Professional Documents
Culture Documents
Introduction
‘Property’ acts as one of the most indispensable needs of human life. In
India, the right to property was provided as a fundamental right under Article
31, but it was abrogated by the 44th Constitutional Amendment Act,
1978 and subsequently replaced by Article 300A, which made it a
constitutional right instead.
The facts of each case determine what an indicia of ownership is. Possession,
for one, acts as a form of ownership evidence. Possession is ostensibly an act
of ownership, but it is not necessary, because the real owner may not be
capable of handling his own property. He could hire a manager to look after
his estate. Although management implies possession, the manager may be
hired to conduct additional management tasks such as leasing, collecting
rentals, and overseeing the estate assigned to his care.
Benami transactions
The Benami Transaction (Prohibition) Act of 1988 states that when the
transfer of a property is done benami (that is, under the name of some other
person), the person who holds the property becomes the real owner. The
benamidar is only a trustee for the real owner and merely acts as a
representative. If a property is acquired in the guise of a benamidar and the
indicia of ownership are entrusted to him, the real owner can only overcome
the impact of alienation by demonstrating that it was done without his
consent and that the buyer was aware of it. No litigation, actions, or claims
to enforce any right concerning the property held benami against the person
in whose name the property is held, or any other person claiming to be the
real owner of the property, is allowed under the Act.
In other words, following the implementation of the Act, the real owner is no
longer able to reclaim the property from the benamidar by instituting any
legal suit. The argument of being the real owner is likewise unsustainable.
However, the Act offers certain exemptions when the provision of Section 41
do not apply:
1. Express Consent:
The consent is said to be express when:
2. The owner performs any act that demonstrates that he has no interest
in the property, such as attesting a deed stating that he has no interest
in the property, or that a third party has an interest in the property,
such as getting the property mutated in the name of another and
disclaiming his interest. Unless there is a responsibility to speak, or the
inactivity or silence is comparable to speaking, mere inaction or silence
is not material.
3. Implied Consent:
Implied consent refers to consent that can be inferred from a person’s
actions or behaviour. If the real owner is aware that someone else is
handling his property and agrees to it, his silence or inaction might imply
consent.
However, prior to such a consent being inferred, it must be established that
the person delivering the consent was cognizant of his right, interest or title
to the property and that despite that knowledge, he provided the consent.
His act or conduct at a time when he was unaware of his own right does not
preclude him from pursuing his own claim against the transferee.
The essential legal principle is that unless the legitimate owner has done
something to fool innocent purchasers or pledges into assuming that the
immediate possessor is the actual owner, his rights should be
protected prima facie. He would have to show that the real owner has
forfeited his right to reclaim possession as a result of his actions or
omissions.
Facts
The land, which was perpetually leased at a set rate, was sold to Bunnoo
Bebee, mistress of Alexander Macdonald by deed of sale by the then
landlord. It could not be said with certainty that the father, Macdonald, had
possession of the property. In any case, the evidence does not indicate that
he ever lived on the land, yet there is sufficient evidence of Bebee’s
residence upon the land.
Issues
1. Whether or not the property belonged to Macdonald?
2. Whether Maria McQueen received it by his will?
3. Whether the appellants acquired bond bonds without notice for a good
sum?
Judgement
The appellants’ response is that their father acquired Bunnoo Bebee’s estate
without being aware of the benami title, and therefore they are entitled to
keep it, despite the fact that there was initially a resultant trust in favour of
Macdonald. In such a circumstance, they bear a disproportionate amount of
the burden of proof, and hence they must first prove that the purchase was
done on Macdonald’s behalf and with Macdonald’s money. The proof for this
was not produced by the respondent. Furthermore, Bunnoo Bebee treated
the land as part of Macdonald’s inheritance following his death. The
appellants proved their right to keep the property against the benami title,
according to their Lordships.
