fer' ? can
t" subje ct to ,,hich trans fer of prope rty
prece dent" and "cond ition subse quen
cr~ated, even though the
3.
en1oymen1 of such righr 1s . No presen t or immed iate right is
posrpo ned. ~reated : lt solely depend s upon the be effect ed.
appeni ng or non-ha ppenin of
specifi ed uncert ain even( g
It does not d Answ er:
death of epend upon the II depend s upon the de~lh f h
th e transfe ree Iran fi
O I e transfe rs Condtl !ons may be
4. Th
erefore , lhe dearh of th; lh ~ eree. Theref ore, the dea1h of
ee defeat s lh .
Sectio ns 25 to 34 of the Transf er of
1i)
Proper ty Act deal \\ 1th cond111ona\
condtt1 on subseq uent.
the e ransfer either 1) cond1t wn preced ent or
lransfe ree does not defeat
crea1ed in his favour an~ i;1ter~sl
_interest created in his favour bur not pass on to L . I . ' I wJ)/ .
11 will pass on lo '
A . ws 1e1rs.
Cond itiona l Tran sfer (S.25 ): ty and depend ent up?n a cond1t1on,
fails tf th:f
his he1rs. conting ent interes t will d interes t created , on a transfe r of proper
"An a nature that , t
upon lhe terms of the condit io~pen d is forbid den by law. or is of such
A vested interes t is divisib le fulfillm ent of the condit ion is imposs ible, or ~7phe , tnJ~ry to
' law, or 1s fraudu lent, or involv es or
transfe rable and heritab le. . pemltt led it would defeat the prov 1s10ns of any al or oppose
1
d to pu tc po icy .
regard s 11 as immor
the perso~ or proper ty or anothe r. or the Court
S. 22 : Transfer to members of a
an hour The lease is VOid
- h h h 11 walk a hundre d miles in
lllustr alions t at es a
a) A lets a !arm to B on cond1t10n
 't - 5
Author - Pro . Prakash K. /\1
26. Okot.
27 . Author Prof Prakash K Mokal.
A·s daughter C At the date of the t.1

~
b) \ P'-'' R, :-l1ll - w B ,,11 ,-,,nd1t1,1n that he shall 111arn, • ans~
the prope11y, and ii \uch condition 1s compiled \~1th, m ,uch ~1tuat1on, the cond1t1on precedent ,hall
C ,, ,, d_c1d Th,· 1r.111,f,·r 1, ,01d rd C The transfer is void be treated as fulfilled
c) \ tr.111,ta, R, 500 - 1,1 B ,,n cond1t1on that she shall mu er · fi . .d
d) \ lr,111,1-.:r, R, 500 - ,,, 111, ni.:cc C. if she deserts her husband. The trans er ts vo1 .
This Section 1s based on the English Doctnne of Cy-pres. According to thi, doctnne. 1f the
Thu,_ 11 c.111 h: ,.:en lr\lm the .ibm c illustratwns that, an 111 terest created on a transfer of property and pcrfom1ance of the cond1lion has become 1mposs1ble for some reason, m ,uch a ca,~. ,ub,tantial
performance of the cond1t1on will be treated as an adeci.uate com_phancc (Si.:c 1llu,trallon (a) ut,o, cl
cc:rcnden1 up,,n J c,1nd1tion becomes ,OJd 1fthe fulfillment of the condition -
a) i, 1111r0,,1t->lc. 0r
b) 1, f,xb,dJ.:n b~ !J,,. <'r Case Law:
c) h :f such J m1ure tlJJJ. 1f pt'nmtled. it would defeat the provisions of any law; or Dawson vis. Oliver Massey (1876) -
The cond1t1on laid down m this case \\as to marry v.ith the coru,cnt_of parents One of the
d) 1, fraudulent: or parent died The consent for mamage wa., obtamed of the survl\mg parent. the Court held that 1t ""'
c) m, 0 h 6 or implies mJUl'J to the person or property of another; or
sufficient cornphance of the cond1t1on
f) th e Coun regards n as immoral or opposed to public policy.
Section 27 : Conditional transfer to one person coupled "ith tran~fer to another per,on on
1..- Trans fer m~) be of two kinds - i) an absolute transfer or ii) a conditional transfer A
failure of prior disposition -
_ h 1ute transfer 1s a tra ns Iier, where there 1s
av~o .. attached to 1t.
· no cond1l!on · A conditional tra · r n Where, on a transfer of prope!1y, an mterest therem 1s ~ d m [a,our of one person, ar.a bv the
1~ t the Ii !fill ' \\ here tilere IS
e transfer nsier
. attached to it, and therefore, the transfer is depend
· a con d'1hon same transaction an u\tenor dispos1t1on of the same mterest is made m fa\ our of another, 1f the ·pri.ir
011 u t ment of a condition · suc h con d.1l!on
subsequent. · may be a condrl!on• • precedent or a condition ent disposition under the transfer shall fail. the ultcnor disposnion shall take eflect upon the fa 1\uTi: c,fthe
prior disposition, although the failure ma)- not have occurred in the manner contemplated b) the
transferor.
Condition precedent :
A condition precedent is that c .. . . , But. \\ here the intention of the parties to the transaction 1s that the ultenor d1spo,1t1on ,ha\\ 1a\c
under transfer. In other words b Ii ond1t10n which is lo be complied with before taking the propert
effect only m the event of the pnor disposition fa1\mg ma pamcular manner. the ultenor d1,po,1t1on
\\ 1th. The compliance or fulfilim:n~:tansfer of pro?~rty,_a condition must be fulfilled or complie~
shall not take effect unless the pno~ispos1t1on fails in that manner.
~s effected. If condition precedent to thea~; sut c~ndI11on is_ necessary before the transfer of property
e effective. ans er O property 1s not complied with, the transfer will
Example (])- 'X' 1 . Ii not Illustrations :
B and C c d: , ~ans er_s Rs. I ,000/- lo 'Y' on condition that I h II · a) A transfers Rs. 500 to B on condition that he shall e"<ecute certam lease ,,ithm three month,
fulfilled .the iesd.. '( mames with the consent of' A' and '8' I 1eths. a marry with the consent of A. after A's death. and, 1f he should neglect to do so. to C B dies in A 's ht',;-tJme The
con il!on precedent. . n is example 'Y' is deemed t h
Ii o ave d1spos1tton in favour of C takes effect.
Example (2): 'X' t b) A transfers propet1y to his \\1fe. but. m case she should diem h1~ hfc-t11ne, tran,fcr to 8 that
8 and C. •y· mam rans ers Rs.1,000/- to 'Y' on condition that he h I .
this example 'Y' hes w1t~out the consent, but obtains the consent ; ~ lBmarry with the consent of/\. which he had transferred to her. A and his \\.Ife pensh together. under circumstance~ \,h1~h
as not ulfilled the condition precedent. o ' and C after the marriage. In make 1I impossible 10 prove that she died before him The d1sposit1on in fa,our of B docs not

Fulfillment of d' . take effect.

Section 26 oft~:~ ,tt;on precedent (S.26):
"Wh c ays down that - Doctrine of acceleration (S. 27) :
. ere the terms of a transfer of . Under Section 27. on transfer of propeny. mterest created 1s mtcnded to take effect upon failure of a
an mterest in the ro e property impose a condition to
substantially compifed ~i7:: the condition shall be deemed to bhe/ulf~led before a person can take prior interest created by the same transaction. such mtcrcst will take effect upon failure of pnor
. ve een fulfilled if it has been interest many manner (i.e. failure ofpnor mterest. subsequent mterest is accelerated).
Illustrations_ ecitied event
a) dA transfers Rs · 5000/- t0 B on co d't• Section 28 : Ulterior transfer conditional on ha
ies. B marries with the c n I ion that he shall mar .
h) A transfers Rs. 5000/- to onsent of C_ and D. 8 is deemed t ry with the consent of C, D and . - On a transfer of property . an interest thcrem may be created to accrue to any per~on \\tth the
marries without the c 8 on cond1t1on that he shall o have fulfilled the condition L. E condition superadded that , m case a specified uncet1am event shall happen. such intere~t ~hall pa-;~ tn
f lfi onsent of C D d marry with th . another person, or that m case a specified uncertam event shall not happen. such mtere~t shall p,~\ ~o
u died the condition . , an !:, but obtains th e1r. consent aft h of .C' ' D an d L. R
e consent
er t e marnage 8 h another person ln each case the cl1spos1t1ons are subJect to the rules contained m Sccuons I 0, I~. I ~
/\e;cord1ng to Section 26 f . as not
to 25 and 27.
properly unposc a cond1t10n wh1\ the Transfer of Property A
c is required to be fulfilled b ~• when the terms of a t
e ore a person can ta ' ~ans fer of Section 29 : Fulfillment of condition subsequent -
ke an mterest in Section 29 lays down that -
 28. AUthor - Prof Prakash I(
~ 29. Author Prof. Prakash K. Mokal.
t
_ "An uhe_rit)r d1spos111on of the k.md contemplate~ by the laS preceding Section (i.e 8
l.mnot tak.e ellect unless the cond1t10n 1s stnctl) fulfilled . · ). 4 It may be substantially complied I It must be stncll)' fulfilled.
(Section 28 "hu:h sa) 5 that propert) " 111 pass to another person m case a specified u \\ tlh I
e, mt shall happen or not happen). ncel'ta,,
The doctrine of cy-prcss ts applied The doctrine of cy-press 1, not I
applied
Illustration_
.-\l tra~sfm Rs. 5000 - to B. to be paid to him on his attaining maJority or marrying with a 1
tlJt 1 1 B dies a-~ mmor. or mames "11hout
• C. s consent. the
. said amount of Rs. 5000 - will conct t1or
1 1 ye:irs of age. ,, 1thout C s consent. ln this case. the transfer t D ~
. - . •
n1Jmes
tale ff \\ hen he ,- -
' a~ on~ . go to
• e ,ect o D \\ii Distinction between:
Condition Precedent and Condition Subsequent:
_
The folio,\ tn!l.- are the potnts of d1stmct1on bet\\ een a condition prec ~-d~ni
~ ..•nd a cond'1t1on ,u~~cquent
•
.\ccordino
irnposea d.~ to Sect"o
_11'.-19 0 f th e TransferofPropertyAct.\\henthetennsoftransferof
such condconr· 1110n . d to be comp 11ed
. "hich .is req mre · \\ 1th
. after the transfer 1s actually ef~ect prope
d ni 1) A cond1t1on precedent 1s one. which must be fulfilled before tak.mg the propcrt, under l:.,n,fer
ion 1s complied , •·th ft th • . . e , and
subsequent1will be tr d ru' I a er e transfer is effected, m such situation. the co d if condition subsequent 1s one. b) 1hat happening of \\htch an e,1stmg proper\) ,, ,II be di\ e,ied
eate as \filled. n t!Jon
2) \\here the condttion 1s precedent. the propert) ts not transferred lo the transferee uni the
Tlus the
lays down Section is based
doctnn· f upon the pnnc1ple
. . . the early vestmg of estates Th S
of favounng cond1t1on 1s performed: but "here the cond1t1on IS subsequent, the propcrt) immedi.itch \ c,h -~ he
e O er-pres (as near ·bl ) · · is ectio transferee and remains m him 111\ the condition 1s broken - \'eerobliadro vis. Cl1ira11jin, ,:: \ \
precedent. It is sufficient -if a . . as poss1 e. with reference to the fulfillment of a cond n
subs1an1ially fulfill the te t t ' c_ond1t1_on precedent is perfom1ed cy-pres. ie. so perform d t!Jon 105.28 t---1.id. 1..,3 .
is s b . s a or s mtent1on as near as "bl A - e as to
u stanhally complied with· but d'. . poss1 e. condition precedent IS fulfilled f
, a con 1t1on subsequem must be stnctlv fulfilled I it 3) In the case of a condition precedenl bemg or becommg 1mposs1b\e to be performcc\ 0r being
immoral or opposed to public pol!c,. the propcrt) \\ 11\ not \ est and the traMfcr \\ 11\ be ,c,1d But m
Condition subsequent: , the ca~~ of an 1mpos~1bk or 1mmor.1\ cond1t1on subsequent. the propert) \\ 11\ be or become, ab,c)lute
A condition subsequent is that c .. and the cond111on \\ 11\ be ignored . A gift 10 \\ h1ch ,m immoral condition 1s subsec1ucntl) attache(\.
~::e~d ~ -der transfer. 1n other words,o~~~~o;;n:~~~c~/ to be complied '' 1th after taking the rem:Hns a good gift. though the cond1t1on 1s, 01d - Ram Sarup ~·Is. Bela, 6 \\13 13 ~p C') I I l \
effeied llh. The compliance or fulfillment of any su~~o~ertr a condrnon mu~t be fulfilled or
on tl1on after the transfer is actually .t) \ ..:ond1t1on subsequent must be stncll) fulfilled. but a cond1t1on pl':ccdcnt i, fultilkd 1f ··

