224145642-Transfer-of-Property.docx

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PROJ OJECT OF TRANSFER OFPROP OPERTY ACT On FRAUDU DULENT TRANSFER

Submi mi t t edby: -

SECTION 53: - FRAUDULENT TRANSFER

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NTRODUCTI ON I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ Fr audul entt r ansf erl aw dev el opedundert hec omm mmonl aw andwas 1 c odi fie di nt heSt at ut eo fEl i z a be t h. TheSt at ut eo fEl i z a be t hpr o v i de df o r

t heav oi danceand puni shme mentoft r ansf er smade" t ot heend,pur pose 2 and i nt e nt ,t ode l a y ,hi nde ro rde f r aud c r e di t o r s . Thi sear l yf r audul ent

t r ansf erst at ut ewa wasappar ent l yi n partacr i mi nall aw,i n partar evenue measur e( t heCr owncoul dr ecei veaport i on ofanyrec over y) ,andonl yi n partacr edi t orpr ot ect i on.However ,when t heEngl i sh court shel dt hata j udgment c r edi t or coul d di sr eg ar daf r audul ent conv e y ance and l e vy execut i on on t he pr oper t yt r ansf er r ed,t he f r audul entconvey ance l aw be camepr i mar i l yoneofcr edi t orpr ot e ct i on. Thi ssect i on de al swi t ht hesubj ectknown asf r audul entt r ansf e r s ofi mmove abl e pr oper t y .Subj ectt o savi ngs her ei naf t erme ment i oned,a t r ansf eri sf r audul entwhen i ti sma madewi wi t hi nt entt odef eatordel ayt he c r e d i t o r soft het r ans f e r o ro rt ode f r aud as ubs e que ntt r ans f e r e e .I nt he fir s ti nst anceconsi der at i on mayorma maynotbepre se nt .I nt hese cond 1 13 Eliz., ch. 5 (1571) (Eng.). See also Glenn, supra note 9, SS 58- 62. 2 13 Eliz., ch. 5, S 1 (1571) (Eng.).


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case consi der at i on i s nonexi st ent .I n ei t her case t he t r ansact i on i s v oi dabl e at t he i ns t ance oft he cr edi t or def e at ed or del ay ed or t he t r ansf er ee def r auded. The Law ofPr oper t y Act ,1925,on whi ch t he pr e s e nts ec t i oni sbas ed,i swi de r ;i ns t e adoft hec r e di t orbe i ngent i t l e dt o a v oi dt het r ans ac t i o nt hepe r s o npr e j udi c e di sgi v e nt her i g ht . The or i gi nalsect i on was f ounde d on t wo s t at ut es ofEl i z abe t h, name l y ,13El i z . ,c .5and27El i z . ,c .4.The s et wos t at ut e swe r er e pe al e d and r eenact ed as Sec t i ons 172 and 173 oft heLaw ofPr oper t y Act , 1925. Thi ssect i on.whi l esaf eguar di ng t her i ght soft r ansf er eesi n good f ai t h and f orconsi der at i on empower st he cr edi t or st o avoi d any t r ansf erof i mmovabl epr oper t ymadebyt hedebt orwi t hi nt entt odef eatordel ayt he 3 c r e di t or s S.53 i s notexhaust i ve and t her ef or et he pr i nci pl e oft he

sect i on woul d appl yi n cases off r audul entt r ansf er seven j ft hesect i on may not appl yi nt er ms.The pr ov i si ons of S. 53 mus t be s t r i ct l y const r ued. Thebasi cr equi si t esf ort heappl i c abi l i t yofS.53ar e: ( i )t he r es ho ul dbeat r ans f e ro fi mmo v abl epr o pe r t y ; ( i i )t het r ans f e ro ug htt oha v ebe e nmadewi t hi nt e ntt ode f e ato rde l a y t hec r e di t or s ;and ( i i i )t hesui tmus tbebr o ug htbyt hecr e di t o r ,ac t i ngo n be hal foforf o r t hebe ne fitoft hee nt i r ebo dyo fc r e di t o r s ,f ora v oi di ngs uc ht r a ns f e r .

3 Phoolan Devi v. Surendra Prakash, AIR 1983 All 440 (442).


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UnderS.53oft heT. P.Actaper son whochal l engest heval i di t yof t het r ansact i onmustpr ovet wof act s-( I )t hatt hedocumentwasexecut ed byt hese t t l e r ;and ( 2)t hatt hesai d documentwasexecut e d wi t h cl e ar i nt ent i on t o def r aud ordel ay t he cr edi t or .How t he i nt ent i on i st o be pr ov ed i s a mat t e r whi c h woul d l ar gel y depe nd on t he f ac t s and 4 ci r cumst ancesofeachcase.

UnderSec t i on 53 oft he Tr ansf erofPr oper t y Acta per son who c hal l e ng e st hev al i di t yo ft het r ans ac t i o n mus tp r o v et wof ac t s ( l )t hata documentwas ex ec ut ed by t heset t l er ;and ( 2)t hatt hesai d document wasexec ut edwi t h cl e ari nt e nt i on t odef r audordel ayt hecr e di t or s,t hat 5 t hepur chaserdi dnotacti ngoodf ai t h.

The pr i mar yr e qui r e me nt f or t he appl i cabi l i t y oft hi s se ct i on i st he e xi s t e nc eo fav a l i dt r ans f e r .Whe r ei ti sc l ai me dt hatt het r ans f e rmade byt hedebt or swasasham and fict i t i oust r ansac t i on and t her ewasno ani must r ansf erendi . e.whent hereali nt ent i on oft hepart i eswasnott o gi veeffectt ot hesupposedt r ansf eratal landi twasmer el yt obeusedas a shi el d or a f acade f or achi evi ng some ul t er i or pur pose,Sect i on 53 6 c anno tl e g i t i mat e l ybet ake nai do f . S.53;pr esupposesat r ansf er ,whi ch

i spr i maf ac i ev al i dandope r at i v e .I ft hes al ei si nv al i dabi ni t i o,anddoe s no te x i s ti nt hee y eofl a w,ac r e di t o rne e dno tb r i nganys ui tf o rav o i di ng 4 Suresh mallappa shetty v. Spl. Recovry officer, 2003 AIHC 1164. 5 C. Bhandari v. Dy. Commrl T. Officer. AIR 1976 SC 656 (660). 6 Phoolan Devi v. Surendra Prakash, AIR 1983 A1I 440 (442).


