4

PLATINUM JUBILEE YEAR)436

C. JAM NADAS & CO.I]

NOSHRVAJ H. JHABVALA

THE TRANS, FER OF PROPERTY ACT

2001

V

THE TRANSFER OF PROPERTY A~ (ACT IV OF 1882)

By

NOSHIRVAN H. JHABVALA, B.A .• LL.B.

Advocate (O.S.). High Court. Bombay

Revised and brought up-to-date By

YUSUF IQBAL YUSUF, B.L.S .• LL.B.

Advocate. Supreme Court of India

C. JAMNADAS & CO. EDUCATIONAL & LAW PUBLISHERS

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Thoroughly Revised Twenty-Fifth Edition

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PREFACE TO THE TWENTY·FIFTH EDITION

We are happy to bring out the twenty-fifth edition of the Transfer of Property .

Act. In Ihis edition, Case-law has been brought up-to-date, and several new cases

have been added. The recent Universit, Questions have also been duly

incorporaled. A summary of Ihe Transfer of Property Act is appended at the end

ollhe book, as an aid to revision of the subject. We are confident that Ihis revised

edition will fully meet Ihe requiremets of Ihe law students. - Publishers

Preamble

Delinilions

CONTENTS

CHAPTER 1 Preliminary

CHAPTER 2 Transfer of property, whether movable or immovable

A General B. Illegal restriclions on certain alienations C. Transfer lor benefit of unborn persons o Transfer to a class E. Vested interest F. Contingent interest G. Conditional trasfers H. Election 1. Apportionment

CHAPTER 3 Transfer of immovable property

A. T ransler by person other Ihan lull owner B. Proleclion 01 Ihird person's righls C. Transler by person having aUlhorily 10 revoke a former Iransfer D. Transfer by co·owners E. Joint translers F. Priority 01 rights created by Iransfer G Transferee'S righls under policy H. Bona lide holders under defeclive title I Transfer of property pending suit relating thereto (Lis Pendens) J Fraudulent Iransfer K Pari-performance

CHAPTER 4 Sale of immovable property

'Sale' defined - Sale how elfected - 'Contraci for sale' defined Rights and liabii ities of buyer and seiler Marshalling by subsequent purchaser

Page 1

3

13 25 32 38 40 43 46 55 59

~2 71 76 77 78 79 81 82 84 91 95

101 104 109

CHAPTER 5 Mortgages of immovable property and charges

A. Mortgages Six kinds of mortgages and their characteristics 1. Simple mortgage 2. Mortgage by conditional sale 3. Usufructuary Mortgage 4. English Mortgage 5. Mortgage by deposit of title·deeds (Equitable mortgage) 6. Anomalous mortgage Mortgagor's rights Liabilities of the mortgagor Rights of the mortgagee Liabilities of the mortgagee Law as to priority of securities Tacking Marshalling and contribution B. Charges Definition Doctrine of merger

CHAPTER 6 Leases of immovable property

Definition Duration and Termination of leases Rights and liabilities of the lessor Rights (If the lessee Liabilities of the lessee Rights and liabilities of lessor's transferee Determination (i.e . termination) of a lease Forfeiture of lease Holding over

'Actio:,able claim' defined Transfer how effected

CHAPTER 7 Exchanges

CHAPTER 8 Gifts

CHAPTER 9 Transfer of actionable cfaims

Rights of a transferee of an actionable claim Rights of an assignee of marine and fire policies

CHAPTER 10

112 113 113 114 116 119 120 123 125 140 142 151 152 153 156

160 164

lF6 170 171 172 173 174 175 177 180

184

187

194 195 196 199

Generaf observations on how to execute different kinds of Transfers under the Act 201

SUMMARY OF THE TRANSFER OF PROPERTY ACT 202

TABLE OF CASES A

Abdul Satar v. Satyabhusan 193 Abid Husain v. Ram Nidh 192 Adjudhia v. Rakhman 51 Akbar Saheb v. Soran 160 Akhoy v. Corporation of Calcutta 161 Aldrish v. Cooper 154 Alwar Chetty v. Jagannatha 9 Ambika Pratap v. Dwarka Prasad 88 Amiruddaula v. Nateri 27 Amrit Narayan v. Gaya Singh 17 Annamalai Chettiar v. Malayandi 86 Annada Mohan v. Nilphamari 66 Anurudh v. Lachmi 191 Ardeshir v. Dadabhai 32 Ariff v. Jadunath 96

