Professional Documents
Culture Documents
2 - Transfer of Property Act 17DEC2023
2 - Transfer of Property Act 17DEC2023
2 - Transfer of Property Act 17DEC2023
Summary Notes
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My Summary understanding
Exchange - Rights & Liabilities of Parties (S118-121, Mutual transfer of ownerships - one
property for another property - both movable and non-movable, Transfer with consideration is sale,
and without consideration is gift, Exchange can be with property + payment for any shortfall, Oral
exchange or future property is not permissible, Characteristics: Ownership Transfer, Partition is NOT
transfer, Can be between movable, immovable and/or combination with consideration, S118 Mode
of Transfer: Immovable over Rs.100/- value must be registered, just like sale but without
consideration, S119 Defective Title or Property Other party is liable for losses, recover compensation
or property back, S120 Rights & Liabilities of both Parties towards each other same as seller & buyer,
Transferor Rights (Seller): Right to Receive Consideration, Right to Put Conditions on Transfer, Right
to Stop Transfer in Certain Cases, Responsibilities: Duty to Disclose Material Defects, Delivery of
Possession, Ensuring the Title is Clear, Transferee Rights (Buyer): Right to Specific Performance,
Right to Legal Remedies for Breach, Right to Compensation for Improvements, Responsibilities:
Payment of Consideration, Inspection of Property, Compliance with Conditions),
Lease - Characteristics, Rights & Liabilities of Parties: S105 - 117(Transfer of right to enjoyment for
certain time or perpetual in lieu of consideration to be paid periodically, Essentials: (Parties, Subject
Matter, Lease Duration, Consideration and sub-lease), No interest transfer before execution of lease,
S108 Lessor Rights to (Landlord): Receive Rent, Evict for Non-Payment, Inspect Property,
Responsibilities: Maintenance of the Property, Ensuring Habitability, Compliance with Lease Terms,
Lessee rights to (Tenant): Quiet Enjoyment, Legal Remedies for Breach, Right to Sublease or Assign,
Responsibilities: Payment of Rent, Maintenance of the Premises, Compliance with Lease Terms),
Termination of Lease: Expiry of lease, by Notice, At will of both parties, Condition occurring (like 2
crop seasons), Forfeiture for breach of terms (by any party), Merger (by Act of parties or Operation
of Law), Surrender
Doctrine of Part Performance (S63A Prevents transferor from taking advantage on account of
non-registration of documents - provided transferee has performed his part & has taken part
possession, Example: Buyer paid, seller wants to take advantage of non-registration and make
another sale to new buyer - Part or full Possession & consideration are pre-requisites, Rights of
Transferee or subsequent transferee: on account of no knowledge of part performance, will not be
affected.
Easement, Quasi Easement (Also called Servitude, Always with immovable property, Essentials:
Owner or occupier must need easementary rights to enjoy his property, right comes with burden not
to do something, Right only for enjoying dominant heritage, No ownership & only usage right over
servient heritage, Modes of Acquisition of Easement By Grant, By necessity, by Quasi Necessity (Not
absolute but qualified), by Prescription (if using peacefully for 20 years or more), by customs, by
transfer of dominant heritage, by legislation
License and Mortgage (S58 Types of Mortgages, Transfer of property interest against seeking loan,
recover unpaid debt through rights sale, Elements include transfer of interest, in a specific property,
and for pecuniary liability, Minor mortgagor is void, Mortgage Money (Principle + Interest), S70 Any
incremental addition to mortgaged property gets included in mortgage, Types: Simple (possession
is not delivered, recovery through sale), by Conditional Sale (Mortgaged property treated as absolute
sale upon non-payment by mortgagor, No court permission needed to sale property for recovery, No
possession), Usufructuary (Temporary profit from income on another’s property, Possession given
until loan is fully paid, No repayment time limit, Mortgagor has right to redeem property upon full
payment through profits/rent of property or other sources) , English (Absolute transfer with all rights
& possession with condition to return upon full repayment), by deposit of title deeds or equitable
(Only title documents shared as security, Deed not necessary, Generally used by Banks, and
Anomalous (one which does not fall under any other Mortgage category or combination of above
types
License: Possession always with licensor, limited rights transferred to licensee through document,
While property remains in possession & control of licensor, a Right to Do or continue to do which
otherwise is unlawful in absence of such right, License is a Personal right, License is a mere personal
permission to use another's property, while a mortgage involves the transfer of an interest in the
property as security for a loan, with the right of re-transfer upon repayment, as outlined in Section
105 and Section 58 of the Transfer of Property Act, 1882. Key differentiating aspects between
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Mortgage & License are Transfer of Interest, Revocability (License at the will of Licensor) and
Termination (only upon repayment), Redemption: S60 Upon completion of period and full repayment
(Principal & interest) the mortgagor has right to reclaim the mortgaged rights, No change in
ownership, Doctrine of Clog prohibits unfair restrictions or condition on a property owner's right to
reclaim their mortgaged property.
Rule against Perpetuity (Which has no maturity date, S14 Property interests must vest or fail
within a reasonable period, preventing indefinite restrictions on the transferability of property, Any
number of living person and one unborn person (atleast one person must be living at the time of his
birth) with timeline of gestation & attaining majority (Ultimate beneficiary), Exceptions Charitable
trusts, Mortgage, Perpetual Lease, Gift made to charity, Land sold to Corporation, Options & rights
of first refusal, Interests arising under powers of appointment, Short-term leases, and Rights of
entry after a condition breached.
Sale (Sale S54-57, S54 Sale is transfer of ownership in exchange of consideration or future promise
or both, Contract for sale of immovable property is based on terms & their acceptance, and doesn’t
create interest or charge on property, Essentials of sale: Subject Matter, Its clear ownership,
Competent Parties, Contract Essentials, Absolute transfer of ownership, Consideration, Mode of
Transfer (Registered Deed and/or Delivery of possession), S55 Duties of Seller before and after sale
Before (Disclosure of material defects, Production of Title Deeds, Answer relevant questions from
buyers, Execute Conveyance, Care of Property & Title deeds (During sale to delivery), Paying Govt
Taxes), After Sale completion (Give possession, Title deeds, Transfer absolute interest), Seller
Rights: Benefits from property (Rent etc), lien/charge on property for buyer non-payment, Contract
of Sale (a "Contract for Sale" is agreement where the seller agrees to sell and the buyer agrees to
buy the property at a future date, and No transfer of ownership happens immediately. "Contract of
Sale" involves an conclusive sale, payment can be in gesture, Interest is created immediately,
immediate transfer of ownership, indicating that the property is actually sold)
Marshalling by subsequent purchaser (S56 & S81, under Section 56, allows the purchaser to
seek relief if a prior mortgage is redeemed, enabling them to marshal the security in a way that
minimizes their loss. Protecting the subsequent purchaser's interests in specific situations. Example,
imagine A mortgages two properties, X and Y, to B and C respectively. B, the first mortgagee of
Property X, releases his mortgage. Now, if C, the subsequent purchaser of Property Y, faces a
shortfall in repayment, Section 56 allows C to compel A to satisfy the debt from Property X as well,
ensuring a fair distribution of the burden among the properties involved in the transaction. New
owner has to pay remaining mortgage if mortgagor is unable to recover from other properties)
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Transfer of Property (S5, A living person transfers his property, in present or in future (conveyance,
not future property which is non-existent today), to one or more living persons, himself (Role to
personal capacity), and any such combination, Transfer Exclusions Creation of Easement or charge
(mortgage), Relinquishment of your right, Recognition of pre-existing rights.
Lease & License (S105 - 117, Lease has transfer of select rights (right to enjoy etc), license is
mere permission to do something and no right is transferred, Lease is Transferrable & heritable
(License comes to an end upon death of licensee), Lease ends only in accordance to the contract
terms while License ends at the pleasure of grantor, Lease grants entitlement to property
improvement or accession, Sale of property does not affect Lease, In Lease, Lessee can protect his
rights, No applicable in License since it does not have rights, Death of grantor or grantee does not
end lease. S105 Lease - Transfer of right to enjoy the property for a definitive period, life or indefinite
period. Possession is always given to transferee (Lessee), Essentials Right Transfer, certain time or
perpetuity, for consideration and acceptance by Transferee. S107 1 year or more Lease must be
registered. Lessee can sue if possession not given after registration of lease. S111 Determination
(cancellation of Lease): By Lapse of time, Natural expiry of lease, By Happening of special event
(example Lease for life ends with life, end of war), Merger (Lessee buys the property, right to enjoy
merges with ownership rights), By Surrender (Express, Implied or Mutual Consent, or new lease
agreement happens while old is in force), Forfeiture (Breach of lease terms). S106 If no time period
is mentioned in lease contract - 1 year considered for Agri/Mfg with a 6 months Termination notice
available to both parties, 1 Month for all other property leases, Lessor Rights to: Receive Rent
(Section 108), Terminate Lease (Section 111), Compensation for Improvements (Section 108) and
Inspect the Property (Section 108), Liability to: Provide Possession and Defects in the Property.
Lessee Rights to: Enjoy the Property, Transfer Lease & Terminate Lease, Liabilities: Pay Rent,
Permissive Waste & Repairs Transferability S108(c)allows a lessee to transfer their lease, either
wholly or partially, through assignment or sublease unless expressly prohibited in the lease deed.
The lessee typically needs the lessor's consent for such transfers, and the specific conditions are
outlined in the lease agreement), Alteration & Improvement rights (S108 A lessee has the right to
make alterations and improvements to the leased property, but such changes should not go beyond
the ordinary use or cause substantial damage. The lessor's consent may be necessary depending on
the lease agreement), Eviction rights (S108(e) outlines the lessor's right to evict the lessee on
specific grounds, including non-payment of rent, breach of lease terms, or misuse of the property.
Proper notice and adherence to legal procedures are generally required for eviction.), Interest
creation (S108(j) empowers a lessee to create a sub-lease or any other interest in the leased
property, subject to the lessor's consent if the lease agreement requires it. The lessee can, therefore,
grant interests like sub-leases, mortgages, or licenses, as long as it aligns with the terms agreed
upon and complies with legal requirements.)
Short: Doctrine of Election (S35, S5-37 are applicable for both movable & immovable properties,
Election is choosing one from 2 rights, Accept the same & consideration or reject it, A person who
does not have rights, transfers and confers benefit to property owner. Owner elects the choice.