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i t .Pol i cyofl aw al wayshasbeent of r ownupon al lat t empt satf r audul ent t r ansf er ors.Whi l el aw f avour sexchangeofpr opert yasanat ur alri ghtof aper son t odealwi t hi ti n anor malmanner ,t hel aw hasal waysseti t s f aceagai nstt hi spri vi l egebei ngabusedt ot hedet ri mentoft hei nnocent publ i c .Cr e di t o r si nc l us i v e ,whohadde al twi t ht r ans f e r o ron t hef ai t ho f t hesecur i t yoft hei rdebt or .Anyat t emptby t hedebt ort owi t hdr aw hi s as s e t sf r o mt hec ont r olofhi sc r e di t o r st he r e f o r e ,hasal wa ysr e c e i v e dj us t condemnat i on by t hecour t sofl aw who hav ecompel l ed t hedebt ort o makegood t her epr es ent at i on on t hef ai t h ofwhi ch pr esumabl yhehad obt ai nedcr edi t .I nsuchci r cumst ances,t hecourt shaveneverbeenl oat h i ns e t t i ngas i des uc ht r a ns ac t i o ns . Bef or e Sect i on 53 oft he Tr ansf erofPr oper t y Actc an be appl i ed,t he cr edi t orpl ai nt i ff mustcomet ot heCour ti nt hepr emi set hatal t hough t het r ansact i on was genui neand effect i ve,ye ti twas ent er ed i nt o wi t h i nt entt o del ay ordef eatt he cr edi t ors. I ti s onl yt o such cases t hat 7 Se c t i o n53wi l li nt e r msa ppl y .

S.53 speaks off r audul entt r ansf er si . e.r ealt r ansact i ons,i tdoes not appl yt o sham fict i t i ous t r ansact i ons.Wher et he sal e deed speci fical l y r eci t ed t hat t he ent i r e sal e consi der at i on had been r ece i ve d by t he execut ant sbef or et heexecut i on oft hedeed,t hedeedcoul d notbesai d f r audul entdeed.Wher ei n execut i on ofa f r audul entdecr eepossessi on had al r eadybeen del i ver ed t ot heauct i on pur chaser ,cr edi t or' ssui tf or

7 Phoolan Devi v. Surendra Prakash, AIR 1983 A1I 440 (442).


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decl arat i ont hatt hedecr eeandal lt hepr oceedi ngsi nexecut i onwer enul l 8 andvoi dwasot her wi semai nt ai nabl eapartf r om t hepr ovi si onsofS.53.

TRANSFER

The t r ans f er sr e f er r e dt oi nt hi s sec t i on ar et r ansf e r s bi ndi ng be t ween t he par t i es,butv oi dabl ei nt he ci r c ums t ance ss t at e di nt he sect i on.Adocumentmadet odef eatort odel ayhi scr edi t orsi sbi ndi ngon t heexecut ant ,andt hosecl ai mi ngunderhi m.Thet r ansf eri sval i dunt i l i ti s se tasi de,and mus tnotbe conf use d wi t h benamiorcol our abl e t r ansf er s whi ch ar e mer el y sham t r ansf er s,and notmeantt o oper at e be t weent hepar t i es.

I nt he col l usi ve orbenamit r ansact i ons t her ei s no t r ansf er ,butt he pr oper t yi smer el yputi n af al sename,andgener al l yf ort hepurposeof def r audi ng cr edi t or s.As obser v ed by Si r Lawr ence Jenki ns i n Mi na 9 KumarivBi j oySi ngh, t hedi ffe r e nc ei sdi s t i nc tt ho ug hi ti sof t e nflur r e d.

Suchcol our abl eorsham deedsdonotr equi r et obesetasi de,f ort her eal t i t l ei sal lal o ngwi t ht het r ans f e r o r .The yar eo ut s i det hes c opeo ft he

8 T. Mudaliar v. T Narayana Reddiar. AIR 1959 Mad 141 (142) (DB); see also Ram Nathan v. unnamalai, AIR 1942 Mad 632: ILR (1943) Mad 47.

9(1916) ILR 44 Cal 662, 44 IA 72, 40 IC 242, AIR 1916 PC 232.


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10 s e ct i o n. I ti sr e l e v antt ono t et hatac ont e nt i o nt hatt het r a ns ac t i oni sa

sham and nomi nal t r ansac t i on, and t hat t he pr ope r t y was nev e r convey edatal l ,andr emai nedt hepr oper t yoft heori gi nalowner ,maygo ev en cont r aryt ot hecont ent i onsr ai sedt hatar ebasedupon S 53oft he TP Act .I ft hecont ent i on t hati ti sa s ham and nomi nalt r ans ac t i on i s accept ed,S53maynothaveanyappl i cat i on.I nf act ,t hechal l engebased 11 on S 53i nvol vest headmi ssi on t hatt het r ansf eri sar ealone. T r a ns f e r 12 13 i ncl udesasal e ;agr antundera1ease i ncl udi nga l easecr eat edbya 14 mor t gago r t r ansf erbywayofaMor t gageoronebyex changeoran or al

gi f tunderMusl i m l aw.Any t r ansf ermade wi t ht he per mi ss i on oft he cour tandi naccor dancewi t ht het er msi mposedbyi twi l lnotbesubj ect 15 t ot her ul eofl i spe nde ns .

FRAUDULENT TRANSFER

10 Prabhu nath v. sarju Prasad AIR 1940 All 407. 11 Chumar v. Alima AIR 1998 Ker. 139. 12 Gurmail Singh v. Udham kaur(deed) by Irs AIR 1999 P&H 300. See generally [65] Civil Procedure. 13 Madan Mohun Singh v. Raja Kishori Kumari AIR 1917 Cal 222, (1917) 21 Cal WN 88. 14 Magan Lal jagjiwandas v. Lakhiram Haridasmal AIR 1968 Guj 193, (1968) 9 Guj LR 161. 15 Sripat Singh v. Naresh Chandra Bose AIR 1926 Pat. 94.


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Secti on 53: - Fr audul ent t r ansf er . ( l ) Eve ry t r ansf er of i mmovabl e pr oper t y made wi t h i nt ent t o def eat or del ay t he cr edi t or s of t he t r ans f e r o rs hal lbev o i dabl eatt heo pt i o no fanyc r e di t o rs o de f e at e do r de l a ye d. •

Not hi ng i nt hi s subsec t i on shal li mpai rt he r i ght s ofa t r ans f e r e ei ng oodf ai t handf o rc ons i de r a t i o n.

•

Not hi ngi nt hi ssubsect i on shal laffectanyl aw f ort het i me bei ngi nf or cer el at i ngt oi nsol v ency .