B

Saba Miya Mohiddin Shakkar v. Jehangir Dinshaw Belgaumwala

Bala Ramchandra v. Daula Banerji v. Kuchwar Lime & Stone Co. Bapurao v. Bulakidas

145 90 97

191 Barati Lal v. Salik Ram Bellamy v. Sabine Bhagirathi v. Jokhu Ram Bhagwant v. Kedari Bhagwat v. Gorakh Bhimrao v. Sakharam

C

16 86, 90

54 91 6

127

Cavendish v. Dacre 57 Central Bank of India v. Nusserwanji 122 Chalamanna v. Subbamma 162 Chimna v. Venkat 150 Christian v. Field 132 Chunchun Jha v. Shaikh Ebadat Ali 116 C.T.I. v. Keshavlal 15 Coltness Iron Co. v. Black 167 Colonial Bank v. Whimney 194 Cooper v. Cooper 56 Coote v. Mammon 12 Corporation of Liverpool v. Wright 20

o

Dawar v. Dhama Devi Prasad v. Lewis Durga Chunder v. Kailas Chunder Durgozi v. F akeer Sahib

E

Ebrahim Bhai v. F ulbai Elokasee v. Darponarain Ex Parte v. Mercer

F Faiyaz Husain Khan v. Prag Narain Farrence v. Elkington Fateh Din v. Kishen Lal

Gajapathi v. Alagia Galliara v. U. Thet

G

Geneshi Lal v. Jyoti Pershad Ghansam Das v. Uma Pershad Gobinda v. Dwarkanath Gokulapathi v. Venkatarama

Sharma Gopal v. P arsotam Govindaswamy v. Ramaswamy Gowan v. Christie Gurudeo Singh v. Chandrika Singh

H

Hamida v. Humer Hannooman Persad v.

Babooi Munraj Koonwaree Hatikudur v. Andar Hind Trading & Mfg. Co. v.

Didi Modes Pvt. Ltd. Holroyd v. Marshall Hussiaa Banu v. Shivnarayan

I Ibn Hasan v. Brijbhusan Inderdawan v. Govind In the Matter of the Indian

Stamp Act Ishan Chander v. Bishu Sardar Ismail v. Saleh Muhammed

Dahyabhai v. State of Bombay Dalton v. Figerald

15 Ismail Khatri v. Muljlbhai 57 Brahmabhatt

Dan Kuer v. Saria Devi 72 Istak Kamu v. Ranchhod Zipru

189 18 19 84

93, 94 41 92

89 177 144

109 66

133 94 16

83 111 183 167 133

98

64 69

169 15 16

159 157

184 91

184

115 190

J Jafri Begum v. Sayed Ali Jagannath v. Diboo Jagannath Puri v. Godabai Jeut Koeri v. Mathura Jhagru v. Ragunath J & K (Bombay) Pvt. Ltd. v. New

Kaiser-i-Hind Spg. & Wvg. Ltd. Jogendra v. Dwarkar Jugalkishore v. Raw Cotton Co. Jumma Masjid v. Kadimaniandra

Deviah

K Kaderbhai Ismailji v. F atmabai

Golamhusein Kanahiya Lal v. Chander Kariya v. Vishnu Keshavlal v. Maganlal Kesho Prashad v. Upper

India Bank <, 'glinger v. New Patagonia Meat

and Cold Storage Co. Ltd. Krishnappa v. Mallaya Krishnappa v. Shavappa Kristoromani v. Narendra Kurri Veerareddi v. Kurri Bapired~i

L Lallu v. Jagmohan Leake v. Robinson Leward v. Hassels Lloyds Bank Ltd. v. P. E.

Guzdar & Co.

