AL-

AMEENCOLLEGEOFLAW

2ndSEMESTEROF3YEARSANDVI
thSEMESTER5YEARSLL.
B.

PROPERTYLAW

DURATI
ON:
3HOURS MAXMARKS:
1

I
NSTRUCTI
ONS:

1.Answeral
l5quest
ions.

2.Oneessayt
ypeandoneshor
tnot
equest
ionorpr
obl
em

f
rom eachuni
thav
etobeat
tempt
ed.

3.Fi
gur
est
other
ighti
ndi
cat
emar
ks.

4.Answer
sshoul
dbewr
it
tenei
theri
nEngl
i
shorKannada

compl
etel
y.

UNI
T-I

Q.
1A Whati
s't
ransf
er'
asperTOPA?St
atewhati
stheef
fectofTr
ansf
er.

Ans:

1.I
NTRODUCTI
ON:
'

TheObjectoft heTransferofPropert
yActistodefineandamendt helawrel
ati
ngtotransferof
proper
tybyactofpar ti
esandnott ot r
ansf
erbyoper at
ionofl
aw. TheActisnotexhausti
ve.It
doesnotcov erall
aspect s,
dimensionsoftr
ansferofproper
ty.ThescopeoftheActisli
mitedIt
i
snotapplicabletotransferofpropert
ybyoperati
onofl awi
.e.successi
on,

i
nher
it
ance,i
nsolv
ency ,
for
fei
tur
eorsal
einexecut
ionofadecr
ee.I
trel
atesonl
ytot
ransf
erof
pr
opert
yint
ervi
vosi.e.vol
unt
arytr
ansf
erbet
weenlivi
ngper
sons.

2.DEFI
NITI
ON:

I
nt hefol
l
owingsections“tr
ansf
erofproper
ty"meansanactbywhi chalivi
ngpersonconvey
s
proper
ty,i
npresentorinfut
ure,
tooneormor eotherli
vi
ngper sons,ort
ohimself,ort
ohimself
andoneormor eotherli
vi
ngpersons;and“t
ot r
ansferproper
ty“istoperf
orm suchact.

I
nthi
ssect
ion“
li
vi
ngper
son"i
ncl
udesacompanyorassoci
ati
onorbodyofi
ndi
vi
dual
s,whet
her
i
ncorpor
atedornot,butnot
hingher
eincont
ainedshallaf
fectanylawfort
het
imebei
nginf
orce
r
elat
ingtotr
ansfer
ofpropert
ytoorbycompanies,associ
ationsorbodi
esofi
ndi
vi
dual
s.

3.SCOPE:

Thusdefi
niti
onoft r
ansf
erofpr
oper
typr
ovi
dest
hati
tisanactbywhichali
vingper
sonconveys
proper
tyi
npr esentori
nfut
uret
ooneormoreot
herl
ivi
ngpersonsand,‘
tot
ransf
erproper
ty‘
is
toperf
orm suchact.

a)‘
Li
v i
ngperson’hasbeendefi
nedt
oincl
udeacompanyorassoci
ati
onorbodyori
ndi
vi
dual
s
whetheri
ncorpor
atedornot.

b)Thewordpr
oper
ty’
isat
erm ofwi
deconnot
ati
onandi
ntheAct
,ithasbeenusedI
n'f
oll
owi
ng
senses-

i
)Tangibl
emat er
ial
thi
ngse.g.l
andandhouse.i
i)Rights,
whi
char
eexerci
sedovermat
eri
al
t
hings,
e.g.r
ightt
oenjoyandpossess,
rightt
osellortomakeagi
ftoft
hings.

i
i
i)Ri
ght
s,whi
char
enotexer
cisedov
eranymat
eri
al,
e.g.ar
ightt
orepay
mentofadebt
.

Theter
m‘ property’
isusedinthisActi
nitswidestandmostgener i
clegal
sense.Pr
opertyisnot
onl
ythethingwhi chisthesubj
ect-matt
erofownership,
buti
ncludestheri
ghtorownershiporof
par
ti
alowner shi
p.Propertyi
ncludesri
ghtssuchastrademarks,copyri
ght
s,pat
entsand
per
sonalri
ght scapableoftr
ansfer.

c)I
nter
esti
nthepr
oper
ty-Anowner
shi
pconsi
stsofbundl
eofr
ight
s,t
hev
ari
ous

ri
ghtsandi nt
erestmaybev estedindi
ff
erentper
sonse.
g.amotgagorandmort
gagee,alessor
andal essee.Absolut
eownershipisanaggregat
eofcomponentr
ight
ssuchastheri
ghtof
possession,theri
ghtofenj
oyingtheusufr
uctofthel
andandsoon.Theser
ight
sarecall
ed
i
nterestsinpropert
yinthi
sAct .

d)Futur
einter
estinpr
opert
y-Somei nter
esti
npropert
yarefut
ureandarecal
l
edinEngli
shlaw
asrever
sionandreminder
s.Ar ev
ersi
onisther
esidueofanori
ginal
est
atewhichi
slef
taftert
he
grant
orhasgrantedasmallerest
ate.

e)I
npr
esentori
nfut
ure-at
ransf
erofpr
oper
tymayt
akepl
acenotonl
yinpr
esent
,butal
soi
n
f
utur
e,howev
er,
thepr
oper
tymustbem exi
stence:
’

4.Ef
fectoft
ransf
er:

Theword,”t
ransferisdefi
nedwithr
eferencetowor d‘
convey’i
nitswidersense.I
tincl
udesany
for
m ofassuranceintervi
vos.Thewordconv eys’
indefi
nit
ionoftr
ansferofpmpertyisusedi
n
thewi
dersense.Tr ansfer
ormusthaveani nt
erestint
hepropert
y.

A‘t
ransf
er’ofpropert
yasdefinedinS.5doesnotnecessari
lyinv
olv
etheexecuti
onoft
he
i
nstr
umentoft r
ansferorconveyance,
inthecaseofmov abl
esgeneral
ly
.Inthecaseof
i
mmov ablepropert
yofav al
ueoflessthanRs.100/-
,atransfermaybeeffect
edbydel
iver
yof

possessi
on.

Theintenti
onofthel
egi
slat
ureist
ogiveanextendedmeaningt
ot heexpressi
ontransfer
.The
Transf
erofPropert
yActcontempl
atesthet
ransfer
sincl
udi
ngsale.mortgage,l
ease,exchange
andgift.

Fol
l
owi
ngact
sar
enott
ransf
er:
-

a)Char
ge-Achargei
snotat
ransferofpr
oper
ty,
becausei
nchar
genor
ightI
nrem i
str
ansf
ered
butapersonal
obl
i
gat
ioni
scr
eated.

b)Compr omise-Compromi
seisnot
ransf
ergener
all
ybutifsuchcompromi
senei
ther
tr
ansf
eredpr oper
ti
est
opersonwhohasneit
herapre-
exi
sti
ngt i
tl
enoracl
aimt
osucht i
tl
e.t
hen
i
tisatransfer.

c)Deedofappointment-Atransferdoesnoti
ncludeadeedofappoi
ntmentbecauset
ransferi
s
notnecessar
il
ycontract
ual
butt heremaybeat r
ansferbyper
sonexer
cisi
ngpowersoverthe
proper
tyofanother
.

d)Easement-Thecr
eat
ionofaneasementdoesnoti
nvol
veat
ransf
er.

e)Famil
yarr
angement-Iti
snotatr
ansf
erandrequi
resnoconv
eyancetopasstheti
tl
e.Afamil
y
arr
angementli
kecompromisei
sbasedonassumpti
ons.Afami
lyarr
angementcannotovem'
de
t
hemodeofdev
olut
ionl
i
kewi
l
l.

f)Parti
tion-Apar ti
ti
oni snotactual
l
ytransf
erofproper
tybutanal
ogoustoanexchange.A
parti
ti
onsi gnif
iessurrenderofaporti
onofaj oi
ntr
ighti
nexchangeforasi
milarr
ightf
rom t
he
co-sharer.Apar t
it
ioneffect
sachangei nthemodeofenjoymentofproper
tybuti
snotanactof
conveyingpr opert
yfrom onelivi
ngpersontoanother.

g)Sur
render-Asurr
enderi
snotatransf
erofpr
oper
ty.I
nsurrender
,thel
esseri
nter
estf
all
sint
o
thegr
eateri
nter
estandnot
hingnewiscreat
edi
nthi
sprocess.

5.Casel
aw:

a)I
ndoj
iJet
haj
iVs.Kot
hapal
l
i,1919.

Itwasheldbyt
heCourtthatpar
ti
ti
onisnotat
ransf
erofpr
oper
tybecausenothi
ngnewi s
obtai
nedbyaco-shar
eronparti
ti
on.Hi
sspeci
fi
cshare,
whichv
estedinhi
m earl
ier
,issi
mply
separ
ated.

b)Jugal
ki
shor
eVs.RawCot
tonCo.AI
R1955,
SC376.

Ithasbeenobser v
edbyBhagwati,Jthatthewords,‘
inpresentorinfutur
e’i
nS. 5qual
if
ythe
word,‘
conveys’andnotthe‘
word,‘
propert
y ’
.Atr
ansferofpropert
ynoti nexi
stenceoper
atesasa
contr
acttobeper for
medinthefut
urewhi chisspeci
fi
call
yenforceableassoonast heproper
ty
comesintoexistence.

c)Har
ishChandr
aVs.Chandr
aShekhar
,AI
R1977Al
l44.

Cour
theldthatarel
easedeedr el
easingthetit
le;r
ightandi
nter
estofexecutanti
nanyproper
ty
i
nfavouroftherel
easeeforval
uableconsiderati
onmayoper at
easconv eyance,
ift
hedocument
cl
ear
lydiscl
osesanintent
iontoeffecttr
ansfer.

6.CONCLUSI
ON:

Transferofpropert
yi sanact,
whi chinvolv
esasi t
sconsequencestheconveyanceofri
ght
sor
someoft her i
ghtsinthepropertyfrom onepersontoanother
.Theconsequencesoftheact
mayt akeeffecti
npr esentori
nf uturebutthepropert
ymustbeinexistenceatthedat
eofthe
tr
ansfer.Therecanbenot r
ansferoff ut
urepropert
y.Theconveyanceofproper
tymustbefrom
onel
i
vingper
sont
oanot
herl
i
vingper
son.

Or

Whatar
etheessent
ial
sofv
ali
dtr
ansf
erunderPr
oper
tyLaw?

Ans:

1.I
NTRODUCTI
ON:

Tr
ansf
erofpr
oper
tymeansanactbywhi
chal
i
vingper
sonconv
eyspr
oper
ty,
inpr
esentori
n

f
utur
e,tooneormoreotherli
vi
ngper
sons,
ortohi
mself,
ortohimsel
fandoneormor
eot
her
l
i
vingpersons,
andt
otransferpr
oper
tyi
stoper
for
m suchact.

Theobj
ectoft
heTr
ansf
erofPr
oper
tyActi
stodcf
mcandamendt
hel
awr
elat
ingt
otr
ansf
er

ofpr
opertybyactofpanicsandnottotransf
erbyoperat
ionofl
aw.At r
ansf
erofpr
opert
yisa
cont
racthenceal
lnecessaryrequi
rementstoconst
it
uteval
idcont
ractar
etobeful
fi
ll
ed.

