Professional Documents
Culture Documents
Property Project (SM0118062)
Property Project (SM0118062)
Submitted by
Yash Goyal
UID - SM0118062
Faculty In Charge
Guwahati
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TABLE OF CONTENTS
INDEX OF AUTHORITITES……………….…………………………..…………………..iii
Table of case………………………………………………………………………………….iii
Table of Statutes………………………………………………………………………..…….iii
Table of Abbreviations………………………………………………………………...……..iii
[1.] Introduction………………………………………………………………...………….1-3
[1.1.] Overview……………………………………………………………………………….1
[5.] Conclusion……………………………………………………………………….……..11
BIBLIOGRAPHY………………………………………………………………………..…12
II
INDEX OF AUTHORITIES
Table of Cases:
Table Of Statutes
Table Of Abbreviations
III
CHAPTER 1:
INTRODUCTION
[1.1.] Overview.
Transfer of property act 1882 deals with the transfer of property between living persons, i.e.
the transfer of property between living persons. It requires the transfer of both movable and
immovable property, but only the transfer of immovable property is subject to a large part of
the enactment. Transfer of property can either be absolute or conditional.
Section 25 of the Transfer of Property Act, 1882 provides for Conditional Transfer. It means
that any transfer that happens on the fulfillment of a condition that is imposed on the other
party for the transfer of property. It is covered from section 25 to section 34 under the
transfer of property act 1882.
1) Condition subsequent - Condition which must be met after the transfer of property is done
The paper will then include the fulfillment and performance of the conditions subsequent to
transfer of property with brief discussion from section 29 to section 34 which covers concept
of conditions subsequent
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[1.2.] LITERATURE REVIEW
The book by R.K Sinha has a section which gives a descriptive and detailed analysis of the
definition and concept of transfer of property, the types of transfer of property and the
conditional transfer of property along with case laws explaining each such condition. This
book also gives a brief idea about the conditions subsequent to transfer of property with
illustrations .This book is most referred to while writing this research paper and was quite
helpful.
This is the book by Poonam Pradhan Saxena which explains the bare act provisions of
conditional transfer and also explains it through case laws. This book also has section wise
explaination of the conditions subsequent to the transfer of property.
Aims: The aim of this project is to give a descriptive analysis of the concept of conditions
subsequent to the transfer of property as defined under The Transfer of Property Act, 1882.
Objective:
[1.] What is the basic concept of transfer of property and what are its types?
[2.] What is the concept of conditional transfers and what are its types and conditions under
which it can be valid?
[3.] What is the concept of conditions subsequent to transfer of property and various sections
related to it?
1
R.K. Sinha, Transfer of Property Act, Central Law Agency 35-47, 20th edition (2019)
2
Poonam Pradhan Saxena, Property Law, LexisNexis Butterworths, 3rd edition (2020)
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[1.5.] RESEARCH METHODOLOGY
Sources of Data collection: Secondary source of data collection was used which involves in
collection of data from books, articles, websites, etc. No surveys or case studies were
conducted.
Approach to Research: In this project doctrinal research was involved. Doctrinal Research
is a research in which secondary sources are used and materials are collected from libraries,
archives, etc. Books, journals, articles were used while making this project.
Types of Research: Explanatory type of research was used in this project, because the
project topic was not relatively new and unheard of and also because various concepts were
needed to be explained.
Mode of Citation: The researcher has followed a uniform mode of citation for the course of
this project. The mode of citation followed is the 20th Bluebook format of citation.
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CHAPTER 2:
The Transfer of Property Act was one of the early laws of the nineteenth century. The
Transfer of Property Act was passed in 1882. Previously, the transfer of immovable property
was regulated by the principles of English law and equity. This Act deals with the transfer of
property between living persons, i.e. the transfer of property between living persons. It
requires the transfer of both movable and immovable property, but only the transfer of
immovable property is subject to a large part of the enactment.3
The Act plays an important role in the legislative book with the principal purpose of making
the transfer system of immovable property a public transfer system. Registration is thus
usually insisted on in order to complete the transfer, except in the case of transactions of
small value.
Section 5 of the Transfer of Property Act, 1882 describes the term transfer of properties.
According to this clause, the transfer of property is an act by which a living person transfers
property, in the present or in the future, to one or more other living persons or to himself or to
other living persons. The word "living person" shall mean a business or association or group
of individuals, whether incorporated or not, but nothing in this section shall affect any law
currently in force affecting or relating to a company, association or body of individuals.
It can be noticed that the transfer of a property can be of two kinds in general: absolute
transfer and conditional transfer.
An absolute transfer will mean obtaining full, immediate and unconditional title to the
transferred property by the transferor (one at the receiving end of the transfer). This will be a
present or a sale. Therefore a conditional transfer is such that certain conditions qualify, on
the fulfillment of which the transferee will vest in him only the land. In other words, if the
transfer of property to the transferor is dependent on the fulfillment or non-fulfillment of such
conditions, the transfer is called conditional transfer.
