Transferable and Non-Transferable Property
Transferable and Non-Transferable Property
Meaning of Transferable Property
Transferable property is that property which can be transferred from one person to another, either wholly or in part, by way of sale, mortgage, lease, gift, or exchange.
Key Point: Property must be capable of being disposed of under law.
Case Law: Smt. Shantabai v. State of Bombay (1958) – Court held that mere personal rights, not recognized as property under law, are not transferable.
Meaning of Non-Transferable Property
Non-transferable property refers to property or rights which cannot be transferred by a person due to statutory or legal restrictions. Such property may be:
Property prohibited by law from transfer
Property incapable of transfer due to its nature
Case Law: Ramasami v. Angamuthu – Mere chance of inheritance or future succession is not transferable.
Types of Transferable Property
Movable Property: Money, shares, goods, etc.
Immovable Property: Land, building, and attached rights.
Existing or Vested Rights: Can be transferred fully or partially.
Case Law: Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2012) – Immovable property can be transferred only by valid registered deed; incomplete instruments cannot effect transfer.
Types of Non-Transferable Property
Future Property Not Yet Owned: Cannot transfer what one does not own.
Example: Future inheritance, chance of succession.
Property Restricted by Law:
Certain government properties or restricted rights cannot be transferred.
Personal Rights Not Recognized as Property:
Rights purely personal (e.g., right to maintenance) cannot be transferred.
Case Law: K.K. Dewan v. District Judge, Chandigarh – Rights that are purely personal or non-assignable cannot be treated as transferable property.
Key Principles
Only existing, lawful, and enforceable rights are transferable.
Property can be partially or wholly transferred depending on its nature.
Courts distinguish between mere expectancy (non-transferable) and vested rights (transferable).
Conclusion
The Transfer of Property Act, 1882 ensures clarity between transferable and non-transferable property. Courts have emphasized that:
Transferable property includes rights, interests, and existing property capable of legal disposition.
Non-transferable property includes rights of a personal, contingent, or legally restricted nature.
This distinction safeguards transactions, ensuring only enforceable property is conveyed while protecting rights that cannot legally be alienated.
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