Interpretation Clause, Section 3

NOTICE
 Notice

Actual/Express Constructive Imputed

 • Meaning- Knowledge that a court
imputes on a person.
• Based on the rule of caveat emptor
which imposes certain duties on the
transferee to make relevant
enquiry/search. These are:
Constructive Notice - Whether transferor is competent to
transfer the property;
- Whether there is charge due over the
property;
- Whether any third person has any
claim, right or title over the property.
 • Wilful abstention from inquiry/search
• Gross negligence
• Registration as notice (Explanation I to Section 3)
• Actual possession as notice (Explanation II to
Types of Section 3)
Constructive Notice
Landmark case: Lloyds banks V. PF Guzdar & Co.
(1930)
Alwar Chetty v Jagannatha
 • Notice to agent is deemed to be notice
to principal (Explanation II to Section
3)
• The doctrine of Imputed notice is
based on the maxim Qui facit per
alium facit per se i.e. he who does by
another does by himself.
Imputed Notice • A person is deemed to have had notice
of any fact if his agent acquires notice
thereof:
(i) whilst acting on his behalf
(ii) in the course of business, and
(iii) to which business, that fact is
material.
 • http://lawtimesjournal.in/constructiv
e-notice/
• http://14.139.60.114:8080/jspui/bitst
Quadrant II ream/123456789/738/21/Property%
20Law.pdf