Essentials: Transferor has no rights, Transferor confers benefits to owner, property & benefit must
belong to same transaction and owner gets right to elect from choices. Mode of Election Direct &
Indirect (Acceptance without knowledge, enjoyment for 2 years or Status Kuo cannot be restored),
Lis Pendance (S52, No right or interest created until the dispute is resolved in property, Court of
law decree is binding on all parties involved, One cannot sale better title than what he has, Essentials
Suit should in court, and pending, must be related to title/right/interest, no collusion/malafide and
no new right/interest created unless the decree issued by the Court. Purchase of such property is
void, Court can keep such transaction valid until judgement Transfer by Ostensible Owner (S38-
41, Ostensible means Apparent, Owner with consent lets someone live in property owned by him
(neither a tenant nor a trespasser, but in full possession), Apparent owner appears who is enjoying
the property but is not a true owner, Ostensible owner is Governed by Principle of Estopple, S41
protects the transferee who, in good faith and without notice of the true owner's rights, relies on the
representation of ownership by the ostensible owner, making the transfer valid against the true
owner. Essentials Not real owner, in full possession of property, Can be co-owner or co-sharer,
occupies as fiduciary, may be recognised as real owner in some situations, Liability to bear Loss or
pass on profit with ostensible owner, Genuine buyer may get property after due diligence, but
Ostensible owner is liable to real owner. Ostensible owner is protected if any transaction happens
for the property with full disclosure to real owner and no objection from him. Vested & Contingent
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Interests (S13 Transfer to unborn person, S14 Rule against Perpetuity, and S18 Transfer in
perpetuity for Public Interest, Transfer under TPA must be Inter-vivos (between living persons,
Transfer to unborn must happen through another living person), Unless the interest created extends
to the whole of the remaining interest of the transferor in the property. Interest of unborn must be
preceded by prior interest created to another living person intermediary via life interest (not
ownership), Unborn must be in existence before prior life interest comes to an end, In case unborn
is not in existence before life interest holder dies, the property goes back to the heirs of original
owner, Unborn always have absolute vested interest for whole remaining & not life interest (so as
he gets right to sale), Tagore v Tagore 1872 Foetus in womb considered in existence for making gift
(since unborn can’t pay, type of transfer) to unborn, S14 Rule against Perpetuity To keep
properties away from being blocked perpetually in the interest of free flow economy, No interest
created which takes effect after lifetime of one or more living persons & minority of a person born
during that period. Intermediary bearing life interest (one or more) must be alive, Unborn gets
vesting of his/her interest upon birth and remain with guardian until majority, S18 Transfer in
perpetuity for public benefit advancement of religion/knowledge/commerce/health/safety or any
other object beneficial to mankind. Fraudulent Transfer (S53, IPC Definition for Fraudulent - Act
with intent to defraud and not otherwise, Lack of knowledge, negligence & good faith is not fraud,
Fraudulent when made to defeat or delay creditors (Transfer voidable at the option of creditors), and
without consideration with intent to default subsequent transferee (Selling property without having
interest). Musahar Sahu v. Hakim Lal Second Creditor is not defeated as first creditor transfer was
genuine to satisfy debt. This decision of choosing which creditor remains with debtor. Transfer &
Transmission (Transfer involves the voluntary conveyance of property from one person to another,
and can be through a sale, gift, lease, exchange, or other similar methods. Property moves from the
ownership of one person to another. Transmission refers to the devolution of property from one
person to another by operation of law, can happen in situations, such as death, insolvency, marriage,
or insolvency. Unlike transfer, transmission is not a voluntary act; it occurs automatically due to legal
reasons.), Foreclosure( S67 Rights of Mortgagee, Right to redemption is absolute but right to
foreclosure is changeable, Mortgagor inability to pay debt on the due date (directly or through court),
Mortgagee can seek court decree (before Mortgagor gets decree of redemption from court) in
absence of debt repayment on due date, This right arise only when mortgage contract provisions for
it, This right is not applicable in Usufactory Mortgage since possession remains with Mortgagee to
recover debt from that very property rental, In Simple mortgage property can be sold by mortgagee
through court decree within 12 years but not foreclosed, Not applicable in Public Property, S67A Only
one suit can be filed by Mortgagee for more than one mortgage from same mortgagor. Actionable
Claim (Claim to unsecured debt or beneficial interest in movable property NOT in possession of
claimant, which civil court recognize as an affording ground, a claim to unsecured debts or any
beneficial interest (existent, accruing or conditional or contingent) in movable property that can be
enforced by legal action. It represents a right that can be asserted in court for the recovery of money
or property. Actionable claim is regarded as Property, that can be transferred. Examples Claim for
rent arrears, rent due in future, benefits of executory contract, share of land received in gift deed,
share in partnership, Amount of PF post-retirement, Muslim women unpaid dower, Marshalling
Securities (S56 Marshalling by subsequent purchaser and 81 Marshalling Securities, S56 Owner
sells one of the multiple mortgaged properties to non-mortgagee, then non-mortgagee can request
mortgagee to satisfy his debt from remaining mortgaged properties, Liability comes to purchaser in
case debt remain unfulfilled by mortgagee from the remaining properties, S81 Same as S56, except
there is a mortgage to second party instead of sale, A Mortgages 3 (1, 2 & 3) properties to X and
also mortgages property 3 to Y. Y can request X to recover debt from Properties 1 & 2 and come to
Property 3 only if X's debt recovery remain unfulfilled. Registration Act & Documents (S17
Documents requiring registration Gift of Immovable property, Non-testamentary instruments over
value of Rs.100, Document acknowledging Payment/Receipts, Lease if tenure is more than 12
months, Any decree/arbitration award being signed with value over Rs.100, Loan documents,
Mortgages & its documents, Properties purchased through Government auctions, S18 Optional
Registration Documents Instruments other than gift and will having value less than Rs.100, Lease
having duration under 12 months, Decree/Award under Rs.100 value, Will, All documents not
required to be registered under S17. S23 Registration within 4 months from the date of document
execution (except for will), Reregistration (in case of defect in document) within 4 months from the
date of defect is detected, S32A Photograph & fingerprints are mandatory, Power of Attorney
acceptable if registered in front of Registrar/Sub-registrar, S41 Will Registration - Authorities to
satisfy with executed will and person registering is entitled, Registered documents become operative
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from the date of execution (and NOT registration), S49 Effect of Non-registration: Loose rights to
present it as evidence, No authority to adopt unregistered document and No rights affected for
immovable property (no transaction considered complete), Reasons to refuse registration to be
recorded (unless registration is not in his jurisdiction) S81 Penalty for incorrect document intending
to cause injury (Upto 7 Years and/or Fine), S82 Submitting falsified document for registration,
Maharashtra Stamps Act, 1958 (Last Amended in 2015, earlier known as Bombay Stamp Act,
Objects Generate revenue for State, Duty Payable on Agreement Value, All instruments Government
by the Indian Stamps Act such as Bill of exchange, cheques, promissory notes, letter of credit,
insurance policies, transfer of shares, award of arbitration tribunal, consent decree, and written
agreement recording terms of oral agreement etc. All instruments listed in schedule 1 and signed
after the Act commencement or executed outside Maharashtra having subject property within
Maharashtra, Payment via Franking, DD, Cash or Pay order to Government Treasure/Sub-Treasury
or General Stamp office. Immediately or upto next working day. 3 months for documents registered
outside Maharashtra from the date it was first received in Maharashtra. Impounding of instrument
is taking formal legal possession of documents where stamp duty is not paid.
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Transferor (Party Giving Up Ownership):
1. Right to Ownership Transfer: The transferor has the right to transfer ownership of their
property to the transferee through the exchange.
2. Right to Receive Equivalent Value: The transferor has the right to receive a property of
equivalent value from the transferee as per the terms of the exchange.
3. Right to Fair Consideration: The transferor has the right to receive fair consideration for
the property being transferred, which may include land, buildings, or other assets.
4. Right to Documentation: The transferor has the right to receive proper documentation for
the exchange, including a legally valid exchange deed.
Transferee (Party Receiving Ownership):
1. Right to Ownership: The transferee gains ownership rights over the property being
received in the exchange.
2. Right to Clear Title: The transferee has the right to receive the property with a clear title,
ensuring that there are no legal encumbrances or disputes.
3. Right to Possession: The transferee has the right to take possession of the property once
the exchange is legally completed.
4. Right to Documentation: The transferee has the right to receive proper documentation
for the exchange, including a legally valid exchange deed.
Liabilities of the Parties:
Transferor (Party Giving Up Ownership):
1. Liability for Legal Compliance: The transferor is liable to ensure that the property being
exchanged is legally owned by them and free from any legal encumbrances.
2. Liability for Representations: The transferor may be liable if they make false
representations about the property's condition, title, or value.
3. Liability for Registration and Stamp Duty: The transferor is responsible for ensuring that
the exchange deed is properly registered and the required stamp duty is paid.
Transferee (Party Receiving Ownership):
1. Liability for Legal Compliance: The transferee is liable to ensure that the property being
received is legally owned by the transferor and is free from any legal encumbrances.
2. Liability for Representations: The transferee may be liable if they make false
representations about their property's condition, title, or value.
3. Liability for Registration and Stamp Duty: The transferee is responsible for ensuring
that the exchange deed is properly registered and the required stamp duty is paid.
It's important to note that the specific rights and liabilities of the parties can vary based on the terms
of the exchange agreement, local laws, and regulations. Parties engaging in property exchanges
should seek legal advice and ensure that all necessary legal requirements are met to safeguard their
interests and ensure a smooth exchange process.
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f. Maintenance and Repairs: The lease outlines the responsibilities of both the landlord and tenant
regarding property maintenance, repairs, and upkeep. Generally, landlords are responsible for major
structural repairs, while tenants are responsible for maintaining the property in good condition.
g. Alterations: The lease may specify whether the tenant is allowed to make alterations or
improvements to the property during the lease term.
h. Renewal and Termination: The lease agreement should include provisions for lease renewal,
termination, and notice periods required by both parties. Some leases may also have clauses
allowing early termination under certain circumstances.
i. Subletting: The lease may address whether the tenant is allowed to sublet or assign the property
to another party during the lease term.
j. Governing Laws: The lease agreement may specify which laws and regulations govern the lease
and any disputes that may arise.
3. Types of Leases:
a. Fixed-Term Lease: This lease has a specified start and end date, after which the lease either
terminates or can be renewed.
b. Month-to-Month Lease: Also known as a periodic tenancy, this lease automatically renews on
a monthly basis until either party gives proper notice to terminate.
c. Commercial Lease: Designed for business purposes, this lease typically involves longer terms
and more complex provisions tailored to commercial activities.
d. Residential Lease: Intended for dwelling purposes, this lease applies to residential properties
and includes terms suitable for tenants' housing needs.
e. Ground Lease: In this lease, the tenant leases land from the landlord and may build structures
on it during the lease term.
4. Legal Formalities:
Lease agreements are legally binding contracts, and they may need to be registered as per local
laws and regulations. Proper documentation, including stamp duty payment, is often required to
make the lease valid and enforceable.
In a lease agreement, both parties—the landlord (lessor) and the tenant (lessee)—have distinct
rights and responsibilities. These rights and liabilities are defined by the terms of the lease
agreement itself, as well as by applicable laws and regulations. Understanding these rights and
liabilities is crucial to ensure a clear understanding of the expectations and obligations of both
parties. Here's an overview of the rights and liabilities of both the landlord and the tenant in a lease
agreement:
Rights and Liabilities of the Landlord (Lessor):
Rights:
1. Right to Rent: The landlord has the right to receive rent from the tenant as specified in the
lease agreement.
2. Right to Receive Security Deposit: The landlord has the right to collect a security deposit
from the tenant as a protection against damage to the property or unpaid rent.
3. Right to Maintain Property: The landlord has the right to enter the property for
maintenance and repairs, provided proper notice is given to the tenant.
4. Right to Set Terms: The landlord has the right to set the terms and conditions of the lease,
including rent amount, duration, and rules for the property's use.
5. Right to Terminate Lease: The landlord has the right to terminate the lease in accordance
with the terms of the agreement, typically with proper notice.
6. Right to Recover Damages: If the tenant breaches the lease agreement and causes
damage to the property, the landlord has the right to recover the costs of repairing such
damages.
Liabilities:
1. Liability for Habitability: The landlord has a legal duty to provide a habitable and safe
living environment for the tenant, including maintaining essential services such as plumbing,
heating, and electrical systems.
2. Liability for Repairs: The landlord is generally responsible for major structural repairs and
maintaining the property's structural integrity.
3. Liability for Return of Security Deposit: At the end of the lease, the landlord must return
the security deposit to the tenant, minus any deductions for unpaid rent or damages, as per
the terms of the lease and applicable laws.
Rights and Liabilities of the Tenant (Lessee):
Rights:
1. Right to Possession: The tenant has the right to possess and use the property for the
duration of the lease term.
2. Right to Quiet Enjoyment: The tenant has the right to peacefully enjoy the property
without interference from the landlord.
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3. Right to Privacy: The tenant has the right to privacy in their rented space, and the landlord
must provide proper notice before entering the property.
4. Right to Legal and Safe Premises: The tenant has the right to occupy a property that
complies with all relevant laws and regulations and is free from health and safety hazards.
5. Right to Request Repairs: The tenant has the right to request repairs and maintenance
for issues that affect habitability and safety.
Liabilities:
1. Liability for Rent: The tenant is liable to pay rent as specified in the lease agreement and
within the stipulated time frame.
2. Liability for Property Care: The tenant is responsible for maintaining the property in a
reasonably clean and undamaged condition, including adhering to rules and regulations
specified in the lease.
3. Liability for Damages: The tenant is liable for any damages beyond normal wear and tear
caused to the property during the lease term.
4. Liability for Early Termination: If the tenant wishes to terminate the lease early, they
may be liable to pay penalties or additional rent as specified in the lease.
5. Liability for Compliance: The tenant is responsible for complying with the terms of the
lease agreement and local laws.
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In both cases, the court will consider the equities and whether enforcing the oral agreement or
allowing the transferee to retain possession is in line with justice and fairness.
Durga Prasad v. Deep Chand (2001): In this case, the Supreme Court of India reaffirmed the
applicability of the Doctrine of Part Performance and its conditions. The court held that when a party
claiming the benefit of the Doctrine of Part Performance seeks to enforce an oral agreement for the
sale of immovable property, they must establish their performance of acts that go beyond mere
possession. The court outlined the essential conditions for the doctrine to apply:
1. The possession must be consistent with the terms of the contract.
2. The transferee must have performed some part of the contract other than mere payment of
consideration.
3. The transferee must have changed their position to their detriment based on the contract.
The case highlighted that the Doctrine of Part Performance is not a standalone principle but a rule
of evidence, allowing a party to prove an oral agreement that would otherwise be unenforceable due
to the statute of frauds.
This case affirmed the importance of the Doctrine of Part Performance in equitable considerations
and provided guidance on the conditions that parties must meet to seek specific performance of an
oral contract for the transfer of immovable property.
Easement (4)
Easements under the Indian Easement Act (1882): Comprehensive Overview
Easements are a crucial aspect of property law that governs the rights one person has over another's
land for a specific purpose. The Indian Easement Act, 1882, provides the legal framework for
understanding easements in India. Easements grant certain rights to the owner of a property
(dominant tenement) over another property (servient tenement) that belongs to a different owner.