~ubstant1all) ..:omplleJ "1th

Distinction betwee n ·.. Cond1hon
. . Precedent and Condition S b
, . u sequent:
Construction
\\ heth.:r: a conJ1t1011 is .1 conJ111on precedent ,,r subsequent. 1s ,1 questll)n l,f c·,,n,trocttc'll m
Condition precedent Condition subsequent e.1ch ca,.: lf the lam!ua!!e of the instn1ment \cJ\ cs 1t n doubt\\ hcthe1 ., ccmdtth'11 1, mt,ndcJ t,, be
It i_s to be complied with, before precedent or s11bscq1;en:~ the Cl,urt prefer, the l.1nei:- - Daramuyee l'I~. Jatindra. b: C.l.J l\)4
It is to be complied wnh, after the
taking the property under transfer transfer is actually effected
S. 30 : Prior di. osition not affected b, itn a\idit"'I of ulterior dis osinon -
bIn other words ' the co nd·1·
I ion -must.
Therefore, the propcrt) 'ests with I
e fulfilled before the pro rt ··1f the ulterior d1Spl1s1t1on 1, not ya\Jd, the pnor di,;pos111on 1, Ill)\ Jftccted b, it"'
I be vested. the
pe Y can, transferee
• and will cont mue to
, est until the condtl1on is broken a) \ transfer,: a form 10 8 for her hie. ;md 1f she dl, not 1.k,ert her husb.md, ll' C
ll\ustrations n 1, cnlltk,\ tc' the
It
b IS lo be pem d .
orme immediately It remarns wuh the transferee \\ ho
y the transferee before he ca takes . interest ram, dunng her life as 1f no cond1t1on h.1d been mscrtcJ _ ,
m ro crt , b) ,\ transfer, his J,md to B. ,, ith a cond111on 1hat 1fhe dc)CS not nm )00_ 1111\c, Jn h,)ur, th, Ian~ ~'·'!I
I take interest m the property. n immediately, llll h b p p )
condition. e reaks the
bdon!! to c The ultenor transfer to C 1, tn\altd. but the tr,m,tc1 II\ t;1H)t1r ,if B (t, l n, r
I tran,t~r d1spo,111on) 1s not .:ifkcted
If it is illegal. immoral or aoa t S. 31 : Condition that transfer shall cease to ha, c effect in case
the pu bl ic policy or impossible
"' msto If it IS illeoaJ i
public poli~y .o mmoral or agam,t

l
s ecilied uncertain e, ent ha ens or docs not ha en -
. , f S I, on J tran,frr of pwpert) an 111tcrc,1 Ihde , ,, .i, be created
be complied with. then the t nm ,
r complied with ~h1mposs1ble to be ··Subject to the pro, 1,ion~ 0 -· II _
1 of rans1er 1 111 -a,e 1 ,pc:cilicJ uncertain cHnt ,h:il\
proporty '"II bc,oid itself is to b ' en the cond1t1on
tl as Yoid be ignored cons1denno
\\ 11h the cond111on supcradded that \\ sha cea,c 10 c,1, . -~ . ' .
a ea ,pec11ied uncertain c\ent ,hall not h,1prcn
, ut the tra r "'
L_
be \01d. ns1er \I ill not I happcn. or m c '
 31
Avthor - Prof Praka~h K Mok
B c1.1, Jl1,1
//f111tra11011s: 01 "' th ,. in • ,e 1
a) :\ tran,fer, J I.inn t,> ll f<,r hi.:. iu th arr J,,,n lhl' 1lllliJ H.:- "L'
tr,m,lt:r ,h.111 l'l',1,i: "' hJ1 i: in~ .:fl~·,' B ,ut, '
t:inn I' I ru:lJnd ,, 1h r
f B ,hall n,11 =o ' • I
h) \ lr,in,/a, I f.1rrn 1,, B, rnn 1di:d th a, I • B dv,, mil ll I) l
1
1
of lh<' 1r.111,1,:r. 111, 1ntL·ri:,t III II1c im '
1 !tJII " ''
10111 tJmt c.: ,,,
rr.:,rnh.:d (1.: 1111h1n rhr.:e ).:.1r,l lh mr,r.:,t '

'· Jl : Such condition must nol be in1 alid -

'In order that J cond111on th,1t ,tn 101.:-i:,i ,h
thL l'I t'nt 10 11 h1ch tt rd are, hL' on,' 11 h1d1 cou1J le
, , (fl()/1 3, :
lrllt'rt',I 1
Th.: wmlt11on. thLrcll>re, 111 u,r b.: ,altJ Ifrhe u:mdtl ,in ',., 11J (!. 6. I 1 ,l,cH Ull th r do, trlnl of '"f h.:ctaon" under the \ nrn,frr of l'ro1wrt, .\ct
1 1
th.: ,•,ra1.: It mean, if the· wnJ,rwn ,s ,·01d, a fJrlun· 1,1 •• P
rhi: e,1.11.:
( 1111' /.,n11•;
,\rll\h C/1a11drn 1'/1. 'iarnt S11/Jdari, 38 /( 103
\ hcqui:,Ithi:d 1 hou,i: inrended 10 be builr 1p ½• h 11 10 \\
JI , rhi: bequeq 11 ,Hild bl' forfeited ,\ died be , ,
mipo,,1hk, and rhc:rrforc, 10,d, and c1cn ,f,hc I"

Illu\tr:11ions;
a) •\ proper!) is lrJnsfrrred Ill B , 1, h
h) ,\ gn l's cert am propc•rty to B II h,
eond1t1~1n of her wtllmuing 11, i,, 1
(lbe obJt:rl ll;I\ 101,·111.11111111h l11111
lum).

I r·111,fn
~- ll : ~ · f'I1 1t111;_1_]__011 jh't lot 1111111_, _11 _.
- _ _!_!!iii I n'-'-,_.,
1 a.;.,;_=.:....
l'<'l'<llJ I I~ 1<''.'' tlll ,I 11.l!l,kl ,,tp1,1p, I I'\ l'I I •
I • . 111i: ii, ,h.1II p,•1 t.11111 .1 ' r1t 1111 i. I ~1 i I
I h \ ,111.11111111 1, !<1,>k('11 II h, II h,' f\'lhl, ,, l I,
I'• i 1,,1 ,11.111,' '" rh, ,, r . 'llf'" '
lll11,11'11lio11:
\ "•\/Ill'\( 1, 111.1d, "' \ II 11h I f'I \1 I
d111 ·hr,·r \ ' 1s,, 11
II ' 111.1£1 r, ' " ,1 111 'I n,I 1h, i. h
h f, 1jll1 ,1 ' l 1,,., 1,, It 11, • n,' I
 Author - Pro -:-Prar«ts/i k. rvtoko1,
32,
rcl1nqu1sh the benefit so conlcrrec1, and I
. h, 11 ill h:nc Ill . rcscntativc as if the proper, he
,r hl· d1"c111s 1i,1m :'11,·h 11.11~~1~1 . 10\h,· 1,ansfcror o1 111s rep y had 33. Author Prof. Prakash K. Mokol.
I
rd111qu1 , l1111g or rh,· !'l'nl'/1 1 sh.ill r,' u benefil is subject to lhe char
,wr !,c,·11 J1 ,1111,cd ,in. such reversion of . I c amount r gc Of IO) If the owner of the property who has to make clect1on becomes disabled t? make an elecllon, ~~
\\ hl·n , u,·h bcnl'lil re, err, lo rhc rransferor, . tic above illustrat10n), 11 o Value Of such situation, the election will be postponed until the dl\ahd ity 1s over or unlll tht.: elcct1on 1' ma c
1 '
" (1.c · B mIi /lowing · t811ccs
111,1J..111!! i1,1od l(l rh,· J1s.1pp,H11ll'< j !rans f·crc.;c circums . b some compctcnt authority _ .
1
prop,.,;, -11 h1ch " 1, pnipo,cJ 10 he: 1ra11sfc1Tcd lll I ic o sli·r is without any cons1dcrnl1011). Jr The doctrine of' clcclion comes 11110 existence when two transfers are made 111 the same.
i) I;
ifrhc 1~111s/'a Qr,11wrous. (11 means, ifthc rranrl \wise becomes incapable of J11aki11g
11' rhc rr.msti.:ror.- bdorc: rhc election dies or O ic a
tra~sacllon Moreover, the fundamental principle of the doctrine of Election makes 11 clear that, tht:
ii) person who takes a benefit under an 111strument, must also bear the burden.
fresh rra nsfrr
iii) Ir rhc: rr.111sfr r 1s for cons1dcra11on.

