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Immovable Property
The expression "immovable property" comprehends all that would be
real propertyaccording to English law and possibly more. Where in any
enactment, the definition of "immovable property" is in he nezative, and not
exhaustive, the definition as given in Section 3 (26) of the General Clauses
Act will apply to the expression given in that enactment. With the sowing of
the first seeds of civilization immovable property came to be the first personal
asset of the man. In Futtehsang v Kulliaraiji, Privy Council observed:
The term immovable property' comprehends certainly all that would be
real property according to English law and possibly more." Thus a lease
hold land would be personal property in England but would be immovable
property in this country.'
Immovable property is defined as including land, benefits to arise out of
land, and things attached to the earth, or permanently fastened to anything
attached to the earth. Land itself has not been defined in the Act, but it has
been held toinclude interest in subsoil. Benefits to arise out of land would
include all inicorporeal hereditaments, compensation and allowances charged
upon the land. In short, it comprehends all that would be real property
according to English law, and possibly more. But it should be noted that the
rent that has already accrued due or for that matter the income which has
already accrued is not an immovable property since it is a benefit which has
6. IA34 (PC).
7. 6 Bom LR 995.
28 LANDLAWS IN KERALA
already arisen out of the land and it cannot be equated with the rent or
income which may accrue in future. A suit for arrears of rent cannot, thus,
be said to be one for immovable property in the sense of being a suit for
benefit arising out of land. Building is immovable property, and door of a
building cannot be saidto be movable property.
The definitions of the expression 'immovable property' that appear in
different statutes are only inclusivedefinitions in so much as they state as to
what is to be included in the expression "immovable property' and what is
not to be so included.
only temporarily and not permanently, and even in the case of a touring
cinema, which continues to function at one place for afairly long period, the
permanence of the fixture isonly of a relative character.
Right todrain off water has not been held to be immovable property.
Transfer by mortgagor of anything which in the eye of law would be
immovable property, retains the same character even when it reaches the
hands of the mortgagee.
The attachment of an oil engine to earth, though it is undoubtedly afixture,
is for the beneficial enjoyment of the engine itself and in order to use the
engine, it has to be attached to the earth and the attachment lasts only so
long as the engine is used. When it is not used, it can be detached and
shifted to some other place. The attachment, in such a case does not make
the engine part of the land and as immovable property.
It seems, on the authority in the case of Mohammad lbrahim v. N. CF
Trading Company", that the machinery of a millstands on afooting different
from an oil engine. In that case, the machinery of a mill was fixed to a
cement platform and attached to iron pillars fixed in the ground. It was held
that the movable property sO attached should be regarded as immovable
property.
The High Court of Madras has held inseveral cases that for a chattel to
become part of immovable property and to be regarded as such property, it
must become attached to the immovable property as permanently as a building
or a tree is attached to the earth. If, in the nature of things, the
property is a
movable property and for its beneficial use or enjoyment, it is necessary to
imbed it or fix it on earth, though permanently, that is when it is in use, it
should not be regarded as immovable property for that reason.
Reference may be made to twoof the English cases:
In Leigh . Taylorl, the speech of Lord Halsbury shows that questions
like this cannot always be answered, in the nature of things, with arithmetical
accuracy, but certain discerning tests, as aids in deciding the question, are
wellestablished, as for instance, if something is made part of the house, it
must necessarily goto the heir, because the house goes to the heir and it is
partof the house. So, where something is attached insome form to the walls
of ahouse, nevertheless, having regard to the nature of the thing itself, and
the purpose of its being placed there, it is not intended to form part of the
15. AIR 1944 Madras 492.
16. 1902 AC 157.
REAL PROPERTY 31
reality, but is only a mode of enjoyment of the thing while the person is
temporanily there, and is here for the purpose of his or her enjoyment.
In Reynolds v. Ashby & Sons!",the House of Lords had toconsider
whether machinery attached to freehold was a fixture.There, the machines
affixed to concrete beds in the floor of the factory by bolts and nuts could
have been removed without injury to the buildingor the beds. In this case,
too, Lord Halsbury had decided that the machines were part of a factory.
which was the subject-matter of a lease and the attachment of the machines
to the earth in that manner should be regarded as a fixture.
Though the English law relating to fixtures cannot be bodily applied to
conditions in India, yet the above observations are of weight and point to the
correct approach to the question of this kind. Taking these observations as
mere guiding principles, it was held by the High Court of Madras, in Perumal
v.Ramaswamil8, that it cannot be said that the intention as disclosed by the
fixture, is to makea Peter OilEngine a permanent part of the earth and,
therefore, an immovable property, because the engine cannot be used except
by fixing it to the earth, and the purpose of its fixture would show that it
cannot be regarded as immovable property.
