Scribd Logo
Upload

Welcome to Scribd!

  • 32 views

    Competency, Incidents of Transfer and Conditions Restraining Alienation

    Uploaded by

    Harshini Bakaraju
    1. The document discusses competency to transfer property under Indian law, including requirements of majority, soundness of mind, and legal qualification to contract. It also discusses authorization for certain individuals like guardians or trustees to dispose of property. 2. The key incidents or effects that transfer with the property are discussed, such as easements, rents, movable fixtures, and securities. Cases are presented that establish trees and other incidents pass with the land. 3. Conditions placed on transfers are examined, finding absolute restraints on alienation are void, while exceptions exist for leases and transfers to married women. Transfers must also not create repugnant interests that contradict what was granted.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    Competency, Incidents of Transfer and Conditions Restraining Alienation

    Uploaded by

    Harshini Bakaraju
    32 views17 pages
    1. The document discusses competency to transfer property under Indian law, including requirements of majority, soundness of mind, and legal qualification to contract. It also discusses authorization for certain individuals like guardians or trustees to dispose of property. 2. The key incidents or effects that transfer with the property are discussed, such as easements, rents, movable fixtures, and securities. Cases are presented that establish trees and other incidents pass with the land. 3. Conditions placed on transfers are examined, finding absolute restraints on alienation are void, while exceptions exist for leases and transfers to married women. Transfers must also not create repugnant interests that contradict what was granted.

    Original Description:

    Original Title

    Lecture 3

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. The document discusses competency to transfer property under Indian law, including requirements of majority, soundness of mind, and legal qualification to contract. It also discusses authorization for certain individuals like guardians or trustees to dispose of property. 2. The key incidents or effects that transfer with the property are discussed, such as easements, rents, movable fixtures, and securities. Cases are presented that establish trees and other incidents pass with the land. 3. Conditions placed on transfers are examined, finding absolute restraints on alienation are void, while exceptions exist for leases and transfers to married women. Transfers must also not create repugnant interests that contradict what was granted.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    32 views17 pages

    Competency, Incidents of Transfer and Conditions Restraining Alienation

    Uploaded by

    Harshini Bakaraju
    1. The document discusses competency to transfer property under Indian law, including requirements of majority, soundness of mind, and legal qualification to contract. It also discusses authorization for certain individuals like guardians or trustees to dispose of property. 2. The key incidents or effects that transfer with the property are discussed, such as easements, rents, movable fixtures, and securities. Cases are presented that establish trees and other incidents pass with the land. 3. Conditions placed on transfers are examined, finding absolute restraints on alienation are void, while exceptions exist for leases and transfers to married women. Transfers must also not create repugnant interests that contradict what was granted.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 17

    COMPETENCY, INCIDENTS

    OF TRANSFER AND
    CONDITIONS
    RESTRAINING ALIENATION
    Click to add text

    By
    D.V.N.Murty
    Competency to transfer
    Competent to
    contract

    Absotultely Enttitled to
    or transferable
    conditionally property

    Wholly or
    Authorisation
    partly
    Competent to transfer

    ■ Section 11 of the Indian Contract Act, 1872


    1. Majority
    2. Soundness of mind can transfer the property u/S- 7 of TP Act, 1882
    3. Qualified by law to contract.
    ■ Can a minor be a transferee?
    ■ Is the transfer by a person of unsound mind void or voidable?
    Authorisation to dispose the property

    ■ Person authorized by the owner can dispose of the property.


    ■ Who are the persons so authorized?
    1. Karta of HUF
    2. Guardian of minor’s property
    3. Trustee
    4. Executor under the judgment of the court
    5. Liquidator
    6. Power of Attorney
    Authorisation continued…

    ■ Does the signature of one co-sharer enough to validate the transfer of a property?
    ■ Vimaleswar Nagappa Shet v. Noor Ahmed Sheriff,

    “Where one of the co-sharer did not join the agreement for sale of their joint
    immovable property, it was held that the entire agreement comprising of the whole of the
    property including the share of singing co-sharer was void and ineffective”
    Operation of Transfer
    Effect/incidents of the transfer.

    ■ Different intention expressly or necessarily implied.


