Concept of Transfer of Property
Concept of Transfer of Property in India
Meaning
The concept of transfer of property refers to the act by which a person conveys property to another. It involves transferring rights in a tangible or intangible property from one living person to another.
Here, property means every possible right, interest, or liability that can have an economic value.
Essentials of a Valid Transfer
Transfer by a Living Person
Must be by act of parties, i.e., between living persons (individuals, companies, or associations).
Case Law: Smt. Shantabai v. State of Bombay (1958) – A mere personal right not amounting to an interest in property is not transferable.
Competency of Transferor
Transferor must be competent to contract (major, sound mind, not disqualified by law).
He must have title or authority to transfer.
Case Law: Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2012) – Held that transfer of immovable property can be done only through a registered deed, not by power of attorney alone.
Transferable Property
Property must be transferable in nature. Certain interests like right to future maintenance, mere chance of succession, or easements cannot be transferred.
Case Law: Ramasami v. Angamuthu – Chance of an heir-apparent succeeding to property is not transferable.
Mode of Transfer
Must be done in a manner prescribed by law (oral or written, registration when required).
Case Law: Kaliaperumal v. Rajagopal (2009) – Delivery of possession is essential for validity of oral transfer when registration is not mandatory.
Object and Consideration
Must be lawful, not opposed to public policy.
Types of Transfers
Sale – Absolute transfer of ownership for a price.
Case: Narandas Karsondas v. S.A. Kamtam – Ownership passes only upon execution and registration.
Mortgage – Transfer of an interest in property to secure a debt.
Case: Pandit Chunchun Jha v. Sheikh Ebadat Ali – Intention of parties determines nature of transaction.
Lease – Transfer of right to enjoy property for a certain period in consideration of rent.
Case: Associated Hotels of India v. R.N. Kapoor – Test of lease vs licence depends on exclusive possession and intention.
Exchange – Mutual transfer of ownership.
Gift – Transfer of ownership without consideration.
Case: Renikuntla Rajamma v. K. Sarwanamma (2014) – Gift of immovable property is valid even if donor retains possession for life.
Principles Derived from Case Law
Only existing property can be transferred (exceptions: vested interest, contingent interest).
Certain transfers are prohibited to protect social justice (e.g., maintenance rights, future inheritance).
Registration is essential for immovable property above a certain value.
Conclusion
The concept of transfer of property is central to property law in India. It governs how rights in property move from one person to another while ensuring legality, competency, and fairness. Courts have repeatedly emphasized that intention of parties, competency of transferor, and legality of object are crucial to a valid transfer.
RELATED Blog
0 comments