For r\arnplr: . . . f R J O000/-. , B' by an instrument of gifi

O
· \ · l1Js :i propcrl) ar Mu~1b_a1 wh,c_h is worth DI-:~
15
'A,
by rhe same instrument. 'A' elect; Section 36 and 37:
profc•, ses ro tra nsfer IJ1e s~me lo . C , and giv~s Rs. _,00 Rs DODI -. If' B' dies before the election,
ro rer:im rhc properl) He 1s reqlllred lo forfeit the g1fl of ·,c: 15
h1 :, rcpresen r:i rn·e our of Rs. l 5,000/- must pay Rs. l 0,000/- lo · Q. 7_. Write a short note on :
Apportionment. I!""'
/ Anah sis of the Section: . . ri ht transfer.
1) The cr:i nsferor must profess to transfer properly rn wluch he has 110 g 10 fi
2) The transferor must confer some benefit on II1e owner of sue 11 properly by the same trans er.b
3) The 011 ner on "hom the benefit is conferred by the transferor by such transfer, muS t c1ect el ween
1110 thmg:s 112. i) retainino the property or ii) accepting the benefit. . . Apportionment :
.J) If rhe ~wner of the pro;erty proposed to be transfeITed, dissents from the transfer, he is required ~o
Sections 36 and 37 deal with the la\1 of apportionment .
re/rnqu1sh the benefit and the benefit so relinquished by him, goes back to !he transferor or his
representarn·e, as if th~ said property (which is elected lo be retained by the owner of such property) . . , on determination of interest of person entitled -
had not been disposed of S. 36 : Apportionment of pcnod1cal pa, ments o to the contrary, all rents, annu11ies, p.::ns1ons,
5) Such reversion of benefit is subject to the charge of making good the amount or value of the "In the absence of a contract or local usaoe f ome shall upon the transfer ol the
properly attempted to be transferred. Jn other words, such reversion is subject to the charge of
me
d'vidends and other pcriodtca 1 payme nrs in the natureb o deemed ·
as between "
the trans,eror an d the
compensating the disappointed transferee by the amount or value of the property proposed lo be i~terest of the person entitled to recm; suca:~at~::n~~•po~tionable 'accordmgly, but to be payable on
transferred in the following circumstances - transferee, lo accrue due from day to ay, ' , •
i) Where the transfer is gratuitous, and the transferor dies before the election or becomes
~pcpd:;;~o~Pfi~~1;~~1y f~~::~t~fs~r~~:1tt:~:.e~1~ abofv:r;oe~lt~~~ ;:::~tt~o:rn;~o;:~nih!~r~;:~:~~
otherwise incapable of making a fresh transfer. d' t 'b tt0n of the amount o P ~ d
ii) Where the transfer is for consideration. provides rules for ts n u fi fter the transfer has been ef ecte .
between the transferor and the trans eree, a . . Rs
6) The benefit must be conferred on the owner of the property in the same capacity as !he owner of
such property attempted to transfer. th the tenant the tenant p,1ys
Example: . n rent As per the agreement w1 ' , th' IO'h day of th.::
7) The person who takes no benefit under such transaction directly, but derives the benefit under
such transacllon rndirectly, in such situation, he need not elect.
!
A has a hous~ thl~l ~e o~~h!t~:~t ~ay of .each month A sells t;1~:1~~:1~l~~ ~l~e re"nt oft he first 10
30,000/Oas ~c~~O'" day when the tenant pays the rent, A ;;oOu~ays t.e. the transferor would take Rs .
8) When there is an acceptance of the beneiil by the owner of such property, such acceptance of month. n t c . Id take the rent for the rest o '
days and the transferee wou 00/-
benefit constitutes an election by him to co11fim1 the transfer, provided, he is aware of' his duty lo 10,000/-, :ind the transferee Rs 20,0 .
elect.
9) The owner of the propcny is required to exercise the right of el~ction within a specified period. He ,, .. the deed woulJ exclude the
1~ required to elect wit_hin a ~eriod_of one year from the date of the transfer of the property. Jf the "Contract to the contrar~ - , \y a contract, a contrary cond1tt0~ md t or a specific mccha111sm
f erty 1s pmn,m fy a certam ac
Since transfer o prop to the contract may spec,
owner d~cs not elect w1thm this penod. the transferor or his representatives afler the expiration of the le of apportionment. The parties
penod of one year, may bnng _the same thing to the notice of the owner of the property, and may ru • ·
as the detenrnnmg a
~ ctor . '" 2000 The parties , agree . that
requJrc the owner to_ rna~e el~c11~n; and even afler such intimation, the owner of the property fails to
clcct, then m such s1tuat10n, 11 wlll be presumed that the 011·ner has done th I t' t
transfer
ti I
e e cc ion o con 1rn1 t 1e
'
111
;xt~:~~:r~ a house tha~ ~s a~~c:~t:ent~:;~n:y A', while B
the rent of the month o anu, t that deviates from the ru 1e o '
\t:;:
nts to B on 10 January,
~
0 1
ollect the rent lrom
;~:~!~~ ~~
~pcciticd 111 Section

February. This is a~ agreemen

36, yet it will be val rd.
 3_! --

,· .. ,.,;.,,itinno~
}PthoJ f!roJ. P r ~oi.

.., I : ~i<1111111•111 nl h,·111'111~... ,., Ji\ fUCd ,111d held 111 \C\ c1 al sha
1 ·1
"\\ 1,. 11 . - Ill ", 11 ,,.,111 ,.-11 «· 111 11,111, c.
.
:!'/~

1m1JK'JI\-. \H(lJJerly ,1s ,1 11 I10 1c p.is~cs 1·1001 one

•I 11111c 10 111, I 1· . . 1
' res·,,
scv
35. Author - Prof Prakash K Mokal.

pel'<>ll" (1f ,111y) aflec1dl by the t1.11i-,k1 011 the olhcr p, 11 t, be (kemed 10 h,11,e .:w,ted, 1fthe tran,tcrcc
;ilfi:1 11,llll' 1easo11ahle c lie to ,l\cc11,11n !he cx1,1c11ce or ,nch circum,1.111cc,. h.t, 1cted m good fJ1th"
I
rha,·1 ,,,11 lh,· 1,,·11,· If i1 .1111 ,1'11 lf,lfl()ll ,, , . I lh. ,1>sc11ce o ,1 con ldCI lo lhe ~ ,,,Jll111tratio11 :
' f ' 1ful) sh.ii . Ill (.'. ' • Con ·1\ ·. a I l1ndu w1d w, who,c hu,band h,1, left coll.i1c1 .ii heir,. 1llegmg that the property held b)
''" 11,·, ,, Jh, I' ,11, .. r \ 1h,· ('(111,''Jlll!H Ill!! . • 1· . ·l1 0\\ 11e1 s Ill p1opo111011 lo the Va / Ir~ f
. I 1· 11 111 ol c ich o sue , Uc or hi:1 ,1, ,11c h 1s s11r0rn.:n for her nrn111tena11cc ,ll'rec,. tor p11rpow, neither 1cl1g1ou~ nor clwr1t,1bk- Ill
.1111<'"!!'' 11,· 1'" 11,·1,. /1,· p,·1 l,11111c1 111 • 0 ' •• ·d a11d that the scvc1ance d f
I ful\ C 111 1lC SC\ c1l.'. ' Oc st:11 ,I r,cld Part ol Sll~:l propcuy. lo ·13· 'tr ,,111,r,c, h1111,dfby n:.I\Ollabk enquiry !hat the l!lC(lfJlC
, 1,1, l' 11 ' 11l· pn•f','fl\. Jlf{)\ 1d,·,j 11,11. I I Je ( ' f ti • duly C,111!101 be severed SI
'I"'' ,,,,.I!h 11,rc,1s,· rh,· bnnkn of 1he obhg:111011. bul. bl I IC,· I 1he Olli) slnJI be J)e ~ or If 0 of tin: p1ope11y 1s sull11.1i:nl Joi 'A·, ma1nti:11ance ·rnd lhat 1he ,;1le of the field 1, nec<:",11)', ind
. I I J ·n of !he o wa IOI • . , r1orn1 ,icllll!! 111 good fo1lh, buys the field from 'A· \ , bet\\een ' ll ' on ooi: p,1rt. ,111d 'A· and collatcr.il heir,
,,, ,· i ,,,. 11 (11 1d ,11b,1 ,,w.11/\ mm:,1sc I ic nir c.
1111
des, nalc fo, Iha! purpose Cd f1
'·, '','Ill'!I ,11 ,1.,·h ,111l' nfrhc s,·,anl O\\ItCrs as IIK) shall JOI Y g II · 011 1h<: other part. a nece~s,ty for the sale ,hall he deemed to ha\e c:--1,1<:J".
of rhc obhgalIOII 11cs s11.1 11c answer b
J'·,,, ,,•,·d rh.H. 11() p,·1,011 on 11hnm 11e I lmrden ~ a lq
• J s,
t.u 11 ,· ,,, d1 ,,h.1r!_!.c' 11 1n 111.rnncr pw, 1dcd by l HS cc •
I •1 101 1 unless and uni! 1 11c 1ia~ had re
asonab
' ()'itens1blc 01\ner means. such a person \\hO 1, m the full pos,c,,1on or the proper!) In olhd
words. he rs apparently the full and unqualified O\\ ner of the prop.:rt) 111 pn,,e,'ilon
ih.H ,..\.' , , · '"''' 1..'1 ~inct" nd
\o '1in!_!. m 1h1s <;cctzon applies to leases for agncul1ural purposes unless a untzl lhe Sia,
Such person who 1s 111 f'ull possession of the propert\ anJ h,1s all the mgrcd1i:nts 1mhc1a ,1f
u,n c' 1 •1m,·,11 b) mH11ica11011 111 the 0/licial Gazelle, so dl!'ccls. O\\ nersh1p without be111 r the real 011,ncr of the ro crt\ . 1s called o,ten\lh\c ll\\ner
n11 s Section rclat s to tram fer by a specific category of transferors ha\mg qualified pO\\t:r, ,1f
ll/11i-rmri"11s: alicnatwn. 1c., who ca transfer proper!) not generall) hkc ,m O\\ n.:r. but can do 1l onh m c.:rt,1111
a) ..\ ,d s ro. C. and D a house situated in a village and leased lo Eal an annual rcnl of Rs. 30/. an
1
variable circumstances hey have lumtcd pO\\Crs of ahcnauon O\Cr th.: property m thelT po"ession
de 1, ,·1) one far sheep. B ha, mg provided half the purchase- money ,md C and D one-qua c ,r and they exceed their owers. the transfer can be challenged and ma) be d.:c\arcd vmd 1 hcrcturc
c·a l·/J • E. 11a,mg . notice of tJ11s. must pay Rs. 151- 10 B. Rs. 7.50/- lo C. an d Rs . 7.50/- to D a rte,
llllS ScctIOn seeks to protect bona fide transferi:i:s purchasers actmg m good faith. "'ho enter mt,,
mu<t dcln er the sheep accord mg to the joint direction of B, C and D. no transactions 111th transferors \\ho do not ha\C an absolute. but on!) qualified po\,er or alienation L,f
the proper!) . ln such s1!1lat1on 1fthe transfer \\Cre declared ,01d. 11 \\Otild cau:;e gross miust1cc to the
b) 1ri tlze SJme case, each house in the village being bound to provide IO day's labour each year
da~ to pre,·enr rnundat10n. E had agreed as a lenn of his lease to perform this work for A
an Dd se, ereJy require E ro perfonn JO day's work due on account of the house
;n~ of each E 'is '
bona fide transferees purchasers
The cases of a oslcns1ble o,, ner and their transfer of proper!} ma) occur m case, 01 a father
.

transfemng Joint family proper!). unauthonzcd ahenat!On by the Ka, ta of the coparcenar) prop.:rt) ..
boun . to do more than JO day ' s work.111 a11 , accordmg . lo such directions as B C and D .may nor
' • guardian of a property of a "' ard. manager for an rnfanr. ahenatwn b) a J/ohant or Shet•all ot
Ill gning JOJO
de/m11er property, etc.

Important requisite1s of Ostensible Owner :

I) lie 1s apparently the foll and unqualified O\\ ncr of the propert, Ill possession
..c..
-
,~P~;c Section 38 to 41 :
' / cl.,- 2) I le 1s m the immediate possession of the propert~
I 'bP[Jli/
Q. 8 : ~laborate doctrine of "Ostensible 3) He s not the real O)rner of the proper!) m possession. but hi: can be the co-01\ ner. co-sharer.
persons 1ntere t d · Owner". How far it 1·s b1'nd1'ng on the 1
s e m property. manager or the agent of the O\\ ner.
OR
Elaborate "Ownership by Holding Out". 4) l lc 1s gO\ emed by the doctrine of Esloppel relat111g to ostensible sale.