A sui ti ns t i t ut ed by a cr edi t or ( whi c ht er m i ncl udes a decr ee hol de r whe t herhehasorhasnotappl i edf ore xecut i on ofhi sdecr ee)t oav oi da t r ansf eron t hegr ound t hati thasbee n mad w e i t hi nt e ntt ode f e ator de l a yt hec r e di t or soft het r a ns f e r o r ,s hal lbei ns t i t ut e donbe hal fof , orf ort hebe ne fitof ,al lt hec r e di t or s . ( 2)Ev e r yt r a ns f e ro fi mmo v a bl epr o pe r t yma dewi t ho ut c o ns i de r at i o nwi t hi nt e ntt ode f r audas ubs e que ntt r a ns f e r e e s hal lbev oi dabl eatt heopt i o n ofs uc ht r ans f e r e e . For t he pur pose s oft hi s subse ct i on,no t r ansf er made wi t hout consi der at i on shal lbe deemed t o hav e been made wi t hi nt entt o de f r a udbyr e a s o no nl yt hatas ubs e q ue ntt r a ns f e rf o rc o ns i de r a t i o n wasmade . Thi ss e c t i on c ons i s t s oft wo par t s .The fir s tpar tl a y s do wn t hat e v e r yt r a ns f e ro fi mmo v a bl epr o pe r t yma dewi t hi nt e ntt ode f e a to r de l a yt hecr e di t or soft het r ans f e r o rs hal lbev oi dabl eatt heopt i on o fanycr e di t ors ode f e at e do rde l a y ed.


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A , ho i T ot ake one i l l us t r at i on , w s he av i l yi nde bt e d,and ag ai ns t

whom as ui tf ort her e c o v e r yofde bt si sg oi ngt obefil e d,s e l l shi s ho us et oBt os a v ei tf r o m be i ngat t a c he da nds o l di npa y me nto ft he de bt .I fB knowso f' r audul e nti nt e nt i on,t hes al et oB i sl i abl et o A sf bes e tas i deatt heopt i on oft hec r e di t or s .I twi l lbes e e nt hatt he r i g ht so fa t r ans f e r e ei ng oo df ai t h and f o rc o ns i de r a t i o na r eno t a ffe c t e de v e nt ho ug ht het r a ns f e ri smadewi t hi nt e ntt ode f e a tt he c r edi t or s . The s e c ond par toft he s e c t i on l ay s do wn t hate v e r yt r ans f e rof i mmov abl e pr oper t y made wi t hout consi der at i on wi t hi nt ent t o de f r a ud as ubs e q ue ntt r a ns f e r e es ha l lbev o i da bl eatt heopt i o no f s uc h t r ansf er e e, but t hat no pr e s umpt i on t o def r aud s hal l ne c e s s a r i l ya r i s eb yr e a s o no nl yt ha ta s ubs e q ue ntt r a ns f e rf o r c o ns i de r a t i o nwa sma de . Se c t i o n 53,whi l es af e g uar di ngt her i g ht soft r ans f e r e ei ng oo df ai t h a ndf o rc o ns i de r a t i o n,e mpo we r st hec r e di t o r st oa v o i danyt r ans f e r o fi mmo v a bl epr o pe r t yma debyt hede bt o rwi t hi nt e ntt ode f e a to r de l a yt hec r e di t o r s .I t ,ho we v e r ,r e q ui r e st hats uc h as ui tmus tbe i ns t i t ut e de i t he ri nar e pr e s ent at i v ec apac i t yorf ort hebe ne fito fal l t hec r e di t or s .Thebas i cr e qui s i t e sf ort heappl i c abi l i t yofSe ct i on53 ma ybes t a t e dt obe :

( i )

t he r es ho ul dbeat r a ns f e ro fi mmo v abl epr o pe r t y ;

( i i )

t het r a ns f e ro ug htt oha v ebe e nma dewi t hi nt e ntt ode f e a to r de l a yt hec r e di t or s ;and


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( i i i ) t hes ui tmus tbebr o ug htbyt hec r e di t o r ,a c t i ngo n be ha l fo f orf ort hebe ne fitoft heent i r ebo dyofc r e di t or s . The pr i mar y r e qui r e me nt f or t he appl i c abi l i t y of t he s e c t i on, t he r e f or e ,appe ar st obet heexi s t e nc eofav al i dt r ans f e r .Whe r ei ti s c l ai me dt hatt he t r ansf e r made by t he debt or was a s ham and fic t i t i o ust r a ns a c t i o na ndt he r ewa snoani w n must r ans f e r e ndi ,i . e . he t he r e a li nt e nt i o no ft he pa r t i e s wa s no tt og i v ee ffe c tt ot he s uppo s e dt r a ns f e ra ta l la ndi twa sme r e l yt obeus e da sas hi e l do r af a c ade f o ra c hi e v i ng s o l v e ul t e r i o r pur po s e ,Se c t i o n 53 o ft he Tr ans f e rofPr ope r t yAc tc anno tl e g i t i mat e l ybet ake nai dof .Pol i c yof l aw al way s has bee nt of r own upon al lat t empt s at f r audul ent t r a ns f e r s .

Whi l el aw f a v our se x c hang e ofpr ope r t y as a nat ur alr i g htofa pe r s o nt ode a lwi t hi ti n ano r ma lma nne r ,t hel a w ha sal wa y ss e t

nstt hi s pr i vi l ege bei ng abused t ot he det r i mentoft he i t sf ac e agai i nnocentpubl i c,cr edi t orsi ncl usi ve,whohad deal twi t ht het r ansf er or ont hef ai t hoft hese cur i t yoft he i rde bt or . Anyat t emptbyt hedebt ort owi t hdr aw hi sasse t sf r om t hecont r olofhi s cr edi t or s, t her ef or e, has al ways r ece i ve dj ust condemnat i on by t he c our t s of l aw who hav e compel l ed t he debt or t o make go od t he r epr esent at i onont hef ai t hofwhi chpr esumabl yhehadobt ai nedcr edi t .


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I n such ci r cumst ance s,t he Cour t s havenev erbee nl oat hi n se t t i ng asi desuch t r ansact i ons.Bef oreSect i on 53 oft heTr ansf erofPr opert y Ac tcan beappl i ed,t hecr edi t orpl ai nt i ff mus tcomet ot heCour ti nt he pr emi set hatal t hough t het r ansact i on wasgenui neand effect i ve,ye ti t wasent er e di nt owi t hi nt entt odel ayordef eatt hecr edi t or s.I ti sonl yt o 16 suchcasest hatSect i on53wi l li nt er msappl y.