2.ESSENTI
ALS0FVALI
DTRANSFER:

Ther
ear
eei
ghtessent
ial
sofv
ali
dtr
ansf
erofpr
oper
ty,
whi
char
easf
oll
ows:

a.Thet
ransf
ermustbebet
weent
woormor
eli
vi
ngper
sonsS.
5.-

Thetr
ansf
ermustbeinter
vivos.Ther
efore,
therecannotbeat
ransf
ert
opersonnoti
nexi
stence
att
hetimeoft
hetransf
er.Thelivi
ngpersonincl
udesacompanyorassoci
ati
onor

bodyofi
ndi
vi
dual
swhet
heri
ncor
por
atedornot
.

b.
 Theproper
tymustbetr
ansf
erabl
eS.
6.Pr
oper
tyofanyki
ndmaybet
ransf
err
ed,
except
sas
ot
herwi
seprovi
dedbythi
sAct,
or

byanyotherlawf ort
hetimebeinginforce.Theproperti
esment i
onedinS.
6(a)to(i
)cannotbe
tr
ansfer
red.Therefor
e,t
hoseproper
tiesdescri
bedi nt
hecl auses(a)t
o(i
)ofS.6cannotbe
tr
ansfer
red.Thesearerestr
ict
ionsonthet r
ansferofpropertyandanytr
ansf
erincont
ravent
ion
ofanyoftheclausesgiveninS.6(a)to(i)13nullandvoid.

c.Thet
ransf
ermustnotbe:

(
i)opposedt
othenat
ureof1nt
erestaf
fect
edt
her
ebyS6(
h);
(i
i
)forunl
awfulobj
ectandconsi
derati
onasperprov
isi
onsofS.23oft
heI
ndi
anCont
ractAct
1872;whl
chprov1desacon31der
ationorobj
ect
1sunlawful
if-

a)i
tisf
orb1ddenbyl
aw,
or

b)i
t18ofsuchanat
uret
hat1tdef
eat
sthepr
ovi
sionsofanyl
aw,
or

c)i
sfr
audul
ent
,or‘

d)i
tinv
olv
esori
mpl
i
esi
njur
ytot
heper
sonorpr
oper
tyofanot
her
,or

e)t
heCour
tregar
dsi
tasi
mmor
aloropposedt
opubl
i
cpol
i
cy,

(i
i
i)toaper
sonlegal
lydi
squali
ti
edtobeat ransfer
ee.AsperS.
136ofTransferofPr
oper
tyAct
,a
Judge,
alegal
practi
ti
oneroranoff
icerconnectedwithCour
tofJust
iceare

di
squali
fi
edf
rom purchasi
nganyacti
onabl
eclai
m.Thisprohi
bit
ioni
sonl
ywi
thr
espectt
o
act
ionabl
ecl
aim.Itdoesnotappl
ytoanyotherki
ndofproper
ty.

d.Per
sonscompet
entt
otr
ansf
erS.7-

Ev
eryper
soncompet
entt
ocont
ractandent
it
ledt
otr
ansf
erabl
epr
oper
ty,
oraut
hor
ized

t
odisposeofftr
ansfer
ablepropert
ynothisown,i
scompetenttotr
ansfersuchpr
opert
yeither
whol
lyori
npar t
,andeit
herabsolutel
yorcondi
ti
onall
y,i
ntheci
rcumstances,t
otheextentandin
t
hemanner,al
lowedandpr escr
ibedbyanylawfortheti
mebeinginfor
ce.

Compet
entt
otr
ansf
er-

Thet
ransf
erormustbe-

a)Compet
entt
ocont
ract
-

Accordi
ngtoS.11ofIndi
anCont ractAct,ever
ypersoni
scompetenttocontr
actwhoisoft
he
ageofmajori
ty.U/
s.3oftheI
ndian Maj on'
lyAct,
1875apersonatt
ainsmajori
tyatt
heageof18
year
sandifaguardiani
sappointed,hewoul datt
ainmaj
ori
tyatt
heageof21.

b)Soundmi ndU/s.12ofI
ndianContractAct
,apersonisofsoundmindforthepwposeof
makingacont r
acti
fheiscapabl
eofunder st
andi
ngitandofformingarat
ionalj
udgmentast
o
i
tseffectuponhisi
nter
est
.Acontractmadebyaper sonofunsoundmindisv oi
d.

c)Disqual
if
iedper
son-
 Aninsol
ventandali
enenemyaredisqual
i
fiedfr
om contr
acting.A
tr
ansferbyadefact
oguardi
anofmi nor
'spr
oper
tyisi
nval
i
dandwi llbehitbyS.lIofHindu
Minori
tyandGuardi
anshi
pAct.1956.
d)Transferormustbeenti
tledtotr
ansferabl
eproper
tyoraut
hor i
sedtodisposeofftr
ansfer
abl
e
propert
ynothisown.Onewhoi sabsolut
eowneroftheproperty.andpropertyi
sfreefr
om
encumbr ancesi
scapabletotransf
erthesame,Anownerofpr opertymayauthori
sehispower
ofattor
neyholdertotr
ansferthepropert
yforhi
m andonhisbehal f
.

e.
Thet
ransf
ermustbemadei
nthemodepr
escr
ibedbyt
heAct
,u/
s.9.

S.
9pr
ovi
desf
oror
alt
ransf
er.At
ransf
erofpr
oper
tymaybemadewi
thoutwr
it
ingi
n

everycasei
nwhichawr
it
ingi
snotexpr
essl
yrequi
redbyl
aw.Wr
it
ingi
snecessar
yint
hecaseof
fol
lowingi
nstr
ument
s-

i
)sal
eofi
mmov
abl
epr
oper
tyoft
hev
alueofRs.100orupwar
ds(
S.54)
,.

i
i)l
easesofimmov abl
epr
oper
tyf
rom y
eart
oyearorf
orat
erm exceedi
ngoney
earorr
eser
ving
ayearl
yrent
.(S.107),

i
i
i)si
mpl
emor
tgagei
rr
espect
iveofamountsecur
ed(
S59)
,

i
v)al
lot
hermor
tgagessecur
ingRs.100orupwar
ds(
S.59)
,

v
)exchange(
8.108)
,

v
i)gi
ftofi
mmov
abl
epr
oper
ty(
8.123)
,

v
ii
)tr
ansf
erofact
ionabl
ecl
aim(
8.130)
,...

f
.Ifont
ransf
erani
nter
esti
ncr
eat
edi
nfav
ourofan‘
unbor
nper
son-

t
henu/
s.13,

i
)li
mit
edi
nter
estt
obecr
eat
edi
nfav
ourofl
i
vingper
son,

i
i
)Unbor
nper
sonshal
lbebor
nbef
oreexpi
ryofl
i
mit
edi
nter
est
,

i
ii
)Oncetheunbor
nper
soni
sbor
n,heshal
lbegi
venabsol
utei
nter
estonat
tai
ningt
heageof
major
it
y.

g.Thet
ransf
ermustnotbecont
rar
ytot
her
uleagai
nstper
pet
uit
yS.14.

S.14prov
idesthatv
esti
ngcannotbepostponedbey
ondt
hel
i
feofl
i
vingper
sonormi
nor
it
yof
unbor
nperson.Suchtr
ansf
erifmadeisvoid.

h.Condi
ti
onal
transf
er
I
fthet
ransf
eri
scondi
ti
onal
,thecondi
ti
onmustnotbei
l
legal
,i
mpossi
ble,
immor
alor

opposedt
opubl
i
cpol
i
cies.

3.CASELAW:

a)SadiquiKhanVs.Jai Ki
shore,
1928-Pri
vyCounci
lobser
vedthatadeedexecut
edbyami nor
wasanul l
ity
.Pri
ncipleofest
oppelcannotbeappli
edtoaminor.Aminori
snotcompetentto
tr
ansfer,y
etatransfertoaminorisval
id.

b)Ami
naBi
biVs.Sai
yi
dYusufAI
R,1922Al
l
.449.

Acontr
actmadebylunat
ici
svoi
du/
s.11oft
heI
ndi
anCont
ractAct
,andsoal
so,
atr
ansf
erby
hi
m ofhispr
oper
tyi
sv oi
d.

c)KKammnaVsAppanaAI R1973,A.P.20.U/s.11ifHinduMinori
tyandGaurdianshi
pAct
1956adefact
ogaur
diani
smerel
yamanagerandnotaut hori
setodisposeofminor'
sproper
ty.
I
nt hi
scaseadef
act
oguardi
ansol
dpropertyofami nor
,theCourtdeclar
edthesaleinv
ali
d.

4)
.CONCLUSI
ON:

Tosum upt
heessent
ial
condi
ti
onsofav
ali
dtr
ansf
erar
e-

i
)thet
ransf
ermustbebet
weent
wol
i
vingper
sons,

i
i
)thepr
oper
tymustbet
ransf
erabl
e,

i
i
i)t
ransf
erormustbecompet
entt
otr
ansf
er,

i
v)‘
transf
ereemustbecompet
entt
ransf
eree,

v
)tr
ansf
ermustbef
orl
awf
ulobj
ectandconsi
der
ati
on.

v
i)t
ransf
ermustbemadeI
nthemannerandf
ormr
equi
redbyt
heAct
.

Q.1B.Wr
it
enot
eonRul
eagai
nstper
pet
uit
y.

Ans:
1.I
NTRODUCTI
ON:

I
tisbasi cruleoft r
ansferofpr oper
tyt hatonemustenj oytheproper
tyabsolut
elyduringhisli
fe
ti
me.Onecannotbedepr iv
edofhi srightofenj oymentinr
espectofthepropert
yashel i
keinhis
l
ifeti
me.Thepol icyofthel awhasbeent opreventpr
opertyfr
om bei
ngt i
edupf orever.
Perpetuit
yi saninterest,whichwill
notv estti
ll
ar emoteperi
od.Onecannotpost ponethe
vesti
ngoft heproper tyinthet r
ansfereebey ondacertainl
imit
.Theperiodforwhi chvest
ingmay
belawf ul
ly.post
ponedi scalledperpetuityperi
od’.

2.RULEAGAI
NSTPERPETUI
TYS.
14

Not r
ansf
erofpropert
ycanoper atet
ocr eat
eaninter
estwhichistotakeeffectaf
tert
hel
ife
ti
meofoneormor epersonsli
vingatt
hedat eofsuchtr
ansfer
,andthemi norit
yofsome
personswhoshouldbei nexi
stenceattheexpi
rati
onofthatper
iod,andtowhom, i
fheat
tai
ns
ful
lage,t
heint
erestcreatedi
stobelong.

Therul
eagainstper
petui
tyi
nshor
t‘
v est
ingcannotbepostponedbeyondthel
i
feofl
ivi
ng
per
sonsandmi non‘
tyofunbor
nperson’
.Thisprovi
sionpermit
sperpet
uit
yuptocer
tai
nper
iod.
Beyondthatper
iodl
awdoesnotall
owper petui
ty.

Theheadnot
eisw'r
ongiywor
dedorfr
amed,becauseS.14al
lowst
ocert
ainextentt
he
post
ponementofv
esti
ngandther
efor
ethet
it
leshouldhavebeen‘
Rul
eofperpetui
ty’

3.I
ll
ust
rat
ion-

a)Ifanestat
eisgiventoali
vi
ngper
son‘
Aforl
if
e,thentoali
vingperson,‘
B'f
orl
i
feandthento
unbornsonof‘B’.Her
ethesonofBmustbei
nexistenceonorbefor
et hedat
eofexpi
ryoft
he
l
ifeestat
einfavourof'
B'.

b)Thev esti
ngofabsolutei
nteresti
nfvaourofanunbornpersonmaybepostponedunti
lhe
att
ainsfull
age.e.g.an est
atemaybet ransf
err
edto‘A’,al
ivi
ngperson,
andafterhi
sdeatht
o
hi
sunbor nsonwhenheat t
ainstheageof18.Suchatransferwoul
dnotbe v
iolati
veoft
herul
e
againstperpet
uit
y.

4.Phi
l
osophyunder
lyi
ngt
hepr
inci
ple:
Thegener
alr
ulei
sthatl
awdi
sfav
ourper
pet
uit
yandi
tisbasedont
hef
oll
owi
nggr
ounds-

a)Juri
sprudent
ialAspect:SirD.Mull
a,"Li
bertyofalienati
onshal
lnotbeexer
cisedorusedforit
s
owndest r
ucti
on.Thisisbecauseiftheperpetuiti
esar eal
lowedbylaw,t
heownerhav i
ng
i
nherentpowertoti'
ansferthepropert
yusest her i
ghttotheextr
emeandhet herebydest
ruct
s
thefur
therri
ghtofali
enationoffutur
etransferee.

b)Sociol
ogicalaspect:Ifperpet
uit
ies 
areal
lowedtheproper
tywhi
chisthesubj
ectmatterof
thetr
ansferwil
l become‘ éx-
commer ci
um’i
.e.putoutofcommerce.Thought
hetransf
eree
recei
vestheproper t
y,hehasnopowert oali
enat
eit.

c)LogicalAspect
:SirD.Mull
a,“I
tisi
ll
ogical
toi
magi
neadeadper
sonbel
owhi
sgr
ave
contr
olli
ngpropert
iesabov
ehi sgrav
e. 

I
ll
ust
rat
ion-

(
1)Propert
ytobetransf
erredto‘
A’f
orl
if
ethento‘B’f
orli
fet
hentosuchofB’
ssonasshal
l
f
ir
statt
aintheageof18y ear
sandoneday.Thet
ransferi
svoi
d.