5) l le may hold the prop rty 111 possesswn as a guar_d1an. agent or many Judiciary capacit)

Section 38:Transfer b , a 6) He is eligible for the protection agamst nsk and the consequences that he has taken reasonable
crson authorized only under certain care lo pro, e that he 1s not the true and actual 0,1 ner of the proper!} m po,scss10n
Section 38 Jay~ down that (Ostensible Owner) circumstances to transfer:
Section 39 : Transfer "here third person is entitled to maintenance - , •
. "Where any person, author· d "\Vhcre a third pi:rson has a nght to recel\ e ma111tcnance. or a pro, zswn for ad,~n~cmcnt ~~
'.11_1mo1·,'.hlc property, tran\fcr\ ize only under circumstances in t fi f immovable property and such property ts transferred. the ng ! ma) <:
cJJc11m~111nce~ they shall b. such property for conside '. heir n_ature H1nab/e to dispose of
. as etween lh e transferee on the rai1on ' al/cgrn g tiie existence of such mamage. from the pro I O . r h. f f the transfer IS gratuitous but not agam~t
. one part, and the transferor and other e~~d aga:nst the _dtrearna' fi,oerne~~:
a trans1eree 1or cons1
!;1:i:t:~:~:e to~:~~ r~;h\. nor agarn~t s~ch propert~ in h1\ hanM'
 Jfi. --J,_y_thor - Pro . Prakash I<. I.vi
Oh~, I
. •ht 10 ma 111ta111 themselves out or ti _ _ _ _ _ _ ,_;3[17,!..,_ _ _ __,A!1_luthor - Prof, Proko~h K. Mokol
l '" ,,., ,11 11111, "' pr,•1,·,1 ,,,·1,1111, 111111 h,I\L ri,c ti I I ·I· le Pr
"1•1, h ,, '" "'" ,•r ',•1·•r.•Pi,, i,, "'111,· i1lhl·1 J'L'l",11 I he PL'l som L'llll L'< o c ,11111 maintenance op~n 0,11·n,1hk \i1c1ally me mis apparcnl ,
1 • • 1, I1 •1,e,l'I lr111cls 11 may hl' 'HH.I or app,11c11lly or sec111111gly appcars lo he lhc nwn~r scc,:11111! _An o,1cns1hlc nwnc1 1~ n ptNm "ho
• •l'"" -111, ,ll, ,•111111',l r,, ,,, '''" 1hl· J'ft1f'1'1I\ 1n 11 oms ' ' reali<c 1 I~ 111<l1cas ol ownership havmg hcmg real owners\:; lhou~h 111 rc,1\ily he 1s nol lie 1\ ,1 pc,,on h,1\ing ,1\\
ti, 11 lh, ,lllh 1 lllll lr\101 rl ~t 111 1111\awlul oec11pal1on of the properly I tis hchtv I le lS 1\tllercn_l lrnm... , mcrc l1cspa,,cr or ,I pc1,on
I \ fll('k: the p1opcrly w1lh the eonscnl or conduct of the :man<l con<lucl ,1ppc,ns In he that ol the o\\nc, 11 1
\ f ,I ' ,, lJ \ ll ,,,11 ,111d ,1 d.111chtc1 lea, cs the prnp..:1 ty "' n,vour of the son throu Ii
ll'd j'r,,, .. ,·, ,, ,1111 ,, h,· llll'(1fl1L' c,,;lllllj! fr11n1 thl' prnpcrty, the son would pay Rs. IO goo a W,11
, the son and <laughter mhcnl the property fhe d:~;1\ I
ownc~ or mst,mcc, 011 the <lc,11h ol the \.ither,
brother lo lake all <lee1s1011s wtlh ti . g ilcr hcmg m,m1c<l 1, llvmg •'""Y a11<l al\o\,, he,
,c properly, mamta1nmg the . . .·
ni.
, 1nth r,' '• • ,,gl1 ,., h•r h,·r 111.11nlcn.mcL' J h.: son sc 11 s· tI1c• p1opcr• , ty to X , w,·1110u1 maki,' O;. P~ properly, etc. In ~ueh a ea~e. the brother would he a • propcr1Y, e,1rry111g m,1Jor rcp,111, ol the
'1 ,·mat1, ,· .iml!l~ .i,,,.,,,, 1;,r rh,· dauchrc, 1 Jcrc thL' daughter is cnt1tlcd to rcalvc maintci ig nnl sister ,s the real owner n OSlcnsihlc owne1 of the property, •vh1lc \he
·iltl'lll 1:,r h ' •!!• ,•r ( 1,• ,,,, l. bur 11,1111
. - 1n 11 hnsc .llilnds the property 1s Ir ere II1c 011 Iy conditi lance 1101
\..
1 ' 1
·"f,•r,-.- '" 11 111,l h,· ., !!r,1111i'i7iits 11.insfcn:e and not a transferee for consideration on is ha1 I he prov1s1ons of this Secllon arc based on lhc nnci 1 01
• ' ,., ... 11 h,l h<ld lhllK,· ,,1 1hc· claim 01 nghl of the party seeking 111a1111ena11el'. ' or ii) a' n:presenlal1on (1.e oslcns1hlc owner) , an<l somebody c~c aei, c btoppel. ll a pc,,011 m,,kcs a
that person loss (1.e bona fide transferee), the person makm su~~ l~,,t .rcprcscntatlon \\h1ch cause,
1
representalion and accept that loss and cannot claim 0 lhg rcprc,cnt.illon mus\ ,taml by that
'rrtion._-:1(~: Bur~L'n of obligation imposin" restriction on use of land erwtsc or cannol 1h<l . , f h
,cpresenlalion 1le as an ostensible owner ts estoppcd from dom, so 1 r,i\, rom ,uc
ha, u: , \\ .l:,r,·• l,1r th·c 1111r. < ' I1u11•
. Ii1c1.1 I cn1oyrnc111 of his own 1111111ovable
, property a third based on the pnnetple of eqmty and natural JUS\lce.
Wl

•1' lhc'nl,,,f.i 0 g, his <loclnnc of cslnppcl ,,

nchr 11,.. 1 1
1
11 , 1111 crcs
., 1 111 11c
1 1111111m able properly of anolhc1 or of. any casement ' th Pers n
• 10 '' 1r:-un I 1le' ,·n1 11) llll'lll 111 a p,1rl1c11lar 111a1111cr of the !alter properly, or creon,"
_1r there 1s a transfer or property by a person m the capaclly of oslens,hlc owtm, the ahcnallon
Of ohligation ann1•,1•d to O\\ nc . of such property 1s not VOid, provided the person who purchases the propc 1 (I . 1h I
"\\ h·n·.: thi , ·rslup hul nol amounting to interest or casement _ to prove that, - · · r Y c. c pure iasc1) h,"
I'(1p,r~,,n ,, L'lllllll'd to lh • 0 •
L
In 01\ncs ,hip ofunm ... L me ,-11 o f an nlJ I1gal1011
' arising 0111 or contract and ann,.
!? He has completed the transaction relalmg to altenallon ol prnpcrly wilh honcsly,
:-- u,h nch i or 0 '•1" 1e. propl'TI) • but 1101 mno 11 n1111g lo an mterest thcrc111 or casement ' thecxcct to 11) l le has ensured before purchasmg the property that the seller ol \he prnpcrly h,id lhc n •hi
~
r,lll, lmh 1r,in,f,·r,·
1 ic,111011 111 l) be •n/'
0 11
: ' . e orcec1 aga111st a transferee with notice there O r '
reon
to sell the property I!,
1 d
n 11 llIlout nn11,·,· i,r ' 01 11 propcrt, ·1flccle I 11 • · •l l
IIK· ,lewhl or ib.l ' t icr c iy, iut not aga111s1 a transferee for considenor, a
- < rg,111on , nnl aga1nsl such properly Ill his hands". , lion
~l/1:11rntior,:
Rn111coo111ar vis. Mac Q11ee11 ( l 872. Heng. L. R )
."t"
\ conrrnch to ,ell S11ltanp11r lo B. ,
h11~ notice ol lhL' rn1111,1c1 'll' llld\ \~,:\'.le .''.1cl c_n'.1t1act is sltl.l 111 force, he sells Sultanpur lo '("
IHcc l 1e rnntract against'(" 10 ti ic, s,11nc . . ex len l as agai ns1,
.luchc1al Commtttec of the Pnvy Council 111 this case observed that,
"ll is the p1111c1plc of naturnl cqu1ly which must be un1vcrsallv applicable thaL where. ,tn 11wnc1
or a prope1ty allows anolhet lo 1eprcsenl hunsclf as thc owner or propcny, and a lhml person
put chases that p1opcrty ror valuable cons1dcral1on from lhc apparent owncr, 111 the ochcl !hat he wa,
Section 41.. 'f'all\frr ol. prnpc•rt I 0 the real owner; \he man who so allows the other person lo hold himself as the o\1ner, c,,nnot be
' \\lhrn.', 1111h the r , - Y 1Y stcnsiblc Owner
onsrn/ express I pc1 milled lo rccove, upon Im sccn:l ltllc. lie has lo prove !hill. e1thcr lhc purdrnser had., thrL·~t nol1cc
,1 pc, son is the o,1L·n"blc m1, , . . or 11np ,ed. or the persons intercste I . .
sh,lll not h,· 'c11dahlc o11 II . ,1cr o/ such p1opcrly and transfers the sam, ~· ~ 111_.unmovable p1 ope1 ty, 01 somcllung. whtch amountcd lo a consln1c11vc notice. \\htch oug:hl 10 lune put him on mq111rv.
Pim idnJ !hilt th, I •_c gt1111d llwt the tramlcror was nol ·1 11lho -~Io, co11s1tl.eral1011, the lrnnslcr wl11ch if proscculcd would have led to the d1scovc1y of the true 1m ne1"
JlOll'l:1 lo 111,lkc lhc Ir Ill~ _,,111~ crcc, ,iller 1iil,111g rea sonable ca',·c , ~sc_c, I<~ nrnkc 11·
lu h.i\ acted ,n good ld11h" lo .isccrl,1111 that lhi.: tra11sfc101 had Ostensible owner nnd Bennmidar :
·1he Oslcnstblc owne1 and /fr11<11111dw arc on the same fooling. because, like the (htens1hk
I h11s , llll l1;111· kr of ow net , the Hc11111111c/(II also deals with the property posscs~ed by \11111 111 the same 111,11111c1 Whrn the
.illnf 111111101,1/J/e pwpcrly by II
ll' mteJ1s1blc ow11c1 IS v· 1· I f 1
/lt•11r11111r/(II sells the prnpct ty 1t1 hts pnsscss1011. he dncs not dtsdosc or 1cfc1 .111y na111c ( 1 the
;1) 111 r>ood l.111h ,11af , "I< J, th e l1a11s/c1ec has
p111 chn~ct 01 the nctual 11111nc nr the ow net of the prnpcrlv I hcrc!mc, /ln,111111 lr,111sact1nns arc
h) h.i •, l.rk,·11 tl.1 ',011.ihlc c Il l' , npp1op1mtc cxnn1plcs ol s1llh lypc of osll'I\Sih\c ownc1 nr s11ch type or ns\ens1bk lr,111,kr
' lo dSCl'll,1111 tliat Ilic /1,111s/e101 Ind
//11 ~ i'!c, 1101, .1pplll'· """ I ' f)OWL'I lo r111il11· li1l' l1a11~fL•1"
1111dl'1 Ill!' ~l "I" n/ 1/11 '-.l <li;;,/''""ll·rs for v,i/11,11,fe ro11sidc1,1/1w1 ( i1a11111011•, lm11 sfc·1s 'VII
l'rutcction ol the
-
1'111 ch11,!'1:
· /\~1 ~ilSl't wtl I-he p111tcclc1I when he proves that.
· • 1 1101 fall
n) he has \Hill hasrd the p111pc1ty Im va\11ah\c rnns11kral1on,
Hortri11!'
.
ol 0,1<·11•,·1,11,
' OWJJ(T ,
0'11111·ipft• of 1':,toppd) ..: h) Ill' has m lt•d 111 f'lllHI \;11111 a11d
 d h' n i, •k.~·,1 h'.1,\ln,1l1k \ .u,· .111d ,nnd_~:,r
,112':\·•l'' h,1d rill' p,n, \'I hl n1,1k.\· thL' ruins c '
39. Author Prof. Prakash K. Mokal.
Ir .111, ,l rlh· lhh.·,.: \'PihlifhlJl, .111.· rttH saf1sfi 7
fh'' 11.kJ 1n th,, ."11..'\'lh'O
~r~:,::':/;;,cJ lo thc cond1<1on, and hab1ht1c, affecting, at the date or the lr,m,fcr. thc ,hare or \l\tacst so :J 2- C P:J
\Vhcre the transferee of a share or a dwelling-house belonging 10 an unJ,v 11kd fin• h " n.:,t a
th
member of e famcly, nothing in this Section shall be dccmcd to cn111k him <o 1oint P''"~"'"n or
other common or part cnJoyment of the house"
l hes Section cncorporates a rule of substlluhon or ,ubrogallon and apphc, 10 a ca,c "here the
property " owned by more than onc per,on in spcc1f1c shares and one of the u:,-owncr, ,dis ht-
share
Sections ./2 to 51 : i::,nmpk:
Two brother, A and 8 jocntly 1nhent a house and a land from thctr father tn llknhca\ share, \ ,,\\,
(!. 9: Questions for Situation based problems/short notes or short amwers can b~ hes ,h,trc lo A Scnc~ X '' a stranger to the family, h.: cannot c\a1m a Joint rc>1Jcncc tn the hou,c tt,,
asked on the following Sections. n:med} \\ould be to seek partct,on and <lcmarcallon of the hou,-, \-\o"c,c,. \\tth rcspcct to th-, land,
he would step into the shoe, of the tran,feror \1 e ,\) and ha,c the same nghtb .,ml 1tab,\i11cs that th~
transferor had