Easements allow for the convenient use and enjoyment of property, and they are essential in
ensuring harmonious relationships between neighboring properties. Let's delve into the details of
easements, their types, and the various modes of their acquisition:
Easements: Definition and Types: An easement is defined under Section 4 of the Indian Easement
Act, 1882, as a right enjoyed by the owner of the dominant tenement to do something or to prevent
something being done in or upon the servient tenement. Easements can be broadly categorized into
several types:
1. Easement of Necessity: This arises when a property is sold or leased, and the buyer or
lessee requires an easement over the seller's or lessor's property for the reasonable use and
enjoyment of the property sold or leased. The easement is considered necessary for the
property's proper use.
2. Easement of Continuous and Apparent Enjoyment: This type of easement arises when
one property is used openly and continuously for a particular purpose over another property,
creating a presumption of grant by the servient owner.
3. Easement of Custom: When a specific local custom or usage allows a certain right over
another's property, it can give rise to an easement by custom.
4. Easement by Prescription: If a person uses another's property without interruption,
openly, and without permission for a specified period, they may acquire an easement by
prescription.
5. Easement of Support: This easement allows the owner of a property to enjoy support from
the servient property, preventing the servient owner from altering the land in a way that
endangers the dominant property.
6. Easement of Air and Light: This easement grants the right to receive air and light through
defined apertures, such as windows or skylights, on the servient property.
7. Easement of Way: An easement of way permits the owner of the dominant property to
pass over the servient property using a specified path or route.
Modes of Acquisition of Easements: Easements can be acquired through various modes as
recognized by the Indian Easement Act:
1. Express Grant or Reservation: Easements can be created by an express grant or
reservation in a written document signed by the parties.
2. Necessity: An easement of necessity can be acquired when it is necessary for the proper
enjoyment of the dominant tenement.
3. Prescription: An easement by prescription can be acquired through uninterrupted and open
use for a specific statutory period (20 years).
4. Custom: An easement by custom arises based on a local custom that grants a specific right.
5. Implied Grant: Implied easements can arise when the parties' intentions are clearly implied
by their actions, such as a property owner creating a pathway to the main road that serves
another property.
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6. By Law: Statutory easements, such as those established for public utilities or amenities,
can also be acquired by law.
Under the Indian Easement Act, 1882, easements can be extinguished or terminated in various
ways. The Act provides for specific provisions that outline the circumstances under which an
easement can cease to exist. Here are the common methods by which easements can be
extinguished:
1. Release: An easement can be extinguished by the holder of the easement (the dominant
owner) voluntarily releasing or relinquishing their rights over the servient property. This
requires a written agreement between the parties involved.
2. Abandonment: If the holder of the easement demonstrates a clear intention to abandon or
renounce their rights, the easement can be extinguished. Abandonment can be inferred from
the holder's actions, such as discontinuing the use of the easement for an extended period.
3. Merger: If the ownership of both the dominant and servient properties comes under the
same person, the easement is said to merge, and it becomes unnecessary, resulting in its
extinguishment. For example, if a person owns both properties that were subject to a right
of way easement, the easement would cease to exist.
4. Expiration of Time: If the easement was granted for a specified time period and that period
comes to an end, the easement is extinguished automatically.
5. Cessation of Purpose: If the reason for which the easement was granted no longer exists,
the easement may be extinguished. For example, if an easement was granted to access a
certain facility that no longer operates, the easement may cease to be relevant.
6. Release by Licensee: If the holder of an easement grants a license to another person
allowing them to use the easement, the licensee's use can result in extinguishing the
easement, as it's inconsistent with the rights of the holder.
7. Destruction of Servient Property: If the servient property is destroyed to such an extent
that it's no longer capable of accommodating the easement (e.g., a pathway being blocked
due to construction), the easement may be extinguished.
8. Change in Law: If a change in law renders the easement illegal or impracticable, it can lead
to its extinguishment.
Vishnu Datt Sharma v. Romesh Chander & Ors. (2005): In this case, the Supreme Court of
India examined the question of whether an easement can be extinguished due to abandonment. The
court emphasized the principle that an easement can be extinguished if the holder of the easement
demonstrates a clear intention to abandon it. The court held that abandonment is a matter of
intention, which can be inferred from the holder's conduct and actions.
In this case, the appellant claimed a right of way through a pathway. The court observed that the
appellant had not used the claimed right of way for over 25 years, which indicated a clear intention
to abandon the easement. The court also noted that the appellant had constructed a boundary wall,
effectively blocking the pathway. Based on these circumstances, the court held that the appellant
had abandoned the easement and it was extinguished.
The case of Vishnu Datt Sharma v. Romesh Chander highlights the importance of demonstrating a
clear intention to abandon an easement for it to be extinguished. The court's decision underscores
the principle that an easement cannot be maintained if the holder shows by their actions that they
no longer intend to exercise the rights associated with the easement.
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Implications of Redemption:
1. Recovery of Ownership: The primary implication of redemption is that the mortgagor can
regain ownership and possession of the property by repaying the debt. Once the debt is fully
paid, the mortgagee releases their claim on the property.
2. Payment of Outstanding Debt: The mortgagor must pay the outstanding loan amount
along with any interest, fees, or charges as specified in the mortgage agreement to redeem
the property.
3. Prevention of Foreclosure: Redemption helps prevent the foreclosure or forced sale of
the mortgaged property. The mortgagor has the opportunity to save their property from
being sold by repaying the debt.
4. Time Limitations: In the case of legal redemption, there is a specific time frame within
which the mortgagor must exercise their right to redeem the property. Failing to do so can
result in the loss of the redemption option.
5. Equity Considerations: Equitable redemption ensures fairness by allowing the mortgagor
to redeem the property even after the specified time for repayment has lapsed. This prevents
the mortgagee from taking advantage of the situation.
6. Notice Requirements: In some jurisdictions, mortgagees are required to provide notice to
the mortgagor before selling the property. This gives the mortgagor a chance to redeem the
property before it is sold.
7. Balancing Interests: Redemption strikes a balance between the interests of the mortgagor
and the mortgagee. It allows the mortgagor to keep their property while ensuring that the
mortgagee recovers their loan amount.
Besides the mortgagor (borrower), certain other parties may have the right to redeem a mortgage
under specific circumstances. These parties are typically connected to the mortgagor or have a legal
interest in the property. The ability of these parties to redeem a mortgage can vary based on
jurisdiction and the nature of the mortgage agreement. Here are some examples of parties who may
have the right to redeem a mortgage besides the mortgagor:
1. Co-Owners: If the mortgaged property is owned jointly by multiple individuals, each co-
owner may have the right to redeem the mortgage. Co-owners can protect their ownership
interests by redeeming the mortgage and preventing the property from being sold.
2. Legal Representatives: In cases where the mortgagor is deceased, their legal
representatives, such as executors or administrators of the estate, may have the right to
redeem the mortgage on behalf of the estate.
3. Subsequent Purchasers: If the mortgaged property is sold to a third party, that purchaser
may have the right to redeem the mortgage under certain circumstances. This could arise,
for example, if the property was sold subject to the mortgage or if there is a provision
allowing the subsequent purchaser to redeem.
4. Prior Mortgagees: In cases where multiple mortgages exist on the same property, a prior
mortgagee (holder of a previous mortgage) may have the right to redeem a subsequent
mortgage to protect their security interest in the property.
5. Transferees of the Right to Redeem: In some situations, the mortgagor may transfer
their right to redeem the mortgage to another party. This can happen through legal
assignments or agreements, allowing the transferee to step into the mortgagor's shoes and
redeem the mortgage.
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1. Validity Period: The rule sets a limit on the time within which a future interest in property
must vest. Generally, this period is referred to as "lives in being plus 21 years." This means
that any future interest must vest (become effective) within the lifetime of individuals alive
at the time the interest was created, plus an additional 21 years.
2. Contingent Events: A future interest must vest or fail based on events that are certain to
happen within the prescribed period. If the interest is contingent upon an event that might
or might not happen after the validity period, it violates the rule.
3. Vesting or Failure: The future interest must either vest or fail within the prescribed time
frame. If there's any possibility that the interest could vest later than the validity period, the
interest is considered void.
Implications of the Rule: The Rule Against Perpetuity has several implications for property
interests and estate planning:
1. Avoidance of Uncertainty: The rule ensures that property interests are not tied up
indefinitely, preventing situations where the true ownership and use of the property remain
uncertain for an extended period.
2. Promotion of Alienability: The rule promotes the free transferability of property by
preventing unreasonable restraints on alienation. It helps maintain a fluid property market
and encourages efficient economic activity.
3. Complex Estate Planning: Estate planning and the creation of complex trusts or future
interests must take the rule into account to ensure the validity of these arrangements.
4. Drafting Challenges: Drafting instruments such as wills, trusts, and deeds that include
Transferring property interests to unborn or yet-to-be-conceived children involves complex legal
considerations and is subject to specific legal requirements. The provisions for such transfers may
vary based on jurisdiction and the specific legal framework in place. In many cases, these provisions
aim to ensure that property transfers to unborn or future children do not violate the Rule Against
Perpetuities and that the interests are valid. Here are some general principles and provisions that
are often considered when transferring property interests to unborn children:
1. Valid Vesting Period: The transfer must be structured to ensure that the property interest
will vest within the permissible time frame, as established by the Rule Against Perpetuities.
Generally, this period is defined as lives in being plus 21 years.
2. Contingent Events: The transfer should be contingent on specific events or circumstances
that are certain to occur within the permissible time frame. The interest must vest or fail
based on events that are not too remote.
3. Trust Structures: Transfers to unborn children are often accomplished through trust
structures. The trust instrument should clearly outline the conditions under which the
interest will vest and the consequences if the conditions are not met.
4. Appointment of Trustees: Trustees are appointed to manage and administer the trust
until the property interest vests. The trust instrument should specify the powers and duties
of the trustees in managing the property for the benefit of the unborn child.
5. Beneficiary Designations: The unborn child is typically designated as the beneficiary of
the trust, with provisions outlining how the trust assets will be managed and distributed for
their benefit.
6. Definite Ascertainment: The unborn child's identity should be sufficiently ascertainable.
This might involve providing a clear description of the child's relationship to the settlor
(creator of the trust) or other identifying criteria.
7. Contingent Remainders: Property interests transferred to unborn children often take the
form of contingent remainders, which means the interest is contingent upon a specific event
(such as the child's birth) occurring within the permissible time frame.
8. Charitable and Public Purposes: Some jurisdictions allow transfers to unborn individuals
for charitable or public purposes, under specific conditions. These provisions may differ from
transfers for purely private purposes.
9. Judicial Approval: In some cases, a court's approval may be required to ensure that the
transfer does not violate the Rule Against Perpetuities and that the interest is valid.
Page 13 of 43
the property and agrees to repay the loan. If the mortgagor defaults, the mortgagee can seek to
sell the property to recover the debt. A simple mortgage does not require a written document.
2. Mortgage by Conditional Sale (Section 58(c)): In this type of mortgage, the mortgagor
ostensibly sells the property to the mortgagee on the condition that if the loan is repaid within a
specified period, ownership reverts to the mortgagor. If the loan is not repaid, the sale becomes
absolute. The transaction must be in writing and signed by both parties.
3. Usufructuary Mortgage (Section 58(d)): In a usufructuary mortgage, the mortgagor delivers
possession of the property to the mortgagee, who is entitled to receive rents and profits as interest
on the loan. Once the loan is repaid, possession reverts to the mortgagor. If the mortgagor defaults,
the mortgagee's right to the property is limited to the income from the property.
4. English Mortgage (Section 58(e)): An English mortgage involves the transfer of ownership to
the mortgagee with the condition that the ownership will revert to the mortgagor upon repayment
of the loan. The mortgagee has the right to sell the property in case of default. This type of mortgage
requires a written instrument.
5. Mortgage by Deposit of Title Deeds (Equitable Mortgage) (Section 58(f)): An equitable
mortgage is created by depositing the property's title deeds with the mortgagee as security for the
loan. The possession of the property remains with the mortgagor. The lender has the right to sell
the property if the loan is not repaid.
6. Anomalous Mortgage (Section 58(g)): An anomalous mortgage is any type of mortgage that
is not covered by the previous categories. It may involve combining elements of different mortgage
types or have unique terms as agreed upon by the parties.
7. Reverse Mortgage (not explicitly covered by the Act): While not explicitly covered by the
Transfer of Property Act, reverse mortgages have become a common form of mortgage. They allow
elderly property owners to receive periodic payments from a lender against the value of their
property while retaining ownership. The lender's claim is satisfied upon the owner's death or sale of
the property.
The Transfer of Property Act provides legal guidance for creating and enforcing mortgages, ensuring
that both mortgagors' and mortgagees' interests are protected. The specific terms and conditions of
each mortgage type may vary based on the agreement between the parties and the applicable legal
requirements.