(
2)Pr
opert
ytotransfer
redto‘A’
forl
i
fe,
theni
s‘B’
forl
i
feBot
h‘A'
and‘
B’ar
eli
vi
ngatt
hedat
eof
t
hetr
ansf
er.Thetransf
erisvali
d.

5.Except
iont
other
uleagai
nstper
pet
uit
y-

Fol
l
owi
ngar
etheni
neexcept
ionst
other
uleagai
nstper
pet
uit
y

a.Vest
edinteresti
snotaf
fect
edbyt
her
ulebecauseoncet
hei
nter
est
sar
evest
edi
tcannotbe
badforremoteness.

b.Ther
ulei
snotappl
i
cabl
etol
andpur
chasedorhel
dbycor
por
ati
on.
c.Gifttochar
it
ies.Therul
edoesnotappl
ytot
ransf
erf
ort
hebenef
itofpubl
i
cforr
eli
gious,
pious,orchar
it
ablepurposes.

d.Pr
oper
ti
esset
tl
eduponi
ndi
vi
dual
sformemor
abl
epubl
i
cser
vices.

e.Therul
eagainstper
pet
uitydoesnotappl
ytoper
sonal
agr
eementi
e.agr
eementwhi
chdonot
creat
eanyint
erestint
hepropert
y.

f
.Acov
enantofr
edempt
ioni
nmor
tgagedoesnotaf
fectbyt
her
ule'

g.Ther
uledoesnotappl
ytocont
ract
sforper
pet
ual
renewal
ofl
ease.

h.Theruleal
sodoesnotappl
ywher
eonl
yachar
gei
scr
eat
edwhi
chdoesnotamountt
oa
tr
ansferofanint
erest
.

i
.Cont
ractofpr
e-empt
ional
sonotaf
fect
edbyr
uleagai
nstper
pet
uit
y.

6.CASELAW :

a)AnandraoVinayakVs.Administr
atorGeneralofBombay,1896.I
nthiscaseBombayHigh
Courtdecl
aredthegiftv
oidasoffendingagainstper
pet
uit
ywhenagi ftwasmadeofmov abl
e
proper
tytoasonwi thgif
tofsharesii
i t
hepropertyt
oson’
ssonswhent heyshoul
dat
tai
nthe
ageof21.

b)AbulFat
aMahomedVs.Rasamay
a,thePr
ivyCounci
lhel
dthatagi
ftt
oanunbor
n
gener
ati
onsisf
orbi
ddenByMohammedlawexcepti
nthecaseofWakf.

c)Rambar anVs.Ram Mohi

tAIR-1‘
l967SC.744,
SupremeCqurthel
dthatt
herul
eagai
nst
perpetui
tydoesnotappl
ytopersonalagr
eements,
'i
.e.agr
eement
swhichdonotcr
eat
ean
i
nteresti
nt hepr
opert
y.

7.CONCLUSI
ON:
Ruleagai
nstperpetui
typr
ovidesthatvesti
ngcannotbepostponedbey ondt heli
feti
meof
anyoneormor epersonsl
ivi
ngatt hedateoft
ransfer
.Thebasisofther ul
eagai nstper
petuit
yis
thatl
iber
tyofali
enati
onshallnotbeexerci
sedtoit
sowndest ruct
ion.Ther uleofperpet
uityi
s
notabsolut
ebutithascert
ainexceptions.

Or

Wr
it
enot
eonv
est
edandcont
ingenti
nter
est
s

Ans:
SECTI
ON24.

Tr ansf ert
osuchofcer t
ainpersonsassur v
iveatsomeper i
odnotspeci f
ied.-
--
--
-Wher
e, ona
transf erofpropert
y,aninter
estthereinistoaccruetosuchofcertainpersonsasshal
l be
sur vi
v i
ngatsomeper i
od,buttheexactper i
odi snotspeci
fi
ed,t
hei nter
estshal
lgotosuchof
them asshal lbeal
ivewhent heintermediateorprecedenti
nter
estceasest oexi
st,
unlessa
cont rar yi
ntent
ionappearsfrom t
het ermsoft hetransf
er.

I
ll
ust
rat
ion

At r
ansfer
sproper
tytoBforli
fe,
andaf
terhi
sdeat
htoCandD,equal
l
ytobediv
idedbetween
them ortothesur
viv
orofthem.Cdi
esduri
ngthel
if
eofB.Dsur
viv
esB.AtB'
sdeaththe
propert
ypassestoD.

Thissect ioncont empl atesat ransferi nwhi chani nterestiscr eatedinf avourofacont ingent
classwhi chi st obeascer tainedatt het imeofv esti
ngofi nterestinfavouroft hetransf ereeor
transferees.I tispr ovi
dedt hatwher eanest ateislimitedt ot woper sonsj ointlysubjectt oa
condi t
iont hati nt
er estthereinshall vesti nsuchofcer tai
nper sonswhowoul dbesur vivingat
someper i
odbut ,theexactper i
odi snotspeci fi
edt hen, t
hepr opert
yshal lgot othattransf er
ee
(ortransfer ees)whoshal lsurviveatt het i
meoft erminationofpr i
orinterest .Inotherwor ds,
wher epr oper tyistransf er
redt ocer t
ainper sonsj ointl
ysubj ecttoacondi t i
ont hattheysur vi
ve
thetermi nat i
onofapr iori
nterestt hen, thepersonwhodoesnotsur v
iveist ogetnot hingand
thesur vivi
ngper soni st otaket hewhol e.Forinstance, At ransfershispr oper tytoBf orl i
feand
thent oCandDequal lyor,tothesur vivor.Cdiesdur ingt hel i
feofBwher easDsur vivesB.Her e,
Di stot aket hewhol epr opertyafterthedeat hofB.

 
  
  
  
  
  
  
  
  
  
  
  
  
DEFI
NITI
ONOFVESTEDI
NTERESTSect
ion19

Thedefini
ti
onofv est
edi
nter
estisgiv
eninSecti
on19whichpr
ovi
des“
Wher
e,onat
ransf
erof
proper
ty,anint
erestt
her
eini
screatedinf
avourofaper
sonwit
hout

speci
fyi
ngthetimewheni tist
otakeeffect
,ori
nt er
msspecif
yingt
hatitistotakeeff
ect
for
thwit
horont hehappeningofaneventwhichmusthappen,Suchint
erestisvest
ed,unl
essa
contr
aryint
ent
ionappearsfrom t
hetel
m ofthetransfer
.“

Av
est
edi
nter
esti
snotdef
eat
edbyt
hedeat
hoft
he'
tr
ansf
ereebef
oreheobt
ainspossessi
on.

Ani nterestissai
dtobev est
edwhenitisnotsubj
ectt oanycondit
ionpr ecedenti
.e.whenitisto
takeef fecti
mmedi atelyoronhappeni
ngofanev ent,
whi chi
scertain. Apersontakesav ested
i
nt erestinthepropertywhenheacquiresapropri
etar
yr i
ghti
nitbutt herightofenjoy
menti s
post ponedordef er
redt i
l
l af
utur
eeventhappens,whichiscert
aintohappen.

I
ll
ust
rat
ion-

AHi
nduwi
dowadopt
edasonbutt
her
eisanagr
eementwhi
chpost
ponest
heson’
sest
ate

duri
ngtheli
fet
imeofwidow.Hereanint
erestcreatedinfavourofadopt
edsonisvest
edri
ght
, 
whichdoesnotdependsuponcondi
ti
onpr ecedenti.
e.perf
ormanceofanyact,
iti
stotake
eff
ectonhappeni
ngofeventwhichi
scertaini.
e.thedeathofwi dow.

Theadopt edsonhaspr esentpropri

etaryri
ghtintheest ate.Theri
ghtofpossessi onand
enjoymentbeingdeferr
edandt hereforehecant ransferthepropert
yevendur ingthewidow' s
l
ifeti
me.Similar
ly,
atransferofpropertyinfavourofaper sonsimplycreatesv est
edinterestwit
h
animmedi ateri
ghttothepossessionandenj oymentoft heproper
ty.Suchv estedint
erestisnot
defeatedbythedeathoft r
ansfereeevenbef oregetti
ngpossessionoft heproperty.

I
ll
ust
rat
ion

Atransf
erspr opert
yto‘
B'intrustfor‘
C’ anddir
ect‘
B’togiv
epossessionofthepropert
yto‘C'
whenCat tainsageof25y ears.Inthi
spr obl
em t
heenjoymentinthepropert
yispostponedbut
thi
sdoespr eventthei
nter
estv esti
ngimmedi at
ely,
assucht r
ansferi
sitsel
fvoidwhen‘C’at
tai
ns
majori
ty,
.Ther efor
e‘C'
hasv estedinter
estandentit
ledtothepossessi
onoft hepr
opertyatthe
ageof18.
4.CHARACTERISTICSOFVESTEDINTEREST:a)
Vest
edint
erestdoesnotdependupont
he
ful
fi
ll
mentofacondit
ion.I
tcr
eat
espr
esentandimmedi
ateri
ghtthoughtheenjoy
mentmaybe
postponedt
ofutur
edate.

b)
.Av est
edi
nter
esti
snotdef
eat
edbyt
hedeat
hoft
ransf
ereebef
oreobt
aini
ngpossessi
on,
it
wi
llpassont
ohishei
rs.

c)
.Vest
edi
nter
esti
str
ansf
erabl
eandher
it
abl
e.

DEFINITIONOFCONTI NGENTINTEREST-S.21I tdefi

nescont i
ngentinterestasfol
lows“Wher e.
ont r
ansferofproper
ty.ani
nter
estther
einiscreatedinfavourofaper sont otakeeff
ectonlyon
happeningofaspecifi
eduncert
ainevent,ori
faspeci f
ieduncertai
nev entshallnothappen,such
persontherebyacqui
resaconti
ngentint
erestintheproperty.Suchinterestbecomesav ested
i
nterest,i
ntheformercase,onthehappeningoftheev ent
,inthelat
ter,whent hehappeningof
theeventbecomesi mpossi
ble.
”

Excepti
on-
- 
 Whereher
e,underat ransferofpropert
y,aper sonbecomesent it
ledt
oani nt
erest
ther
einuponatt
aini
ngapar t
icularage,andthetransferoralsogiv
est ohim absol
utel
ythe
i
ncomear i
singf
rom suchinterestbeforehereachest hatage,ordir
ectstheincomeorsomuch
ther
eofasmaybenecessar ytobeappl i
edforhisbenefit,
suchinteresti
snotcontingent
.

I
ll
ust
rat
ion 

‘
X'bequeathedhi spropert
yi.e.estat
eto‘A’
unti
lheshal lmarrytoB.A'
sint
eresti
nt hebequeat
h
i
scontingentbecausei tdependsuponaconditi
onpr ecedenti.
e.marri
ageof‘A’
with‘B’
.A has
nopropri
etaryinteresti
ntheestateandcannotal
ienateit.Butassoonas‘A’
mar r
ieswith‘
B',hi
s
cont
ingentinterestbecomesv est
edinter
est
.

2.DEFI
NITI
ONOFVESTEDI
NTERESTSect
ion19

Thedefini
ti
onofv est
edi
nter
estisgiv
eninSecti
on19whichpr
ovi
des“
Wher
e,onat
ransf
erof
proper
ty,anint
erestt
her
eini
screatedinf
avourofaper
sonwit
hout

speci
fyi
ngthetimewheni tist
otakeeffect
,ori
nt er
msspecif
yingt
hatitistotakeeff
ect
for
thwit
horont hehappeningofaneventwhichmusthappen,Suchint
erestisvest
ed,unl
essa
contr
aryint
ent
ionappearsfrom t
hetel
m ofthetransfer
.“

Av
est
edi
nter
esti
snotdef
eat
edbyt
hedeat
hoft
he'
tr
ansf
ereebef
oreheobt
ainspossessi
on.
Ani nterestissai
dtobev est
edwhenitisnotsubj
ectt oanycondit
ionpr ecedenti
.e.whenitisto
takeef fecti
mmedi atelyoronhappeni
ngofanev ent,
whi chi
scertain. Apersontakesav ested
i
nt erestinthepropertywhenheacquiresapropri
etar
yr i
ghti
nitbutt herightofenjoy
menti s
post ponedordef er
redt i
l
l af
utur
eeventhappens,whichiscert
aintohappen.