The question as to what is meant by 'benefits arising out of land' was
considered in A.M.Ansari v. Board of Revenue9. P.C. Reddy, C.J., in that
case, held that where the produce of trees or shrubs growing on land is sold,
or where the right to cut and take away standing timber is conferred, they
are not benefits arising out of land, but it would only be a sale of the produce
or the timber or bamboo simpliciter. But, where a right to the several classes
of produce referred toabove is conferred for a long period, then the produce
is from trees or plants attached to the earth from which sustenance is being
drawn,and therefore, the right tosuch produce is said to be a benefit arising
out of land.
In Mohan Lal Hargovind v. 1.T. Commissioner, the question for
consideration was whether a contract giving right to pick up Tendu leaves
would constitute an interest in land or the trees. Emphasis in this case was
laid on two things: First that the agreement was for sale of Tendu leaves,
and second, that it was for a short term and the work was to commence
Immediately and to proceed continuously. In those circumstances, it was
17. 1904 AC466.
18. AIR 1969 Mad. 346.
19. AIR 1969 AP 399.
20. AIR 1949 PC 311.
32 LAND LAWS IN KERALA
held to be acontract for picking up tendu leaves alone which did not deal
with any interest in land or trees.
In FirmJ. C. Pate & Co. v. State of M.P,the
for determination was whether the rights to pluck, question which arose
Tendu leaves, to cultivate, culture and acquire lac,collect and to
and carry away
away teak and timber and miscellaneous species of trees, cut and carry
amount to any
interest in the proprietary right. The question was answered in the
though the question whether they are rights pertaining to land and negative,
immovable property,did not, in that sense, fallfor consideration. hence
In Santabai v. State of Bombay", the right
to enter, cut and appropriate all kinds of wood which was examined was
from a
Bose, J. concluded that standing timber must be a tree Zamindari Forest.
those purposes and, that is in a state fit for
further, a tree that is meant to be converted into timber
so Shortly that it can already be looked upon as
even though it is still standing. If not, it is still timber for all practical purposes
a tree, because unlike timber, it
will continue to draw
sustenance
too, had been upon the length of thefrom the soil. The emphasis in this case,
standing trees had to be exercised and period during which the right to cut the
draw in order to determine whether it isthe amount of sustenance it would
Ifit is to be done inashort period as a a standing timber or standing tree.
the land and is timber, it is not a benefit arising out of
therefore not an
In Mahadeo Singh v State immovable property.
was, was considering the right tooftakeBombay,Hindayatullah, J., as he then
from the forests. It was stated in forest produce, mainly Tendu leaves,
that case that:
"One thing is clear, however, that
of trees and shrubs, are things rooted in the earth as in the case
Act and the Transfer ofimmovable property both within the General Clauses
growing crop and 'grass'Property act, but in the latter,
though rooted ill earth, are not'standing timber', a
'growing crop' and'grass' form the included of these,
*standing timber' comes within the lastsubject-matter
part of (he
of the sale of goods,and
be subject theretodefinition
the Indian Sale of goods Act, to of 'goods' in
severing mentioned in the definition of, goods' if the condition about
exists."
A similar view is taken in
two Bench decisions of the high
Court of
21. AIR 1953 SC 108.
22. AIR 1958SC 532.
23. AIR 1959 SC 735.
REAL PROPERTY 33
Fixtures when so annexed to the soil that they could not be severed and
moved without substantial disturbance of the soil and a substantial change in
the character of articles themselves, are immovable property.
In Subramaniam Chettiar v. M. Chidambaram Servai,decided by
Wadswoerh, J.,the question was whether an oilengine which was installed
by making a concrete base fitted with bolts and attaching it to the bolts by
means of nuts, was movable or immovable property. The engine was installed
by a tenant of a building holding a lease for a period of three years for the
generation of electricity for lighting and running acinema. While recognising
the difference between the English and the Indian Law in regard to fixtures,
the learned Judge expressed the opinion that "there is nothing in the English
cases which made them inapplicable in the determination of the test to be
applied for ascertaining whether and in what circumstances movables
annexed or attached to an immovable property became themselves
immovable property. The learned Judge observed correctly that:
"If a thing is embedded in the earth or attached to what is so
embedded
for the permanent beneficial enjoyment of that to which it is attached, then
it is a part of the immovable property. If the attachment is
merely for the
beneficial enjoyment of the chattel itself, then it remains a chattel, even
though fixed for the time being so that it may be enjoyed. The question must
in each case be decided according to the circumstances."