A valid mortgage is a legal arrangement that allows a borrower (mortgagor) to pledge their property
as collateral to secure a loan from a lender (mortgagee). To ensure the enforceability of a mortgage,
certain essential elements must be present. These essentials help create a clear legal relationship
between the parties involved. Here are the key essentials of a valid mortgage:
1. Debt or Loan Agreement: There must be a valid debt or loan agreement between the
mortgagor and the mortgagee. The mortgage is created to secure the repayment of this
debt. The agreement should outline the terms of the loan, including the principal amount,
interest rate, repayment schedule, and any other relevant terms.
2. Transfer of Interest: A mortgage involves the transfer of an interest in the property from
the mortgagor to the mortgagee. This interest serves as security for the repayment of the
loan. The transfer can be in various forms depending on the type of mortgage (e.g.,
possession, ownership, title deeds).
3. Property Description: The mortgage agreement should clearly identify and describe the
property being mortgaged. This description should be accurate and detailed enough to avoid
confusion or disputes.
4. Intention to Create a Security: Both parties should have the intention to create a security
interest in the property. The mortgagor intends to use the property as collateral to secure
the loan, and the mortgagee accepts this collateral as security for the loan.
5. Lawful Consideration: The mortgage must be supported by valid consideration.
Consideration refers to something of value exchanged between the parties, typically the loan
amount in the case of a mortgage.
6. Legal Capacity: Both the mortgagor and the mortgagee must have the legal capacity to
enter into the mortgage agreement. They should be of sound mind, free from undue
influence or coercion, and legally competent to contract.
7. Free Consent: The mortgage agreement must be entered into voluntarily and without any
undue influence, fraud, misrepresentation, or coercion. Both parties should fully understand
the terms and implications of the mortgage.
8. Proper Execution: The mortgage agreement must be properly executed as per the
applicable laws. This may involve signing a written document, affixing seals (if required by
local laws), and adhering to any specific formalities mandated by the jurisdiction.
9. Legal Title: The mortgagor must have a legal title or ownership interest in the property
being mortgaged. A person cannot mortgage property they do not own.
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10. Compliance with Legal Requirements: The mortgage agreement must comply with the
relevant legal requirements of the jurisdiction. These requirements may include registration
of the mortgage with the appropriate authority, adherence to statutory formalities, and
compliance with any local laws governing mortgages.
11. Right to Redemption: A valid mortgage grants the mortgagor the right to redeem the
property upon repaying the loan as per the terms of the agreement.
Page 15 of 43
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Page 16 of 43
1. Mutual Consent: If both the donor and the donee mutually agree, they can revoke the gift. This
usually requires a clear and unambiguous expression of their intent to revoke the gift.
2. Non-Fulfilment of Condition: If the gift was subject to a condition and that condition is not
fulfilled, the gift may be revoked. For example, if the donor gifted a property to the donee on the
condition that the donee completes a certain task within a specified time frame, and the condition is
not met, the donor may have grounds to revoke the gift.
3. Fraud or Undue Influence: If the donor was induced to make the gift due to fraud,
misrepresentation, or undue influence exerted by the donee, the donor may be able to revoke the
gift on these grounds.
4. Failure of Consideration: If the donee fails to provide the consideration (value) that the donor
was promised in exchange for the gift, the donor may have the right to revoke the gift.
5. Revocation Clause: In some jurisdictions, donors can include a specific clause in the gift
document that allows for the revocation of the gift under certain circumstances. This clause should
be carefully drafted and comply with legal requirements to be valid.
6. Revocation of Will: If the gift was made through a will (testamentary gift) and the donor later
revokes or amends the will, the gift may be revoked as well.
7. Court Order: In certain cases, a court may order the revocation of a gift if it is established that
the gift was made under duress, fraud, or other legally recognized grounds.
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1. Public Lands and Government Property: Property owned by the government or
designated as public land is often non-transferable. These properties are typically held for
public use or specific government purposes and cannot be sold or transferred to private
individuals.
2. Personal Rights: Some rights, such as personal rights and obligations, cannot be
transferred to others. These might include rights to personal services, duties, and obligations
that are specific to an individual.
3. Family Heirlooms: Family heirlooms, sentimental items, and personal mementos are often
considered non-transferable due to their emotional or historical significance to a specific
family.
4. Certain Intellectual Property Rights: While many intellectual property rights are
transferable, some rights, such as the right to personal reputation (right of publicity), cannot
be fully transferred as they pertain to an individual's personal identity.
5. Restricted Assets in Trusts: Certain assets placed in trusts might come with restrictions
that limit their transferability. For instance, a trust might specify that certain assets can only
be used for specific beneficiaries or purposes.
6. Inalienable Properties: Some properties may be deemed inalienable by law, meaning they
cannot be transferred or sold. This could include cultural heritage sites, protected
monuments, and properties of historical significance.
7. Undivided Interests: In some cases, properties with undivided interests, such as joint
ownership with rights of survivorship, might have restrictions on individual transfers of
portions of the property.
8. Properties with Legal Restrictions: Properties with specific legal restrictions, easements,
covenants, or encumbrances might have limitations on their transferability.
9. Certain Licenses and Permits: Some licenses and permits, such as professional licenses
or government-issued permits, might not be transferable to others due to the specific
qualifications or conditions associated with them.
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3. Title and Warranty: Sellers often provide warranties of title, ensuring that they have legal
ownership and the right to sell the property or goods. They might also provide warranties
regarding the quality or condition of the items being sold.
4. Payment of Price: The buyer is obligated to pay the agreed-upon price to the seller as
consideration for the sale. Failure to make payment could lead to breach of contract.
5. Delivery of Goods or Property: The seller is generally responsible for delivering the
property or goods to the buyer as per the terms of the sale.
6. Legal Remedies: If either party breaches the terms of the sale contract, the other party
may have legal remedies available, including the right to claim damages or seek specific
performance (forcing the other party to fulfill the contract).
Contract of Sale: Understanding the Legal Agreement for Transferring Property
A contract of sale is a legal agreement between a seller and a buyer for the transfer of ownership of
property, goods, or services in exchange for a specified consideration, usually monetary payment.
The contract outlines the terms and conditions of the sale, including the description of the property,
the purchase price, the rights and obligations of both parties, and any warranties or guarantees
provided. A contract of sale is a crucial document that governs the sale transaction and protects the
interests of both parties. Let's delve into the details of a contract of sale, its components, and its
legal implications:
Components of a Contract of Sale:
1. Offer and Acceptance: The contract begins with an offer made by the seller and accepted
by the buyer. The offer should be clear, specific, and include essential terms such as the
price, description of the property or goods, and any conditions.
2. Consideration: Consideration refers to the value exchanged between the parties. In a
contract of sale, the consideration is typically the purchase price that the buyer agrees to
pay in exchange for the property, goods, or services.
3. Identification of Parties: The contract should clearly identify the parties involved,
including their legal names and contact information.
4. Description of the Property or Goods: The contract should provide a detailed and
accurate description of the property, goods, or services being sold. This description should
be sufficient to avoid ambiguity or misunderstandings.
5. Purchase Price: The contract should specify the agreed-upon purchase price, as well as
any terms related to payment, such as the method of payment and the timeline for payment.
6. Terms and Conditions: The contract should outline any terms and conditions related to
the sale, such as the delivery of the property or goods, any warranties or guarantees
provided, and any special provisions or conditions.
7. Title and Ownership: The contract should confirm that the seller has legal ownership and
the right to sell the property or goods. It might include warranties of title to assure the buyer
of clear ownership.
8. Risk and Passing of Title: The contract should specify when the risk of loss or damage to
the property or goods passes from the seller to the buyer.
9. Signatures: The contract should be signed by both parties to indicate their agreement to
the terms. Signatures demonstrate the parties' intention to be legally bound by the contract.
Legal Implications and Enforcement:
1. Binding Agreement: A properly executed contract of sale is a legally binding agreement.
Both parties are obligated to fulfill their respective obligations as outlined in the contract.
2. Legal Remedies: If either party breaches the contract by failing to fulfill their obligations,
the other party may have legal remedies available, such as claiming damages or seeking
specific performance.
3. Consumer Protection: Depending on the jurisdiction and the nature of the transaction,
consumer protection laws may apply to contracts of sale, ensuring fair treatment and
transparency for buyers.
4. Record of Transaction: A contract of sale serves as a record of the transaction, providing
evidence of the agreed-upon terms and conditions. This can be crucial in case of disputes or
legal issues.
5. Specific Performance: In cases where monetary damages are insufficient to remedy a
breach of contract, a court might order specific performance, compelling the defaulting party
to fulfill their obligations under the contract.
Marshaling by Subsequent Purchaser: Understanding the Concept and Implications
Marshaling by a subsequent purchaser is a legal principle that arises in situations where a person
owns two or more properties, and one property is encumbered by multiple mortgages or charges. If
this owner later sells one of the properties, the subsequent purchaser may have the right to require
that the mortgages or charges be satisfied from the property that was not sold. This principle is
designed to protect the interests of the subsequent purchaser and ensure that the encumbrances do
Page 19 of 43
not unfairly burden the property they acquire. Let's delve into the details of marshaling by a
subsequent purchaser and its implications:
Key Elements and Implications:
1. Multiple Properties: The marshaling principle applies when the original owner owns two
or more properties, and one of those properties is encumbered by multiple mortgages or
charges.
2. Sale of a Property: If the original owner sells one of the properties, the subsequent
purchaser of that property may invoke the principle of marshaling.
3. Equitable Relief: Marshaling is an equitable doctrine, meaning it is based on fairness and
preventing unjust enrichment.
4. Satisfaction of Encumbrances: The subsequent purchaser can seek to have the
encumbrances satisfied from the property that was not sold. This ensures that the
encumbrances are properly allocated and do not disproportionately burden the property the
subsequent purchaser acquires.
5. Priority of Charges: Marshaling does not affect the priority of the charges or mortgages
themselves. It only pertains to the allocation of the encumbrances among the properties.
6. Legal Basis: The subsequent purchaser's right to marshaling is derived from principles of
equity and fairness, as well as the potential unjust enrichment of the property owner who
still holds multiple properties.
7. Notice: In some jurisdictions, the subsequent purchaser must have notice of the
encumbrances on the other property to be entitled to marshaling. This prevents an
unknowing subsequent purchaser from benefiting from the principle.
Example Scenario:
Let's consider an example to illustrate the concept of marshaling by a subsequent purchaser:
1. Original Owner: Mr. Smith owns two properties, Property A and Property B. Property A is
encumbered by multiple mortgages, while Property B is free from any encumbrances.
2. Sale of Property A: Mr. Smith sells Property A to Ms. Johnson, who is unaware of the
encumbrances on Property A.
3. Marshaling Principle: If the law in the jurisdiction allows for marshaling by a subsequent
purchaser, Ms. Johnson may invoke this principle. She can require that the encumbrances
on Property A be satisfied from Property B, which is not encumbered.
4. Equitable Result: Marshaling ensures that the encumbrances do not unfairly burden
Property A, which Ms. Johnson has acquired. Instead, they are allocated to Property B, which
Mr. Smith still owns.
Page 20 of 43
5. Intention to Transfer: Both parties must have the intention to transfer or acquire
ownership rights.
6. Competence: Both parties must have the legal capacity to enter into the transfer.
7. Legal Object: The property being transferred must be legally permissible.
8. Formalities: Depending on the type of transfer, certain formalities, such as written
documents, registration, and delivery, may be required.
Legal Implications of Transfer:
1. Change of Ownership: The primary implication of a transfer of property is the change of
ownership from the transferor to the transferee.
2. Rights and Obligations: The transferee assumes the rights, responsibilities, and
obligations associated with ownership of the property.
3. Risk and Liability: Upon transfer, the risk and liability for the property may pass to the
transferee.
4. Title Assurance: A proper transfer ensures the transferee's legal ownership and protects
against claims from third parties.
5. Future Disputes: A well-drafted transfer can help prevent future disputes regarding
ownership and property rights.
6. Tax Implications: Transfers of property may have tax implications, such as stamp duty
and capital gains tax.
7. Enforceability: A valid transfer is legally enforceable, allowing parties to seek remedies in
case of breaches.
8. Specific Legal Requirements: Different types of transfers may have specific legal
requirements, such as registration for certain transactions.
A valid transfer of property involves certain essential elements that must be met to ensure that the
transfer is legally effective and enforceable. These essentials help create a clear legal framework for
the transfer of ownership and property rights. The Transfer of Property Act, 1882, in India provides
guidelines for ensuring the validity of property transfers. Here are the essentials of a valid transfer:
1. Competent Parties: Both the transferor (seller) and the transferee (buyer) must have the
legal capacity to enter into a transfer. They should be of sound mind and of the age of
majority as per the law.
2. Transferor's Ownership: The transferor must have legal ownership or a valid title to the
property being transferred. A person cannot transfer property they do not own.
3. Transferee's Acceptance: The transferee must accept the transfer willingly and without
any undue influence or coercion. Acceptance can be express (verbal or written) or implied
through the transferee's actions.