M

M. Haque v. G. Mullick Ma Vait v Official Assignee Madam Pall ai's Cases Madam Pallai v. Badra Kali Mahadaji v. Gampatishet Mahadeo v. Har Buksh Maharajadhiraj Sir Kameshwar

Singh v. State of Bihar Mahendra Nath v. Parmeshwar Makhanlal v. Nagendranath Mangaldas v. Ranchhoddas Maung Tung v. Maung Aung Md. Musa v. Aghore Kumar

Ganguli

29 69 15

129 176

160 8

14

69

6 61

183 173

72

(vi)

128 86 86 53 96

42 3~

50

9, 153

167 44

102 103 130

69

118 88 16 58

125

96

M. N. Abdul Jabbar v. H. Venkata Sastri & Sons 6

Mineral Development Ltd. v. Union of India

Mohammad Aleem v. Maqsood Alam Mohani v. Purna Shashi

169 86

162 26 68

130

Mohmmad Raza v. Abbas Bandi Mohori Bibi v. Dharmodas MolO v. Balaji Muniappa Pillai v. Periasami

N

Nafar Chandra v. Kailash Nagayyar v. Govindayuyar Nageshar Prasad v. Raja Pateshri Narain Das v. Murli Dhar Narain v. Narain Natesa v. T ungarelu Nathan v. Durga Das Nathulal v. Phoolchand Natvarlal v. Dadubhai Niras Purve v. Mst. Tetri Pasin Nityanand v. Rajpur Chhaya

Bani Cinema Ltd. Noakes v. Rice Nur Mahommed v. Dinshaw

o Official Assignee of Madras

v. Sampat Naidu

P Palamalai v. South Indian

Export Co. Panchali v. Panniyodan Manni Paul v. Gopal Nath Payne v. Cardiff Rural Council Peary v. Narendra Perumal v. Perumal Phramroze Dadabhai Madan

v. Tehmina Pomal Govindji v. Vrajlal Purohit Prabhu Narain v. Ramzan Partap Chand v. Saiyiaa Bibi Prethi Singh v. Ganesh Prithiraj v. Rukmin Provident Investment Co. v.

Income-tax Commissioner Purna v. Brima Putlibai v. Sorabji Naoroji

16

36, 38 134 67

162 133 169 162 99 16 66

122, 144 128

76

69

94 15 72

145 161

4

32 128 74 67 14

110

16 15 32

R

A A 0 O. Chellyar Firm v. Ma Seln Vim

Rabindranalh v. Saral Chandra Radhakrishnayya v. Sarasamma Radha Madhub v. Munshur Raghoblr v. Jelhu Raja GokoJ Das v. Eastern

Mortgage Agency & Co. Rakeslraw v. Brewer Rama Nand v. Champa Lal Ramaswami Chelliar v.

Mallappa Reddiar Ram Coomar v. McQueen Ramkinkar v. Satyacharan Ramrao v. Pahumal Ram Raj v. Lal Chandra Ram Sarup v. Bela Ralanlal v. Ramanujadas Re Cackerill Rogers v. Hosegood Rasher v. Rasher Royzauddi v. Nath Rye v. Rye

S

Sadhu Madho Das v. Pandit Mukand Ram

Sadhu Meher v. Rajkumar Palel Sadhu Ram v. Pirthi Singh Sahadev v. Shekh Papa Sambhu Prasad v Mahadeo

Prasad Samsuddin v. Abdul Husein Sannamma v. Radhabhayi Sarat Chandra v. Gopal Chandra Saroj Ammal v Sri Venkaleswara

Finance Corp Shahzad Singh v. Madan Gopal Shankar v. Yeshwant Sheo Shankar v. Parma Mahlon Silal Chandra v. Dellanney Sonepalli Mutyaly v. Veerayya

95 86 15 89

175

11 148 68

(vii)

95 65

119 176 192.

48 26 26

108 26

161 166

16 98 15 10

67 18 68 65

92 189 127 129

16 15

Soniram v. Dwarkabai 15 Sopher v. Administralor

General 01 Bengal 32 Sounder Rajan v. Nata rajan 37 Siremann v. C.I.T. 15 Subama v. Yamanappa 190 Sulin Mohan v. Raj Krishna 69 Sulleman v. Palel 100 Sunder Bibi v. Rajendra 41 Sundrabai v. Shivnarayan 64 Sunil K. Sarkar v. Aghor K. Basu 115 Syed Mukhtar v. Rani

Sunder Koer 172

T Tagore v. Tagore 53 Tayabali v. Messers Ashan & Co. 171 Topanmal v. Chanchalmal 83 Traders Miners ltd. v. Dhirendra 16 Tulk v. Moxhay 74, 75

U

Underwood v. Wing 52 Unnamalai v. Gopal Swami 157 U. P. Government v. Manmonan Das 163

V

Vaddiparthi v. Appalanarasimhalu 127 Vani v. Bani 125 Varadammal v. Ambalal J. Vyas 89 Venkalasammanna v. Brammanna 26 Venkalarama v. Aiyasami 54 Vine v. Raleigh

Walsh v. Lonsdale Whilby v. Mitchell Woods v. Townley

W

Y

Yamunabai v. Nanabhai

Z

Zamindar of Polavaram v.

