A

PROJECT
ON
Apportionments of benefits

Submitted as a partial fulfilment of the requirements

for
B.A. LL.B (HONS) 5 Year Integrated Course

Session: 2022-23

Submitted On: 25 January 2023

Submitted By: Submitted to:

Dr. Priyanka Joshi
AVANI LEKHARA
Faculty - Law of Property
Roll no-17
Semester -7 Sec on -A

ti

 Declaration

I, Avani Lekhara, hereby declare that this project titled

“Apportionment of benefits ” is based on the original research work carried
out by me under the guidance and supervision of Dr. Priyanka Joshi.

The interpretations put forth are based on my reading and understanding

of the original texts. The books, articles and websites etc. which have been
relied upon by me have been duly acknowledged at the respective places in the
text.

For the present project which I am submitting to the university, no degree

or diploma has been conferred on me before, either in this or in any other
university.

Date: 25 January 2023 (Avani Lekhara)

Roll No.17
Semester 7A

 Certificate

Dr. Priyanka Joshi Date: 25 January 2023

Faculty - Law of Property
University five year law college,
University of Rajasthan, Jaipur

This is to certify that Avani Lekhara student of semester 7.Section A of

University Five Year Law College, University of Rajasthan has carried out
project tittle “Apportionments of Benefits” under my supervision. It is an
investigation of a minor research project. The student has completed research
work in stipulated time and according to norms prescribed for the purpose.

Supervisor

 Acknowledgment

I have written this project titled, “Law of Property” under the

supervision of Dr. Priyanka Joshi Faculty, University Five Year Law College,
University of Rajasthan, Jaipur. His valuable suggestions herein have not only
helped me immensely in making this work but also in developing an analytical
approach this work.

I found no words to express my sense of gratitude for Director Mr. Akhil

Kumar, constant encouragement at every step.

I am extremely grateful to librarian and library staff of the college for the
support and cooperation extended by them from time to time.

Avani Lekhara

 Table of content
• Declaration
• Certificate
• Acknowledgment
• Introduction
• Apportionment by time
• Apportionment by estate/ Apportionment of benefits
o Difference between Section 36 and 37

o Illustrations
• Conclusion
• Bibliography

 Introduction

Section 36 & 37 of the Transfer of Property Act lay down the rules regarding the principle of
apportionment. Section 36 states- “In the absence of a contract or local usage to the contrary,
all rents, annuities, pensions, dividends and other periodical payments in the nature of income
shall upon the transfer of the interest of the person entitled to receive such payments, be
deemed, as between the transferor and transferee, to accrue due from day to day and
apportionable accordingly but to be payable on the days appointed for the payment thereof”.

Although this principle does not usually apply to transactions of transfer of property which
take place through ‘operation of law’ but there are exceptions in cases where the rule has
been applied on grounds of equity.

The expression ‘apportionment’ means division of a common fund between several

claimants. It is classified into two types- ‘Apportionment by time’ and ‘Apportionment by
estate’-:

 Apportionment by time

When a property yields income which is periodical in nature, the question of apportionment
of this periodical income between the transferor and transferee is bound to arise. The general
rule of transfer of interest along with the property between the transferor and the transferee as
laid down by section 8 of the Act is inapplicable in cases of apportionment of the periodical
income. The section clearly lays down that all periodical income shall be accrued and
apportioned on a day to day basis.

Liability of the tenant– Unlike section 8, section 6 is applicable in terms of a transaction

between the transferor and the transferee and does not hold the tenant liable as the section
makes the principle of apportionment applicable only between the transferor and the
transferee.

Concept of Transfer– The basic concept of Transfer of Property Act, 1882 says that when a
property is lent to several owners, any one of the several cannot ask for his specific share of
rent or for eviction on the ground that he being the co-owner has the right to ask for rent and
evict in cases of non-payment of the same.

Further, this section like all others are read in light of section 8 under the transfer of property
act. The act lays down that all interest including the rents and profits are to be transferred
from the transferor to the transferee. In cases where the income accrues from day to day
basis, the transferee would then from the date of transfer receive the income on a daily basis.
Where however the income does not accrue on a daily basis and is in the form of periodical
payments, the amount shall be apportioned between the transferor and the transferee.

 Apportionment by estate/ Apportionment of benefits-

Section 37 deals with this kind of apportionment stating that “ When, in consequence of a
transfer, property is being divided and held in several shares, and thereupon the benefit of any
obligation relating to the property as a whole passes from one to several owners of the
property, the corresponding duty shall, in the absence of a contract, to the contrary amongst
the owners, be performed in favour of each of such owners in proportion to the value of his
share in the property, provided that the duty can be severed and that the severance does not
substantially increase the burden of the obligation the duty shall be performed for the benefit
of such one of the several owners as they shall jointly designate for that purpose:

Provided that no person on whom the burden of the obligation lies shall be answerable for
failure to discharge it in manner provided by this section, unless and until he has had
reasonable notice of the severance.

Nothing in this section applies to leases for agricultural purposes unless and until the State
Government by notification in the Official Gazette so directs”.

In other words, when the whole of a property is transferred to more than one person, any
benefit arising out of obligation to the property is transferred to the several owners. Therefore
in such a case, the obligation attached to the property must then be performed in favour of
each of the several owners in proportion to their respective share in the property. The rule is
applicable only after fulfilment of the below conditions:

1. The person who is obligated with the duty to fulfil the burden under this section must have
notice of the same.

2. The obligation should be of a character which can be severed.

3. The severance of the obligation should not end up increasing the burden of the obligation.

 Thus apportionment by estate simply means division and further transfer of a property in the
hands of a few owners who are thereby liable to fulfil the obligations attached to the share of
property.

Difference between Section 36 and 37

The difference between this section and the previous one is that each section deals with one
of the two kinds of apportionment. While sec. 36 deals with the apportionment of time, sec.
37 deals with that of the estate.

Section 37 i.e. apportionment by estate contemplates a scenario where each share whether in
terms of income or rent of the various owners is apportioned according to their particular
share in the property. In cases of tenancy, the tenant is to be informed if he has to pay each
owner separately but in cases where the apportionment isn’t done or the tenant isn’t
informed, the tenant will be liable only singly.

This clearly explains that even if the estate is in the state of tenancy, it can still be
apportioned.

 Illustrations

• X sells a flat to W, Y, Z and leases the same to C. C has notice of the fact that W is a
contributory to the extent of half of the selling price which is Rs.100/-. Thus C must
pay 50/- to W, 25/- to Y, 25/- to Z according to the joint direction of W,Y,Z.

• A, B, C, E jointly own a farming land and lease it to D. D agrees to work for A for one
week every year as a farmer. Later on B, C, E want D to work separately for each of
them. D is not liable to work for more than a week every year.

• X has rented his house at 15000/- per month. He then sells it to Y on 15th May 2019.
The seller is entitled to a 14days rent while the buyer to the rest of the 16days rent.

• X, Y, Z are owners of a property in the ratio 2:1:1. The let the house on rent without
informing the tenant that the rent is to be paid in the above ratio. The tenant is only
liable to pay the rent as a whole and not as an apportioned amount.

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 Conclusion

The above project gives an overview of the principle of apportionment and it’s applicability
under various situations of transfer of property. The principle is dealt with precisely under
section 36 and 37 of the Transfer of Property Act,1882.

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 Bibliography

• http://data.conferenceworld.in/ICSSR/97.pdf
• https://ddceutkal.ac.in/Syllabus/MSW/Paper-8.pdf
• https://core.ac.uk/download/pdf/144509506.pdf
• https://shodhganga.inflibnet.ac.in/handle/10603/237787

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