28. AIR 1940Mad 572: This case followed in Perumal Naickerv
1969 Mad 346:see also Kaju Mal. v. Salig Ramm, 91 PR 1919].Ramaswami Kone [AIR
Of the two tests viz. (i)
degree or mode of annexation and (ii) object of annexation, more importance is attached
to the object of annexation which depends upon the particular ericumstances of each
case. Where Aerects machinery on land of Bitmust be assumed that the machinery was
erected by Aeither as licensee or as a temporary tenant and that he did not intend the
machinery toform part and parcel of the immovable property to which it was attached
for the time being.(Subbiah v. govindrao Bhiwaji, AIR 1953 Nag 224(DB)).
REALPROPERTY 35
immovable property. The rights to collect market dues is benefitt to arise Out
of land.
The right to cut and remove coconuts from the trees standing
immovable property is not a benefit to arise out of land. Money
on
on immovable property will include money charged on rents and profits of chargeable
land so as to become benefits arising out of land.
Aright to carry away tendu leaves, to cultivate, culture and acquire lae
and to cut and carry away teak and timber and miscellaneous species called
hardwood and bamboos, thought does not make the persons proprietors, yet.
the same was fundamental right to property.
HÜ) Trees.-Trees when the intention is that plaintiff would take fruits
thereof without cutting them down as timber, or parsa trees assigned for
taking the crops of lac for five years or bamboos, are included in the definition
of land or immovable property. Standing crops are also treated as immovable
property. The right totap the coconut trees and obtain toddy is in the nature
of immovable property because it is abenefit which arises out of land. It is
useful to refer in this behalf to the leading case of Marshall v Green, for
the statement of the law with regard to this subject, which is contained in the
judgment of Lord Coleridge, C.J. He cites the following passage from the
notes of Sir Edward Vaugham Williams in the case of Duppa v. Mayo.
"The principle of these decisions appears to be this, that wherever at the
time of the contract, it is contemplated that the purchaser should derive a
benefit from the further growth of the thing sold, from further vegetation
,and from the nutriment to be afforded by the land, the contract is to be
considered as for interest in land; but where the process of vegetation is
over, or the parties agree that the thing sold shall be
from the land, the land is to be considered as a mereimmediately withdrawn
sold, and the contract is for goods." warehouse of the thing
Trees, except standing timber, are immovable
timber remains upon the soil, itderives its property. So long as the
Before a tree can be regarded as standing sustenance and nutrition from it.
that if cut, it could be used as timber; timber it must be in such a state
and when in that
reasonably early. Wherein a case in execution of decreestate it must be cut
suit the trees and bamboo clumps were passed in money
auctioned treating them to be movable
30. (1875) ICPC 35.
31. (1669) 1 Wms. Saund. 275, Wms. Saunders, 1871 Ed., P
to be cut down and removed isi movable property): In re 394 (standing timber which has
AlI392 (DB). Mahan Raj Balamgir. AIR 1931I
REAL PROPERTY 37
property and thereafter no intention shown to cut trees and bamboo clumps
for 10 years therefore it was held to be immovable property. Where the
produce of trees or shrubs growing on land is sold or where the right to cut
and take away standing timber is conferred, they are not benefits arising out
of land but it would be a sale of the timber or bamboo simpliciter. But where
a right tothe several classes of produce is conferred for a long period then
the produce is from trees or plants attached to the earth from which
sustenance is drawn. Therefore the right to such produce is said to be a
benefit arising out of land.
Whether or not a mortgage of fruit-bearing trees is a mortgage of
immovable property is aquestion dependent in each case upon the intention
of the contracting parties and cannot be settled by an inflexible rule. Where
there is a mortgage with possession of fruitbearing trees with the intention
that the mortgagee is to remain in possession during the years of the mortgage
and enjoy the fruits and should not cut down the trees so as to convert them
to either timber or firewood, it must be held that the trees so mortgaged
were either immovable property or at least an interest in immovable property.
Atemporary right to appropriate lac from lac giving trees is mere interest in
immovable property.
The right under a contract to cut bamboo trees, is not a lease-hold, and
hence, not an interest in the land or any right to possession of the land.
A contract for removal of standing trees for a period of six years was
held to have not created a mortgage or charge on immovable property.
(IV)Morngagee's interest.- A mortgagee's interest may come within
the meaning of the expression 'benefits to arise out of land' in the General
Clauses Act. The Indian Legislature appears to have intended that all rights
to immovable property should fall within the category of immovable property,
Rankin,C.J, rejected the idea in Imperial Bank v. Bengal National Bank",
that a mortgage is a benefit to arise out of land.
(V) Lessee's interest. What Section 2 of the Madras General Sales
Tax Act requires is "interest in land" and not "interest in immovable property."
The definition of immovable property in the General Clauses Act, therefore,
cannot be made applicable in construing the expression "land" in Section
2(1) of the General Sales Tax Act.
Amining lease, being a right to enjoy immovable property, would not be