Ever yt r ansf erofi mmovabl epr oper t ymadewi t hi nt entt odef eatordel ay t he cr edi t or s oft he t r ansf er or wi l lbe voi dabl e at t he opt i on ofany c r e d i t o rso de f e at e do rde l a y e d17.A s ui ti ns t i t ut e d by a c r e d i t o r ,whi c h t er m i ncl udes a decr ee hol derwhet herhe has orhas notappl i ed f or e x e c ut i o no fhi sde c r e e ,t oav o i dat r ans f e ro nt heg r o undt hati thasbe e n madewi t hi nt entt odef eatordel ayt hecredi t orsoft het r ansf er ormust 18 bei ns t i t ut edonbehal foforf ort hebe nefitof ,al lt hecr edi t or s .

Thus,amar r i ages e t t l eme nt ,adeedofappoi nt ment ' ,as ur r enderofal i f e e s t at e ,ar e l i nq ui s hme nt 6,ac o l l us i v eawar do rde c r e ei sv oi dabl eathi s opt i on butnotadeed ofdi ssol ut i on ofpart ner shi p wi t hi nt entt odef eat t hec r e di t or s .

16 Smt. Phoolan Devi v. Surendra Prakash, A.I.R. 1983 All. 440, 17 Transfer of Property Act 1882 Sec 53 (1) para 1. Nothing in this statutory provision will affect anv law for the time being in force relating to insolvency: Transfer of property Act 1882 Sec 53(1) para 3. 18 Transfer of property Act, 1882 Sec 53 para 4. See Anantha Raman Pillai V. Arunachalam AIR 1952 TC 105.


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CONTINGENCIES OF FRAUDULENT TRANSFER

Pr esumpt i on off r audul enti nt ent i on: Theexi st enceofaf r audul enti nt enthast obepr ovedand woul d notbepr es umedbyt hecour t .Each cas ehast obedeci ded on i t sown mer i t s,butwher et het r ansf er eewasi nembarr assedci r cumst ancesand t het r ansf eri sbet weennearr e1at i onsormember sofasmal lcommuni t y; ort he t r ansf erwas a cov erup pr i mari l yt or et ai nt he benefitf ort he t r ansf er orunl esst hebenefiti sverysmal l ,t hesewoul d beevi dencesof f r audul ent i nt ent i on but mer el y because t he t r ansf er was wi t hout consi der at i ons;orwas f ordi schargeofa bona t i dedebti n accordance wi t hf ami l ypol i c yorwast oa f emal ede sc endanti n abse nceofpr ese nt 19 debt swoul dnoti ndi cat ef r aud.

I nt entTodef eatordel aycredi t ors: Thei nt ent i onmus tbet odef eatorde l ayt hec r edi t or sgener al l y , t hati s ,al lt hec r e di t o r sore v e nas i ng l ec r e di t o rbutame r epr e f e r e nc eof o neov e rt heot he rc r e di t o ri sno te no ug hf o rt heappl i c at i o no ft hi sr ul e unl ess t he t r ansf er ee shar es a f r audul enti nt ent i on"ori ti s wi t ht he i nt ent i on t o def eat a part i cul ar cr edi t or’ si nt er est,Wher et he pri ce r e al i s e df r o mo neoft hec r e di t o r si sc ons i de r a bl yi ne x c e ssoft hede bt sor wher eafic t i t i ousdebti si nc l uded i nt heconsi der at i on orwher emor e 19 Maung Din v. Ma Hnin Me AIR 1925 Rang 2278.


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pr o pe r t yi st r ans f e r r e dt han ne c e s s ar y ,i ti san e v i de nc eofan i nt e ntt o de f e att hecr e di t or sg ene r al l y . Theme r ef actt hatapor t i on oft hepr oper t yi st r ansf er r edi si mmat er i al unl ess t her ei s cogentprooft hatt her ei s ot herpr opert yl ef twhi ch i s suffici enti n val ueand easi l y avai l abl ef ort hecredi t ors.I nadequacy of consi der at i on may not i t se l f be suffici ent t o make t he t r ansac t i on 20 v oi dabl e.

Such i nt ent i on can be pr ov ed by ci r cumst ant i alev i dence .The evi dencer equi r edt osubst ant i at ef r audmustnecessari l yvaryaccordi ng t ot heci r cumst ancesofeach case.Themer ef actt hatat r ansf eri smade wi t houtcons i der at i on wi l lnotnec es sar i l yl ead t oan i nf e r encet hatt he t r ansf erwas made wi t ht he i nt ent i on ofdef r audi ng t he cr edi t or .The f o l l o wi ngf ac t o r sma yber e l e v antt oac o nc l us i o nt hatt het r ans ac t i o ni s notbonafide( i )

t hedebt orsel l sal lhi spr oper t ykeepi ngnot hi ngt ohi msel f ;

( i i )t hecons i de r at i oni sgr o s sl yi nade quat e ; ( i i i )t het r a ns f e ri smadese cr e t l yandi nhas t e ; ( i v )t het r a ns f e r o rput sal lhi spr o pe r t youto ft her e ac ho ft ho se whomi ghtbe comehi sc r edi t or sbe f or ee mbar ki ngonsome hazar dousent erpri se. But e ach oft he abov ef act or s mus t be consi der ed al ong wi t h ot her ci r cumst ance s oft he case .Howev ers uspi ci ous a t r ansact i on may be, t her emustbecogentevi denceoff r aud.Themer ef actt hatdebt saredue 20 Kedarwati v Radhey LalAIR 1937 Pat 609,170 lC 353, (1936) Pat WN 898.


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f r om t he t r ansf er ori s notby i t sel fsuffici entt o est abl i sh a f r audul ent i nt e nt i on.

I tmust ,howeve r ,benot ed t hati fa per son acqui r espr oper t yf orval ue andi ngoodf ai t h,t hati s,wi t houtbei ngapart yt oanydesi gnont hepart o ft hatt r ans f e r o rt o de f e ator de l a yc r e di t o r s ,hi sr i g ht s wi l lno tbe affect edal t hough t het r ansf er or' si nt ent i on mi ghthavebeen f r audul ent . I nf ac t ,whe ne v e rSe c t i o n 53i sappl i e di ti st het r ans f e r e ewhoul t i mat e l y suffer spr ovi ded he knew oft he f r audul enti nt ent i on oft het r ansf er or . Theknowl edgeand i nt ent i on oft het r ansf er e ear et hemai nf act or s.I n 21 Pal amal ai v . The Sout h I ndi an Expor t Co. , A bei ng i n financi al

di fficul t i eswi shed t o conver thi spr oper t yi nt ocash soas t oconceali t f r om hi s cr edi t or s. B bei ng awar e of A' s obj ec t ass i s t ed hi m by pur chasi ngt hepr opert y .Thesal ewasvoi dabl eundert hi ssect i on.