I
ll
ust
rat
ion-

AHi
nduwi
dowadopt
edasonbutt
her
eisanagr
eementwhi
chpost
ponest
heson’
sest
ate

duri
ngtheli
fet
imeofwidow.Hereanint
erestcreatedinfavourofadopt
edsonisvest
edri
ght
, 
whichdoesnotdependsuponcondi
ti
onpr ecedenti.
e.perf
ormanceofanyact,
iti
stotake
eff
ectonhappeni
ngofeventwhichi
scertaini.
e.thedeathofwi dow.

Theadopt edsonhaspr esentpropri

etaryri
ghtintheest ate.Theri
ghtofpossessi onand
enjoymentbeingdeferr
edandt hereforehecant ransferthepropert
yevendur ingthewidow' s
l
ifeti
me.Similar
ly,
atransferofpropertyinfavourofaper sonsimplycreatesv est
edinterestwit
h
animmedi ateri
ghttothepossessionandenj oymentoft heproper
ty.Suchv estedint
erestisnot
defeatedbythedeathoft r
ansfereeevenbef oregetti
ngpossessionoft heproperty.

I
ll
ust
rat
ion

Atransf
erspr opert
yto‘
B'intrustfor‘
C’ anddir
ect‘
B’togiv
epossessionofthepropert
yto‘C'
whenCat tainsageof25y ears.Inthi
spr obl
em t
heenjoymentinthepropert
yispostponedbut
thi
sdoespr eventthei
nter
estv esti
ngimmedi at
ely,
assucht r
ansferi
sitsel
fvoidwhen‘C’at
tai
ns
majori
ty,
.Ther efor
e‘C'
hasv estedinter
estandentit
ledtothepossessi
onoft hepr
opertyatthe
ageof18.

4.CHARACTERISTICSOFVESTEDINTEREST:a)
Vest
edint
erestdoesnotdependupont
he
ful
fi
ll
mentofacondit
ion.I
tcr
eat
espr
esentandimmedi
ateri
ghtthoughtheenjoy
mentmaybe
postponedt
ofutur
edate.

b)
.Av est
edi
nter
esti
snotdef
eat
edbyt
hedeat
hoft
ransf
ereebef
oreobt
aini
ngpossessi
on,
it
wi
llpassont
ohishei
rs.

c)
.Vest
edi
nter
esti
str
ansf
erabl
eandher
it
abl
e.

DEFI
NITI
ONOFCONTI NGENTINTEREST-S.21Itdefi
nescont
ingenti
nter
estasfol
lows“Where.
ontr
ansf
erofpr
oper
ty.ani
nter
estt
herei
niscreatedinfav
ourofapersontotakeeff
ectonl
yon
happeningofaspecifi
eduncert
ainevent
,orifaspeci
fi
eduncertai
neventshallnothappen,such
persontherebyacqui
resaconti
ngentint
eresti
ntheproper
ty.Suchint
erestbecomesav ested
i
nterest
, i
ntheformercase,
onthehappeningoftheevent,
inthelat
ter
,whent hehappeningof
theeventbecomesi mpossi
ble.
”

Excepti
on-
- 
 Whereher
e,underat ransferofpropert
y,aper sonbecomesent it
ledt
oani nt
erest
ther
einuponatt
aini
ngapar t
icularage,andthetransferoralsogiv
est ohim absol
utel
ythe
i
ncomear i
singf
rom suchinterestbeforehereachest hatage,ordir
ectstheincomeorsomuch
ther
eofasmaybenecessar ytobeappl i
edforhisbenefit,
suchinteresti
snotcontingent
.

I
ll
ust
rat
ion 

‘
X'bequeathedhi spropert
yi.e.estat
eto‘A’
unti
lheshal lmarrytoB.A'
sint
eresti
nt hebequeat
h
i
scontingentbecausei tdependsuponaconditi
onpr ecedenti.
e.marri
ageof‘A’
with‘B’
.A has
nopropri
etaryinteresti
ntheestateandcannotal
ienateit.Butassoonas‘A’
mar r
ieswith‘
B',hi
s
cont
ingentinterestbecomesv est
edinter
est
.

Theadopt edsonhaspr esentpropri

etaryri
ghtintheest ate.Theri
ghtofpossessi onand
enjoymentbeingdeferr
edandt hereforehecant ransferthepropert
yevendur ingthewidow' s
l
ifeti
me.Similar
ly,
atransferofpropertyinfavourofaper sonsimplycreatesv est
edinterestwit
h
animmedi ateri
ghttothepossessionandenj oymentoft heproper
ty.Suchv estedint
erestisnot
defeatedbythedeathoft r
ansfereeevenbef oregetti
ngpossessionoft heproperty.

I
ll
ust
rat
ion

Atransf
erspr opert
yto‘
B'intrustfor‘
C’ anddir
ect‘
B’togiv
epossessionofthepropert
yto‘C'
whenCat tainsageof25y ears.Inthi
spr obl
em t
heenjoymentinthepropert
yispostponedbut
thi
sdoespr eventthei
nter
estv esti
ngimmedi at
ely,
assucht r
ansferi
sitsel
fvoidwhen‘C’at
tai
ns
majori
ty,
.Ther efor
e‘C'
hasv estedinter
estandentit
ledtothepossessi
onoft hepr
opertyatthe
ageof18.

UNI
T–I
I

Q2A.Di
scusst
hepr
inci
pleunder
lyi
ngdoct
ri
neof'
LisPendens'

Ans:
1)I
NTRODUCTI
ON:

Sect
ion-
52ofTransferofPr
oper
tyAct,provi
desf
ordoctri
neofl
ispendens.I
tisaLati
nter
m.It
meanstransf
erduri
ngpendingl
i
tigat
ion.Thi
sdoctr
ineputsr
est
ri
cti
onont hetr
ansf
erofthe
pr
oper
tydur
ingt
hependancyoft
hesui
tinaCour
tcompet
entt
otr
yit
.

2)TRANSFEROFPROPERTYPENDI
NGSUI
TRELATI
NGTHERETO-
S.52

Dunngt hependencyinanyCour thavingauthori

tywithi
nthel i
mitsofIndiaexcludingtheState
ofJammuandKashmi r,orestabli
shedbey ondsuchl i
mits,bytheCent r
alGov ernmentofany
suitorproceedi
ngswhi chisnotcol l
usiveandinwhi chanyr i
ghttoimmov ablepr oper
tyis
dir
ectlyandspecifi
cal
lyinquestion,thepropertycannotbet r
ansfer
redorot herwisedealtwit
h
byanypar tytot
hesuitorpr oceedingsoast oaf f
ecttherightsofanyotherpar tyther
etounder
anydecr eeororderwhichmaybemadet her
ein,exceptundertheauthorit
yoft heCour tandon
suchtermsasi tmayimpose.

Explanati
on-  Forthepurposeoft hi
ssecti
on,thependencyofasui torproceedingshal l
be
deemedt ocommencef rom thedat eofthepresentat
ionoft heplai
ntortheinsti
tuti
onoft he
proceedinginaCour tofcompet entjuri
sdi
cti
onandt ocont i
nueuntilt
hesuitorpr oceedi
nghas
beendisposedofbyaf inal decreeororderandcompl et
esat isf
acti
onordischargeofsuch
decreeoror derhasbeenobt ained,orhasbecomeunobt ainablebyreasonoft heexpirat
ionof
anyper i
odofl imi
tati
onpr escribedfortheexecuti
onthereofbyanyl awforthet i
mebei ngin
force.

3.THEOBJECTOFTHI
SDOCTRI
NE.

a.Toav
oidendl
essl
i
tigat
ion.

b.Topr
otectoneoft
hepar
ti
es'
tot
hel
i
tigat
ionagai
nstt
heactoft
heot
her
.

c.Toav
oidabuseofl
egal
process.

4.ESSENTI
ALSTOCONSTI
TUTELI
SPENDENS

a)Ther
eshoul
dbeasui
torpr
oceedi
ng.

b)Suchsui
torpr
oceedi
ngi
sPendi
ngbef
orecompet
entcour
thav
ingj
uri
sdi
cti
ont
otr
yit
.

c)Suchsui
torpr
oceedi
ngi
snotcol
l
usi
ve.

d)Thesuitorproceedi
ngmustbesuchi
nwhi
cht
hequest
ionofi
mmov
abl
epr
oper
tyi
sdi
rect
ly
orsubst
antial
l
yinissue.

e)Thesui
torpr
oceedi
ngmustbependi
ng.
f
)Thennei
therpar
tyt
othesui
torpr
oceedi
ngshal
ltr
ansf
erorot
her
wisedeal
wit
hthe

i
mmov
abl
epr
oper
ty,
whi
chi
sthesubj
ectmat
terofsuchsui
t.

g)Soast
odef
eatt
her
ightofot
herpar
ty.

Provi
ded(
excepti
on)wi
ththel
eaveorper
missi
onoft
hecour
tev
endur
ingt
hePendencyoft
he
suitt
hepr
opert
ycanbetransf
err
ed.

Butwhil
egrant
ingsuchper missiont hecourtmayimposecertai
ncondit
ions,whicharetobe
obeyedbythepart
ies.Generall
yi nsuchcasescour tcant
akethesecuri
tyfr
om suchpar t
iest
o
whom suchpermissioni
sgr anted.Ifanytransf
erismadeinviol
ati
onofthisprovisi
onthensuch
tr
ansfer
sarenotrecognizedbyl awaspr oceedingdenovo(f
resh)notnecessary
.

TheCour
thasdi
scr
eti
onar
ypower
s.TheCour
tmaygi
veper
missi
onornot
.

I
ll
ust
rat
ion-

“A”.Whoi salandl
ordhasf iledasuitagainstatenant“B”fortherecoveryofpossessi onofthe
premises.‘B’knowsthathewi l
ll
ooset hecase.Hei sdebarr
edorpr eventedf r
om creati
ngany
thi
rdpartyint
eresti
nt heproperty,dur
ingthependencyoft hesuit.Suppose‘ B'creat
esthe
i
nteresti
n‘ C‘
inrespectoft hepropert
ywhi chissubjectmatterofsuitthenifsuitisdecidedand
decreeispassedinfav ourof‘A’thedecreecannotbeexecut edagainst‘C'whoi sin
possessionoftheproper t
ynow.

Thi
swi
l
ldef
eatt
hepr
ovi
sionofl
aw.

5.EXCEPTIONTOTHERULEOFLI SPENDENSThebonaf idepurchaserforval

uewithoutnoti
ce.
Bonafi
depur chaseristhepur
chaserwhoingoodfai
th,af
terdueinquir
yf r
om thesel
lerwhohas
takenproperprecauti
on.Forval
ueHehasbecomepur chaserforconsi
derati
onwithoutnoti
ce
i
.e.wit
houtknowl edgeofdefect
ivet
it
leofthesel
l
er.

Ifhei
snotbonaf
idepur
chaserf
orvaluewit
houtnoti
cethent
ransf
ereeshal
lnotbeent
it
ledt
o
anyprot
ect
ionwherei
nhepurchasedtheproper
tyat'
hi
sownr i
skandperil
.

6.AMENDMENTTOI
NDI
ANREGI
STRATI
ON(
BOMBAYAMENDMENTACT,
1939)

Aspertheamendmenti
tisnecessar
yintheStat
eofMaharasht
raandGuj
aratt
hatintheev
ent
ofsuchasui
tther
emustbenot i
ceofpendancyoft
hesui
torproceedi
ngt
ober egi
ster
edunder
theprov
isi
onsofS.18oftheRegi
str
ati
onAct.TheamendmenttoS.
52prov
idesforanoti
ceof
l
ispendens.Suchnot
icei
smandatoryandshal
lberegi
ster
edu/
s.18oft
heIndianRegi
str
ati
on
Act.

