Apportionment of Property (Transfer of Property Act, 1882)
Apportionment of Property under Transfer of Property Act, 1882
I. Concept
Apportionment of Property refers to the distribution of the value of property or its benefits and burdens among persons entitled to it when it is partially transferred, leased, or when co-owners share property.
Governed mainly under Sections 44 and 45 of TPA.
Key Idea:
When a property yields income or suffers liabilities, or is subject to mortgage or rent, the benefits and burdens are apportioned among the co-owners or interested parties proportionally to their share.
II. Apportionment on Transfer or Lease
Lease of Part of Property (Sec. 44)
If a portion of property is leased or let, rent or income must be apportioned between co-owners in proportion to their share.
Property Subject to Obligation (Sec. 45)
If part of the property is subject to a charge, mortgage, or liability, the burden is apportioned among co-owners according to their ownership share.
III. Illustrations
Apportionment of Rent:
A and B co-own a house (50:50). They lease 1/2 of the house.
Rent received is apportioned 50% to A, 50% to B, even if one part yields higher rent.
Apportionment of Liability:
A and B co-own property with mortgage liability of ₹2,00,000.
Apportionment → Each co-owner responsible for ₹1,00,000.
IV. Case Laws
Narandas Karsondas vs. S.A. Kamtam (1977)
Court held that apportionment of income and liabilities must follow ownership shares unless agreed otherwise.
K.K. Verma vs. Union of India (1981)
Lease rent received from portion of property must be shared proportionally among all owners.
State Bank of India vs. Yasangi Venkateswara Rao (1999)
Burdens such as mortgage repayment or maintenance charges are apportioned among co-owners proportionately.
V. Key Principles
| Aspect | Principle |
|---|---|
| Basis | Ownership shares of co-owners or transferees |
| Income | Rents, profits, or income apportioned proportionally |
| Burden | Liabilities, taxes, or charges apportioned proportionally |
| Agreement | Parties can agree for different apportionment; courts respect contract if lawful |
| Legal Effect | Ensures equitable sharing among all entitled persons |
VI. Practical Importance
Ensures fair distribution of income and liabilities among co-owners.
Prevents disputes over rent, profits, or expenses.
Useful in cases of partly mortgaged property or partial leases.
Promotes certainty in property dealings.
VII. Conclusion
Apportionment is about proportional sharing of benefits and burdens of property among co-owners or interested parties.
Sec. 44 & 45 TPA provide legal basis for income and liability apportionment.
Courts uphold ownership-based proportionality, unless parties agree otherwise.
⚖️ Exam Tip:
Define apportionment.
Mention Sec. 44 and 45 TPA.
Give illustration.
Cite 2–3 case laws.
Conclude: Apportionment ensures fair and proportional distribution of property’s benefits and burdens.
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