I n or dert ot ake outt he case f r om t he oper at i on ofSect i on 53,i ti s, howev er ,e ss ent i al t hat t he debt or must not r es er ve any benefit f or hi ms e l f .I ft hede bt o rs e l l spr o pe r t yt oano t he rc r e di t o rt odi s c har g et he debtduet ohi m and t hepr i ceobt ai nedi sconsi der abl yi n excessoft he 22 debtdi schar ged,t hi swoul dbeevi denceofi nt entt odef r aud.

The t er ms ofSect i on 53 ( 1)ar e sat i sfied ev en i ft he t r ansf erdoes not ' de f e at 'buto nl y' de l a ys 't hec r e di t or s .The r e f or e ,t hef ac tt hatt hee nt i r e 21 (1910) 33 Mad. 334 : 5 I.e. 33. 22 Hanifa Bibi v. Punnamma, (1907) 17 Mad. L.J.11.


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pr oper t y oft he debt or was notsol d,does notby i t sel fnegat i ve t he appl i c abi l i t yo fSe c t i o n 53 ( 1)unl e s st he r ei sc o ge ntpr o oft hatt he r ei s ot herpr opert yl ef tsuffici enti n val ueand ofeasyavai l abi l i t yt or ender 23 t heal i e nat i o ni nque s t i oni mmat e r i alf o rt hec r e di t or s .

Tr ansf e rpar t l yf orge nui neconsi der at i onandpar t l yf r audul ent : Whe r ei n at r ans f e r ,t woc ons i de r at i onsar es t at e d oneofwhi c hi s v al uabl eand s e par abl ef r o m t heo t he r ,e ffe c twi l lbeg i v e ni nt he i ns t r ume ntt ot hee x ac ta mo unto fc o ns i de r a t i o n whi c hi sv a l ua bl e and t o t he e xt e nt t he t r ansac t i on c annot be r e g ar ded as 24 f r a udul e nt out wher e a subst ant i al port i on i sf or f r audul ent

i nt e nt i o no rt het wopa r t sa r eno ts e pa r a bl e ,t hewho l et r a ns a c t i o n woul dbev oi dabl e .

Appl i cabl easRul eofJus t i ce,Equi t yandGoodConsci ence:

Thepr i nci pl eofs53 hasbeen adopt ed i nt hePunj ab wher et heTP Act wasnoti nf or c e,andwasal sof ol l owedi nBombaybef or et heTPAc twas e xt e nde dt ot hatPr e s i de nc y .

23 Abdul Shukoor Saheb v. Arti Papa Rao. A.I.R. 1963 S.C. 1150

24 Rajani Kumar Dass v Gourkishore Shaha (1908) ILR 35 Cal 105l.


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I thas,however ,been hel dt hatt her equi r ementt hatanysui tfil edt oset asi de a f r audul entt r ansf ermustbe a r epr esent at i ve sui t ,wi l lnotbe 25 i nsi st eduponi nPunj abast hati samer et echni cal i t y .

Cr edi t or : The wor d' cr edi t or 'has bee n use di nt hi s sect i on i n some whatwi de s e ns e .Thus ,i ti nc l ude sal lt ho s ewhoar ec r e di t o r satt hedat eoft r ans f e r as wel l as t hos e who bec ome cr edi t or s subse quent t ot he dat e of 26 f r a udul e ntt r ans f e r .

Furt her ,i ti ncl udesnotonl yt hosecredi t orswhohaveobt ai neddecr ees, 27 butal sot hosewhosecl ai mshav ey e tt obepr ov ed i n aCour t . On t he

ot herhand,a per son whocl ai msan unl i qui dat ed sum f ordamage sf or t o r to rbr e ac ho fc ont r ac ti sno tac r e d i t o r ,no rape r s onwho s ec l ai mf o ra debthasbecomet i mebarr ed.

Par t i t i on: Thi s s ec t i on has bee n appl i ed t o cases of par t i t i on. The cor r ec t nes s of t hes e dec i si ons was a ques t i on canvass ed bef or et he

25 Badri Dass v Chunilal (1961) 63 Punj LR 319,AlR 1961 Punj 398; Shallo Devi v Mobinder Singh AIR 1971 P&H 325.And see State of Punjab v Giani Bir Singh (1968) ILR 1 Punj 10 ,AlR 1968 Punj 479. 26 Ram Das v. Debu, A.I.R 1930 All. 610. 27 Islvar v. Devar, 30 Bom.146.


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28 Supr emeCour ti nSari nv .Popl ai , butt heSupr emeCour tdecl i nedt ogo

i nt ot heque s t i o n.

Thec or r ec tvi e w,i ti ssubmi t t ed,i st hatapar t i t i oni snotat r ans f er ,and, t he r e f o r e ,no ts t r i c t l y wi t hi nt he Se c t i o n,butt hatt he pr i nc i pl eo ft he Se c t i o n appl i e st oaf r audul e ntpar t i t i o n.Whe r et heobj e c to ft het r ans f e r i snotmer el yt ogi vea sharerhi sri ght f ulshar ei nt hef ami l ypr opert y , butt oe ffec tt hepar t i t i on i n suc h awayt hatsuc h shar e rwoul dbeabl e t ode f e att hec r e di t o r s ,asf o ri ns t anc e ,t oal l o tt ohi m pr o pe r t i e swhi c h t hecr edi t or swoul dnotbeabl et ot ouchandwhi chhewoul dbeabl et o ke e pf o rhi ms e l f ,i ti scl e ar l yat r ans ac t i o n whi c hf ul fil st her e qui r e me nt 29 oft he Sect i on. Ar ef er encet o ar bi t r at i on whi ch l ed t o an awar d and

decr eef orpart i t i on bywhi ch t hef at herr ecei vedan al l owancei nl i eu of hi ssharei nt hef ami l ypr oper t y ,washel d nott obevoi dabl eundert hi s sect i on ast her ewer enodebt si n exi st enceatt het i meoft heref er ence, and as t he obj ec twas nott o def eatcr edi t or s,butt o saf eguar dt he i nt e r e s t sofami no rs o n. A par t i t i on whi c h doesnotpr ov i def ort hepaymentofa Hi ndu f at he r ' s debti smal a fide,and may be avoi ded by a cr edi t ori n proc ee di ngsi n e x ec ut i onofade c r e eag ai ns tt hef at he r .Si mi l ar l y ,i napar t i t i o ni nwhi c h nopr oper t ywasal l ot t edt ot hef at herwhowasi ndebt ed,i twashel dt hat t he part i t i on was i l l usory ,al t hough t he sons wer e di r ect ed t o pay t he 28 1966 1 SCR 349, AIR 1966 SC 432. 29 Vinayak v. Mureshwar AIR 1994 Nag. 44.