Thenot
iceshal
lcont
ainf
oll
owi
ngpar
ti
cul
ars–

a)Suchanot
icei
smandat
ory

b)Suchanot
iceshal
lber
egi
ster
edundersect
ion18oft
heI
ndi
anRegi
str
ati
onAct
.

c)i
nsuchanot
icef
oll
owi
ngpar
ti
cul
arsshal
lbei
ncor
por
ated

i
)thenameandaddr
essoft
heownerofi
mmov
abl
epr
oper
ty

i
i
)thenameandaddr
essofot
herper
sonwhoser
ightt
othei
mmov
abl
epr
oper
tyi
sinquest
ion.

i
i
i)t
hedescr
ipt
ionoft
hei
mmov
abl
epr
oper
ty.

i
v)t
henat
ureofr
ighti
nrespectofsuchi
mmov
abl
epr
oper
ty

v
)thecour
tinwhi
chsuchsui
torpr
oceedi
ngsar
ependi
ng.

v
i)t
henat
ureandt
it
leofsui
torpr
oceedi
ngs.

v
ii
)thedat
eonwhi
cht
hesui
torpr
oceedi
ngswasi
nst
it
uted.

7.CASELAW:

a)M/
sSupr
emeGener
alFi
l
msExchageLt
d.Vs.Br
ij
nat
hSi
nghAI
R1975S.
C.1810

Atheat
re,Pl
azaTalki
es,wasatt
achedinexecutionofadecreeagainstt
heownerofatheat
re.A
l
easeofthesametheatrewasexecut
edinfav ourofappel
l
antcompanydur i
ngtheat
tachment.
Supr
emeCour thel
dthatthel
easeistobestruckbydoctri
nelispendens.

b)Jay
aram Muddl
i
arVs.Ay
yaswami
andot
her
,AI
R1973S.
C.569.

Supr
emeCour
thel
dthatt
hepur
poseofS.
52oft
heT.
P.Acti
snott
odef
eatanyj
ustand

equit
ablecl
aim butonl
ytosubj
ectt
hem t
otheaut
hor
it
yoft
heCour
twhi
chi
sdeal
i
ngwi
tht
he
propert
ytowhichclai
msareputfor
ward.
8.CONCLUSI
ON:

Thepur poseofdoct
rineofli
spendensi snott oaff
ectanyjustorequit
ableclai
m.Thissect
ion
protectsther
ight
soft hepart
ieswhocl aiminter
estint
hepr oper
tybyfili
ngasuit.Therul
eof
Li
sPendensi sbasedont hemaxi mt hat“Nothi
ngnewshoul dbeintr
oducedi napending
l
it
igation.
”Theappli
cationofthi
sruledoesnotdepend' uponthetransfereewhohasknowl edge
ofthependencyof thesuitorproceeding.

Accordingtothi
srul
eduri
ngthependencyoftheli
ti
gati
on,nopart
ytothel
i
tigat
ioncant
ransf
er
thesuitproper
tywit
hint
ent
iontoaff
ectther
ightsoftheopposi
tepar
ty.

Or

Expl
aint
hedoct
ri
neofpar
t-per
for
mance.

Ans:
1.I
NTRODUCTI
ON:

Thisisanamendmentt oTransferofPr
opert
yAct,i
n1929, wher
ebyi
thasincor
por at
edan
equit
abledoct
rineofpartperf
ormanceint
hemodi f
iedform.Nowthecont
roversyasto
appli
cati
onofIndianRegist
rat
ionActanddoctr
ineofpartper
for
manceissetatrest.

S.
53-Agivesst
atut
oryrecogni
ti
ontotheDoct
ri
neofPartPerf
ormanceandappli
edbythe
I
ndiancour
ttothecaseswherethet
ransf
erwasnotef
fectedbyaregi
ster
edinst
rument.

2.PARTPERFORMANCES.
53A

S.53-
APar tper
for
mance-Wher eanypersoncont
ractstotr
ansferf
orconsiderati
onany
i
mmov ableproper
tybywrit
ingsi
gnedbyhim oronhisbehal
ffrom whicht
het ermsnecessar
y
toconstit
utethetr
ansfercanbeascer
tai
nedwithreasonabl
ecertai
nty
,

andthetr
ansfer
eehas,i
npartperf
ormanceofthecont
ract
,takenpossessi
onoftheproper
tyor
anypartt
hereof
,ort
hetransf
eree,
beingal
readyi
npossessi
on,conti
nuesinpossessi
oninpar
t
per
formanceofthecont
ractandhasdonesomeactinfurt
heranceofthecontr
act,
andt
het
ransf
ereehasper
for
medori
swi
l
li
ngt
oper
for
m hi
spar
toft
hecont
ract
,

then,notwit
hstandingt hatwher ethereisaninstrumentoft ransfer,t
hatthet r
ansferhasnot
beencompl etedint hemannerpr escri
bedthereforebythel awf ortheti
mebei ngi
nf orce,t
he
transf
erororanyper sonclai
mi ngunderhim shall bedebarredfr om enf
orcingagainstthe
transf
ereeandper sonscl aimingunderhi m anyrightinrespectoft hepropertyofwhicht he
transf
ereehast akenorcont inuedi npossession,othert
hanar ightexpresslyprov
idedbyt he
termsoft hecontract :

Prov
idedt
hatnot
hingi
nthi
ssecti
onshall
aff
ecttheri
ght
sofatransf
ereef
orconsi
der
ati
onwho
hasnonoti
ceoft
hecontr
actorofthepar
tperf
ormancether
eof
.

Bytheamendmentof2001toTransferofPropert
yAct,2001thewor
ds“
thecont
ractt
hough
requi
redt
oberegi
ster
ed,hasnotbeenregist
ered,or
,“omitt
ed.

I
LLUSTRATI
ON-

‘
A'cont
ractt
otr
ansf
erhi
simmov
abl
epr
oper
tyt
o‘B’
bywayofsal
eandput'
B'i
npossessi
on

ofthepr oper
tybefor
ear egul
arSale-
deedisexecuted.Thecontr
actissaidtobePartl
y
Performed andiflat
eron‘A’ref
usestoexecuteregulardocumentofsaleandfi
lesasuitfor
evi
ctionagainst‘B't
reat
ingasat r
espasser
.Then‘B’ canresi
stA'scl
aim onthegroundthatthe
contractoftr
ansferhi
sfavourhaspartl
ybeenperformedandt hat‘
A’ shoul
dnotbeal l
owedto
gobackuponhi sownwor d.

3.THEOBJECTOFTHEDOCTRI
NE

S.53-
Agiv
esstat
utor
yrecogni
ti
ontothedoct
ri
neofpartper
for
manceandappl
iedbyt
heI
ndi
an
Court
stot
hecaseswherethetr
ansf
erwasnoteff
ectedbyregi
ster
edi
nst
ruments.

4.Maxi
msofequi
tyonwhi
chdoct
ri
neofpar
tper
for
mancei
sbased-

Doct
ri
neofpar
tperf
ormanceisanequi
tabledoctr
ineanditi
sincor
por
atedtopreventf
raud
fr
om t
aki
ngadvant
ageonaccountofnon-r
egist
rat
ionofthedocument.Thi
sdoctr
ineofequit
y
i
sbasedonthemaxim‘equi
tyl
ooksatasitisdonewhichoughttohav
ebeendone’ and‘equi
ty
l
ooksatt
hei
ntent
ionr
athert
hanf
orm’
.

5.I
NGREDI
ENTSOFS.53-
A

BombayHighCourti
nKamalabai
LaxmanPathakv.OnkarPar
sharam Pat
iI
,AI
R1995Bombay
113,
-hasgivenemphasi
sontheingr
edi
ent
softheS.53-Awhichare

(
i)exi
stenceofacont
ractf
ort
het
ransf
erofi
mmov
abl
epr
oper
ty,

(i
i)whichshoul
dbeinwrit
ingsi
gnedbytheot
herpar
tyandt
het
ermst
her
eofshoul
dbe
ascert
ainabl
ewithr
easonabl
ycert
aint
y,'

(i
ii
)thetr
ansf
ereeinpartper
for
manceofthecont
ractshoul
dhav eei
thert
akenpossessi
onor
conti
nuedinpossessi
onorhavedonesomeotheractinfur
ther
anceofthecont
ract,

(
iv)t
hetr
ansf
ereeshoul
dper
for
m orbewi
l
li
ngt
oper
for
m hi
spar
toft
hebar
gai
nsetdowni
nthe
wri
ti
ng,
 

(v
)thedoctri
newouldnotbeat
tract
edagai
nstanot
hert
ransf
ereewi
thoutnot
iceoft
hecont
ract
orit
spartperf
ormance.

'
Ifal
ltheabov
econdi
ti
onsco-
exi
st,
inspi
teoft
hef
actt
hat-

(
i)t
hecont
ractt
houghr
equi
redt
ober
egi
ster
ed,
hasnotbeenr
egi
ster
ed;
or

(i
i)theinstr
umentoftransferhasnotbeencompl et
edinthemat terprescri
bedtheref orbyl
aw,
e.g.,whereiti
snotattestedorregi
stered,thoughrequi
redtobeat testedandregistered,'t
he
transfer
or(oranyper
soncl aimingunderhi m)wil
lbedebarredfrom claimi
nganyr elief,i
n
respectoftheproper
tyasagai nstt
hetr ansfer
eewhichisinconsist
entwi t
hthetermsoft he
contract.

6.DOCTRI
NEOFPARTPERFORMANCEI
SDEFENSI
VEANDNOTOFFENSI
VE

Doct r
ineofpartpetformanceu/ s.53- AofTransf erofPr opertyActpr ovidesf orashi el
dof
protecti
ontothepr oposedt r
ansf ereetoremaini npossessi onagai nsttheor iginalownerwho
hasagr eedtosellthesel andst othet r
ansferee.Thepr ot ect
ionisav ail
abl easashi eldor
defenceandnotasaswor dagainstthetransferor,andwoul ddisenti
tlet hetransferorfrom
distur
bingthepossessi onoft hepr oposedt r
ansf ereewhoi sputinpossessi onpur suanttosuch
anagr eement.Itmeanst hissect i
onmer elyl
ay sdownt hatt hereasonofpar tperformancet he
transfer
orwillnotbeent itl
edtoej ectthetransferee,buti tdoesnotgi veanyt it
letothe
transfer
ee.Inorderthatt ransfereemayacqui r
eaper f
ectandmar ketablet i
tl
e,execut i
onand
regist
rati
onofdeedoft ransferwoul dsti
l
lbenecessar y.Theunr egistereddocumenti srecei
ved
i
nev
idenceonl
y.

7.SCOPEOFDOCTRI
NEOFPARTPERFORMANCE:

Thedoctri
neofpartper f
ormanceisappl i
cablet
oonl ywri
ttenandv al
idcontact.I
tisnot
appl
icabl
etooralagreementorv oi
dagr eement.Thecontractmustbei nwr i
ti
ngandsi gnedby
thetr
ansfer
or.Thetransfereehastakenpossessionofthepr opert
yasapar tperformanceof
thecontr
actandtransfereemustber eadyandwi l
li
ngtoper f
orm hispartofpromise.This
sect
ionisappli
cablenotonl yt
othecontractsofsalebuti
twi llbeappl
icabl
et oallsuch
contr
actsoftr
ansferforconsider
ation

8.CASELAW:

A)S.53- AandLimi t
ati
onAct-BombayHi ghCourti
nBalasahebManikr
aaDeshmukhv .Rama
LingojiWarthi
,AIR2000Bombay337; hel
dthatwhatS.53-
Aseekstodo, i
stothepossessionof
thedefendantev enwherethedefendant’sr
ight
stoobtai
nspecif
icperf
ormanceofthe
agreementhasbeenbar r
edbytime.Thusexpi r
yofperi
odoflimi
tat
ionisnobartorel
ief.Hence
thereli
efwillbeavail
abl
etothepar t
iestothetr
ansact
ionevenaft
ertheperi
odofli
mitationfor
suitforspecif
icperf
ormance,i
sexpi red.

B)Keral
aHi
ghCourtI
nJacobsPvt.Lt
d.VThomasJacob,AIR1995Ker.249,
hel
dthatt
he
doct
ri
neofpar
tper
for
manceisi
ntendedtobeusedasashiel
d,notasword.

9.CONLUSI
ON:

Theessenceoft hedoctr
ineofpartperf
ormanceliesinthefactofactualpossessi
on.The
per
soni npossessioni
stobepr ot
ected.Inj
uri
sprudencepossessionistreatedasmore
i
mpor t
antthantheowner shi
p.Somet i
mespossessioni scall
edasninepoi ntsi
nlaw.Theri
ght
s
ofthepersoninpossessi
onshallnotbedefeatedfortechnicalr
easons.S.53-Aisbasedon
PossessoryRemedy .

Q2B.Wr
it
enot
eonf
raudul
entt
ransf
er.