3
Ashish Agarwal, Conditional transfer of property (dec.10,2012), www.legalbites.com.
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CHAPTER 3
It is possible to transfer property either completely or conditionally. The sale of the property
will be unilateral and the transferor will obtain the interest without any subjection or
restriction, when the property is transferred absolutely. In comparison, when the property is
conditionally transferred, the transfer is subject to certain conditions or constraints and,
depending on the nature of its condition, the legal impact of the transfer could vary. A
transfer which is subject to conditions is called conditional transfers. It is covered from
section 25 to section 34 under the transfer of property act 1882.
For any kind of a conditional transfer to be valid, the condition that is imposed should not be:
Prohibited by law,
Any act that incurs any harm to any person or his property.
1)Conditions subsequent - A subsequent condition is a condition that must be met after the
transfer of property has already taken place. Thus, if a subsequent condition in a transfer has
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been imposed, the interest of the transferee which has already been vested in him is affected
by the fulfillment or non-fulfillment of the condition specified.
Example - C transfers a farm to D provided that, if D shall not go to Spain within two years
after the date of transfer . So this condition is a condition subsequent
2)Conditions precedent - It is the condition preceding the transfer of land. It is prior to the
property's transfer. The condition is a precedent condition where the terms of a sale of
property signify the conditions to be met before a person can take an interest in the property.
The transfer is then contingent on the fulfillment of the condition precedent.
Example
X leases property to Y as long as Y resides in the property of X. The condition imposed here
is collateral and so the transfer i.e. the lease will remain in operation only till the time B
fulfills the condition.
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CHAPTER 4:
CONDITIONS SUBSEQUENT
ANY SUBSEQUENT DISPOSITION OF THE KIND ENVISAGED IN THE LAST PRECEDING SECTION
ILLUSTRATION
MARRYING, WITH A PROVISION THAT, IF Y DIES A MINOR OR MARRIES WITHOUT B’S CONSENT
THE RS 500/- WILL GO TO Z. Y MARRIES WHEN HE WAS ONLY 17 YEARS OLD AND WITHOUT
SECTION 29
FULFILLED .
GARDEN. IF Y CUTS DOWN SEVERAL OTHER TREES AROUND THAT SPECIFIED TREE , HIS
INTEREST IS NOT DIVESTED. BUT AS SOON AS HE CUTS DOWN THE SPECIFIED TREE , HIS
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INTEREST IS DIVESTED OR TAKEN AWAY BY SUCH CONDITIONS , SO THE WORDS OF THE
TO DURESS , IT WAS HELD THAT THERE WOULD BE NON - FORFEITURE AND THE INTEREST
WOULD VEST. 5
SECTION 30
ULTERIOR DISPOSITION WHICH MEANS THAT IF THE ULTERIOR DISPOSITION IS NOT VALID , THE
INTEREST ARE CREATED IN SUCH A MANNER THAT THE SECOND IS DEPENDANT ON THE FIRST
THEN, IF THE FIRST OR THE PRIOR INTEREST FAILS THEN THE SECOND AUTOMATICALLY FAILS
BUT THE VICE-VERSA IS NOT TRUE I.E. IF THE SECOND DISPOSITION IS INVALID AND FAILS ,
THE PRIOR TRANSFER IS NOT AFFECTED AND STANDS VALID.
ILLUSTRATION
A TRANSFERS A FARM TO B FOR HER LIFE AND IF SHE DOES NOT DESERT HER HUSBAND, THE
SECTION 31
SECTION 31 STATES THE CONDITION THAT TRANSFER SHALL CEASE TO HAVE EFFECT IN CASE
SPECIFIED UNCERTAIN EVENTS HAPPENS OR DOES NOT HAPPEN. IT DEALS WITH A CONDITION
UNDER THIS SECTION AND A CONDITIONAL LIMITATION IS THAT BOTH ARE CONDITIONS
SUBSEQUENT AND TERMINATE AN INTEREST BUT IN A CONDITION SUBSEQUENT (SEC 31) THE
INTEREST REVERTS BACK TO THE GRANTOR WHEREAS IN A CONDITIONAL LIMITATION (SEC 28)
THE INTEREST SO TERMINATED PASSES ON TO A THIRD PARTY.
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R.K. Sinha, Transfer of Property Act, Central Law Agency 35-47, 20th edition (2019)
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Tincouri Dasee v. Krishna , (1893) 20 Cal.15.
