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What may be transferred?

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PRESENTATION OUTLINE

WHAT MAY BE TRANSFERRED

INTRODUCTION

  • “What may be transferred” is mentioned under Section 6 of The Transfer of Property Act, 1882.
  • According to the Act, transfer of property basically means the act of conveying property by one person to one or more persons or himself and one or more persons.

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  • The person can be an individual, company or association or a body of individuals.
  • Under this section, it discusses what can and cannot be transferred.
  • A property is a bundle of rights. It includes movable, immovable, tangible and intangible assets.

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  • Section 6 of the transfer of property act, 1882 says that property may be transferred excepting the exceptions given in this section.
  • Section 6 says that the property of any kind may be transferred, except as otherwise provided by the act or by any law for the time being in force.

WHAT MAY BE TRANSFERRED?

  • Now let us look into the concept of what exactly can be transferred according to the Act.
  • When the property is land, a.) The easements annexed thereto b.) The rents and profits accruing thereof after the transfer. c.) All things attached to the earth.

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  • Where the property is a house, a.) Where the easements are annexed thereto. b.) The rent accruing after the transfer. c.) Locks, keys, windows and doors and everything that is permanent therewith.
  • Where the property is a debt or other actionable claim.

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  • Debt Where the property to be transferred is a debt or other actionable Claim, those securities will be with that particular debt transferred to the transferee.
  • Money Where the property to be transferred is money or other property yielding money its legal incidents will include its income and interests occurring after the transfer.

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  • Case laws:-
  • Jai Narayan Misra vs. Hashmathunnisa Begum, AIR 2002 Where one partner contributed land and the other constructed theatre and a clause in the partnership deed provided that the partnership will continue for a certain number of years. The court rejected the contention that the deed was a licence to use the land. A partnership deed usually does not have the effect.

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  • Ram Chandra vs. Kalyan Singh, AIR 2006 Trees were planted on land in question subsequent to the agreement ,the seller objected saying that standing trees could not be transferred in execution proceedings, this was held to be not tenable as under section 8 that property also passes to the transferee which is capable of passing with the land.

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  • Chance of an heir apparent or Spes Succession If there is an immovable property, which Mr. A is going to get, then Mr. A has a chance of being legal heir. If Mr. A assumes that he is the owner of the property and transfers the property to Mr. B, that transfer will be considered to be invalid. Mr. A cannot transfer the property unless he gains the ownership of the property and the property belongs to Mr. A.

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  • A mere right of re-entry for a breach of a condition subsequent Mr. A and Mr. B have a contract in which Mr. A gives his agricultural land on a lease to Mr. B for 10 years. There is a land on the tree and Mr. A has asked Mr. B that if he cuts the tree that is there on the land, Mr. A will have a re-entry. Mr. A has now put a condition on Mr. B after the transfer of property and that is why it is known as condition subsequent.

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  • An Easement An easement cannot be transferred. Easement is the enjoyment that the owner of the property holds with his property. Easement cannot be transferred. Once the property is transferred, easement is by default transferred.

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  • Future Maintenance A and B are related. Court orders that A will pay maintenance expenses for B. The future maintenance of this right cannot be transferred. Right to sue Mr. A has committed a wrong against Mr. B and Mr. B can sue Mr. A in court. Mr. B has the right to sue. If Mr. B wants to transfer this right to Mr. C, that is not possible. Right to sue cannot be transferred.

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  • Public Office If you hold a public office such as judge, inspector, doctor, etc, then you cannot transfer your public office to anyone. Stipends Stipends related to Military, Naval, Air Forces, Civil Prisoners, government pensions, etc are personal rights and cannot be transferred.
  • Pension is like a salary, it is a sum of money periodically payable by the government which can be to an ex-serviceman or to a person who has ceased to be in employment.
  • Statutory prohibitions on the transfer of Interest This section makes it clear that a tenant having an un-transferable right of occupancy cannot in any way transfer his interest

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  • Pension is like a salary, it is a sum of money periodically payable by the government which can be to an ex-serviceman or to a person who has ceased to be in employment. Statutory prohibitions on the transfer of Interest This section makes it clear that a tenant having an un-transferable right of occupancy cannot in any way transfer his interest.

CASE LAWS

  • Sethupathi v. Chidambaram, where it was held that a mere right to sue is something which cannot be transferred. Here the word ‘mere’ itself means that the transferee has developed no interest than just a bare right to sue.

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  • Ganesh Prakash v. Khandu Baksh , it was held that the right to dry clothes over the flat masonry and roofs of shops is a right of easement.

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  • Official Assignee, Madras v. Sampath Naidu, it was observed by the court that a mortgage executed by an heir apparent is void even if he subsequently acquired the property as an heir. Hence, from above it can be concluded that the transfer of spes succession is void ab initio

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