4. Consideration: While consideration is not always required for a transfer (as in the case of
gifts), a valid transfer often involves some form of consideration, which is the value
exchanged between the parties.
5. Intention to Transfer: Both parties must have the intention to transfer (transferor) and
acquire (transferee) the ownership rights to the property. This intention is a crucial element
of the transfer.
6. Free Consent: The consent of both parties must be freely given, without any
misrepresentation, fraud, or coercion.
7. Legal Object: The property being transferred must be legally permissible. It cannot involve
illegal activities or goods.
8. Legal Formalities: Depending on the type of transfer, certain legal formalities may be
required. For example, the transfer of immovable property usually requires a written and
registered document as per the Transfer of Property Act.
9. Delivery of Possession: In the case of tangible movable property, physical delivery of
possession is often necessary to complete the transfer.
10. No Bar on Transfer: The property must not be subject to any legal restrictions,
encumbrances, or limitations that prevent its transfer.
11. Clear Description of Property: The property being transferred must be accurately and
clearly described to avoid ambiguity.
12. Voluntariness: The transfer must be made voluntarily by the transferor and accepted
voluntarily by the transferee. Both parties should have the capacity to make informed
decisions.
13. Compliance with Legal Requirements: The transfer must comply with any legal
requirements specific to the type of property or transaction, such as registration, stamp
duty, and applicable regulations.
Under the Transfer of Property Act, 1882, in India, various types of properties can be transferred
from one party to another through valid legal transactions. The Act broadly categorizes properties
Page 21 of 43
into two main categories: immovable property and movable property. The types of properties that
can be transferred include:
1. Immovable Property: Immovable property refers to land, buildings, and other properties that
are attached to the land. Immovable property can be transferred through various types of
transactions, including sale, lease, mortgage, gift, etc. Examples of immovable property include:
Land and plots
Residential, commercial, or industrial buildings
Flats and apartments
Agricultural land and farms
Mines and minerals
Rights and easements related to immovable property
2. Movable Property: Movable property refers to properties that can be physically moved or
transported. Movable property includes various types of personal property and assets. Movable
property can be transferred through sale, gift, exchange, etc. Examples of movable property include:
Furniture and household goods
Vehicles (cars, motorcycles, etc.)
Stock and shares in companies
Artworks and collectibles
Machinery and equipment
Intellectual property rights (patents, copyrights, trademarks, etc.)
Money and financial instruments
Transfer of Property Act, 1882, includes various exceptions and situations where property transfers
may not be valid or may be subject to specific rules and conditions. Here are some common
exceptions and scenarios that you should be aware of:
1. Transfer to Unborn Persons: As a general rule, a property cannot be transferred to a
person who is not yet born. However, there are exceptions for transfers to persons who are
in gestation at the time of the transfer.
2. Interest in Property: If a person transfers a property in which they have no interest, the
transfer is void. For a valid transfer, the transferor must have a legal interest in the property
being transferred.
3. Transfer for Fraudulent Purpose: If a property is transferred with the intent to defraud
creditors or to defeat their claims, the transfer is voidable by the creditors. Courts can set
aside such transfers if they are made to hinder, delay, or defraud creditors.
4. Transfer in Violation of Restriction: If a property is subject to certain restrictions,
covenants, or conditions that prohibit its transfer, any transfer in violation of these
restrictions may be void or illegal.
5. Future Property: Generally, a property that a person may acquire in the future cannot be
transferred. However, there are exceptions for contingent interests that may arise in certain
circumstances.
6. Specific Rights and Easements: Certain rights and easements may not be transferable
unless expressly allowed by law or agreement. For example, personal easements tied to the
transferor's property may not necessarily transfer to the transferee.
7. Illegal Property: Property that is acquired through illegal means or used for illegal activities
cannot be validly transferred.
8. Public Policy: Any transfer that goes against public policy, morality, or decency may be
held void or unenforceable by the courts.
9. Void Transfers: Transfers made under undue influence, coercion, or fraud are generally
voidable by the affected party. Transfers to minors without the consent of their legal
guardians may also be voidable.
10. Transfer of Equitable Interest: Equitable interests in property, such as the right to obtain
ownership in the future, are generally transferable. However, the legal formalities required
for the transfer may vary.
11. Statutory Prohibitions: Certain laws and regulations may prohibit the transfer of specific
types of property or impose additional conditions for their transfer.
Section 6 of the Transfer of Property Act 1882 provides a list of properties that cannot be transferred.
a) Spes Successionis: This refers to an interest that is contingent on the death of a living
person, like the inheritance of a living heir. Example: A's future interest in B's property upon
B's death cannot be transferred.
b) Chance of an Heir Apparent: This pertains to the likelihood of a person becoming the heir
to a living ancestor. Example: The expectation of becoming the heir to a childless relative
cannot be transferred.
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c) A mere Right to Sue: Any right to sue for damages or any other personal right of action is
not transferable. Example: If A has a right to sue B for defamation, this right cannot be
transferred.
d) Public Office and Pensions: Rights and interests arising out of public offices, including
pensions, cannot be transferred. Example: A government officer's right to their pension
cannot be transferred.
e) Stellionate: This refers to a fraudulent compromise. If a person has entered into a
fraudulent compromise, it cannot be transferred.
f) The Benefit of a Restraining Covenant: If a person has a benefit arising out of a covenant
to restrain from doing something, that benefit cannot be transferred. Example: If A has a
covenant with B not to build on a certain plot, A cannot transfer this benefit to C.
g) Rights to Future Maintenance: Any right to future maintenance, whether under a decree
of a court or otherwise, cannot be transferred. Example: A wife's right to future maintenance
from her husband cannot be transferred.
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Control: Lessors have less control over leased property compared to licensors over licensed
property.
Alterations: Lessees may have more rights to make alterations in a leased property than
licensees in a licensed property.
Revocability: Licenses are generally revocable at will, while leases have more stable terms.
License Revocation: Understanding the Process and Implications
License revocation refers to the act of terminating or canceling a license that has been granted to a
licensee by a licensor. A license is a permission granted by the licensor to the licensee to use the
licensor's property for a specific purpose. Revocation of a license can occur for various reasons and
under specific circumstances. Let's explore the process, reasons, and legal implications of license
revocation:
Process of License Revocation:
The process of license revocation involves the following steps:
1. Review the License Agreement: The licensor reviews the terms and conditions of the
license agreement to understand the grounds and procedures for revocation.
2. Notice: The licensor may need to provide notice to the licensee about the intention to revoke
the license. The notice period and method of communication are typically outlined in the
license agreement or governed by relevant laws.
3. Grounds for Revocation: The license agreement or applicable laws may specify the
grounds for revocation. Common grounds include violation of terms, breach of agreement,
non-payment of fees (if applicable), or any other conditions agreed upon.
4. Opportunity to Cure: In some cases, the licensee may be given an opportunity to cure the
breach or violation within a specified time frame before the revocation becomes effective.
5. Communication: The licensor communicates the decision to revoke the license to the
licensee, along with the reasons for revocation and the effective date.
6. Return of Property: If the licensee is using physical property as part of the license, the
licensee may be required to return the property to the licensor upon revocation.
Reasons for License Revocation:
License revocation can occur for various reasons, including:
1. Breach of Agreement: If the licensee fails to comply with the terms and conditions of the
license agreement, such as exceeding the scope of use or violating specific restrictions.
2. Non-Payment: If the licensee fails to make required payments, fees, or royalties as
stipulated in the license agreement.
3. Expiration: If the license has a specific duration and it expires according to the agreed-
upon terms.
4. Change in Circumstances: If there are changes in the licensor's circumstances, such as a
change in business operations, that warrant revoking the license.
5. Violation of Law: If the licensee uses the license in a manner that violates laws,
regulations, or public policy.
6. Mutual Agreement: The licensor and licensee may mutually agree to revoke the license if
it no longer serves their respective interests.
Legal Implications and Considerations:
License revocation is typically governed by the terms of the license agreement, applicable
laws, and principles of fairness.
Revocation should follow proper legal procedures to avoid potential legal challenges or claims
for damages.
If the licensee has invested substantial resources based on the license, they may seek legal
remedies for compensation if the revocation is not conducted properly.
The licensor should be cautious about revocation to avoid potential claims of wrongful
termination or breach of contract.
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3. Consideration: The buyer pays consideration, typically in the form of money, to the seller
as payment for the property.
4. Legal Ownership: The seller must have legal ownership and the right to transfer the
property to the buyer.
5. Free Consent: Both parties must give their free and informed consent without any coercion
or undue influence.
6. Competent Parties: Both the seller and the buyer must have the legal capacity to enter
into a sale agreement.
7. Transfer of Possession: The seller delivers possession of the property to the buyer as part
of the sale.
Legal Implications of Sale:
1. Transfer of Ownership: The primary implication of a sale is the transfer of ownership
rights from the seller to the buyer.
2. Rights and Obligations: The buyer assumes the rights, responsibilities, and obligations
associated with ownership of the property.
3. Title Assurance: A valid sale ensures the buyer's legal ownership and protection against
claims from third parties.
4. Risk and Liability: Upon sale, the risk and liability for the property generally pass from the
seller to the buyer.
5. Tax Implications: Sales of property may have tax implications, such as stamp duty and
capital gains tax.
6. Enforceability: A valid sale agreement is legally enforceable, allowing parties to seek
remedies in case of breaches.
7. Transfer of Possession: The seller must hand over physical possession of the property to
the buyer upon completion of the sale.
Procedural Steps for Sale:
1. Negotiation: The parties negotiate and agree on the terms of the sale, including the price,
payment terms, and other conditions.
2. Drafting Sale Deed: A sale deed is drafted, which is a legal document that formally
transfers ownership from the seller to the buyer.
3. Due Diligence: The buyer conducts due diligence to verify the seller's legal ownership and
title to the property.
4. Execution of Sale Deed: Both parties sign the sale deed, and the buyer pays the agreed-
upon consideration.
5. Registration: The sale deed is registered at the local sub-registrar office to make the
transfer legally valid.
6. Transfer of Possession: The seller delivers possession of the property to the buyer as per
the terms of the sale.
Rights and Liabilities of Buyer and Seller in a Property Sale
In a property sale, both the buyer (vendee) and the seller (vendor) have specific rights and liabilities
that govern their respective roles and obligations. These rights and liabilities are crucial to ensure a
fair and legally sound property transaction. Let's explore the rights and liabilities of both the buyer
and seller:
Rights of the Buyer:
1. Right to Ownership: Upon completion of the sale, the buyer obtains legal ownership of the
property, along with all the rights associated with ownership.
2. Right to Possession: The buyer has the right to take possession of the property upon
completion of the sale, as agreed upon in the terms of the sale.
3. Quiet Enjoyment: The buyer has the right to peacefully enjoy and use the property without
interference from the seller or any third party.
4. Title Assurance: The buyer has the right to receive clear and marketable title to the
property, free from any encumbrances, claims, or disputes.
5. Remedies for Breach: If the seller breaches any terms of the sale agreement, the buyer
has the right to seek legal remedies, such as specific performance, damages, or rescission
of the contract.
6. Due Diligence: The buyer has the right to conduct due diligence to verify the seller's legal
ownership, title, and other relevant details about the property.
Liabilities of the Buyer:
1. Payment of Consideration: The buyer is liable to pay the agreed-upon consideration
(usually money) to the seller as per the terms of the sale agreement.
2. Registration Costs: The buyer is generally responsible for paying the costs associated with
registering the sale deed and completing the legal formalities.
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3. Compliance with Terms: The buyer must comply with the terms and conditions of the sale
agreement, including payment schedule, possession date, and other obligations.
Rights of the Seller:
1. Right to Payment: The seller has the right to receive the agreed-upon consideration from
the buyer as per the terms of the sale agreement.
2. Right to Terminate: If the buyer breaches the sale agreement, the seller has the right to
terminate the agreement and seek legal remedies.
3. Right to Ownership Transfer: The seller has the right to transfer legal ownership and
possession of the property to the buyer upon completion of the sale.
Liabilities of the Seller:
1. Title Assurance: The seller is liable to provide clear and marketable title to the property,
free from any encumbrances, claims, or disputes.
2. Delivery of Possession: The seller must deliver possession of the property to the buyer as
per the terms of the sale agreement.
3. Disclosure: The seller is liable to disclose any material defects or issues related to the
property that could affect the buyer's decision.
4. Compliance with Terms: The seller must comply with the terms and conditions of the sale
agreement, including transferring ownership and possession as agreed.
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Easements involve specific rights of use over the servient property, while licenses grant
permission for a specific use.
Easements are not easily revocable, while licenses are generally revocable by the licensor.
Easements are transferable with the dominant land, while licenses are personal and cannot
be transferred.