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30 f at he r ' s de bt s . Wher et her ei s part i t i on i n aj oi ntHi ndu f ami l y ora

r e l e as ede e dbyani nde bt e dc o par c e ne r ,S53i sat t r ac t e d,i ft heo bj e c to f t he al l ot mentofshar et o such copar ce neri st o hel p hi m def eathi s cr edi t or s.Eve n assumi ng t hatpart i t i on i n a Hi ndu f ami l y and r el ease dee d by a co par ce neri nr es pec tofhi s shar e does notamountt oa ' t r ansf er 'wi t hi nt he meani ng ofS 5 and,t her ef or e,i s notwi t hi nt he pur v i e wo fs53,t hepr i nc i pl eoft hes e ct i o nc anbei nv o ke d.I ft heobj e c t ofa gi ven i nst r umentofa part i t i on ora r el ease deed i s nott o gi vea s har e rhi sr i g ht f uls har ei nt hef ami l ypr ope r t i e s ,butt oe ffe c tapar t i t i o n i nsuchawayt hats uchasharerwoul dbeabl et odef eatt hecr edi t ors ,i t woul damountt oaf r audul entpar t i t i on.

Waqf : A deedofwaqfexec ut edasadevi cet oputpr oper t youtoft he r each ofcr edi t orshas been hel dt o bea t r ansf ert o whi ch t hi ssect i on appl i es,t he cour tobser vi ng t hatS 53 does noti nf r i nge any r ul e of Mahomedan l aw,f orundert hatl aw noper so n can makea waqfofhi s ent i r e pr oper t y wi t hout maki ng ar r ange ment sf or t he paymentofhi s debts.31I n such acase,i ti si mmat eri alt hatt het r ansf eri sval i d under Mahomedanl aw. I ti sopen t oadebt ort opr ef eroneormorecr edi t orsovert heot her si n t hepaymentofhi sdebt s,and sol ong as her et ai nsno benefiti nt he 30 Picha moppanar v. Vetu Pillai, AIR 1947 Mad 203. 31 See Har prasad v. Mohammad Usman 1942 All LJ 645.


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pr oper t y ,t he mer e ci r cumst ancet hatsome cr edi t or s st and pai d whi l e ot her sr emai nunpai d,doesnotat t r actt hepr ovi si onsofS53. Wher ei twas f ound t hatt he sal e oft he asse t s oft he company was effect edf ort hepur poseofdi schar gi ngt hedebt spayabl ebyt hecompany andt hatt heconsi der at i on wasnoti nadequat e,i ti si mmat eri alt hatt he t r ansf erwaseffect edi nf avourofaper sonwhowasnotacredi t or . A debt orcan pr ef eronec r edi t orov e rot he r si nt hepayme ntofhi sdebt s. Sol ongasher et ai nsnobenefiti nt hepr oper t y ,t hemer eci r cumst ance t hats ome cr edi t or s st and pai d whi l e ot her sr emai n unpai d,doesnot i nval i dat et he t r ansf er . Sal e of asse t s by a company f or adequat e consi der at i on i s noti nval i d mer el y because i ti si nf avourofa non32 c r edi t or .

Pl eaofdef encebasedonSect i on 53:

The f ol l owi ng case oft he Supr eme Cour ti si l l us t r at i v e ofa pl e a of def encebasedonSect i on53oft heTransf erofPr opert yAct : I mmaniAppaRaov .Cool apal iRaml i ngmur t hy33,Thedef endantV t hef at herand manageroft hej oi ntHi ndu f ami l y)had suffer ed heav y l oss esi nt he busi nes s conduct ed by hi m wi t ht he r es ul tt hathe was i ndebt edt ot heext entofsever alt housandrupees.

32 Union of India v. Rajeswari & Co. AIR 1986 SC 1748. 33 A.l.R. (1962) S.C. 370: (1962) 3 S.C.R. 739.


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Appr ehendi ng t hatt he pr oper t i es woul d be l os tt ot he f ami l y att he i nst anceofhi scr edi t or s,heexecut ed acol l usi veand nomi nalmort gage de e df o rRs1, 000i nf a v ouro ft hepl ai nl i ffG.

Thee xe cut i on oft hesai d col l usi v edocumentbe t wee n V and G camet o t hekno wl e dg eofs o meoft hec r e di t o r sandi tl e dt oani ns o l v e nc ype t i t i o n agai nstV byoneoft hecr edi t ors.I nt hesei nsol vencypr oceedi ngs,V was adj udi cat ed i nsol ventand t hepr oper t i esofV wer esol dt oG subj ectt o af oresai dnomi nalmort gagei nf avouroft hepl ai nt i ff.Real l yK pur chased t hepr oper t ywi t h hi sown moneybutbenamii nt henameofG on t he condi t i on t hat G woul dr ec onve yt he pr oper t i es t ot he f ami l y of V whene v e rcal l ed upon t o doso.I n pur suanceoft hes ai d sal e deed t he pl ai nt i ff G obt ai ned posse ss i on buts ubse quent l yV t r es passe d on t he pr oper t i es and di sposse ss ed.G.Lat eron t he pl ai nt i ff G fil ed a sui t ag ai ns tV f o rde c l ar at i o no fhi st i t l eand f o rr e c o v e r yo fpo ss e s s i o n.The def endantpl eadedt hatt hedocumentexecut ed i nf avouroft hepl ai nt i ff wasnomi nalandcol l us i v eandwasnots uppor t edbyanyconsi der at i on. I no t he rwor ds ,t hemat e r i alf ac t si nbr i e fwe r et hat : ( a)Thet r ans ac t i o ni nf a v ouro ft hepl ai nt i ffwast her e s ul to fa f r audul entpl an t owhi chbot hheandt hedef endantagr ee" , ( b)Thi st r ansact i onwaseffect edwi t ht hemut ualconsentoft he v e ndorandt hev endeet odef r audt hecr e di t or soft hev endor . ( c)Sot het r ansf erwasnotsupport edbyanyconsi der at i onsand


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t he t r ansf er ee agr ee d t o act as t he benami dar unt i lt he t r ans f e r o rr e qui r e dhi mt or e c o nv e yt hepr o pe r t i e st ohi ss o ns . ( d)Theobj e c ti nt e nde dt obeac hi e v e dandt hef r audi ni t i al l y cont empl at edbybot ht hepart i est ot hesui thad beenachi eved andt hecr edi t or soft hedef endanthadbeendef r auded. ( e)Thus,bot ht he part i es t ot he sui twer e conf eder at ed i nt he f r audandwe r ee qual l ygui l t yoff r aud.