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SO, WHEN A CONDITION IS THAT THE INTEREST CREATED IN THE TRANSFER OF PROPERTY
SHALL CEASE TO EXIST UPON TRANSFEREE BECOMING INSOLVENT , THE CONDITION IS VOID
AND THE INTEREST OF THE TRANSFEREE SHALL NOT BE TERMINATED. FURTHER, SINCE THE
CONDITION UNDER THIS SECTION TERMINATES AN EXISTING INTEREST UPON THE HAPPENING
LEASE- DEED PROVIDED THAT THE LEASE SHALL STAND CANCELLED WHEN LESSEE TAKES
UPON
“ ANY OTHER BUSINESS OR MANUFACTURE OF ANY OTHER KIND” WITHOUT THE WRITTEN
CONSENT OF THE LANDLORD , IT WAS HELD THAT THE CONDITION WAS VERY VAGUE AND THE
SECTION 32
IN ORDER THAT A CONDITION THAT AN INTEREST SHALL CEASE TO EXIST MAY BE VALID, IT IS
NECESSARY THAT THE EVENT TO WHICH IT RELATES BE ONE WHICH COULD LEGALLY
THIS SECTION PROVIDES THAT A VOID CONDITION SUBSEQUENT DOES NOT DIVEST THE
SECTION 33
CONDITION THAT THE PERSON TAKING IT SHALL PERFORM A CERTAIN ACT, BUT NO TIME IS
SPECIFIED FOR THE PERFORMANCE OF THE ACT , THE CONDITION IS BROKEN WHEN HE
THE ACT.9
WHEN SOME SPECIFIC EVENT OR A PARTICULAR TIME HAS BEEN FIXED FOR THE
PERFORMANCE OF THAT CONDITION, IT MUST BE PERFORMED WITHIN IT. WHEN THE TIME IS
NOT FIXED FOR THE PERFORMANCE OF THE CONDITION WHICH IS SUBSEQUENT , IT BECOMES
BROKEN NOT ONLY WHEN THE PERFORMANCE OF THAT CONDITION BECOMES IMPOSSIBLE BUT
6
Krishna Chandra v. National Chemical and Salt Works, AIR 1957 Orissa 35.
7
Supra.3
8
Hodgson v. Halford, (1879) 11 Ch.D.959
9
Supra.3
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ALSO WHEN THAT PERSON DOES SOMETHING BY WHICH ITS PERFORMANCE IS INDEFINITELY
POSTPONED.
ILLUSTRATION
A GIFT IS MADE TO X ON A CONDITION THAT UNLESS HE JOINS ARMY THE GIFT SHALL GO TO
Y. X JOINS CHURCH AND THEREBY RENDERS IT IMPOSSIBLE THAT HE MAY JOIN ARMY AND
SECTION 34
SECTION 34 OF THE TRANSFER OF PROPERTY ACT, 1882 DESCRIBES ANY TRANSFER WHERE A
CONDITION, PERIOD FOR THE OCCURRENCE OR NON-OCCURRENCE OF AN ACT IS SPECIFIED
SUCH CONDITION BUT IT HAS TO BE SEEN THAT WHAT CAUSED THE CONDITION TO BE MET
X TRANSFERS PROPERTY TO Y WITH THE PROVISION THAT THE PROPERTY WILL PASS TO Z IF
HE DOES NOT GO TO THE U.S. WITHIN 2 YEARS. LATER ON IF Z PRECLUDES Y FROM
EXCUSED.
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CHAPTER 5:
CONCLUSION
The researcher would like to conclude by saying that transfer of property can either be
absolute transfer or conditional transfer. In day-to-day property transfer transactions,
conditional transfers are a very important factor. Awareness of provisions relating to this
definition is relevant. Section 25-34 of the Transfer of Property Act, 1882 provides for all
forms of conditional transfers. It is necessary to remember that the provision for any
transition should not be forbidden by law and can be preferably carried out.
For a conditional transfer to be valid, the condition should not be prohibited by law,should
not be an act that involves fraudulent acts,should not be any act that is impossible,should not
be an act that is termed as violative of public policy,should not be immoral, and should not
involve any act that incurs any harm to any person or his property
Conditional transfer mainly includes three types of conditions which are conditions precedent,
conditions subsequent and conditions collateral to transfer. The project has explained the
conditions which are subsequent to transfer of property I.e conditions which needs to be
fulfilled after the transfer is done
Therefore according to the findings of this paper the researcher believes that the concept of
conditional transfer forms an essential part in the Transfer of property and it also safeguards
the rights of person, punishes the person if there is a negligent act from their side or if there is
any wilful abstention.
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BIBLIOGRAPHY
Secondary Sources:
List of books:
R.K. SINHA, THE TRANSFER OF PROPERTY ACT, 20TH EDITION, CENTRAL LAW AGENCY,
(2019).
Articles/ Blogs:
Ravi Pandey, Conditional Transfers under Transfer of Property Act, 1882 iPleaders
(2020), https://blog.ipleaders.in/conditional-transfers-transfer-property-act/ (last visited
Dec 10, 2020).
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