It’s unlikely that the buyer was aware that the title was not the same as or
similar to the one that appeared. There is no indication in any of the
paperwork that the transaction was not what it looked to be. All of the
documentation, on the other hand, point to Bunnoo Bebee making the
transaction herself or for her benefit. Even if Macdonald was the real owner
and Bunnoo Bebee was merely an ostensible owner, the Privy Council held
that because Macdonald had given implied consent to Bunnoo Bebee to hold
herself out as the real owner. Therefore, the plaintiff or his representatives
couldn’t recover the title unless they could prove that they were the real
owners. It was then decided that the plaintiff could not reclaim the property
from the third party and in the eyes of the law, the transfer was held to be
legally sustainable.
Facts
In this case, regardless of the fact that they were legally unqualified to
possess the land, the owner’s three illegitimate sons (Nuhullah, Hakimullah
and Halimullah) got it after his death. The genuine heir, the defendant
Muhammad Shafiqullah Khan who is admittedly his son, filed a lawsuit to
assert his inheritance rights. The possessors, on the other hand, kept control
of the property and sold it to a third party (Samiullah, the defendant) while
pretending to be the legitimate owners.
Issues
Whether the illegitimate sons were ostensible owners under Section 41 of the
Act?
Judgement
On the issue of the benefit of Section 41 of the Act, the lower court found
that Samiullah had no knowledge of Shafiqullah’s suit, that he acted in good
faith and took the property from Nuhullah and others believing they had the
title, and that this belief was induced in his mind by Shafiqullah Khan’s
previous conduct, which had allowed the names of Nuhullah and others to
remain in the revenue papers. Hence, he determined that the mortgagee
Samiullah was protected under Section 41 of the Act and that Shafiqullah
Khan was barred from establishing his own title.
The Allahabad High Court, however, stated that this legal situation would not
satisfy the requirement for Section 41 because ownership was not obtained
with the express or implied consent of the lawful owner. Hence, they were
not deemed to be the ostensible property owners.
Facts
In the instant case, while on pilgrimage, a husband registered his land in the
revenue records under his wife’s name. He then permitted her to take out a
mortgage on the property. When the husband moved out, the wife sold the
property to a third party, who paid off the mortgage. He claimed to recover
the land from these defendants on the ground that his wife had no power to
sell it to them.
Issue
Whether the husband can reclaim the title of the property?
Judgement
The court ruled that the spouse could not reclaim or redeem the land from
the buyer if the buyer acted in good faith and took reasonable steps to verify
the land’s ownership, as had been done.
Conclusion
Section 41 of the Transfer of Property Act has done a decent job of
safeguarding the interests of the unsuspecting third party. Although the
section may appear to be prejudiced in favour of the third party, this is only
the case if the real owner is at fault. No one can simply claim that he now
owns the property and therefore cannot be evicted. The third party must use
extreme caution when acquiring the property, and these criteria were
imposed by law to prevent the ostensible owner and the third party from
abusing this provision. In a manner, this also protects the real owner’s
interests.
6. Conclusion
In law this term is used in various senses even various statutes define it in
various ways and as per the laws regulating these apportionment the process
of determine the apportioned amount also changes.
Section 36 & 37 of the Transfer of Property Act lay down the rules regarding
the principle of apportionment. It is classified into two types
This principle does not apply on tractions which take place by operation of law
but to those transaction based on equity.
Liability of the tenant – section 6 of the Act specifies that the section is
applicable for transaction held between transferor and transferee and does
not make tenant liable.
Concept of Transfer – The Transfer of Property Act, 1882 says that when a
property is lent to several owners, any of those several owners on the basis of
being the co-owner cannot ask for proportion of rent of evection in case of
non-payment. The apportionment created by the Apportionment Act 1870
statute is “apportionment in respect of time.” The cases to which it applies are
mainly cases of either:
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”.[2]
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.
Conclusion
In this Article the major discussion was on section 36 and 37 of the transfer of
property Act, 1882 which deals with Apportionment of Property in India. And
how it is read with section 8 of the transfer of property of property Act, 1882.
Various exceptions to these sections to Apportionment of Property in India
was discussed. Theses section are of immense important in the Act as it
specifies the rule of apportionment and how apportionment of income has to
be done in case of transfer or tenancy or lease.