I twashel dbyt heSupr emeCour tt hat : ( i )

Ther ec anbenoques t i onofes t oppelf ort hedef endantf r om pl eadi ngi nt hesui tf r audandabsenceofconsi der at i on.The r eason i st hatt hef r audi n ques t i on wasagre edbybot ht he par t i es who had assi s t ed each ot her i n car r yi ng out t he f r a ud.

( i i )

Wheni ti ssai dt hataper soncannotpl eadhi sownf r aud,i t r eal l ymeanst hataper son cannotbe permi t t ed t o go t oa Co ur to fl a wt os e e kf o ri t sas s i s t anc eandy e tbas ehi sc l ai m f ort heassi st anceoft heCourtont hegroundofhi sf r aud.

i i i )Thepl ai nt i ffc anbes ai dt obegui l t yofado ubl ef r a ud: ( a)hej oi nedt hedef endanti nhi sf r audul entschemeand part i ci pat edi nt hecommi ssi on off r audt heobj ectofwhi chwas t ode f e att hec r e di t o r soft hede f e ndant ; ( b)hecommi t t edanot herf r audi nsuppr ess i ngf r om t heCour tt he


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f r audul ent char act er oft he t r ansf er when he made out t he cl ai m f orr ecover yofpossessi on.Theconvey ancei n hi sf avour wasnotsuppor t ed byanyconsi de r at i on and wast her e sul tof t hef r a udand,t he r e f o r e ,c onv e y snot i t l et ohi m.Y e t ,i ft hepl e a off r audi snotal l owedt oberai sedi n def ence,t hecourtwoul d, i n subst ance ,begi vi ngeffec tt ot hedocumentwhi ch wasvoi d ab i ni t i o. Ther ef ore ,t he paramount consi der at i on of publ i c i nt er estr equi r est hatt hepl eaoff r audshoul dbeal l owed t obe r ai sed and t r i ed and,i fi ti s uphel d,t he es t at e shoul d be al l owedt or emai n wher ei tr est s.Theadopt i on oft hi scour sei s l e s si nj ur i o ust o publ i ci nt e r e s tt han t heal t e r nat i v eco ur s eo f g i v i nge ffe c tt oaf r a udul e ntt r ans f e r . The t er ms ofSect i on 53 ( 1)ar e sat i sfied ev en i ft he t r ansf erdoes not " de f e at "butonl y" de l a ys "t hecr e di t or s . Thef ac tt her e f or et hatt heent i r e t yoft hedebt or ' spr ope r t ywasnotsol d c anno tbyi t s el fne gat i v et heappl i c abi l i t yofSe ct i on53( 1)unl e sst he r ei s cogentpr ooft hatt her ei sot herpr opert yl ef t ,suffici enti n val ueand of e as ya v ai l abi l i t yt or e nde rt heal i e nat i o ni n que s t i o ni mmat e r i alf o rt he 34 c r e di t or s .

GoodFai t handconsi der at i on: I ft he cr edi t orsest abl i shed t hatt he t r ansf erwas made wi t ht he o bj e c to fde f e at i ngt he m,t hebur de ns hi f t son t het r ans f e r e et opr o v e :( i )

34 Abdul Shakoor Sahib v. Arji Papa Rao, AIR 1963 SC 1150.


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t hathe had pai di tf ai rpri ce,and ( I i )t hathe was nota part yt ot he f r a ud. Thet er m' consi de r at i on'asus edi nt hi ssec t i onhast hes ameme ani ngas i t has i nt he Cont r act Act and t her ef or e exc l udes nat ur al l ove and affe c t i o n.T r a ns f e r sf o rnat ur all o v eanda ffe c t i o nandt r e at e dast r ans f e r s wi t houtconsi de r at i on. Wher et hef r aud on t hepar toft het r ansf er ori ses t abl i shed,t he bur den ofpr ovi ngt hatt het r ansf er eef al l swi t hi nt hee xcept i on i supon hi m,and,i nordert osucceed,hemustest abl i sht hat ( a)hewasno tapar t yt ot hede s i g no ft het r ans f e r o r , ( b)hedi dnotsharet hei nt ent i onwi t hwhi cht het r ansf erhasbeen affect ed,and ( c)het ookt hesal ehonest l ybel i evi ngt hatt het r ansf erwasi nt he or di naryandnormalcour seofbusi ness . When oncet hec oncl usi on i sr eac hed t hatt het r ans ac t i on wase ffec t ed wi t ht hei nt e nton t hepar toft het r ansf er ort oconv e r tt hepr ope r t yi nt o eac h so as t o def eat or del ay hi s cr edi t or s, t hen t he f ol l owi ng c i r c ums t anc e spr o v et hatt hepl ai nt i ffs har e dt hati nt e nt i o n: ( i )

Thepl ai nt i ff andt hev endorbel ongt ot hes amec ommuni t y , asmal l ,compactandwel lkni tone,andt heymustobvi ousl y haveknowneachot herhavi ngbeeni nt r adef ors ever alyear s i n sev er alpl acesi n common andmust ,t her ef or e,havebeen wel lacquai nt ed wi t ht he financi aland busi nes s affai r s of e ac ho t he r .


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( i i )

Thepl ai nt i ffadmi t t edl yhadwi t hhi m acopyoft hedeedof di ss ol ut i on whi ch di sc l oses t hat t he fir m' s busi nes s had r e s ul t e di nl o ss e sandt hati twasg r e at l yi nde bt e d,t hede bt s amount i ngt oRs.2l akhs.Ev enwhent hepl ai nt i ff wasfixe d wi t h not i cet hatt hefir m' sbus i nes shad been r unni ngata l ossandhad accumul at edave r yl ar gevol umeofdebt s,t he pur chaserdi dnoti nsi stt hatt heconsi der at i onwhi chhewas pa yi ngs ho ul dbeut i l i s e df o rt hedi s c har g eofatl e as ts o meo f t hedebt s.

