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Transfer for the unborn must be preceded by a life interest in favor of a person existing at
the date of transfer.
Only absolute interest may be transferred in favor of an unborn person.
Absolute interest
Only absolute interest may be transferred in favor of an unborn person. Limited interest cannot be
given to unborn person. sec 13 says that interest given to an unborn must be the whole of the
remaining interest of the transferor in the property .When a property is transferred in favor of an
unborn person The transferor first creates the life interest and after transferring the property, he
retains with him the remaining interest of the property. After termination of the life interest the
unborn gets the absolute interest in that property.
Facts:
A made a gift of her property to her nephew’s daughter B for life and then absolutely to B’s male
descendants if she should any, but in the absence of any male child of B, to B’s daughter without
power of alienation and if B has no descendants male or female then to her nephew. B died
issueless.
Held:
The court held that the gift for life to b was valid because B was living person at the date of
transfer but gift in favor of B’s daughter was void under sec 13 of transfer of property act because
it was given only limited interest she had not given absolute interest .since this transfer was invalid
the subsequent transfer depending on it also failed.
Since section 2 of TPA provides that “nothing shall be deemed to affect any rule of Mohammedan
law”, section 13 is not applicable to transfers made by Muslims. However, under Muslim law too
a gift in favor of a person not in existence has been held void.
2
SECTION 13 CONTROLS SECTION 113 AND THEREFORE, BOTH THESE SECTION
READ TOGETHER.