Ans:
1Int
roduct
ion

2Fr
audul
entt
ransf
erS.53
3Except
ion

1.I
NTRODUCTI
ON:

Theobj ectofthefraudulentt r
ansferistoprotectthecr edi
torandsubsequenttransferee.
 
Fraudulenttr
ansferisv i
odabl eattheoptionofcr edi
torandt ransf
eree.S.53consist
soft wo
parts.Theflr
stpartisinr espectoftransferofimmov ablepropert
ymadewi thi
ntenttodefeator
delaythecreditor
soft het r
ansf er
orandsecondpar tisinrespectoftransferwi
thintentto
defraudasubsequentt r
ansf eree.

2.FRAUDULENTTRANSFERS.53

Everytr
ansferofimmov ableproper
tymadewithint
enttodefeatordelaycredi
torsoft
he
tr
ansferorshallbev oi
dableattheopti
onofanycredi
torsodefeatedordelayed,andever
y
tr
ansferofimmov ableproper
tymadewi t
houtconsi
derat
ion,
wi t
hi nt
endtodefrauda
subsequenttransferee,i
sv oi
dableatt
heopti
onofsucht r
ansferee.

Thus, S.
53deal swi thtwot ypesoff raudul
enttransfers.Asf arast hef i
rstrulei
sconcer ned
whent heconsi derati
onf ort r
ansferandgoodf aithont hepar toft r
ansfereear epresent,t
he
i
nt enti
onoft hetransferort odefeatordelayhiscreditorisimmat eri
al.Thus, S.
53hasal i
mi t
ed
scoper est
rictedtoi mmov ablepropertyandnottomov abl
epr operty.Mor eoverthebenef i
tof
thissecti
oni snotr est
rictedtoexi st
ingcredit
orsalone, butitextendst osubsequentcr editors
also.Thissect i
ondoesnotmaket hetransacti
onv oid-ab-i
nit
iobutonl yv oidabl
eandt hattoonl y
att heopti
onofanyper sondef eateddelayedordef r
auded.

Undert
heTransferofPr
oper
tyActat
ransf
erofi
mmov
abl
epr
oper
tybyadebt
ormaybeset
asi
debyhi
scr edi
tor:

a)i
fthet
ransf
ereei
snotat
ransf
ereei
ngoodf
ait
hfort
het
ransf
eror
’scr
edi
tor
,and

b)i
fthet
ransf
ereei
snotat
ransf
ereei
ngoodf
ait
hforconsi
der
ati
on.

3.EXCEPTI
ON:
.

At
ransf
ereef
rom suchdebt
orwi
l
lbepr
otect
ed-
:
a)i
fheacqui
respr
oper
tyf
orv
aluei
ngoodf
ait
hwi
thoutt
heknowl
edgeoft
ransf
eror
'si
ntent
ion.

b)i
fhehi
msel
fisacr
edi
torandt
het
ransf
eri
smadei
nsat
isf
act
ionofhi
spr
e-exi
sti
ngdebt
.

Ift
hecredi
torest
abli
shedt
hattransf
erwasmadewi
tht
heobj
ectofdef
eat
inghi
m.t
hebur
den
shi
ftsonthetr
ansfer
eetoprov
e-

i
)thathehadpai
daf
airpr
ice,
and

i
i
)thathewasnotapar
tyt
othef
raud.

Or

Wr
it
enot
eondoct
ri
neofpr
ior
it
y

Ans:
1.I
NTRODUCTI
ON:

Theruleofpri
ori
tyi
sandequit
ablepr
inci
plebasedonthemaxim,‘Qui
prior
estt
emporepoti
or
estj
ure’whi
chmeanswhoi spri
orint
imeisbetteri
nlaw.I
nshortwhentherear
eequalequi
ti
es,
thefi
rstint
imeshal
lprev
ail
.

2.
.PROVI
SIONSASTOPRI
ORI
TYOFRI
GHTSCREATEDBYTRANSFER

'Whereaper sonpur portstocr eatebytransferatdi

ff
erentt
imesrightsinoroverthesame
i
mmov abl
epr operty,
andsuchr i
ghtscannotatallexi
storbeexercisedtothei
rfullextent
toget
her,eachlattercreatedrightshall
, i
ntheabsenceofaspecialcontractorreservati
on
bindi
ngtheear l
ierTransferees, besubjecttotheri
ghtsprev
iousl
ycr eat
ed.

3.SUCCESSI
VETRANSFER:

Ift
herearesuccessi
vetr
ansfer
softhesamepr oper
tythel
att
eri
ssubjectt
opri
ortr
ansfer
.If
twomor t
gagesareexecutedonthesamedat e,
evi
dencemaybetakenastowhichwas
execut
edfir
st,
 andthefi
rsthaspri
ori
ty.I
fthi
scannotbedet
ermi
ned,t
hemor t
gageestakeas
t
enant
sincommonorj
ointt
enant
s.

Amor tgageshishouseto‘B’forRs.5,
000andsubsequentlyAmortgageshi
ssamehouset o:C’
forRs.2,000.HereB’smortgageispri
ortoC’smort
gage.Theresul
tisthati
ncaset heproper
ty
i
ssoldonaccountofdef aultinpaymentofthemortgagedebt,
‘B’wil
lhavethefi
rstri
ghtto
havehisdebtsatisf
iedoutofthesaleproceeds,
andifther
eisasurpl
us,‘C’wil
lonlythenbe
enti
tl
edt obepaid.

4.EXCEPTI
ONS:
_

Therearesev eral
excepti
onst ot
herul
eofpriorit
y.Secti
on.50oft heRegistr
ationAct ,giv
esa
subsequentlyregi
stereddeedpri
ori
tyoverapriorunregi
stereddeedofwhi chr egistr
ationis
opti
onal.Thisexcepti
onissubjectt
othedoctri
neofnot ice.Butasoptionalregistrat
ionhas
beenabolishedbyt hi
sActe.g.sal
edeedSection.54,mor t
gagedeedSect ion.59,thescopeof
thi
sexcept i
onisv er
ylimi
ted,bei
ngappl
icabl
eonl ytothoset er
ri
tori
estowhi cht hisActdoes
notextent.

Si
mil
arl
y,i
nasuitf
orpart
it
ion,i
farecei
v er
,undert
hedir
ect
ionoftheCourtmortgagesthe
whol
eorthepar
toftheestat
e,themortgageewouldbeent
itl
edtopri
ori
tyoverandexecuti
on
cr
edi
torbywhom t
hepropert
ywasat t
achedaf t
ert
hecommencementoft hesuitforpar
ti
ti
on.

5.PRI
ORI
TYFORFEI
TED:

Apr
ior
it
yisf
orf
eit
edbyf
raud,
misr
epr
esent
ati
onorgr
ossnegl
i
gence.

S.78Post ponementofpriormort
gagee-Wher e,
throught hefr
aud,misrepr
esent
ati
onorgross
neglectofpriormor
tgagee,anot
herpersonhasbeeni nducedtoadvancemoneyont hesecur
it
y
ofthemor tgagedpr
operty,t
hepri
ormor tgageeshallbepostponedtothesubsequent
mor t
gagee.

Simil
arly
,ifpr
iormortgagei
stosecuref
utur
eadvancesandexpensesthemaxi
mum tobe
secured,asubsequentmort
gageewhohasnoticeofthepri
ormortgagei
snotent
it
ledt
opri
ori
ty
oversubsequentadvancesbythepri
ormort
gagee.(
Secti
on79)
6.CASELAW:

a)Kul
dipSi
nghVs.BalwantKaur&otherAIR1991P&H291,Cour
theldthatat
ransf
eroper
ate
fr
om t
hedateofexecuti
onofthedeedalt
houghitmayhav
ebeenr
egist
eredatalat
erdat
e.

b)Ram RatanVs.Bi
shunChand1906,Calcut
taHighCourthel
dthatift
womor t
gagesar
e
execut
edont hesamedateevi
dencemaybet akenastowhichwasexecutedfi
rst
,andt
hefi
rst
hasprior
it
y.I
fthi
scannotbedeter
mined,
themor t
gageestakeastenantsi
ncommonorjoi
nt
tenant
s.

c)SukhdeoMisr
aVs.Sheodial
1901,
All
ahabadHighCour
theldt
hati
fthemortgagorgi
vesto
usuf
ructuar
ymortgagesoft
hesameproper
ty,
thepri
ormort
gageei
sentit
ledt
opossession.

7CONCLUSI
ON:

Thetr
ansfer
orcannotprejudi
cetheright
soft
hetransf
ereebyanysubsequentdeal
ingwit
hthe
samepropert
y.Therul
eofpr i
ori
tyisbasedonequit
abl
emaxim, ‘
whentherearetwoequal
equi
ti
es,t
hefir
stint
imeshal lpr
evail
’
.However
,thi
sruleofpr
ior
it
yisnotabsolut
einIndi
abut
subj
ectt
ocertai
nexceptions.

UNI
T–I
II

Q.
3A Def
inemor
tgage.Expl
aini
tsessent
ial
s

Ans:

1.I
NTRODUCTI
ON:

Chapt
erI
VSs.58t
o99ofTr
ansf
erofPr
oper
tyActdeal
swi
tht
hepr
ovi
sionofmor
tgage.

Mortgageist
hemostimport
antki
ndofsecur
it
y.Theessenti
alnat
ureofmort
gageisthati
tisa
t
ransferofi
nter
esti
naspeci
fi
cimmovablepr
opert
y.Mortgageisnotatr
ansf
erofabsolut
e
i
nter
esti
nthepr
oper
tymor
tgagedl
i
kesal
eorgi
ft
..

2.DEFI
NITI
ONOFMORTGAGE:

Defi
nit
ionSect
ion58(
a):
‘Mor
tgage‘
,‘
mor
tgagor
’,
‘mor
tgagee’
,‘
mor
tgage-
money
’and‘
mor
tgage
deed’

AMor tgageisthetr
ansferofani
nteresti
naspeci
fi
cimmov ablepr
oper
tyf
orthepurposeof
secur
ingt hepaymentofmoneyadv ancedort
obeadvancedbywayofloan,anexi
sti
ngor
fut
uredebt ,
ortheperf
ormanceofanengagementwhichmay .gi
veri
set
opecuniar
yli
abil
it
y.

Thet
ransf
erori
scal
l
ed‘
mor
tgagor
’andt
het
ransf
ereea‘
mor
tgagee’
.Thepr
inci
pal
money

andi
nter
estofwhi
chpaymenti
ssecur
edfortheti
mebei ngar
ecall
edt
he‘mort
gagemoney
’
andt
heinst
rumenti
fanybywhi
chthetr
ansferi
seffect
ediscall
ed‘
mort
gagedeed.
’

3.ESSENTI
ALSOFMORTGAGE-

a)Ther
emustbeat
ransf
erofi
nter
est
.

Ther
eisnot
ransf
erofowner
shi
pbutt
ransf
erofi
nter
estonl
yfort
hepur
poseofsecur
ing 

paymentofmoneybywayofloan.Theri
ghtofthemongageeisonl
yanaccessoryri
ght
,whi
ch
i
sintendedmerel
ytosecur
etheduepaymentofdebt.Mort
gageissi
mpl
yat ransf
erofi
nter
est
i
nthei mmovabl
eproper
tywhil
etheownershi
psti
ll
remainswit
hthemort
gagor.

b)Theremustbespecifi
cimmovableproper
tyi
ntendedt
obemort
gaged.Thei
mmov abl
e
proper
tymustbedisti
nctl
yspeci
fi
ed.Thedescr
ipti
onoft
hepr
oper
ty,
inthemort
gagedeed
mustbesuffi
cientt
oidenti
fyt
hepropert
y.

C)Thet r
ansf
ermustbemadet osecur et
hepaymentofal oanortosecur
etheperf
ormanceof
acontract
.Theconsi
derat
ionofthemor t
gagemaybeei t
heri)moneyadvancedortobe
advancedbywayofloan.i
i)anexist
ingorfut
uredebt
.ii
i
)per f
ormanceofanengagementgi
vi
ng
ri
setopecuniar
yli
abi
li
ty.