( i i i ) Thepr oper t yi ss i t uat edatVi zi anagram butt hedocumentof sal edeedwasregi st er edatMadr as.Thi swasavi ew t okeep t he t r ansact i on secr etf r om t he cr edi t ors,and t he pl ai nt i ff wasasmuc hapar t yt ot hese cr ec yast het r ansf er or . ( i v) Thepl ai nt i ff madet heenqui r i esbef or ehet ook t het r ansf er . Hel edevi dencet oshow t hatheconsul t edhi sl awyer sabout t he t i t l e oft he ve ndorbutany at t emptatan enqui r y of def endant4 ast owhyhewasaffec t i ngt hesal eoft heonl y i mmovabl e pr oper t y oft hefir m whi ch was al l ot t ed t o hi m unde rt hedi s s ol ut i o nde e di ss i g ni fic ant l yabs e nt . I nt heseci r cumst ances ,i ts t ands t or eason t hatt hepl ai nt i ff mustbe fixed wi t h not i ce oft he desi gn i n pur suance ofwhi c ht r ansf er was e ffe c t e d. I ft heo bj e c to fat r ans f e r o r ,whoi she a v i l yi nde bt e d,wast oc o nv e r thi s i mmovabl epr oper t yi nt ocash f orkeepi ngi tawayf r om hi scr edi t orand,


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knowi ng i t ,t het r ansf er eehel ped hi m t o achi evet hi spur chase,i thas nat ur al l yt o be hel dt hathe shar ed t hati nt ent i on and was hi msel fa par t yt ot hef r aud.The r e f o r e ,i thast obehe l dt hatt hepl ai nt i ffwasno ta t r ansf er eei n goodf ai t h andt hatt het r ansf eri t sel fwasaschemebyt he t r ansf er orwi t ht heknowl edgeand concur r enceoft het r ansf er eet oput pr o pe r t youto ft her e a c ho ft hec r e di t o r s .

Natur eofsui t : A cr edi t or ' ss ui tt oav oi d at r ansf ermus tbea s ui ton behal fnot onl yofhi msel f ,butoft hewhol ebodyofcr edi t ors( SeeOr der21,Rul e63, C. P. C. ) .Thi srul ehas been l ai d down wi t h a vi ew t opr ot ectt hedebt or f r om mul t i pl i ci t yofsui t sby each and everycr edi t or ,i ft her ear emore t hanone. I n a sui tt o avoi d at r ansf erundert hi ssect i on,t hei ssuest o be f r amedare:( 1)Wast het r ansf ermadewi t hi nt entt odef eatordel ayt he c r e di t or s ? ( 2)I fso,wast hepur chaserf r om suchadebt orat r ansf er eei ngood f ai t handf o rc o ns i de r a t i on? Theonusofpr ovi ng t he fir s ti ssuel i es on t he c r e di t or ,and'i ft hati s e s t abl i s he d,t heo nuso fpr o v i ngt hes e c ondi s s uei so nt het r ans f e r e e .

Sui tbyt r ansf eree:


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A t r ansf e rwhi c hi sv oi dabl eunderSe ct i on53( 1)oft heTr ansf e rof Pr oper t yActcan beavoi ded notonl ybya sui ti nst i t ut ed by a cr edi t or c hal l e ng i ngt het r ans f e ro nbe hal fo fhi ms e l fandt heot he rc r e di t o r s , butal s obywayofde f encet oasui tunde rOr der21,Rul e63C. P. C.bya t r ansf er ee ( cl ai mant ) whose pet i t i on was r ej ec t ed i n t he summar y pr oceedi ngunderOr der21,Rul es58t o61,C. P. C. I n or der t o av oi dt r ansf er whi c h come wi t hi nt he mi sc hi efof Sect i on 53 oft heTransf erofPr opert yAct ,i ti snotnecessary t hatt he per son who i nt ends t o avoi dt he t r ansact i on shoul d fil e a sui tf ort he purpose.Hemayaswel lmani f esthi si nt ent i on t oavoi dt het r ansact i on ot herwi set han byfil i ngasui t ,asf orexampl e,byat t achi ngt hepr opert y t r ansf er r ed.Hi s ve ryactofat t achi ng t he pr oper t y woul d be suffici ent 35 e vi de nc eofhi si nt e nt i ont oa voi di t .

Wher ei n asui tunde rSect i on 53,br oughtbyoneoft hecr edi t or s, t heheadi ngoft hepl ai ntdi d noti ndi cat et hatt hesui twas f orand on be hal fofal lot he rcr e di t or s,butt henamesofot hercr edi t or swhom t he pl ai nt i ff knew wer egi veni nt hebodyoft hepl ai nt ,t hepl ai nt i ff washel d 36 t oha v el o c uss t andit ofil et hes ui tandt hes ui ti smai nt ai nabl e .

Theappe l l antwass hown t o bet he onl y cr edi t or .Ther ewer eno ot her c r edi t or s . Hel d: 35Ashutosh Rath v. Vysyaraju Badareenarayan, (1972) 38, C.L.T. 857 [ A.I.R. (1963) S.C, 1150 rel. on. 36Talwar v. Adeshwar Lal, A.I.R. (1972) Delhi 122.


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“ Asacr edi t orhecoul dnotbedef r auded,becausehi sl oanswer esecur ed byt hemor t gagedeeds.A gi f ti nr espec tofpr ope r t i esal r eadymor t g aged coul d noti n anywaydef eatordel ayt hemor t gagee' sri ghtbecauset he doneeundert hegi f t deed coul d onl yt aket hepr oper t i essubj ectt ot he mort gages.

BI BLI OGRAPHY

Pr i mar ySources

1.AI R’ s 2.CLT 3.Tr ansf erofPr oper t yAct ,1882

Secondar ySources

1.Tr ansf erofPr oper t yActbyDr .GPTr i pat hi 2.Dr .Poonam Pr adhan Saxena ,Pr 2nd,Lexi sNexi s,New oper t y Law ( Del hi2011) 3.Sanj i va Row' sTr ansf erofPr oper t y Act( 7t h,Uni vers al ,New Del hi 2011)


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4.G. C.Bharuka,Mul ( 10t h, l a,The Tr ansf er ofProper t y Act1882 Lexi sNexi s ,New Del hi2006) 5.

Sol iJ.Sor abj ee,Darashaw JVaki l ' sTheTr ansf erofPr opert yAct : ( 4of1882) ( 3rd,Wadhwaand Company,New Del hi2009)

Websi t esRef er r ed:

1 . ww. ( St udyMater i al ) w du. ac. i n 2 . ww. w i ndi ankanoon. or g


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