Conditions restraining alienation are contractual or testamentary provisions that impose restrictions
or limitations on the ability of property owners, beneficiaries, or lessees to transfer, sell, or otherwise
dispose of property. These conditions are often used to exert control over the property, ensure its
proper use, or maintain certain family or social arrangements. However, they must comply with the
legal framework in India, particularly the Transfer of Property Act, 1882, and relevant case law. Here
is a comprehensive discussion on the topic:
Definition and Types of Conditions Restraining Alienation:
Conditions restraining alienation refer to clauses or provisions that seek to limit or prevent the
transfer of property from one party to another. These conditions can be broadly categorized into two
types:
1. Total Restraint: A total restraint on alienation completely prohibits the transfer of the
property. Such conditions are generally considered against public policy and are void unless
they fall under certain exceptions.
2. Partial Restraint: A partial restraint allows the transfer of property under certain
circumstances or subject to specific conditions. These conditions are evaluated on a case-
by-case basis to determine their validity.
Relevant Acts and Landmark Case Laws:
1. Transfer of Property Act, 1882: Section 10 of this Act stipulates that conditions
restraining alienation are generally void. However, the section provides certain exceptions,
including restraints against remarriage, religious practices, and maintaining family
settlements.
2. Indian Contract Act, 1872: While this Act does not specifically address conditions
restraining alienation, it covers the general principles of contract law, including free consent
and consideration. A restraint that unreasonably restricts the transfer of property might be
deemed void for being against the principles of contract law.
3. Sushila Bai v. Hari Singh: This case highlighted the principle that conditions restraining
alienation are void unless they fall within the exceptions provided by law. It upheld the
validity of restraints against remarriage.
Illustration: Consider a scenario where a person, A, bequeaths a house to their son, B, with a
condition that B cannot sell the property for 10 years. This is an example of a partial restraint on
alienation. The condition allows the property to be transferred eventually, but only after a specified
period.
Essentials and Exclusions:
Certain factors are considered when assessing the validity of conditions restraining alienation:
Public Policy: Conditions that violate public policy or contravene the law are generally void.
For example, a condition that restricts the sale of property based on caste discrimination
would be against public policy.
Reasonable Restrictions: Some restrictions might be considered reasonable and valid. For
instance, a condition that prohibits the sale of property for commercial use in a residential
area could be seen as a legitimate effort to maintain the character of the locality.
Exceptional Circumstances: The Transfer of Property Act provides specific exceptions,
such as restraints against remarriage. These exceptions are recognized to preserve societal
and familial arrangements.
Balancing Interests: Courts aim to strike a balance between property rights and the
broader societal and legal principles. A restraint that unreasonably restricts property rights
might be deemed void.
Modern Jurisprudence:
In contemporary legal discourse, the emphasis is on safeguarding property rights while ensuring
that conditions restraining alienation do not unjustly impede those rights. The principles of equity
and justice guide courts in their assessment of such conditions.
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Doctrine of Election (4)
The Doctrine of Election is a legal principle that applies in situations where a person is offered a
choice between two or more conflicting rights or benefits, and they must make a decision. This
doctrine seeks to prevent individuals from accepting the benefits of a transaction while
simultaneously rejecting its obligations or consequences. The Doctrine of Election has significant
implications in the realm of property and inheritance law in India. Let's delve into the various aspects
of this doctrine:
Definition and Concept:
The Doctrine of Election can be defined as a legal principle that requires a person to choose between
two or more inconsistent or conflicting rights, benefits, or positions. In the context of property and
inheritance law, it usually arises when a person receives a gift, bequest, or property with conditions
or obligations attached to it.
Illustration:
For instance, if a person is given a property in a will with the condition that they must give up their
claim to another property, the person must choose whether to accept the gift and fulfill the condition
or reject the gift altogether.
Application of the Doctrine of Election:
The application of the Doctrine of Election involves several key elements:
1. Choice: The individual must be given a genuine choice between two or more options, each
of which involves conflicting rights or benefits.
2. Inconsistency: The rights or benefits being offered must be inconsistent or incompatible
with each other. In other words, accepting one right or benefit would naturally lead to the
forfeiture or rejection of the other.
3. Acceptance with Knowledge: The person must have knowledge of the conflicting rights
or benefits before making a choice. The acceptance must be made with full awareness of
the implications of their decision.
Relevant Acts and Landmark Case Laws:
1. Transfer of Property Act, 1882: The doctrine is not explicitly codified in this Act, but it
often finds application in property-related matters. Section 180 of the Act deals with
conditional gifts and transfers.
2. Raja Ram Mohun Roy v. Manmatha Nath Mukerjee: In this case, the Privy Council
highlighted that the Doctrine of Election applies when a person is presented with a choice
between accepting benefits and adhering to the conditions attached to those benefits.
Essentials and Application:
The Doctrine of Election is typically invoked in situations involving wills, gifts, settlements, and other
dispositions of property. It requires the individual to make a clear choice:
If the person accepts the benefits or property with conditions, they are bound by those
conditions and cannot challenge them later.
If the person rejects the benefits or property, they are free from any obligations attached to
it.
The doctrine aims to prevent unjust enrichment or unfair exploitation of inconsistent rights. It
ensures that individuals do not accept benefits from a transaction while ignoring the responsibilities
or obligations that come with them.
Modern Jurisprudence:
In modern legal jurisprudence, the Doctrine of Election continues to play a role in property and
inheritance matters. Courts analyze the circumstances surrounding the choice made by the
individual, considering factors such as the fairness of the options presented and the knowledge of
the individual when making the choice.
Conditional Transfer
Conditional transfer refers to the transfer of property, where certain conditions are attached to the
transfer that dictate how the property can be used or what actions need to be taken by the recipient.
These conditions can vary widely and might be intended to ensure that the property is used for a
specific purpose, to restrict the alienation of the property, or to maintain certain family
arrangements. In India, conditional transfers are governed by the Transfer of Property Act, 1882,
and relevant case law. Let's explore the various aspects of conditional transfers:
Definition and Types of Conditional Transfers:
A conditional transfer occurs when a person transfers property to another person (transferee)
subject to certain conditions. These conditions can be classified into different types:
1. Conditions Precedent: These are conditions that must be fulfilled before the transfer
becomes effective. For example, A transfers a house to B, but the transfer only takes effect
once B pays a certain amount to C.
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2. Conditions Subsequent: These are conditions that, if breached, lead to the transfer being
revoked. For instance, A transfers land to B, but if B fails to build a school on the land within
a year, the transfer becomes void.
3. Conditional Gifts: These are gifts made with specific conditions attached. For instance, A
gifts a painting to B on the condition that B never sells or lends the painting to anyone else.
Relevant Acts and Landmark Case Laws:
1. Transfer of Property Act, 1882: This Act lays down the legal framework for conditional
transfers. Sections 6 to 9 deal with conditions attached to transfers.
2. Har Srinivasa Rao v. Smt. Venkata Lakshmi: In this case, the Andhra Pradesh High Court
emphasized that for a condition to be valid, it must not be vague, illegal, or against public
policy.
Essentials and Validity:
Several essentials are considered when determining the validity of conditions attached to transfers:
Certainty: Conditions must be specific and certain. Vague or ambiguous conditions are likely
to be considered invalid.
Lawful: Conditions must be lawful and not against public policy. A condition that encourages
illegal activities or goes against public morals is likely to be invalid.
Not Inconsistent: Conditions must not be inconsistent with the nature of the transfer. For
example, a condition that contradicts the purpose of the transfer might be considered invalid.
Illustration:
Suppose A transfers a house to B with the condition that B must use the property only for residential
purposes and cannot engage in any commercial activities. This is an example of a condition
subsequent that restricts the use of the property.
Modern Jurisprudence:
In modern jurisprudence, the focus is on ensuring that conditions attached to transfers strike a
balance between the rights of the transferor and the transferee. Courts aim to interpret conditions
in a way that is consistent with the intentions of the parties while also upholding legal principles.
Aspect Condition Precedent Condition Subsequent
A condition that must be fulfilled before A condition that, if met after the transfer,
Definition
the transfer becomes effective. can terminate or reverse the transfer.
Suspends the transfer until the condition Initially effective transfer, but can be
Effect on Transfer
is fulfilled. reversed if the condition occurs.
Occurrence Timing Before the transfer is complete. After the transfer is complete.
A specified event or circumstance must A specified event or circumstance must
Triggering Event
occur. occur.
Parties are not bound by their obligations Transfer is initially effective, but can be
Party Obligations
until the condition is met. nullified if the condition arises.
Ownership doesn't pass until the Ownership is transferred initially, but may
Property Ownership
condition is fulfilled. be reversed if the condition occurs.
Sale of property subject to the buyer not
Sale of property subject to buyer
using it for commercial purposes. If
Example obtaining necessary permits within a
commercial use occurs, ownership reverts
specified time.
to the seller.
Section 12 of the Transfer of Property Section 20 of the Transfer of Property Act,
Relevant Section
Act, 1882. 1882.
Condition must be legal and possible to Condition must not be illegal or against
Validity Criteria
perform. public policy.
Essentials & Clarity about the event, timing, and Conditions that are impossible, illegal, or
Exclusions parties' intent is essential. contrary to public policy are excluded.
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Lis Pendense (3)
Lis pendens, which translates to "a suit pending," refers to the legal principle that relates to the
notice given to the world about a pending legal action involving a particular property. It signifies
that a legal suit has been initiated and is currently pending before a court of law concerning the title
or possession of a property. The doctrine of lis pendens seeks to prevent parties from transferring
the property to third parties during the pendency of the legal proceedings, which could potentially
undermine the court's decision. In India, lis pendens is primarily governed by the Transfer of
Property Act, 1882, and case law. Let's explore the various aspects of lis pendens:
Definition and Concept:
Lis pendens serves as a legal doctrine that places a third party on notice when a dispute or litigation
is underway that involves the title, possession, or any other interest in a particular property. It
prevents parties from taking actions that could interfere with or frustrate the outcome of the legal
proceedings.
Essentials and Application:
Several key elements characterize the application of the doctrine of lis pendens:
1. Pendency of Suit: The underlying requirement is that there must be a legal suit or
proceeding that is actively pending in a court of law concerning the property in question.
2. Notice to Third Parties: The doctrine serves as notice to the whole world that there is a
dispute concerning the property. It aims to protect the interests of parties who may be
affected by the outcome of the litigation.
3. Property Subject to Suit: The lis pendens doctrine applies to the specific property that is
the subject matter of the litigation. Any subsequent transaction involving that property is
subject to the outcome of the pending suit.
Relevant Acts and Landmark Case Laws:
1. Transfer of Property Act, 1882: The Act includes provisions related to lis pendens. Section
52 of the Act embodies the doctrine, and it states that any transfer of property made after
the date of the institution of a suit but before the suit's conclusion is subject to the rights
established by the decree in that suit.
2. Ram Coomar Coondoo v. Chunder Canto Mookerjee: In this notable case, the Privy
Council emphasized the importance of lis pendens and its impact on property transactions
during the pendency of legal proceedings.
Illustration:
Suppose A files a lawsuit against B claiming ownership of a particular piece of land. While the case
is pending, B tries to sell the land to C. The doctrine of lis pendens would prevent the sale to C from
affecting the rights and interests of A, as the property's title is in dispute and the outcome of the
legal proceedings is uncertain.
Modern Jurisprudence:
In modern legal practice, lis pendens continues to serve as a significant safeguard against parties
attempting to defeat the ends of justice by transferring property during the pendency of a lawsuit.
Courts are vigilant in upholding the doctrine to ensure that the outcome of legal proceedings is not
thwarted by transactions made with the intent to avoid the impact of a potential judgment.
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3. Bona Fide Purchaser: The transferee (purchaser) must acquire the property in good faith,
without any notice of the transferor's limited title or any defect in their title.
4. Estoppel: The doctrine of estoppel operates to prevent the true owner from challenging the
validity of the transfer and asserting their rights against the bona fide purchaser.
Relevant Acts and Landmark Case Laws:
1. Transfer of Property Act, 1882: Sections 41 to 44 of the Act deal with the concept of
transfer by ostensible owner. These sections outline the conditions under which an ostensible
owner can transfer property, and the protection granted to bona fide purchasers.
2. Mst. Chand Kaur v. Amar Singh: In this case, the Privy Council held that a bona fide
purchaser for value from an ostensible owner, who had possession and made representations
as to ownership, would be protected.
Illustration:
A, who is not the true owner of a piece of land, conveys the land to B, a bona fide purchaser, who
has no knowledge of A's limited title. If B takes possession and makes improvements on the land,
A, the true owner, cannot assert their ownership rights against B due to the doctrine of estoppel.
Modern Jurisprudence:
In modern legal practice, the principle of transfer by ostensible owner continues to protect innocent
purchasers who deal with those possessing apparent ownership. Courts consider factors such as
possession, representations made by the ostensible owner, and the good faith of the purchaser when
determining the application of this doctrine.