99, 100, 103 33. 37

50

72

Maharajah of Pillupura.'1 102

THE TRANSFER OF PROPERTY ACT(ACT No. IV OF 1882)

PreambleThe Preamble to the Act lays down that it is an Act to

define and amend the law relating to transfer of property by

act of parties (i.e., not by operation of law). The Act cameinto force on 1st July, 1882.

OBJECTS OF THE TRANSFER OF PROPERTY ACT.- "The chief

objects of the Transfer of Property Act are two first, to bring the ruleswhich regulate the transmission of property between living persons intoharmony with the rules affecting its devolution upon death, and thus tofurnish the complement to the work commenced in framing the law ofintestate and testamentary succession; and secondly, to complete the code

of contract law, so far as it relates to immovable property.'

ACT NOT EXHAUSTIVE-The Act is not, and does not purport to be,an exhaustive enactment. In other words, it does not cover the entire

dimension of transfer of property.SCOPE OF THE ACT.-The Act is limited to the transfer of property

by act of parties, as distinguished from a transfer by operation of law, e.g.,in case of inheritance, insolvency, forfeiture or sale in execution of a decree.It relates to transfers of property inter vivos, i.e., voluntary transfers between

living persons, and has no application to the disposal of property by will.Thus,-

Transfer may be

I .By act of parties By operation of law, e.g.. Execution,

Insolvency. Succession, etc. (Notcovered by the T. P. Act)

Inter vivos (T. P. Act) Testamentary (Indian Succession Act)

The Act applies only to transfers inter vivos, i.e., transfers by one livingperson to another. Transfer of property is either by act of parties or, by

operation of law. If X sells or mortgages or gifts away his house, it is acase of voluntary transfer by act of parties. But, if X becomes an insolvent,his property vests in the Official Assignee of Receiver, whether X likesor not. So also, if X's property is sold in execution of a decree againsthim, it would be a case of a transfer much against the will or desire of X.This is, therefore, known as transfer by operation of law.

Now, transfer by act of parties is of two kinds

(I) Transfer inter vivos, and(ii) Transfer by will, i.e., testamentary disposition of property.

TP -. 1

[B.U. = Bomr.ayUniversitv]

[PU. =UrdversityJ

2 .. THE TRANSFER OF PROPERTY ACTThus, if X sells his property to Y, it is a case of transfer between living

persons. If the property is movable, the Sale of Goods Act will apply, andit it is immovable, the Transfer of Property Act will govern the case, If,however, X bequeaths his property to Y under his will, Y will get nothingas long as Xis alive, but as soon as Xdies, Y will get the property. It is.therefore, sometimes said that this is rear a gift from the dead to the Living.This is known as testamentary disposition of property. Transfer inlet vivosis governed by the Transfer of Property Act, if the property transferred isimmovable. Transfer by will, known as testamentary disposition of property(whether movable or immovable), is governed by the Indian Succession Act.

Therefore, the Transfer of Property Act relates to the transfer of propertyinter vivos, and has no application to the disposal of property by wi/I. Itdoes not deal with cases of successjo ...- ..................

The folld/inby this Act.

ThbIe shows . . what pail of the 'ia of transfer is covered

THE SCHEME OF THE TRANSFER OF P ROPERTY ACTTransferflTn•'

By Act of parties By Operation of Law(ag., Succession Insolvency,Execution, etc.)

Testamentary Irer vivos(Indian Succession Act) (1. P.. Act)

State and exp;aincthe different moes (A) Transfer of property whether

of transfer 01 Im- Movable or Immovable (Ch. IImovable property.pointing out tneir Ss. 5-37 & Ss. 122-137)disfintje features.

B.U. Oct. 97Apr. 98

.

(B) Transfer of ImmovableProperty (Ch. If Ss. 38-53A &Gus. Ill to VIII : Ss. 54-137)

Apr. 99 mortgages & Leases Exchanges Gifts

(Ch. Ill : Charges (Ch. IV : (Ch. V: (Ch. VI: (Ch. VII

Ss. 54-57) Ss. 58-104) Ss. 105-117) Ss. 118-122) Ss. 123-129)