    ■ Transfer passes all the interest and incidents to the transferee.
    ■ Incidents?
    – Easements Land and house
    – Rents and profits
    – Movable parts of machinery Machinery
    – Locks, keys, bars, doors etc.
    – Securities Debts
    – Interest or income Money yielding income
    Cases
    ■ Ram Chandra v. Kalyan Singh

    Objection for non transferability of trees in execution proceedings is not valid. Trees
    pass on with the land.
    ■ Vishwanath v. Ram Raj
    Land transfers takes all the incidents with it but vise versa cannot be assumed.
    ■ Rajendran v. Chinnathambi Gounder
    Non- mention of the incident in the transfer deed doesnot per se disqualify it be an
    incident of that property.
    Where the registration is required?

    ■ Act u/S-9 provides for oral transfers.


    1. Gift of immovable property
    2. Sale of immovable property (intangible, tangible or reversion)
    3. Lease more than one year
    4. All Mortgages, except mortgage by deposit of title deeds
    5. Exchange
    6. Actionable claim
    Conditions on transfers

    ■ Can a transferor put any condition after transferring the property, or on further alienation?
    ■ Section 10-
    1. Property transferred with absolute condition.
    2. Restraining the transferee or any person claiming under him.
    3. Such condition is void
    Exceptions:
    a) Lease for the benefit of the lessor
    b) Married woman (based on the doctrine of coverture)
    Conditions on transfer continued…
    ■ Can a transfer be made in favour of an adopted son with a condition to only enjoy the
    property?
    Achamal v. Raja Manickam
    Property received through Will with a condition that it should be used or enjoyed in a
    certain manner. Madras High Court held that no interest can be created repugnant to the
    interest so created in that property and the legatee gets the property as if no such condition
    has been put.
    Mr. Malhotra intended to create life estate in favour of his son-in-law Mr. Gupta and
    thereby handover the title deeds in his favour with a condition that he cannot alienate it
    further.
    If the heirs of Mr. Gupta sell the property is that a valid transfer?
    Kannamal v. Rajeswari, AIR, 2004 (NOC) 8 (Mad).
    Restriction repugnant to the interest
    created.
    ■ Section 11 provides for repugnant restrictions
    1. Absolute interest created in favour of transferee
    2. Direction by the transferor to enjoy the property in a particular manner.
    ‘A’ an owner of large patch of land transfers one portion of his land to ‘B’ absolutely
    with a condition that he shall not raise any structure on the eastern side of the land as
    it affects the right of way of ‘A’. Is such condition valid?
    Exception
    Part of the property sold with a condition for beneficial enjoyment of another part it is a
    valid condition.
    Cases
    ■ Umashankar Agarwal v. Daulat Ram Sahu
    Construction of the basement or any permanent structure- condition is void- no evidence to
    show that such condition is for the beneficial enjoyment of the transferor.
    ■ Rukmini Bai v. Lakshmi Bai
    Donee should not abandon theClick
    giftedtohouse else he will loose her interest in the gift- void
    add text
    condition.
    ■ Rana Girder Pvt Ltd. V. U.O.I
    Purchaser not liable to pay the excise duty of the vendor on the land, building and
    machinery.
    ■ Subal Chandra Matty v. Usha Banerjee
    Creation of conditional interest along with the absolute interest is not violative of Section 11.
    Insolvency or attempted alienation-S-12

    ■ Interest created in the property shall not terminate


    1. On becoming insolvent or
    2. Trying to further alienate the property
    Exception
    1. Condition in lease for the lessors benefit.
    Insolvency or attempted alienation
    cont…
    ■ U/S- 31 specified uncertain event:
    1. Shall happen; or
    2. Shall not happen.
    ■ The condition is subsequent and the event must be valid (Section-32)
    ■ Void condition-- the interest will not revert
    A gives his house on lease to B with a condition that if B changes his job without the prior
    permission of A then his leasehold will terminate. Is this condition valid?
    Grounds of invalid condition S-32
    1. Vague and uncertain
    2. Incapable of performance (Impossibility)
    3. Immoral and opposed to public policy
    4. Forbidden by law
    5. Defeat the provision of law
    ■ M transfer the farm to N with a condition that he (N) shall visit Badrinath within three
    years from the date of transfer failing which his interest will cease.
    ■ Arijit transfer an estate to Anurag with a condition that he shall not remarry after the
    death of his wife who was sick. If he remarries his interest will cease.
    Thank you

    You might also like