Extinction of Easement
The extinction of an easement refers to the termination or cessation of the rights and privileges
associated with an easement over a specific property. Easements are rights that allow one person
(the easement holder) to use another person's property (the servient property) for a particular
purpose. Easements can be extinguished through various legal mechanisms, actions, or events,
rendering the easement no longer enforceable. In India, the Easements Act, 1882, and case law
govern the extinction of easements. Let's explore the different ways in which easements can be
extinguished:
1. Express Release: An easement can be extinguished if the easement holder voluntarily releases
their rights and privileges in writing or verbally. This typically involves the easement holder
renouncing their easement and confirming their intention to no longer exercise it.
2. Merger: If the ownership of both the dominant and servient properties comes under the same
person, the easement may be extinguished through merger. When a single entity owns both
properties, there is no longer a need for a right of use.
3. Abandonment: An easement can be extinguished if the easement holder intentionally and
permanently stops using the easement for an extended period. This abandonment must be clear and
unequivocal, implying the intention to relinquish the easement.
4. Expiry of Time: If the easement was created for a specific period or until a particular event
occurs, it can be extinguished when that period expires or the event transpires.
5. Expiry of Purpose: An easement may be created for a specific purpose. If that purpose is no
longer relevant, the easement can be considered extinguished. For example, an easement for a
particular business may cease if the business ceases to exist.
6. Destruction of Servient Property: If the servient property is destroyed to an extent that the
easement cannot be exercised, the easement may be extinguished. However, this does not apply if
the destruction was intentionally caused by the easement holder.
7. Prescription or Acquiescence: If the easement holder fails to exercise their rights for a long
period, and the servient owner openly uses the property without interference, it may lead to the loss
of the easement through prescription or acquiescence.
8. Legal Proceedings: Certain legal actions or judgments can lead to the extinction of an easement.
For instance, if a court declares an easement invalid or terminates it based on certain grounds, the
easement will cease to exist.
Relevant Acts and Landmark Case Laws:
1. Easements Act, 1882: This Act provides the legal framework for easements in India.
Sections 41 to 49 discuss the methods of extinguishing easements.
2. Chhaganlal Mulshanker Bhatt v. State of Gujarat: In this case, the Supreme Court held
that the extinction of an easement by abandonment depends on the intention of the
easement holder.
Illustration: Suppose A has an easement to use a pathway through B's land to reach a nearby
river. If A no longer uses the pathway for a prolonged period and instead finds an alternative route,
the easement might be extinguished through abandonment.
Modern Jurisprudence:
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In modern legal practice, the extinction of easements is determined by the specific circumstances of
each case. Courts consider factors such as the intention of the parties, changes in property usage,
and the passage of time when determining whether an easement has been extinguished.
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If A grants a property to B outright, B has a vested interest in the property. B's ownership is
immediate, and they can exercise their rights over the property without any further conditions or
contingencies.
Contingent Interest:
A contingent interest, on the other hand, refers to a future interest that is uncertain and dependent
on the occurrence or non-occurrence of a specific event. The holder of a contingent interest does
not have immediate ownership or rights, as their entitlement depends on the event happening.
Essentials of Contingent Interest:
Uncertainty: A contingent interest is uncertain and hinges on the occurrence of a particular
event.
Future Enjoyment: The holder of a contingent interest cannot enjoy the benefits of the
interest until the contingent event happens.
Enforceability: A contingent interest is not immediately enforceable since its occurrence is
uncertain.
Transfer Restrictions: The holder of a contingent interest may not be able to freely transfer
or deal with the interest until the contingency is fulfilled.
Illustration of Contingent Interest:
If A grants a property to B on the condition that B gets married, B's interest is contingent on their
marriage. Until B fulfills this condition, their right to the property remains uncertain and
unenforceable.
Differentiation between Vested and Contingent Interests:
1. Certainty:
o Vested Interest: Certain and immediate.
o Contingent Interest: Uncertain and dependent on an event.
2. Enjoyment:
o Vested Interest: Enjoyment is immediate.
o Contingent Interest: Enjoyment is postponed until the contingent event occurs.
3. Enforceability:
o Vested Interest: Immediately enforceable.
o Contingent Interest: Not immediately enforceable due to the contingent nature.
4. Transferability:
o Vested Interest: Can be freely transferred or dealt with.
o Contingent Interest: May have restrictions on transfer until the contingency is
fulfilled.
5. Future Event:
o Vested Interest: Not dependent on any future event.
o Contingent Interest: Dependent on a specific future event.
Relevant Acts and Landmark Case Laws:
1. Transfer of Property Act, 1882: The Act defines vested and contingent interests in
Sections 19 to 21. These sections establish the legal framework for understanding these
concepts.
2. Kedarnath Dutt v. Har Narayan: In this case, the Privy Council held that a vested
remainder is not destroyed by the death of the life tenant before the occurrence of a
contingency.
Essentials and Application:
Vested Interest:
o The interest is immediate and present.
o No future event is required for the person to enjoy the rights.
o The interest can be transferred, sold, or otherwise dealt with by the holder.
Contingent Interest:
o The interest is uncertain and dependent on a future event.
o Until the event occurs, the interest remains in suspense and cannot be fully enforced.
o The interest might never become enforceable if the event does not occur.
Modern Jurisprudence:
In modern legal practice, the distinction between vested and contingent interests continues to play
a significant role in property transactions and estate planning. Courts assess the nature of the
interest to determine whether it is vested or contingent, impacting the rights and obligations of the
parties involved.
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Quasi Easement (2)
Quasi easements, also known as easements by necessity or easements of quasi-necessity, are legal
concepts that arise in situations where there is no express easement, but the circumstances require
the creation of an easement to ensure reasonable enjoyment of a property. Quasi easements are
recognized to prevent landlocked properties from becoming inaccessible or unusable. In India, the
concept of quasi easements is primarily governed by case law and principles of equity. Let's explore
the details of this concept:
Definition and Concept:
Quasi easements are rights that arise due to the necessity of granting certain rights over one piece
of land to another for the reasonable enjoyment of the latter. They are created by operation of law
rather than by express agreement. Quasi easements ensure that a landlocked property has access
to essential facilities or resources, even if no formal easement was granted when the properties were
divided.
Illustration:
Suppose there are two neighbouring properties, A and B. A sells B a portion of land, but the only
way to access B's land is by crossing A's remaining land. In this case, a quasi-easement of way of
necessity could arise, granting B the right to access their property over A's land.
Relevant Case Laws:
1. Ramabai Govind Hari Patwardhan v. Pandurang Vasudeo Patwardhan: The Bombay
High Court held that a quasi-easement can arise in cases of necessity where the enjoyment
of the property is rendered practically useless without the right in question.
Conditions for Quasi Easements:
For a quasi-easement to be established, certain conditions must be met:
1. Common Ownership: The properties must have been under common ownership at some
point before being separated. If they were never under common ownership, a quasi
easement cannot arise.
2. Separation of Properties: The properties in question must be divided, leading to one
property being landlocked and dependent on the other for access or other necessary
facilities.
3. Necessity: There must be a genuine necessity for the easement. The landlocked property
must be rendered practically useless or substantially less useful without the easement.
Modern Jurisprudence:
While the concept of quasi easements has ancient roots, its modern application is often shaped by
principles of equity and fairness. Courts consider the practical implications of landlocked properties
and seek to prevent situations where a property becomes unusable due to lack of access or
resources.
Conclusion: Quasi easements are a legal mechanism to ensure that properties remain reasonably
usable and accessible, even if they lack an explicit easement agreement. These rights are based on
necessity and equity, aiming to prevent landlocked properties from becoming isolated or impractical.
The application of quasi easements is guided by case law and the specific circumstances of each
case, ensuring a just and equitable balance between property rights and reasonable enjoyment.
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from creditors. Such a transfer could be considered fraudulent if it hinders creditors' ability to collect
their debts.
Relevant Laws and Acts:
1. Transfer of Property Act, 1882: Sections 53 and 54 of the Act deal with fraudulent
transfers. Section 53 addresses transfers with fraudulent intent, while Section 54 pertains
to transfers for consideration by a person under a liability.
2. Insolvency and Bankruptcy Code, 2016: The Code provides a framework for dealing with
insolvency and bankruptcy cases. It addresses fraudulent transactions in the context of
insolvency resolution processes.
Indicators of Fraudulent Transfers:
Several factors can indicate a potentially fraudulent transfer:
The transfer is made to an insider, such as a family member or a close associate.
The transferor continues to control and use the transferred property after the transfer.
The transferor becomes insolvent or heavily indebted after the transfer.
The transfer involves an unreasonably low sale price or consideration.
Legal Remedies:
Creditors or parties harmed by fraudulent transfers can take legal action to set aside such transfers.
The aim is to restore the assets to the debtor's estate so they can be distributed fairly among
creditors. Remedies might include:
Avoidance: The fraudulent transfer can be declared null and void, restoring the assets to
the transferor's estate.
Attachment and Execution: Creditors can seek court orders to attach or seize the
transferred assets.
Equitable Relief: Courts can grant injunctions or issue orders to prevent further fraudulent
transfers or dissipation of assets.
Modern Jurisprudence:
Modern legal practice places a strong emphasis on preventing fraudulent transfers to protect the
interests of creditors and ensure a fair distribution of assets. Laws and regulations are designed to
identify, prevent, and remedy such transfers, thus promoting transparency and integrity in financial
transactions.
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2. No Voluntary Agreement: Unlike a transfer, there is no voluntary agreement between the
parties; the change in ownership happens automatically.
3. Succession Laws: The laws of succession and inheritance dictate how the property is
transmitted to the legal heirs or beneficiaries.
Examples of Transmission:
1. A dies intestate (without a will). His property is transmitted to his legal heirs as per the laws
of inheritance.
2. A becomes bankrupt and is declared insolvent. His property is transmitted to a court-
appointed trustee for distribution among creditors.
Differentiation between Transfer and Transmission:
1. Nature:
o Transfer is a voluntary act involving the consent of both parties.
o Transmission occurs automatically due to specific legal events without the need for
voluntary agreement.
2. Consent:
o Transfer requires the consent of the parties involved.
o Transmission does not require the consent of the parties; it occurs by operation of
law.
3. Event:
o Transfer occurs due to a contract or agreement between the parties.
o Transmission occurs due to legal events such as death or insolvency.
Marshalling Securities
Marshalling securities is a legal doctrine and equitable principle that allows a creditor to enforce their
claim against the assets of a debtor in a specific order when the debtor has given multiple properties
as collateral to different creditors. This doctrine ensures that the rights of creditors are protected
while maintaining fairness and preventing unjust enrichment. Marshalling securities typically arises
in situations where a debtor has granted security interests to different creditors, and the available
assets are insufficient to satisfy all the claims. Let's explore the details of the doctrine of marshalling
securities:
Definition and Concept:
Marshalling securities is a legal principle that allows a creditor with multiple securities to enforce
their claim against the assets of the debtor in a particular order. The creditor with multiple securities
can be required to exhaust the assets with the least priority before moving on to the assets with
higher priority. This doctrine prevents the creditor from seeking satisfaction from assets that are
otherwise available to satisfy the claims of other creditors.
Essentials of Marshalling Securities:
1. Multiple Securities: The debtor must have given multiple properties or securities to
different creditors to secure their obligations.
2. Shortage of Assets: There should be an insufficient amount of assets available to satisfy
all the claims of the creditors.
3. Priority Order: The doctrine establishes a priority order for the enforcement of claims
against the debtor's assets, ensuring that lower-priority assets are exhausted before higher-
priority ones are utilized.
Illustration of Marshalling Securities:
Suppose a debtor, D, owes two creditors, C1 and C2. D has given Property A and Property B as
collateral to C1 and C2, respectively. However, the total value of both properties is not sufficient to
satisfy both creditors' claims. Under the doctrine of marshalling securities, C1 would be required to
first exhaust Property B (the lower-priority security) before seeking satisfaction from Property A (the
higher-priority security), even though Property A was given as collateral to C1.
Relevance and Application:
Marshalling securities is particularly relevant in cases of insolvency or bankruptcy, where the debtor's
assets are limited, and multiple creditors are competing for their claims. It ensures that the
distribution of available assets is conducted in an equitable manner, based on the priority established
by law or agreement.
Modern Jurisprudence:
The doctrine of marshalling securities is still recognized and applied in modern legal practice. It aims
to maintain fairness and equity in situations where multiple creditors have competing interests in a
debtor's limited assets.
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assets, this doctrine ensures that lower-priority securities are utilized before higher-priority ones.
Marshalling securities upholds fairness and equity in the distribution of limited assets among
competing creditors, preventing unjust enrichment and maintaining the integrity of the credit
system.
Foreclosure
Foreclosure under the Transfer of Property Act, 1882:
Foreclosure, as governed by the Transfer of Property Act, 1882, refers to the legal process through
which a mortgagee (lender) seeks to extinguish the rights of the mortgagor (borrower) and take full
ownership of the mortgaged property due to the borrower's default on the mortgage loan.