Or
Whati
smor
tgage.Expl
aini
tst
ypes

Ans:

A)SIMPLEMORTGAGE- S.58(b).Wher e,
wi t
houtdeli
v er
ingpossessi
onofthemor t
gaged
propert
y,themortgagorbindshimselfpersonall
ytopayt hemortgage-
money,andagr ees,
expressl
yorimpl i
edly
,that,i
ntheeventofhi sfail
i
ngtopayaccor di
ngtohiscontr
act,the
mor t
gageeshallhavear i
ghttocauset hemor t
gagedpropert
ytobesoldandt heproceedsof
saletobeapplied,sofarasmaybenecessar y ,
inpaymentofthemor t
gage-money,the
tr
ansactioniscall
edasi mplemortgageandt hemortgageeasimplemortgagee.

Essent
ial
sofsi
mpl
emor
tgage-

(
i)t
her
emustbeat
ransf
erofspeci
i
ici
mmov
abl
epr
oper
ty,

(
ii
) t
hepossessi
onoft
hepr
oper
tyi
sret
ainedbyt
hemor
tgagor
,

(i
ii
)asthepossessi
onofthepropert
yisnotgi
vent
othemor
tgagee,
mor
tgagorhasr
ightt
o
usufr
ucti
.e.enj
oymentoftheproper
ty,
.

(i
v)t
het i
tl
eisnotgivent
othemor
tgagee,
 (v
)mor
tgagorbi
ndshi
msel
ftopaymor
tgagemoney
bypersonalsecur
it
y,

(
vi)mor
tgageehasar
ightt
osal
eonexecut
ionofdecr
eeagai
nstt
hemor
tgagor
,

(
vii
)mor
tgageehasnor
ightoff
orecl
osur
e.'

B.MORTGAGEBYCONDI
TIONALSALE-SECTI
ON58(
c)

Wheret
hemort
gagorostensi
blysel
l
sthemortgagedpropert
yoncondit
iont
hatondef
aul
tof
pay
mentoft
hemortgage-moneyonacert
aindatethesaleshal
lbecomeabsol
ute,

oroncondi
ti
ont
hatonsuchpay
mentbei
ngmadet
hesal
eshal
lbecomev
oid.or

oncondit
ionthatonsuchpay
mentbei
ngmadet hebuyershal
ltr
ansf
ert
hepr
oper
tyt
othesel
l
er,
thet
ransacft
oniscal
ledmort
gagebycondi
ti
onalsal
e.

Pr
ovidedthatnosuchtr
ansact
ionshall
bedeemedtobeamortgage,
unlesst
hecondi
ti
oni
s
embodiedinthedocumentwhi
cheffectsorpur
por
tst
oef
fectt
hesale.
Essent
ial
sofMor
tgagebycondi
ti
onal
sal
e-

(
i)mor
tgagorost
ensi
blysel
l
sthei
mmov
abl
epr
oper
tybyasal
e.I
tisonl
yost
ensi
bleandnot
r
eal
.

(
ii
)themortgagorhasgivent
itl
eandpossessi
ont
othemor
tgageeandhencemor
tgageeget
sa
r
ighttousufr
uctmortgageproper
ty.

(
ii
i)ondef
aul
tofpay
mentofmor
tgage-
moneyt
hesal
eshal
lbeabsol
ute.

(
iv)i
ncasemor
tgagorr
epai
dthel
oan,
thesal
eshal
lbecomev
oid.

(
v)t
hatmor
tgagori
sent
it
ledt
ogett
hepr
oper
tyt
ransf
err
edonsuchpay
ment
.

(
vi)noper
sonal
secur
it
yandr
ightt
osal
eisgi
vent
othemor
tgagee.

(
vii
)mor
tgageeget
sar
ightt
ofor
ecl
oset
hepr
oper
ty.

C)USUFRUCTUARYMORTGAGE-
S.58(
d)

Whent hemortgagordel
iverspossession,orexpresslyorbyi mpli
cati
onbi ndshimsel ft
odeli
ver
possessi
on,ofthemortgagedpropertytot hemor tgagee,andauthori
seshi mt oretai
nsuch
possessi
onuntilpaymentofthemor tgage-money ,andtor ecei
vetherentsandpr ofit
saccrui
ng
fr
om thepropert
y,oranypartofsuchr entsandpr ofit
sandt oappropri
atet hesame, inli
euof
i
nterest
,ori
npay mentofthemor tgage-money ,
orpar tl
yinl i
euofint
erest,or,par
tlyinpayment
ofthemongage-mnoney ,thetr
ansact i
oniscall
edanUsuf ructuar
yMor tgage.

Essent
ial
s-

(
i)not
it
lei
sgi
vent
othemor
tgagee,

(
ii
)mor
tgagorhasgi
venpossessi
onandhencemor
tgageeenj
oyar
ightt
ousuf
ruct
,

(
ii
i)mor
tgagorhasnotgi
venanyper
sonal
secur
it
yorr
ightt
osal
eorf
orecl
osur
etot
he

mor
tgagee.

D)ENGLI
SHMORTGAGES.58(
e)

Wherethemort
gagorbi
ndshimsel
ftorepaythemort
gage-
moneyonacer t
aindate,
‘
and
t
ransfer
sthemort
gagedpr
opert
yabsolutel
ytothemort
gagee,butsubj
ecttoaprovisothathe
wil
lre-
tr
ansf
eri
ttothemort
gagoruponpaymentofthemortgage-
moneyasagr eed,the
t
ransact
ioni
scal
l
edanEngl
i
shMor
tgage.

Essent
ial
s-.

(
i)t
hemor
tgagorhasgi
vent
it
le,
possessi
on,
rightt
ousuf
ructt
othemor
tgagor
;

(
ii
)themor
tgagorbi
ndshi
msel
ftor
epayt
hemor
tgagemoneyonacer
tai
nday
;

(
ii
i)t
hemor
tgageei
snotgi
vent
her
ightt
ofor
ecl
osur
e.

E)MORTGAGEBYDEPOSI
TOFTI
TLE-
DEEDSS.58(
f)

Wher
eaper
soni
nanyoft
hef
oll
owi
ngt
owns,
namel
y,t
het
ownsofCal
cut
ta,
Madr
as,
and

Bombay .andinanyot hert

own, whichtheStateGov
ernmentconcer
nedmay ,bynoti
ficat
ionin
theOffi
cialGazett
e,specif
yinthisbehalf
,deli
ver
stoacredi
tororhi
sagentdocument softit
le
toimmov ablepropert
y,wit
hi nt
enttocreateasecur
it
yther
eon,thet
ransact
ioniscal
leda
mortgagebydeposi tofti
tl
e-deeds.

Essent
ial
s-

(
I)debt
;

(
ii
)deposi
toft
it
ledeeds;

(
ii
i)ani
ntent
iont
hatt
hedeedshal
lbesecur
it
yfort
hedebt
;

(i
v)itmaybeeffect
edincer
taintownswher eapersondel
iver
stoacr edi
tororhisagent,
the
documentsoftit
let
oimmov ableproper
tywithi
ntentt
ocreateasecurit
ythereon.This
mortgagecanonlybemadei nanyofthefoll
owingtownsnamelyCalcutt
a, Madras,
Bombay,
Lucknow,All
ahabad&Kanpurandi nanyothert
ownwhi chtheSt
ateGov ernmentconcernmay
specif
yinthi
sbehalf
.

F)ANOMALOUSMORTGAGES.58(
g)

Amor t
gagewhichisnotasimplemort
gage,oramort
gagebycondi
ti
onalsal
eoran
usuf
ructuar
ymor t
gageoranEngli
shmortgageoramort
gagebydeposi
tofti
tl
e-deedswi
thi
n
themeaningofthi
ssecti
oniscal
ledananomalousmort
gage.
I
tdoesnotf
iti
nabov
efivemor
tgages,
whi
chi
sacombi
nat
ionoft
woormor
eofabov
e
menti
onedt
ypemort
gages.

Q3B Wr
it
enot
eonEngl
i
shmor
tgage

Ans:

ENGLI
SHMORTGAGES.58(
e)

Wherethemort
gagorbi
ndshi msel
ftorepaythemort
gage-
moneyonacer t
aindate,
‘
and
t
ransfer
sthemort
gagedpropert
yabsolutel
ytothemort
gagee,butsubj
ecttoaprovisothathe
wil
lre-
tr
ansf
eri
ttothemortgagoruponpaymentofthemortgage-
moneyasagr eed,the
t
ransacti
oni
scall
edanEnglishMortgage.

Essent
ial
s-.

(
i)t
hemor
tgagorhasgi
vent
it
le,
possessi
on,
rightt
ousuf
ructt
othemor
tgagor
;

(
ii
)themor
tgagorbi
ndshi
msel
ftor
epayt
hemor
tgagemoneyonacer
tai
nday
;

(
ii
i)t
hemor
tgageei
snotgi
vent
her
ightt
ofor
ecl
osur
e.

Whatar
ether
ight
sofmor
tgagor

UNI
T–I
V

Q4.AWhati
ssal
e.Expl
aini
tsessent
ial
s

Ans:

1.I
NTRODUCTI
ON:
Saleisdefi
nedasbei ngatransferofowner shipforapr i
ce.I
nasal e,t
hereisanabsolute
tr
ansferofallri
ghtsinthepropert
ysold.Nor ightsarelefti
nthetransfer
or.Therearetwo
parti
esthetransfer
ori.
e.vendorandpur chaseri.e.vendee.Thesubjectmatterofthetransfer
maybemov ableorimmov ablepropert
y.Thet ransferofownershi
pmustbef orconsiderati
on.

2.DEFI
NITI
ONOFSALEANDCONTRACTFORSALES.54

S.54Saledef
ined-“Sal
e”is at
ransf
erofowner
shi
pinexchangef
orapr
icepai
dorpr
omi
sedor
pary
-pai
dandpart-
promised.'

Sal
ehowmade-

Sucht r
ansfer,
inthecaseoft
angi
blei
mmov abl
epropert
yoftheval
ueofonehundr
edrupees
andupwar ds,ori
nthecaseofarever
sionorot
heri
ntangi
blethi
ng,
canbemadeonlybea
regi
steredinst
rument.

I
nthecaseoft
angi
blei
mmov abl
epropert
yofaval
uelessthanonehundr
edrupees,such
t
ransf
ermaybemadeeitherbyaregist
eredi
nst
rumentorbydeli
ver
yoftheproper
ty..

Del
iver
yoft
angi
bleimmovablepr
opert
ytakesplacewhent
hesel
l
erpl
acest
hebuy
er,
orsuch
per
sonashedir
ects.i
npossessi
onofthepropert
y.

Cont
ractf
orsal
e-

Acont
ractf
ort
hesaleofimmovabl
eproper
tyisacont
ractt
hatasal
eofsuchpr
oper
tyshal
l
t
akepl
aceontermssett
ledbet
weenthepar
ties.

I
tdoesnot
,ofi
tsel
f,cr
eat
eanyi
nter
esti
norchar
geonsuchpr
oper
ty.