Section ~5 : Joint 1 ran,fer for consideration -

Section 4Z: Transfer by person having authority to revoke former transfer - •·\\ here 1mmo,ahlc propert) 1, tran,:erred for constderat1on to l\\O or more persons IU\J ,u.:h
··11 here a person transfers any immovable proper!). n:ser, mg po,, er lo re, oke !he_ lran\fcr, «nc! constder:1t1on ts paid out of a fund b.:tongmg 10 them in common, Ibey uc, m 1hc .,'thence ,,r a
,ubscquently transfers the property for consideration ro another transferee, ~uch lranslcr operate, 'n contract to the contr,u-,. rc,pcctt,cl) enhtlcd to mtcr-,,1, m such propcrt, ,tlcnttc.,\, a, ncaT\\ ~s m.1~
favour of such transferee (subject to any cond111on attached lo rh.: C\crcis.: of the po,, er) a, he. "tth the mtcn.:sts to "hich the) "ere rc,pcc11, cl) cntttk,\ m lh,o font\, anti. "hcTc ,uch
rc,·ocat10n of the former to the extent oflhc poll'er". 1 constdcralton "patd out of ,cparatc fund, bdongmg to them rcspect\\eh, Ibey ,Ile, m the ab,cncc ,,f
l//ustration : a contract to th..: contra!). rc,pectt, cly cntttlcd to mterc,h m such propertv m f!T,,port"'" to the share,
A lees a house to B, and reserves power to revoke the lease if, in th.: oprnion of 1 ,pc(. ficd ,uncyor of the c.:on,1d..:rat1on "htch th<!) re,pecll\ ely ad,an..:ed
B should make a use of it detrimental to Jts , ·aluc Afiern·ard, ,\. t/unkrng rh:11 ,uch u,c hlh been In the .ih,cncc of,·,1Jl-nc.: .is to the mterc,h m the fund t,, \\htch the) \\CTc tcspe,11\cl) ent1tkd,<1t
nwde, lets the house to C. This operates as a rerncation of B \ /c,he \llbJect 1(1 the opmron of the ,h 11, the share, "l11ch the) rcspccti, cl} ad, anccd, ,uch pcr,t1n, sh,11\ 't>c pre~umcJ lt1 be cqu,1\I,
sun-eyor as to B's use of the house having been detnmcnta/ 10 11, \ a Jue 1111crc,t.:d 111 the pwp.:rt) ".
l ht, Seclllln 1.1,, Lkn,n n ml.: to dct.:mune th.: qtuntum of their rc,p.:cl\\C 1ntcre,t m the ;x,,pcm,
"h.:rc .1 pr11pcrt) 1, tr,m,fom:J for con,1dcrauon. and is pnrcha_,.:J b) t\h1 ,,r more pcr",n, 1,,mth
Section 43 : Transfer bl unauthorized
transferred crson who sub~c ucnth ar( uirc, inllTl'\I in >ru >nh
I h, '-.:dwn pw, tdc, th.II 1n nbscn,·c ,if n c1,nlni.:1 "' th.:- ,,,ntr.U), their lllll:rcst Ill th.: prtipcrt\ \\tl\lld
i,, 1n pr,,pllrlllln Ill their c1mtnbutwn 10,, nn.is th.: c11n,h.lcr,111,1n.
"Where a person fraudulently or erroneousJ:7 represcnc- th.it he 1, a111hor1/cd r., rnui-kr , crtaro
immovable ~roperty and profrsses to transfer such proper/\ for rnm,derarwn , ,uelt tr. ,t.-r sh.ill f . 10 L,I kh In th1,. l\'illl'R
the optwn of the transfrree · t, · , • 1 J 111
J:\,tlllpk:
\ (l\\ n, 1 plol ot l mtl and ,ells II IL' B mill C for c11n,1,kr,1tt,1n ,, Rs • ' ' '\1011 • B
~
' 11 0

. , c , opcr,1 con .iny mtcrcst II uc I the 1ra1hll'1<lr 111:1, lll'l/lllfl' 111 ,uch prnpl·n, ;,,t)' 11.:i..h ,1n,l \' p,1), \.1kh \"hc c,t.:nl ,,fmt.:rc,t Lh.11 h1th B .md C' \\11u\J i.1cqmre m the im,pert)
:it any tune dunng which the contmct ofrrnn.sfcr subsist, •
,,,ntld be· 1,,11-tcnlh l2ll'',,) nntl c1ghl-ll'nth {:Sl)''.,). rcspcctl\ch
1
111110111 Nothing :n this _Section slwll impaIJ the ng.hc of 1r.111s/l'll't' 111 go<>d Jiuth for l ori-idC'rotr
notJce of the c:xistc:nc..: or the sa1CI uptwn" on
1//ustration :
II
\\. .1 llindu ho h:icl separated from hrs father l3. sells to ( three fil'!d, :-; ) nnd L r~pn·,. h
Ill ~; ;::; ;~;:'.-u.~~
1
1:::,;;-n~sfer the _same Of these Jidcls Z doc, lll>t. he/on; 1,; \: 11 h 11 ; 11~ b:-e:i°r~~;,
1
,\c~I
-.ale. may rc(~11c A I<; d:;r~;r~ :odi~:;;; ,\ ,Is .111 hetr obt,1111, /. ( rJc>t /J.11 mg rr,r1111k\l lhc· contrnct of
.'.',t•ctio11 ·-1-J .- fransfrr b1 one co-01111cr
II here o11c or 111 o or more co- i11 , , .
11,111\ll'r, hr, ,/i.1rl' of 11 ·h , . < lltrs ol rmmo1,1bk propcrr.\ It-pl/} l't' l'1t' t n th,ll behalf
· ~ t pmpt1t\ 01 ,In\ mrl·rc:--,t rh ·r •111 rh -
111t,·r,·,1 ,111d ,o t:11 d.\ " ncct·ss~r\ I> • -_ t t • t' rr.111' 1t'It't' acqt t' ' l ,uch ,h lrl' or
/ > - ·-· . l ''/\l' t'fllcr It)
01/il'f {'(l/ll/l)()I) or r:irr
rh • r - •
<l\\t'\\l()[I ()f t•n,· l\ _. ' f h t L•lh,t'r. Ill'1 Imp, l ,l ' 1gh1 It) 1'orn1
• ( llltllf (l f t' nn1p'n\ · r -
- • "" l • · Jn<:
111 c:-nHirrc:- :t p,1rtl!ron of lht• ,ame,
 . . 41.
. mon ro er - . . Author - Prof. Prakash K. Maka/
Section 47: Transfer b co-owners of share rn co1%nsfcr a share lherem ~ithout specifying that
I
''Where several co-owners of immovable property I ares of the transfer01 s, the transfer, as a111
hi case of successive transfers of the same property by 1hc tra nsferor. the latter tran ,fer 1s subic:c to
t~n1
transfer is to take effect on any particular share orllys ~vhere the shares were equal , and Where e1 the prior transfer. Herc, C has become the owner of the property but the property ts st1l, subject o
such transferors, takes e cct on su
ff, ch shares
· f cqua shares. a mortgage and in the event of nonpayment of loan. the mortgagee cause the property to be sold
~vere unequal, proport10nately lo the extent O sue I1 So 111 effect the complete rights over the property wtll be ves ted in C tf he redeems the property
payment of loan. 8 's rights over the property are not affected by the sale m fa vour of a
by theparty.
and C each the owner of a_ f~ur-anna shar~, in ina1, third
lllustration :
A the owner of an eight-airna share, and B ' D 1,1ithout spccifymg from which of th /ti
, \ h . t k e,,
, "
Sultanpur, trans,er a two-~nna s le . ct to tothe transfer,
I arc in the ma11za one-anna s are JS a en fron, th Exceptions to the Rule of Priority : '
several shares the transfer 1s made. To give effe f B and C c
each of the shares The rule of priority is subject to the following exceptions -
share of A. and half-an-anna share from O ·

') In case the instruments of transfers are required by law to be compulsoril y registered, and the
. • of share transferred from each sharer. The
This Section enacts a rule to ena_ble the detennmat10nf heir ownership in the property.
share transferred would be proportionate to the extent o t ~ er transfer is unregistered and the latter in accordance with the procedure of law, the latter\\ I
hon:; priority over the former and the rule continued herem would not apply For example. A execute,
II h · g th· d · favour of B with the help of a written deed that is not registered The lease 1s for a penod 01
~
Example : ~v
.,,. a) A. B and C are the co-owners of a piece of land, each of them equa Y av~n . one- Jr share eas:;;s and acco,ding lo Seclion 107 of !he Ac<, can be validly effec<ed onl y w>lh the _help,t'
sell half of the total property to D, without specifymg the specific
in it. They collectively
:;i~l;'n atlesled aed ,egislec deed. The pmperty is '"bsequently sold to C fa, a coo~de~~:~:»: •~
share with respect to which the transfer is to take effect. D woul? take half out of each m
of the total property instead.of B, it is C who would have priority over _the nghts of 8 o;er the p;o~e:~le to~ake effect
owner's property. Consequently, each of them would now hold one-sixth . vacate, as the lease in his favour is not executed with the help of a ocumen c P
owned by them. law.
b) A, B and C are the co-owners of a piece of land, each of them havmg half, one-fourth and
one-fourth share in it respectively. They collectively sell half of the total property to D ii) The rule contained in Section 48 is subject to the doctnne o f no t'I ce {Hat hi Smgh vis. K11var11.
without specifying the specific share on which the transfer is to take effect. D would take one- (1886) !LR JO Born 105]
fourth out of A's share, one-eighth out of B's share and one-eighth out of C's share.
ts
Section 48 : Priority of rights created by transfer - Section 49 : Transferees rig~ts under polic~ ~onsideration, and such property or any part thereof
"Where immovable property is transferred fo b fi the transferee m case of such loss or
tt
"Where a person purports to create by transfer at different times rights in or over the same immovable he date of the transfer insured against loss or damage y ire, _ e any money' which the transferor
d
later t t the contrary requ1r
property, and such rights cannot all exist or be exercised to their full extent together, each a
damage, may, in absence of a ~ontrac o much thereo'r as may be necessary, to be apphe
m
of a special contract or reservation bihding the earlier transferees,
created right shall, in the absence created. actually receives under the policy, or so
be subject to the rights previously reinstating the property.
The rule laid down in this Section is based on the maxim "qui prior est tempore potior est
Jure"
to the . Id der defective title -
which means that "subsequent dealings by the transferor of the same property cannot be Section 50 : Rent bo!la fide paid ~o ho er un ofits of an immovable property, which he has m
"No person shall be chargeable with any rent or p~ h . ~ in good faith held such propert,
.
prejudice to the rights of the transferee over the same property". In such a case, each subsequent
transferee will take the property with the rights of a former transferee.
Example: good faith paid or delivered to any person ~ \.\ om to whom such payment or delivel) \\a,
notwithstanding it may afterwards appear that t e person
of this made had no right to receive such rents or profits .
a) A grants a lease of his house to B for a period of five years. After one year of execution
lease deed, he sells the property to C. here the transferor has transferred the property two times to lllustrat10n
. : field to · having no notice of the
00 and then transfers the the rentC so8 paid
of
two different transferees. One is a lease-, i.e., transfer of a right to possess and enjoy in favour Rs . 5 A, 8
A lets a field to 8 on a renttheofrent to . is no
t charoeable with
"'
the transfer, in good faith pays
B, and the second is a transfer of all the rights in the property in favour of C. According to
the
rule expressed in Section 48, the subsequent transferee will take the property with the rights of d r defective title -
fonner transferee. It means that in the present example, C who has become the owner of
the Section 51 : Improvements made bv bona fide ahk:1::~~ ~:p~ovement on the property, bel1e~111!~n
i.e., subsequently evicted there:~~~~n ~,th/r
property with a subsequent transfer will take it subject to the rights of the former transferee, "When the transferee of immovable _rro;;::re: and he is
B who is the Jessee. In other words B would have a priority of claim over the property with
the
good faith that he is absolutely ent~leee has a ~ght to require the person causmg t~e :e
at the then
result that C would not be able to take the possession of the property with immediate effect,
even Person having a better title, the trans er . t d and paid or secured to the trans er
f h . rovement est1ma e "
the
though ~e has become the owner. He would have to wait for a period of four years, till to have the value o _t e imp . f the value of such improvement
completion of the lease and then only he can claim the possession. market value thereof, irrespective o