Foreclosure is one of the remedies available to the mortgagee when the borrower fails to repay the
loan as per the terms of the mortgage agreement.
Foreclosure Process under the Act:
1. Default and Notice: The foreclosure process begins when the borrower defaults on their
mortgage payments. The lender issues a formal notice to the borrower demanding payment
of the outstanding debt within a specified period.
2. Suit for Foreclosure: If the borrower fails to pay the debt within the specified period, the
lender can file a suit for foreclosure in a court of law. The court examines the claim and the
default, and if proven, it may pass a decree for foreclosure.
3. Decree for Foreclosure: Once the court passes a decree for foreclosure, the borrower's
right to redeem the property is barred. The court's decree may specify a period (usually six
months) during which the borrower can redeem the property by paying the outstanding
debt.
4. Redemption Period: If the borrower repays the debt within the redemption period, the
foreclosure process is halted, and the borrower retains ownership of the property. The
property is redeemed, and the mortgage is satisfied.
5. Absolute Foreclosure: If the borrower does not redeem the property within the redemption
period, the lender obtains an absolute right to the property, and the borrower's ownership
is extinguished. The lender becomes the absolute owner of the property.
Example of Foreclosure under the Transfer of Property Act, 1882:
Let's consider an example:
A borrows Rs. 1,000,000 from Bank B and mortgages his house as collateral. According to the
mortgage agreement, if A defaults on three consecutive monthly payments, Bank B can initiate
foreclosure proceedings. A misses three consecutive payments, and Bank B issues a notice
demanding payment within a specified time.
A fails to repay the debt within the specified time, and Bank B files a suit for foreclosure in court.
The court examines the case, verifies the default, and passes a decree for foreclosure.
However, A still has a redemption period of six months as specified in the court's decree. Within this
period, A has the right to redeem the property by paying the outstanding debt along with any
additional costs.
If A fails to redeem the property within the redemption period, the court issues an absolute
foreclosure decree. This transfers ownership of the house from A to Bank B, making Bank B the
absolute owner of the property.
Registration of Documents
Registration of Documents under the Transfer of Property Act, 1882:
The registration of documents is a critical legal requirement under the Transfer of Property Act,
1882, in India. It plays a significant role in ensuring the validity, authenticity, and enforceability of
various property-related transactions. The Act specifies the types of documents that must be
registered, the procedure for registration, and the legal implications of non-registration. Let's explore
the details of document registration under the Transfer of Property Act, 1882:
Types of Documents Requiring Registration:
Under Section 17 of the Transfer of Property Act, the following types of documents related to
immovable property must be registered:
1. Instruments of Gift: Any instrument that transfers immovable property as a gift must be
registered.
2. Non-Testamentary Instruments: Instruments that create, declare, assign, or limit any
right, title, or interest in immovable property must be registered. This includes sale deeds,
lease deeds, mortgage deeds, etc.
3. Lease for a Term Exceeding One Year: Lease agreements for a term exceeding one year
must be registered.
Procedure for Registration:
The registration process involves several steps:
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1. Application: The parties involved must visit the sub-registrar's office with the document
they wish to register.
2. Verification: The sub-registrar verifies the identity of the parties and the legality of the
document.
3. Payment of Stamp Duty: Stamp duty is paid based on the value of the property and the
type of document. Properly stamped documents are a prerequisite for registration.
4. Execution of Document: The parties sign the document in the presence of at least two
witnesses.
5. Registration: The document is presented to the sub-registrar for registration. The sub-
registrar verifies the contents, witnesses the parties' signatures, and records the details in
the register.
6. Indexing and Stamping: The document is stamped with a unique registration number and
indexed for reference.
Under the Transfer of Property Act, 1882, certain documents related to the transfer of property
require compulsory registration, while others are optional. Let's delve into the specifics:
Compulsory Registration of Documents:
1. Sale Deed: A sale deed, which is a document that transfers ownership of immovable property
from one party to another, must be compulsorily registered. Section 54 of the Transfer of
Property Act mandates that a sale deed pertaining to immovable property valued at or above
INR 100 must be registered to be legally valid.
2. Gift Deed: Similar to a sale deed, a gift deed that transfers ownership of immovable property
as a gift must also be compulsorily registered under Section 123 of the Transfer of Property
Act. The requirement for compulsory registration applies regardless of the value of the
property.
3. Lease Deed: As per Section 17 of the Registration Act, 1908, lease deeds with a lease period
exceeding one year or reserving annual rent must be compulsorily registered. This provision
supplements the Transfer of Property Act.
Optional Registration of Documents:
1. Lease Deed: Lease deeds with a lease period of one year or less and without a provision for
annual rent payment are not required to be compulsorily registered. However, registering
such documents is optional under the Registration Act.
2. Mortgage Deed: While mortgage deeds are not compulsorily registrable under the Transfer
of Property Act, it's prudent to register them to provide legal security to the mortgagee's
interest in the property. Registration of mortgage deeds is governed by Section 59 of the
Transfer of Property Act.
3. Exchange Deed: An exchange deed, which involves the mutual transfer of properties
between parties, is not required to be compulsorily registered under the Transfer of Property
Act. However, registering such documents is advisable for legal certainty.
4. Lease Agreements: Lease agreements for terms of one year or less, which do not require
registration under the Transfer of Property Act, also fall within the realm of optional
registration.
Legal Implications of Non-Registration:
Unregistered documents relating to immovable property have limited legal enforceability. They
cannot be used as evidence in a court of law to prove the terms of the document. However, they
can be used to establish collateral facts or act as corroborative evidence. In contrast, registered
documents are presumed to be genuine, and their terms are admissible as evidence in court.
Time Limit for Registration:
The Registration Act, 1908, sets a time limit of four months from the date of execution for registering
a document. After this period, the document can be registered within the next four months, but with
additional fees.
Modern Context:
In the modern context, digitalization efforts have been made to streamline the registration process.
Many states in India have introduced online registration facilities to make the process more
convenient and efficient.
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Gift Deed: Instrument of Will: A will does not require Lease for a Term Not
transfer where property is compulsory registration. Exceeding One Year: Lease
given as a gift. agreements for terms less than
one year.
Mortgage Deed: Document Partition Deed: Partition Transfer of Certain
where property is used as among family members. Leasehold Interests:
security for a loan. Transfer of certain leasehold
interests.
Exchange Deed: Deed where Trust Deed: Unless it pertains Release Deed: Document
properties are exchanged to immovable property. relinquishing one's rights to a
between parties. property.
Lease for a Term Exceeding Power of Attorney: Settlement Deed: Document
One Year: Lease agreements Generally, not required to be settling the rights of family
for terms longer than one registered unless specifically members over a property.
year. for immovable property.
Transfer of Charge: Affidavit: Generally, not Trust Deed for Immovable
Document transferring rights required to be registered Property: Document
or charge on immovable unless it pertains to immovable pertaining to the creation of a
property. property. trust with immovable property.
Agreement to Sell: An Sale Certificate: Issued by a Sale of Immovable Property
agreement to sell immovable court or revenue authority. through Public Auction:
property, which is not a sale Document related to the
deed. auction of immovable property.
Adoption Deed: Document Declaration: Unless it relates Certain Contracts: Certain
legally formalizing the to immovable property. specific contracts may be
adoption of a child. optionally registered.
Settlement Deed: Document Court Decrees: These are not Any Other Document: Any
settling the rights of family documents of title. other document may also be
members over a property. optionally registered.
Trust Deed for Immovable Death Certificate: Not a Miscellaneous Documents:
Property: Document document of title. Miscellaneous documents may
pertaining to the creation of a also be optionally registered.
trust with immovable
property.
Sale of Immovable Insurance Policies: These
Property through Public are not documents of title.
Auction: Document related to
the auction of immovable
property.
Loan Agreements:
Generally, these are not
documents of title.
Acquisition by prescription
Acquisition by Prescription under the Transfer of Property Act, 1882:
Acquisition by prescription, also known as adverse possession, is a legal principle outlined in the
Transfer of Property Act, 1882, that allows a person to gain ownership of someone else's property
through continuous and uninterrupted possession for a specified period, while openly and adversely
asserting their ownership rights. This concept is based on the idea that if the true owner does not
assert their rights within a certain time frame, the person in adverse possession can acquire legal
ownership of the property. Let's delve into the details of acquisition by prescription under the
Transfer of Property Act, 1882:
Essentials of Acquisition by Prescription:
To acquire ownership through prescription, certain essential elements must be met:
1. Continuous Possession: The person seeking to acquire ownership must possess the
property continuously and without interruption for a specified period.
2. Open and Notorious Possession: The possession must be visible, open, and not hidden
from the true owner. The true owner must have the opportunity to observe the adverse
possessor's actions.
3. Hostile Possession: The possession must be hostile to the true owner's interest, i.e.,
without the owner's consent or acknowledgment of the adverse possessor's right.
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4. Actual Possession: The possession must be actual and physical, meaning the adverse
possessor must physically occupy the property.
5. Expiry of Prescribed Period: The person in adverse possession must complete the
required period of possession, which varies depending on the nature of the property and the
applicable laws.
6. Good Faith or Bad Faith: Some jurisdictions require the adverse possessor to be in good
faith (believing they have a legal right) during the possession, while others permit acquisition
even if the possession was in bad faith.
Prescribed Periods for Acquisition:
The Transfer of Property Act, 1882, does not specify a fixed period for acquiring ownership by
prescription. However, different jurisdictions have their own prescribed periods. In many cases, the
period ranges from 12 to 30 years, depending on the nature of the property and the applicable laws.
Examples of Acquisition by Prescription:
1. Example 1: A owns a piece of land but is unaware that B has been using a part of it as a
garden for over 20 years. If B's possession was open, notorious, continuous, and hostile to
A's interests during this period, B might acquire ownership of the garden area through
prescription.
2. Example 2: X owns an abandoned building, and Y starts using it as a workshop without X's
permission. If Y openly and adversely occupies the building for the prescribed period set by
law in their jurisdiction, Y might gain ownership of the building through prescription.
Legal Implications and Limitations:
Acquisition by prescription is a legal doctrine intended to balance the interests of property owners
with the principle that long-ignored rights should not be revived. Courts examine the specific
circumstances of each case before determining whether acquisition by prescription has occurred.
Modern Jurisprudence:
Modern legal systems continue to recognize the concept of acquisition by prescription, although the
specific criteria, time frames, and legal requirements may vary from jurisdiction to jurisdiction.
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These sections are important for various financial and business transactions where debts or
monetary claims are transferred. It ensures that the new creditor's rights are protected, and the
debtor is aware of the transfer, preventing the debtor from being misled by multiple claims.
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5. Section 17 - Evasion of Duty: This section addresses evasion of stamp duty, including cases
where documents are executed outside the state to evade duty. It empowers the Collector to
investigate such cases and recover the appropriate duty.
6. Section 29 - Certain Instruments Not Duly Stamped, Inadmissible in Evidence or Not
Acted Upon: This section states that any instrument that is not duly stamped, as required by the
Act, cannot be admitted as evidence in court or acted upon, unless it is properly stamped and the
necessary penalty is paid.
7. Section 31 - Denoting of Instruments: This section requires that certain types of instruments,
such as agreements and transfers of shares, be denoted with adhesive stamps.
8. Section 32 - Impounding of Instruments: The Collector has the authority to impound
instruments that are not properly stamped and take action against the parties for the deficiency in
stamp duty.
9. Section 34 - Collector's Power to Refund Penalty and Certain Duties: The Collector has
the power to refund penalty and certain duties under certain circumstances, such as when an
instrument is subsequently canceled or where a duplicate instrument is executed.
10. Section 39 - Recovery of Duty Before Release of Property: This section enables the
Collector to demand and recover unpaid stamp duty before releasing property that has been seized
for recovery of stamp duty.
11. Section 42 - Prosecution for Offences: The Act provides for the prosecution of those who
violate its provisions, including those who knowingly evade stamp duty.
These are just a few key sections of the Maharashtra Stamp Act, 1958. The Act contains more
detailed provisions related to stamp duty calculation, exemptions, penalties, and administrative
procedures for stamp duty collection and enforcement. It is crucial for individuals, businesses, and
legal professionals to be familiar with these provisions to ensure compliance with stamp duty
requirements in Maharashtra.
Disclaimer
The information contained in this document is provided for informational purposes only and should
not be relied upon as legal, business, or any other advice. The author makes no representations or
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warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability
or availability with respect to the document or the information, acts, statutes, case laws or related
information outcome contained in the document for any purpose. Any reliance you place on such
information is therefore strictly at your own risk. In no event will the author be liable for any loss or
damage including without limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this
document.
The author (Hemant Patil, GLC Mumbai Batch of 2025, hbpatil@gmail.com) reserves the right to
modify, add, or delete any information in this document at any time without prior notice. For
obtaining a recent & updated copy of this document, you can send the request with your clear &
accurate identification (Full Name, Contact, Institution etc).
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