3.
 ESSENTI
ALSOFAVALI
DSALE:

Fol
l
owi
ngsar
esomeoft
hei
ngr
edi
ent
sessent
ial
forav
ali
dsal
e-

a.Thesel
l
ermustbeaper
soncompet
entt
otr
ansf
er(
S.7)-

Sel
l
erorv
endormustbemaj
or.soundmi
ndandnotdi
squal
i
fiedbyl
awf
rom cont
ract
ingHe
musthaver
ightofti
tl
einthepr
openyift
hepersonisnotanownerofthepr
oeprt
y.hemust
hav
eauthor
ityt
otransfert
hepr
opert
yofanother.e.
g.powerofat
tor
neyhol
der.

b.Thebuy
ermustbeaper
soncompet
entt
obeat
ransf
eree-

Hemaybeanypersonwhoi snotdi
squal
if
iedtobeatransf
eree.e.
g.incaseofacti
onabl
ecl
aim
t
heJudges,
legal
pract
it
ioner
sandoffi
ceroftheCour
tsaredisqual
if
iedtransf
eree.

c.Val
i
dtr
ansf
erofowner
shi
p-

I
ncaseofsal etheownershipofthepropert
ypassedfrom vendort
othepurchaser
.Ther emust
beav ali
dtransf
erofownership.I
ntransact
ionofsal
e,theownershi
ppassestothebuy erand
thesaleiscomplet
edaspert heagreementbetweentheparti
es.Theregi
stmti
onoft hesale
deedmaybemadesubsequent l
y.Thepossessi
onmaybehandedov erbef
oreorafter
regi
str
ation.

d.Ent
ir
eint
erestoft
heowneri
str
ansf
err
ed-

Incaseofsal
e,t
hetotali
nter
estoftheowneri
stransf
err
edbysel
lertothebuyer
.Thesel
l
er
cannotr
etai
nanyint
eresti
nthepropert
y.I
fheretai
nsanysuchi
nterestther
eshal
lbenoval
i
d
sal
e.Theremustbetr
ansferofall
theri
ghtsofownerandofownership.

e.Ther
emustbeanexchangef
orapr
ice-

Incaseofsalet hepri
cemustbepai dasaconsi derati
on.Suchpr icemustbei ntermsofmoney.
Itmeansifthereisnopri
cet obepaidorifthereisnoconsi derati
oni nt
het ermsofmoney ,
ther
eisnosal e.Ift
herei
sat ransf
erofonepr opertyinconsiderat
ionofanot herproper
tyi
t
cannotbecalledassale,
buti twil
lbeanexchange.Gener all
yt hepricei
sf i
xedbeforethesal
e.
Asthepr i
ceisanessenceofsal e,i
tmustbef ixedatany t
ime.So, acontractforsaleof
i
mmov abl
eproper t
yinwhichnopr i
ceisf
ixedwi llnotbeenforceableatLaw.

f
.Thesubj
ectmat
termustbet
ransf
erabl
eimmov
abl
epr
oper
ty.(
S.6)-

Thesubj
ectmatteri
stransf
erabl
eimmovabl
eproper
ty.Thesect
ioni
snotappl
i
cablet
othesal
e
i
ncaseofmov ablepr
operty
.Becausesal
eofmovabl
epr oper
tyi
sgover
nedbytheSal
eof
GoodsAct,
1930.

g.Regi
str
ati
on-

Forav
ali
dsal
e,i
fthev
alueoft
hepr
oper
tyi
smor
ethanRs.
100t
hesal
edeedmustbe
regi
stered.I
fIti
snotr egist
ered,itwi
llnotbeav al
idsal
eintheeyesoflaw.Iti
sthebasiceff
ect
ofthesalethatthesellerconveyshisent ireinter
estandallhi
sri
ghtsovertheproper
tytothe
buyer.Thesaleofimmov abl
epr opertyoft hev al
ueofRs.100/ormorecanbemadeonl ybya
regi
stereddocument .Butifthevalueisl esst hanRs.100/suchtr
ansfercanbemade: -
a)bya
meredel i
ver
yofpr opertyor,b)byar egistereddocument .

Or

Whati
sex
change.Howi
sitef
fect
ed?

Ans:
1.I
NTRODUCTI
ON:

ChapterVISECTIONS118t o121ofTransferofPropenyAct1882dealswi
thprovi
sionof
exchanges.Anexchangeisatransf
erofownershi
pofonet hi
ngfortheownershi
pofanother
.
Anexchangediffer
sfrom sal
eandparti
ti
on.Therecanbeexchangeofmov ableaswellas
i
mmov abl
epropert
y.

2.DEFI
NITI
ONOFEXCHANGES-
118:

Whent wopersonsmutual
lyt
ransf
ertheowner
shi
pofonethingfortheowner
shipofanot
her
nei
therthi
ngorbotht
hingsbeingmoneyonl
y,t
hetr
ansact
ioniscall
edanexchange.

Atr
ansferofpr
opert
yincomplet
ionofanexchangecanbemadeonl
yinmannerpr
ovi
dedf
or
t
hetransf
erofsuchproper
tybysal
e.

Anal
ysi
soft
hedef
ini
ti
on

a)I
nexchange,
ther
eisamut
ual
transf
er.

b)Twoper
sonsmut
ual
l
ytr
ansf
erowner
shi
pofonet
hingf
ort
heowner
shi
pofanot
her
.

c)Bot
hthet
hingsorei
thert
hingi
snotmoneyonl
y.

d)Consi
der
ati
oni
sint
hef
orm ofpr
oper
tyormoneypl
uspr
oper
tyf
oranot
her
.
e)Modeofef
fect
ingt
ransf
erbywayofexchanget
obecompl
etedasi
fsal
eoft
hepr
oper
ty.

I
tmaybenot edthatanexchangealsoincludesexchangeofgoodsormov abl
epropert
y.Thus,
prov
isionofexchangeappli
estomov ableaswel lasimmov ablepropert
ies.Anexchangetobe
madei nthesamemannerasasal e.Theessentialcondi
ti
onf orexchangeisthati
tmustbea
tr
ansferofownershipofathingf
oranot herthi
ng,bothmayhemov abl
eori mmovable.

e.g.theremaybeanexchangeof' X’
spenf orY'sbookorofX’ shouseforhouseofY.The
definit
ionofexchangedoesnotexcl udethepaymentofmoneyal lt
oget her
.Itsaysthatno
transferofthingorf ormoneyonlycanamountt oanexchange.Thus,ifoneoft hetwo
proper ti
es,
whi charet obeexchanged,exceedstheotheri
nv alue,
sti
ll
t hetransacti
onisof
exchange, eveni ft
heowneroft hepropertypayssomemoneyi naddit
ion, i
nordertoequali
ze
thev alueofbot hpropert
ies.

e.g.I
fA’shousewor
thRs.2000i
stobeexchangedf
orB’
sfiel
dwor t
hRs1200andinpursuance
ofthi
sbargain,
Bagreest
opaytoARs.800incash,
thet
ransact
ionisnotofsal
ebutan
exchange.

3.MODEOFEFFECTI
NGEXCHANGESect
ion118:

Thet r
ansferofpr opert
yincompleti
onofanexchangecanbemadeonl yi
nthemannerpr ovided
forthetr
ansf erofsuchpr oper
tybysal
e.Thus,aregi
ster
edinst
rumentisnecessaryinan
exchangeofai mmov ableproper
tyofavalueofRs.100andupwar ds,
andareversionorother
i
ntangibl
et hings.Incaseofmov abl
epropert
yexchagecanbeef f
eecedbydeli
veryofproperty
witharegisteredinstr
ument .

4.RI
GHTSANDLI
ABI
LITI
ESOFTHEPARTI
ESTOANEXCHANGE,
Sect
ion-
120:
-

Saveasother
wisepr ov
idedinthisChapt
er,eachpart
yhastheri
ghtsandissubjectt
othe
l
iabi
li
ti
esofasellerastothatwhichhegives,andhehasri
ghtsandissubj
ecttotheli
abi
l
iti
esof
abuyerastothatwhichhet akes.

Thissecti
onsaysthateachpart
yhast herightandissubjecttotheli
abi
li
ti
esofasell
erasto
thatwhichhegi
ves,andhastherightsandi ssubj
ecttotheliabi
li
ti
esofabuyerastothatwhi
ch
hetakes.Accor
dingl
y,wherethepropert
iesareimmov able,S.55ofTransf
erofPr
opertyAcy
wil
ldet
ermi
net
heright
sandli
abi
l
iti
esofpar
ti
es,
andwher
etheyar
emov
abl
e,t
hepr
ovi
sionsof
Sal
eofGoodsActwil
lappl
y.

Thel
i
abi
l
iti
esofpar
ti
esunderexchahgei
ncaseofi
mmov
abl
epr
oper
ti
es-

l
)Li
abi
l
iti
esbef
orecompl
eti
onofexchange-

i
)todi
scl
osemat
eri
aldef
ecti
npr
oper
ty,

i
i
)topr
oducet
it
ledeeds,

i
i
i)t
oanswert
hequest
ionast
oti
tl
e,

i
v)t
oexecut
ethedeedofexchange

v
) t
otakecar
eofpr
oper
tyandt
it
ledeed,

v
i)t
omakepay
mentofpubl
i
cchar
gesandt
axeset
c.

I
I)Li
abi
l
iti
esofpar
ti
esaf
tercompl
eti
onofexchange-

i
)todel
i
vert
hepossessi
on,

i
i
)todel
i
vert
het
it
ledeeds,

i
i
i)t
omakepay
mentofpr
ice,

i
v).t
obearal
osst
othepr
oper
tyandpayt
het
axesandr
evenueaf
tercompl
eti
onofsal
e

Ri
ght
soft
hepar
ti
esunderexchangei
ncaseofi
mmov
abl
epr
oper
ti
es:
-

i
)tocl
aim al
lrent
sandpr
ofi
tsoft
hepr
oper
tybef
oret
hecompl
eti
onofexchange,

i
i
)tocl
aim unpai
damountandt
osuef
orr
ecov
eryoft
hesameaf
tercompl
eti
onofexchange.

(Seetheri
ght
sandli
abi
li
ti
esofsel
lerandbuy
erunderSect
ion.
55ofTr
ansf
erofpr
oper
tyAct
,
givenint
hetopi
cofsal
efordet
ail
)'

Ri
ght
sandl
i
abi
l
iti
esofpar
ti
esunderexchangei
nrespectofmov
abl
epr
oper
ty:
-
All
theright
sanddut i
esofsel
lerandbuy
erundert
heSal
eofGoodsActwi
l
lbeappl
i
cabl
etot
he
part
iesunderexchangeI
tincl
udes:-

i
)dut
ytodel
i
vert
hegoods,
toacceptandt
opayf
ort
hem,

i
i
)del
i
vert
hegoodsi
nreasonabl
eti
me,

i
i
i)t
her
emustbeat
ransf
erofpossessi
on,

i
v)t
heexpensesofdel
i
ver
yoft
hegoods,

v)al
l r
ight
sofunpaidsell
eraregivent
oparti
esunderexchangeincl
udi
nga)rightofl
ien,b)r
ight
ofstoppageintr
ansi
t,c)ri
ghtofresal
e,d)r
ightt
osueforprice,
.e)ri
ghttocl
aim dai
nagesfor
nonacceptance,f
)ri
ghttoClaim damagesfornon-
del
iver
y,g)ri
ghttospeci
fi
cperfor
mance, h)
ri
ghttorepudi
atecontr
actbeforeduedate,
i)ri
ghtt
oclaiminter
estandcostofthesuit
.

Ri
ghtofpar
ti
esdepr
ivedoft
hingr
ecei
vedi
nexchange,
Sect
ion.
119:
-

I
fanypart
ytoanexchangeisdepri
vedoft
hepr
oper
tyduet
othedef
ecti
nthet
it
leoft
heot
her
par
ty,
suchotherpar
tyi
sli
abletohim:
-

i
)foranyl
osscausedt
her
ebyor

i
i
)att
heopt
ionoft
hepar
tysodepr
ived,
fort
her
etur
noft
hingt
ransf
err
ed,
ifi
tisst
il
li
n

possessi
onof--a)theot
herpar
ty,
b)hi
slegal
repr
esent
ati
ve,
orc)at
ransf
ereef
rom hi
m
wit
houtconsi
derati
on.

Q4.Bdi
sti
ngui
shbet
weenSal
eandCont
ractf
orSal
e

Ans:
DIFFERENCEBETWEENSALEANDCONTRACTFORSALE:
-

Sal
e

i
)Asal
eofi
mmov
abl
epr
oper
tyi
sat
ransf
erofowner
shi
p

i
i
)Asal
epassesanabsol
utei
nter
esti
nthepr
oper
tyt
othepur
chaser
;i.
e.i
tconv
eysal
egal
tit
le
t
othepur
chaser

i
i
i)Asal
ecr
eat
esar
ighti
nrem.

i
v)Asal
emustbeevidencebyar
egister
edinst
rument,
incaseof-a)tangi
ble(
real
)immov
abl
e
pr
oper
ty,
ofv
alueofRs.100ormore;b)arever
sion;
c)anytangi
blet
hing.

Cont
ractf
orSal
e

i
)Cont r
actforsal
eofi
mmov abl
epropert
yisamereagr
eementthatt
hesaleofsuchpr
opertyi
s
totakeinfutur
eonter
mssettl
edbetweenthePar
ti
es.I
tdoesnot,
ofit
sel
f,cr
eateanyi
nter
esti
n
orchargeonsuchProper
ty,

i
i
)Acont r
actforsal
edoesnotofi
tsel
f,cr
eat
eanyi
nter
esti
norchar
geupont
hepr
oper
tyi
n
f
avourofthebuyer.

i
ii
)Acontr
actf
orsal
ecreatesari
ghti
npersonam i
.e.onl
ythepr
omi
sseecancompel
the
pr
omisort
oexecut
ethepromisedconvey
ance.

i
v)Acont
ractf
orsal
eneednotber
egi
ster
edatal
l
.