b) A mortgages his pmperty in favo"' of. B to sec"'e a loan of Rs. 80,0001- He sobsequently,
sells
!he ssme prnperty to C fo, a cons,dern1wn. He" agam !here a,e two dilfecent trnnsfe,s effected by
the lrnnsfcrn,, lhe pno, m favou, of B and the subsequent in favou, of c.
The law says Iha! in
 43. Author - Prof. Prakash K. Mokal

th notice of 1he suit or not f111, 1, th1.: ruk ol hs-

dec, ~1011 or ie ~ult of e suit, whether he had
pende11 s
Q. 10: Discuss the doctrin e of Lis-Pcndens. I) l)uriug the pcndcn cv of the suit:
OR th 111 which the l111ga11on 1s pending before th.:: Court
of compet.::nt
a pending litigat ion"- Discu ss W' It means, dunng e penod the d,11e of
.. Nothin g nc" sho uld be intrnd uccd in Ith nd
Jurisdic tion . Pc cncy commen ces from
the date of subm1ss1on of the plaint or from
cxeeut1on of th.::
doctrin e of Lis-Pe ndens. th 111 the Court of competent Junsd1ct1011 1111 the date or the
refri·c nn• to the presenta tion of c plaint on,
the final order of the Appella te Court, or 1f the decree has become affected by li1111lat1
decree of
s so barred or so affected by l11111ta11on
until the dale on which the decree become

2) Litigat ion should not be collusive: that.

Doctr ine of Lis-Pcndens: not be of collus1vc nature . "Collus ive.. mean,
ns relating to Jis -pcnden s. The litigatio n should be honest and should illegal purpo,.::
Transfe r of Propert y Act deals with the provisio secret agreeme nt, or ,t should not be for
Section 51 of lhc• the liligal1on shou ld not be the result of
c nature of the suit or procccd mg.
There ,s a proh1b1l1on against the collus,v of
o Thereto (S.52): of the party to the suit or default on the part
Tran~~ cr of Proper( ") Pcndin o Suit Rclatin In the "ex-par te_" proceed ing (i.e. 111 the absence le.
Dunng the pend 'nc C . limits of India the 1s decided ex-partc , the doctnne of L1s-Pcndcns 1s applicab
our! which has the au_thority [within the the party to the suit) 111 which suit
decided 111
c,clud111g tlk:- State of Jc ) in any the Central not be fraudulent or collus1vc. This a,pcct was
r] o: which is _established by such limits, by provide d such order or such decree should
Go\ emn;en1 . of an sui~n:~lll and K~shm1 to immova ble Ram Bharos e vis. Rampa [ Singh.
and I~ such suit or proceed ing any right
propen:_- is directJ) ;nd s ec1ri::i~ee_d111g, be transfer red
or deal[ \\ 1th b\ an, pan/to tl ~ 111 question , 111 such s1tua1Ion, the propert y cannot party except compet ent jurisdic tion:
as to affect the rights of any other 3) The suit must be pendin ° in Court of the Court of
under the aurh~ri lY.ofth e C ie std11t or proceed ings~ le to the suit or proceed ings pcndmg in
oun an on such terms as ii may impose"
. The doctrine of Lis-Pen dens is applicab the Courts
. be pendmg before Courts m Lnd1a or before
compet ent jurisdic tion. The suit must ment The reason that the suit must be
E.\plan ation: limits of India by the Central Govern
establis hed beyond the then the
. 1f the suit 1s pend111g before foreign Court.
For ihe purpose s of this Section th be deemed to pending before the Indian Court ts that, 111 go,emm g
eof;l~de nc~ of a suit or pro_ceeding shall t and the conside ration may be differen t
comme nce from the date of the presenta ~ion the 111st1tut1on of the proceed ing in a procedu re, even the remedy would be differen y to have
t" e pla111t or from only the Courts m India, but also the authorit
Coun of compet ent jurisdic tion and it is made in such suit or them. Compe tent jurisd1ct1on relates not
. con mues until the final order or decree
proceed mg. jurisdic tion over the propert y. to deal with the ,ubJect
a Court having no JUnsd1ct1on
d
The doctrin e of Jis -pen ens states that nothing new should be . t d d . . . . . [f the suit is filed in a wrong Court or 111 before the proper
m ro uce 111 pendmg Iit1gatwn. of the suit and when such Court returns the suit for the purpose of l!lmg
matter pla111t or suit 1s
. begm to apply from the date on which the
Analn1 s of the definition: Court, the doctrin e of ''Lis-Pe ndens" will
filed in that proper Court.
b II
Section 52 says that, no alienat10n should that no al1enat1on
the J I ea owed dunng the litigatio n This rule 4) The suit must relate to right to immov
able proper ty:
should be permm ed dunno a pplies to
J 1gat10n, _ of compet ent jurisd1ct1on must relate to the
nght to the
i) Dunno the o
The suit or plaint filed before the Court
ii) Th o penden cy of the suit or proceed mg immova ble propert y should be directly
and spcc1fically 111
e su!t or proceed mgs is not co!Jus1ve. immov able propert y where a right to t. cannot be
iii) ory note. or for damage s m Tort or Contrac
The SUH or proceed mo is Ill the C questio n. [f the suits are on a promiss suits relate to
th o~rt of compet ent Junsd1cl10n directly propert ies of the defenda nt. Such
h) The SUJI or procee dm; deals conside red as affectin g specific ally and sat1sfact1on docs
w1 t e nght to that propert y which ts directly
or specific ally d out of the defenda nt's prope1 ty. Such
m questio n money decree which could have been satisfie
to immov able propert y directly and specific ally. But, mortgag e suit for specific
not affect the right the suits where a
land or for the lease of a piece of land. are
Accord ing to Section 52 of the Transfe
f p perform ance of a contrac t for the sale of
the d?ctrin e of "Lis- y is directly and specific ally related or involve d.
;··. if the above conditio ns are sat~s~e d,r~~:~ YU~~; :i!~;dd eals with right to immov able propert
;:~~~ not be any alienati on of the
er: 10
5) Volunt ary and Involu ntary Transf r of Propert y Act does not make any
reference
ThVi rule prov_ides protecti on to the a
.. . . Even though Section 52 of the Transfe to
the doctrine of "Lis-Pe ndens" ts app lied
-~ to lhe /1tigat10n agamst the transfer mad transfer , the fact remains that
party to Lhe IJfigat10n. Where .there is a p volunta ry or invol~n tary
or proceed mg pending between tw
. e _by the other
immov able propen y, and when one f su1 sells or transfer s lh o parties In respect
of both, volunta ry, and involun tary transfer
.
the litigatio n . o hthe pa~1es thereto
~UbJcct mauer of fi e propert y which is the
, m sue SJtuation, the purchas er o 1 bound by the
r rans eree will be Essenti als of Lis-Pen dens:
 Author - Prof Prakas h k
~
44.
g in a co 111
, 1111111ovablc propert y must be_ pcnd111
,. , 11I diction as provid ed by the L Pe1 Autho r Prof. Prakas h K. Maka/.
1 111
\ ~lilt <'I l'"'l'l'l'd111g lll, 1 .i.: to ~ 1 · dealt with by any party loaw. ~ 45.
i)
C<,urt h;n rng the' .n11Iw11t , ",1l1111 ,uch terntm iL~:sta
lhe su 11 be deemed to have
flw 1111nlln .1bk p111pcrl~ c,mnot be transfcr
rc transfer made withou t con~1d crauon . \hall
For the purpos es of this sub-sec tion no
1
ii)
. e The lenn "collus ive" only that a subseq uent transfe r for cons1d era twn v. a~ made"
prt1ccc'<hng t,, .1ffc·c1 the 11g h1s of other party. coll~s 1 vc natur · means, ''as made with inte nt to defra ud by reason
iii) fhc su11 l,r rrocccd mg must not be of '
.
rl'Sult ,1fs,xr,·1.H:1ccmcnt for illegal purpose Proceed, Fraud ulent transfe r:
be pcndmg in the Indian Court, becaus e the suit or made with -
h) The su11 <'r pw,-~cd1 11g must ni Every transfe r of immov able propert y voidab le at the option of any
pcnd11n: 111 forc1~n Couri \\ ill not be covered
.
an imrno 1) the intent to defeat or delay
the credito rs of the transfer or, shall be
with the right or right arising from
rhac has w be~ a dispute 111 connec tion VabJc credito rs so defeate d or del ayed.
made withou t -
rrorcrt , Every transfe r of immov able propert y le at the option of
a subseq uent transfe ree, shall be v01dab
2) consid eration with intent to defraud
suc h transfe ree.
parts viz.,
The Effect of Lis-Pend ens: Thus, this Section is divided into two g the
g in the compet ent Court relatin g to the
im with the intentio n of defraud ing or delayin
i) \\ hen the suit or proceed ing is pendin rnovabJe a) Transf er of immov able propert y made
) and if such propert y is transfer red, such transfer will be treated as "void" credito rs. the 111tenl1on of
propert · withou t cons1derat1on with
propert y during its penden cy' will not get better Transf er of immov able propert y made
ii)
The person "ho purchas es the immov able b)
ee.
tHle. defraud ing the subseq uent transfer
transfe rs and therefo re
effect is to render it subord inate to the
r' immov able propertv beme: fraudul ent
iii)
~;~ effect_ is not to a~ul the transfe r, butthethecompet tgh(s The above two cases of transfer of
The e ::rties to th_e_ lzti?at1011 pendin_g in ent Court. voidab le are discuss ed below :
h) th or otherw ise deal with the immov abl e Property ding or dela, ing the
.thP _Y to e lztigat10n cannot alienate ty made with the intenti on of defrau
'' 1 a view to affect the other side. I) Transf er of immov able proper
ft! .
ft does not prevent the vesting of the I e m a transferee, but makes such vesting of title credito rs:
relating to fraudul ent transfe r of the
propert y Accord mg to
subject to the right of other side. ~ is the first part of the Section mg
1s made with the mtenlio n of defraud
is a transfe r of immo vable propert y which
this part, if there ty made wilh the mtenl
ror, such transfe r of 1mrno,·able proper
or delayin g the credito rs of the transfe held v01dab le at the option of the credilo rs
credito rs, must be treated and
to defraud or defeat the
For examp le : are hkely to be filed
that the suits for reco,e ry of debts
Sectio n 53: A who is indebte d and also expect s such house from being attache d conseq uent
sells his house to B to save
against him . He, therefo re, filed agamst him, and he
ty in those suits which are likely to be
Q.IJ: Discuss exha t' upon the order of attachm ent of proper B, 111 such snuauo n.
1 t Trans fers". If the fraudul ent intentio n is known by
us rve y the Jaw relati ng to "Frau dulen sells that house to B in payme nt of debts.
the credno rs.
at the option o f
the sale to B is liable to be set aside defraud or delay the
Answ er: able proper ty made wnh the intent to
ln other words, the transfe r of immov er, the nght of the
is held as voidab le, provid ed the credito rs destre to do so. Howev
credito rs, transfe r of immov able
Section 53 of the Transfe r of Pr operty Act defines the term "fi d I eration , are not affecte d even if the
rau u ent transfe r" as under - transfe ree in good faith and for consid
defraud ing or delaym g the credito rs.
(1) "Ev proper ty is made with the intentio n of
ery transfer of immov able
propert y made with intent to defeat o \\ith the intenti on of
transferor, shall be voidabl e at t
. Nothin g in this sub- ~e opt10n of
any credito r so defeate d or d delay r
the credito rs of !he
.
2) Trans fer of immov able proper
ty made withou t consid eration
shall impair the rights of a trans;e ~{:d: defrau ding subseq uent transfe ree: the immov able
conside ration. sec ion
Ill good faith and for relatmg to the fraudul ent transfe r of
this sub- . This is the second part of the Sect10n
. Nothmg in .
section shall affect any Jaw fior · t11e tune being i fi propert y. 1s made withou t
rnsolve ncy. n orce relatin g to a transfe r of immov able propert y which
. . Accord ing to this Section , if there is r of immov able
A sua institut ed by d' ing a subseq uent transfe ree, such transfe
rntenr to defeat or dela a ere itor to avoid a transfe r on th consid eration with the intentio n of defraud ·
it has been made with option of such transfe ree
of the transfe ror shall b: grou_nd that proper ty must be treated and held v01dab le at the
option of the
benefit of, all the credit: r)~e credito rs mstllu! ed on behalf of, or for the able propert y 1s held v01dable at the
. Howev er. when such transfe r of immov r was made for
" ground for makmg such subseq uent transfe
subseq uent transfe ree, and that the mere to the pnor transfer . In other
(2) Every transfe r of immov able . a presum ption of fraud with regard
.d propert y made withou t c .d consid eration , it shall not raise necess anly raise a
subseq uent transfe ree shall b ons1 erat1on with intent to der.rau1,
d a able propert y of gratuito us nature, cannot.
, e vo1 able at the option o f such transfe ree. words, the previou s transfe r of immov to render such transfe r as
ption that the previou s transfe r was made with fraudul ent 111tent10n
presum
fraudul ent transfe r.
 47. Autho r Prof. Prakas h K. Mokaf.
parties 1
fers which are binding on the fall
. u · he1e ld be mdrcallve
e set aside only 1[ they taken possess ion of the proper ty, rt wou
The transfers referred to in this Scc_tJon
are trans nder the When the transfe ree has in good faith be all owed to treat the
t~ansfers arc valid L~ntil . they ~re set aside.
They can b
the agreem ent has been acted upon, and the transfe ror should not
that rstrat1 on of the ~ame
ecullon of a formal deed or the non-re g
circumstances stated 111 thrs Sectron . transfe ree as a trespas ser for the non-ex ree 1s put in pos~ess wn of the proper ty,
m part
provid es that, once the transfe
Thus, this Section for want
of the contrac t, then the transfe ree cannot be evicted or put out of posses sion,
perform ance
of registe red docum ent.
Perfor mance :
Charac teristic s of Doctri ne of Part
Section 53A : i) It gives protect ion to the transfe ree under the
only such right as 1s conferr ed on him
ii) It empow ers the transfe ror to enforce
ine of "Part Perfo rman ce". tenns of contrac t. of the
Q. 12: Discuss the law relating to the Doctr swn of the transfe ree as part pe rfo rmance
iii) The proper ty remain s in actual posses
OR t.
contrac
ne of Part Perfo rman ce. the doctnn e of part perform ance
Explain the principles underlying the doctri iv) There must be wntten agreem ent to apply
perform ance also applies to oral contrac
t
OR v) Under English Law, the doctnn e of part t.
perform ance applies to wntten contrac
"A 0 in performance of the contr act" _- Indian Law, the doctrin e of part
act of part performance must be done vi) Under le to
the doctnn e of part perform ance 1s availab
Under Indian Law, the protect 10n under
•
Discu ss. vii) )
has a defenc e to protect his posscs swn
the defend ant only (i .e the transfe ree
Answ er:
A • .. Case Law:
Section 53 A of the Transfer of p roperty ct deals with the prov1s10ns relating to the Doctrin e of
"Part Perform ance". Madiso n vis. Asders on -
Fact of the case: give her a life
ed to remain in ·A's service, ·A' would
'A' promis ed ·B' that 1f ·B' continu 1t \\ as
Partt erfor manc e (S. 53-A): ore, · B' continu ed to remain in the service . After the death of •A'.
estate by his will. Theref deed of the estate
. .
Where any person contracts to tran fc fcor co~s1derat10n, any immov able propert y, in wntrng that 'A' did not make any ,ahd will g1vmg 'B' any proper ty The title
discov ered conten ded b y • ~
and duly_ signed by him or by his represe
nt:t;:e
t arc sufficient give 1t to the legal heirs of'A' It was
i ~~ his behalf, and the terms of contrac was obtaine d by 'B' with the refusal to on her part ft was
to constitute that the transfer of the ascerta ined wrth ser.1ce was the act of part perform ances
mmova e property may be reasona bly remain ing m service or continu ing in t might continu e in the sen ice. Theref ore, the
certainty. vanety of reasons , a ser.an
held, rn this case that, for ent enough
And the transferee in part perfonn ance
of th
of the proper ty or 11g service would not amoun t to an act of part perform ance suffici
ee is alre~dcontract has taken possess ion n.:ma1111
act of' B' of in
of contrac t could be
any part of_ the property, or such transfer or continu es rn such s1tuat10n, no specifi c perfom 1ance
ance of the contrac t andh y 111 possessron. of the propert y to satisfy the Court, and therefo re, m
possess wn rn part perfonn
~~n;e~ ~= at in furtherence of the contrac t claime d by 'B '.
has perform ed or is willi~;
perfo ~:: :~eptr~ns~eree irs part of the contrac t or he has
I h a o contract. The objects of this Section :
tive f any ad\ antage on accoun t
n t e above situatio n, irrespec
o whether the contract is re uired represe ntative on his behalf from taking
where there is an instrum e
prescribed by law. In such
debarred from enforcin
::::i _transfer which has not been com~e ted
. ion, the transferor or any person cl . .
~~ be r~g1stcred or not, or
cording to the manne r
i) To preven t the transfe ror or any
of non-rcg1strat10n of the docum ent, pronde
and the posses sion of some immov able propert
d the transfe ree had perfon ned hrs part
y 1s taken by him
of the contrac t.

his posses sion

any right with rega;~m;ng in his behalf, shall be to the transferee as a defenc e to protect
transferee has taken or c!n~~a 1~t- the transfer ee
the t~ t e propert y which the ii) This is the nght which 1s availab le
. ue rn possession of such propert y as per :
rms of the contrac t" tion of the doctrin e of Part Perfor mance
Doctri ne of Part Perfor Essent ial requir ements for the applica 1ance and for
Ob ect of the
apphca twn of the doctnn c of Part Perfom
. The doctrine of Part Perfom1a mance :
. The essenti al elemen ts require d for the
g'.ven a_bove, which can be mad Sect10n 53A are summa rised as under
introdu ced by the Privy Council wi nee b/e in India has been cla1mmg the benefit s under
transfer immov able proper ty and such
contrac t must be for
the Amend ing Act, 1929. th the insertion of Section 53A lo th: iplica I) There must be a valid contrac t to
ransfer of Proper ty Act by
This doctrin e has been enacted u h consid eration by the concer ned
~~ t e prevention of fraud. Thi . propert y must be in wnting and signed
one p~rty has perform ed his part of the es that, when 2) The contrac t to transfe r immov able
nt~ct, in anticipation that th/ 1:ctnn e provid contrac t
~art// the contrac t, and if the latter party that part o~ th:r party would perform
his compe tent parties to the
taken posses swn of the ~mmovablc pro~ert
y or part thereoC m
ii ou d amoun t to fraud upon the fom1er. re uses to perfonn 3) The propos ed transfe ree must have in posses sion
contrac t or agreem ent, it es to hold so, or if the transfe ree 1s already
part perform ance of the contrac t and continu transfe ree to cont111uc 111 posses sion of the
contrac t must authon se the
of the propert y, then the
t
proper ty in part perform ance of the contrac
 '1'.)J
4H . Author - prof. Prakash K. Mokqt

i) .
t -. lit ,l·l·i-111 • tn ,1v.1il 111111 ~<•1/ of lJw d"< 11111 (' of 1';111 J' <,;d()rJll'111<.;C mu<.t h,1v,,
•
"f 11 ll' (1,111:-- 1l' 11 (111 ,
1.'lt'1. \
1
. _,
,. ~ :d !lit· ,, lll th,· l'i111!1,1t·1 (ll 11111 .., 1 lw will,111• lo pc1 ff/1111 Jij ,, p,111 ,,f ll1 c.:_ con_1rm,l: ,
111111
11 11Iii-· 1 111
5) ,'\)1\11.11.'I !(} 11.111skt tit,· tllllll<l\,lhll' j)l()jll'II Y 11111 '-> I 11·l ;ll r.; f() 1111 p;11IJ( 1iJ,11 t1,1n1.ikr dTlci ll c.,lH,ulu

Ill', ll'i.ll1.' 11' ,Ill \ 11 lllt'l 1,·l.1111111,lt1p .

nrnt,n c l 111tt 'i l lil' JJJ s1 1d1 ; 1 w,1; 01 111, 11111 .! 1 rbat lhc term~
1
(,) 1111.· 1, n~:ti,1•'1.' .111d \\ p1d111r ,,i · I lit· of
1
t1.Pi,:t·1 ,,(;11111~,,,.1bk pw11t·11, could IJL· L':1si ly :J'i(C1t ;1i11 ed w11li 1e,1son,1hlc ce11r1int;

If till· .1bt)\l' Clmd1t1ons ate ~a11slic-d, !lie 1ra11sfo10r is debarred from enforcing ~6 ;:, ':it the
.rn,
1lJ'.1~t'1.'11.'1.' 11ght \\ l11ch 1s rnntrn1 y to the !crms of the contract or from regaining po<:,~csswn r;f that
:'1 ,~: 1.·11, --'' en t lwugh
1

~1) thl' c1.mt1,1--'t is unregistered, though it required registration; or

b) the m~trnmcnt of transfer (agreement) has not been completed in the manner prescribed by the
Lrn. [or the tune being in force.
 4~ . _ _ _ _ Author : Prqf. frakgsh K. Mokal_

CIIAPTER Ill

"SALE ()F IMM()VABL E PH.()PEH.'I Y"

(Ss. 54 to 57)

Section 54:

Q. J3 : Define and distinguish between Sale and Agreement to Sell.

OR
Define "sale". Explain the modes of transfer by sale.

Answer:

Sale:
'Sale' is one of the important modes of transfer of immovable property mentioned under the Transfer
of Property Act, 1882.

Definition of "Sale":

Section 54 of the Transfer of Property Act defines the term "sale" as under -
"Sale is a transfer of ownership in exchange for a price paid or promised. or part-paid and part-
promised".

Analysis of the definition:

It is a transfer of ownership in exchange for which a price is paid or promised or for which the
price partly paid or partly promised.

Definition of "Contract for Sale" or "Agreement to Sell":

Section 54 of the Transfer of Property Act defines the term "Contract for Sale~' or "Agreement to
Sell" as under -
"A contract for the sale of immovable property is a contract that a sale of such propertv shall
take place on terms settled between the parties. It does not, itself create any interest in, or charge on,
sue h propertv " .

How Sale is made or Sale how effected ?:

I) In the case of -
i) tangible immovable property of the value of one hundred rupees and upwards, or
ii) a reversion, or . .
iii) any other intangible thmg, .
the sale with regard to above, must be made only by a registered m::,trument.

'ble immovable property, of a value less than one hundred rupees. the sale may
2) In the case o f tang1 .
·h b egi·stered instrument ' or by delivery of the property
be ma d e, e1 t er y a r
 ~---Author-Prof Prakash K. ~
50.

'CS lace when the seller places the buyer (or some 51. Author Prof. Prakash K. Maka/.
3) Dcll\ery of tangible 11111110\abic property tak. : ro c, y.
1
other person as the buyer d1rcc1s). 111 possession ol t1 P P Aceording to the above definitions of "sale" and '"contract for sale" following i~ the difference
~ een the two-
.!2£_._
Sale Contract for sale or
_When 'Sale' is said to be complete: . t the registration of the instrument is Agreement to sell I
1) When a 'Sale' n:quJrcs reg1strat10n of the mst rumen ' · d down in the Record f noi I

complete till the document to instrument . has not bee~;ors:;ation Act.

5
o lhc J It 1s made for specific property It can also be ma<le for future \
orooerty .
.. Reg1strat1011 Office as provided under S_ec t1on 61 of the . / the 'Sa le , is not complete . In sale, the property IS In case of contract for sale the \
11) When the transfer is made only by delivery of possessio , till the 2
immediately transferred. transfer may not be 1mmc<l1ate.
dcliwry of possession 1s made.
3 It means a transfer of ownership. It does not mean transfer of i
ownership
Essentials of valid sale : The sale 1s an executed contract. The contract for sale 1s to be
4
enforced in the Court of Law.
I) Transfer of ownership:
5 The transaction with regard lo The registralion IS not
It 1s one of the important essentials of a valid sale of immovable property that the ownership of necessary 111 case of contract
sale must be registered
the properly must be transferred. The intention is more important than the mere registration Wllh I for sale
regard lo the transfer of ownership in the property in question. It creates n,tht-m-personam.
6 It creates ri2ht-in-rem.
2) Price:
~order lo. effect the valid sale, it is obligatory that there must be transfer of ownership in
exchange for a pnce, such price may be fully paid or promised, or it may be partly paid or promised
The tem1 'price' means price in terms of money. Therefore, if the transfer of ownership docs no;
Section 55:
~nvolve th: consideration in terms of money, such transfer will not be 'Sale' but it will b
Exchange. e
Q. 14: Discuss the rights and liabilities of the seller and buyer under the Transfer
3) Subject matter:
of Property Act.
mimo:~~ subject matter must be immovable _property. The immovable property includes tangible
1 5 as_ ~~se
ro ert s~:; ~se~y ~tel~ land thrng_ attached to the earth . It also includes mtang1blc
ene enve rom Land 1.e. n ht ofwa ri ht of fcrr ri •ht of fishcncs etc
4) Parties to the 'Sale: Rights of the seller (S.55):
In order lo render a valid sale there must be I .
purchaser. The seller must be com;etent to sell a a~ ~ast two parties in the fonn . of seller and Before completion of the sale - ·
transferee. ' n tie purchaser must be qua!J lied to be a i) The seller has a nght to the rent and profits of the property till the ownership passes to the
buyer.
5) Convcvanec:
It is an important essential of a valid sale b After completion of the sale - .
seller lo the purchaser, ii will not be a valid sal ,Theca~se, unless, the property is conveyed by the ii) When the ownership of the property has passed lo the buyer before payment of the whole ~t
seller lo the buyer. e. ere ore, the property should be conveyed by the the purchase money, the seller has a nght to a charge upon the property in the hands of 1)
buyer, or ii) any transferee, or iii) any transferee with notice of non-payment. .
Distinction between: iii) After complet10n of the sale, the seller has a nght to get all the charges which ha~e been paid
"sal e ".. an d" contract for sale or agreement to sell"· by him for protection, preservat10n and mamtenance of the property from the buyer
Sale is a transfer of ownership in excl • iv) The seller has a nght to establish his charge in the case of non-payment or part payment
part-rrom1sed'". iange for a price paid or . outstanding on the buyer and the ownership of the property has passed to the buyer
Promised, or part-paid and
"A contract for the s,llc of immovable propert . Liabilities of the Seller (S. 55) :
take pfr1ce on terms settled between the parties It d y is a contract that a sale f h II
such rrorerty" · oes not, llself, create an . 0 su~ property sha Before completion of the sale -
Y Interest m, or charge on.
 11uthor - pro . Prakash K. Moka1. Author Prof. Prakash K. Maka/.
53 .
52.
bll\ Cl 1hc 111:ilcfl<tl Jdccls Ill the PIOpcq .
th. ,wdi.1sL'I <11 · ,1 1., 11 01 ,1 11 a1 c l
i) bt?\x
1lw .>elk1 ,, h11111d "' d,-.· 11_"'' 1''. ,,.~k~i 1, ·'" ,11c: ,111d ihc 111 ,pcction on his rcques
;1fter compfetin11 of th e mle
The buyer 1~
n1 Ill lhe· \ e•1ic·1 ' 1111" ,•I \\h1,~1-1h, I. ,11rch,1SC:I or 1hc b11)c_r ., rn the se ller 's posses. 1,all
'1,,,1111d "' p1,:d11,~ ''.' I t,1 ~ Ill rhc: propc1IY \\h1dt arc
i) bound lo bear any loss (not caused by seller) ar1s111g from the dc<,1ruc11on mJury or dt!crca,e
ii) I he• \,•lle·1 s1on Or
rn the value of the property
lhe· rd ,·\ ,lltl d,>,llllle'JII, ,,1 1111c le 1.1111 !! ii) bound to pay a ll the public charges and rent which may become pay,1blc 1n rc~pcct of the
I''"\ ,·1 • . f his ,11ro1111a11on all refev~_nt qu~st101~s put to hill)
lite· \e•lk, 't,.,u td ,,, ,tnSl\e'I ,,, lh~,bc,1 ;; 1hc. ropcrlY 111 his poss~ss1~n 01 the l1lle thereto. property.
iii)
'" th~· "lll,h,1s,.. ,,r rite· hU\ a''. 11h_1e!!•1:t\:1cc orllll; property al a p1oper time and place With
I tc· -.;_-1 ·,:• ., 1,,,11nd 1,, c"\l'c'lllc .1 ,nn\ c\ • urchascr or the buyer .
th ,· t ,e· ,,r It,' ,n,111-·1 1c·mkrcd 10 l11J11 b~ 11'.c -~re as a man of ordinary p1 udence would lake, of
!lie·~-- ,e' ,~ ,,,,1 nd ,,, 1.11-c· such nec~s,a~) ~' f tiilc relating thereto. betv\ cen the date of th
=----==----------====--=--====------------------------------------
Section 56:
t,tc' t' I,'1'-'' i\ .mJ .di the rck\.llll documcnb O C
e·,1 1111.1,·1 ,, · ,. c· .111J 1hc dcll\ cr) oflhc properly. d I accrued 111 respect of the pr
l 11-· S, ,i,·: ., ,cq11 cJ 10 pa) all 1hc public charges an rcn °Perty
Q. 15: Write a short note on :
1w1,, 1ie ,fare ,,r' 1hc ,ak Marshalling.
, lfta co111pfctio11 oft/Jc sale - d' t tl1 ·
'ii) I hc .>c er , hound to gJ\ 'C to 1he buyer or to such person as he irec s, e possession of the
prnps:rt\ JS JIS ll3lUre iid~rn ts. .
'iii) In eJsc: 1hc· \\ hole of the purchase-money is paid to the Seller, then he is bo~nd to deliver to The rule of Marshalling 1s laid down under Section 56 of the Act as follow5 -
the hu~ .:r. :ill dncuments of 11tle relating to the property which are m Seller s possession or
Marshalling by subsequent purchaser (S. 56) -
pL1\\Cr "If the owner of two or more properties ~ t o one person and then sells one or more of the
properties to another person, the buyer is, in the absence of a contract to the contrary. entith.:d to have
Rights of the purchaser or Buver (S. 55) : the mortgage-debt satisfied out of the properties not sold to him. so far the same v. ill extend. but not
so as to prejudice the rights of the mortgagee or persons cla1mmg under him or of any other person
Before completion of the sale (11here ownership has not passed to him) - who has for consideration acquired an interest many of the properties".
The buyer /unless he has improperly declined to accept delivery of property) is -
i) en1itled to_ a_ charge on the proper1y for the amount of any purchase-money properly paid by Essentials of Marshalling -
him m ant1c1pat10n of delivery. i) The owner of two or more properties mortgages to one person.
ii) en111kd 10 rnterest on such purchase-money. ii) He then sells one or more of the properties to another person ;
iii) entlllt!d to the cost of suit for specific perfonnance. iii) The buyer is, in absence· of a contract to the contrary entitled to have the mortgaged debt satJ~fied
out of the property or properties not sold to him so far as the same\\ Iii extend;
After completion of the sale (where ownership has passed to him)- iv) But not so as to prejudice the rights of the mortgagee or persons claiming under h11n. or
The buyer 1s - v) Any other person who has for consideration acquired an mterest in any of the propert1e5
i) enwlcd to the benefits of any improvemel1t in the properly or increase in value of the Examples:
property, and ' a) A owns two or more properties and mortgages both of them to one person X Subsequently, A
ii) entitled to the rents and profits from the property purchased. sells one or more of the properties to another person, B. B is, in the absence of a contract to
the contrary, entitled to have the mortgage debt satisfied out of the property or properties not
The Liabilities of the Purchaser or the Buver (S. 55) : sold to him. He can.require X to proceed against the properties that are not mortgaged to him .
However, this entitlement is only so far as the same will not be to the preJud1ce of the nghts
Before completion of the sale - of the mortgagee or persons claimmg under him, or of any other person who has for
The buyer 1s - consideration acquired an interest in any of the properties.
b) A mortgages his properties 'X', 'Y' and 'Z' in favour of B for a loan of Rs 5 lakh A later
i) bound to disclose
f . . any fa c t as to the natur
to the seller
sells property 'X' to C. for a consideration of Rs. 5 lakh. A does not repay the loan to Band B
propc~y O which the buyer _is aware, but of which h he or extent of seller's interest in the
nol a\\are about such fact which materially incre e as reason to believe that the selJer is causes the property to be sold with the help of the court. Here, C can claim that lhe debt of Rs.
ii) bound to pay or tender at the time and place f ases the value of such interest 5 lakh that A owes to B, should be satisfied out of the properties •y· and 'Z' (i.e. the
icllc~ or the to the seller's authonzed represe~ta~::pletrng the sa1e, the purcha~e money to the properties which were not sold to C) and that the property 'X' that has passed to hu~ should
iii) oun, to pay or tender, at the time an'd place of . .
the seller or to such person as the seller directs. completrng the sale, the purchase-money to