Property law project on transfer of property to unborn child(1).rtf

TABLE OF CASES Basideo Rai’s case I.L.R. 46 ALL. 333. Girijesh Dutt v. Data Din AIR 1934 Oudh 35  14! I.". 991. #e$%raj v. &'s Barton ( "o.) A.I.R. 19!* +.". 1,!3. London ( +.-. Rai/a0 v. Go$$ 1,,2 2* "h. D. 562.  aar "hand v. #aiash "hand 1921 25 ".-. ".-.. . 2*1. ad$ana7han A00ar v. +ita Ra$ A00ar 1*6 I.". 15,. Ra$ Baran v. Ra$ &ohit A.I.R A.I.R 196! +.". !44. Ra$ e/a8 v. anoo anoo 1926 92 I" 4*1. -hit70 v. &itche.

2

SECTION 13: TRANSFER OF PROPERTY FOR THE BENEFIT OF AN UNBORN PERSON SECTION 5 OF THE TRANSFER OF PROPERTY ACT, 1882 %rovides that a transer  can occur on0 7et/een t/o ivin: %ersons i.e. inter vivos transer. +ection 13 is an e;ce%tion to this :enera rue on /hich the entire ?

A chid in $other’s /o$7 ?n ventre sa $ere rench /ord $eanin: chid in the $other’s /o$7 is dee$ed to 7e in e;istence ater tain: 7irth. +o in the /o$7) he is considered sti to 7e an un7orn or the  %ur%oses o transer o %ro%ert0. As %er +ection 2* o the
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PRIOR #IFE INTEREST: =or ie interest t/o conditions need to 7e uied

erson is actin: as a trustee ti the un7orn is 7orn i.e creatin: a C$echinar0 o interest. En7orn) ater 7ein: 7orn) 7eco$es a7soute o/ner o the %ro%ert0 /ithout %ossession /hich ies /ith the trustee. ossession /i on0 7e :iven /hen ie interest has e;hausted i.e. ater the death o the trustee. I the un7orn does not co$e into e;istence) %ro%ert0 /i revert 7ac to transeror and his e:a heirs. I the un7orn is 7orn even or a $inute and dies) %ro%ert0 /i :o to his e:a heirs ater the death o the %erson enjo0in: ie interest and not to the traneror. Illustratio: A transers ie interest in a %ro%ert0 to B i.e the %o/er to %ossess) enjo0 and use the inco$e o the %ro%ert0) not a7soute o/nershi%. And then ater 

B) A transers a7soute interest to B’s un7orn chid) ". !iri$%s& "utt '( "ata "i AIR 1)3* Ou+& 35 : 1* I(C( ))1(

A) o/ner o  %ro%ert0) :ited it to her ne%he/ "’s dau:hter as ie interest statin: that i she has a $ae descendant) he /i have a7soute interest in the %ro%ert0. And i e$ae) she /i have i$ited or ie interest in the %ro%ert0. Ater her) %ro%ert0 /i a7soute0 %ass to A’s ne%he/ ". e%he/’s dau:hter died issueess. It /as hed that the %ro%ert0 /i revert 7ac to A or his heirs as the :it $ade to " has aied 7ecause the $o$ent i$ited interest is :iven to an un7orn %erson) it /i 7e void.
+ection 13 ao/s transer o on0 an a7soute interest to the un7orn %erson. But under ?n:ish La/ the situation is not the sa$e.
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the %ro%ert0 under co$$on a/. But the second un7orn $ust have an a7soute interest.
113. Beuest to %erson not in e;istence at testator’s death su7ject to %rior 7euest.H-here a  7euest is $ade to a %erson not in e;istence at the ti$e o the testator’s death) su7ject to a  %rior 7euest contained in the -i) the ater 7euest sha 7e void) uness it co$%rises the /hoe o the re$ainin: interest o the testator in the thin: 7eueathed. Iustrations ro%ert0 is 7eueathed to A or his ie) and ater his death to his edest son or ie) and ater the death o the atter to his edest son. At the ti$e o the testator’s death) A has no son. >ere the 7euest to A’s edest son is a 7euest to a %erson not in e;istence at the testator’s death. It is not a 7euest o the /hoe interest that re$ains to the testator.
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A und is 7eueathed to A or his ie) and ater his death to his dau:hters) /ith a direction that) i an0 o the$ $arries under the a:e o ei:hteen) her %ortion sha 7e setted so that it $a0 7eon: to herse or ie and $a0 7e divisi7e a$on: her chidren ater her death. A has no dau:hters ivin: at the ti$e o the testator’s death) 7ut has dau:hters 7orn ater/ards /ho survive hi$. >ere the direction or a sette$ent has the eect in the case o each dau:hter /ho $arries under ei:hteen o su7stitutin: or the a7soute 7euest to her a 7euest to her $ere0 or her ie that is to sa0) a 7euest to a %erson not in e;istence at the ti$e o the testator’s death o so$ethin: /hich is ess than the /hoe interest that re$ains to the testator in the thin: 7eueathed.
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SECTION 1*: RU#E A!AINST PERPETUITY SECTION 1* is 7asica0 an e;tension o +ection 13. =ree o/ o %ro%ert0 is a $ajor  co$%onent o %u7ic %oic0. Cer%etuit0 is a i$itation /hich %aces the %ro%ert0 orever out o reach o the e;ercise o %o/er o aienation. S%0tio 1* r%'%ts ro%rt ro4 6%i ti%+ u or%'%r si0% la7 6%li%'%s i ali%atio ra&t%r t&a a00u4ulatio( ANA#YSIS OF SECTION 1*:

o/ever) $a;i$u$ re$oteness o such interest o the un7orn in the %ro%ert0 that can 7e created 70 the transeror is u%ti the a:e o $ajorit0 i.e. 1, 0ears) ater  /hich the interest 7eco$es vested) even i an a:e $ore than 1, 0ears is $entioned in the a:ree$ent 70 the transeror.

+ection 14 ao/s dea0 o the vestin: o interest in the un7orn %erson /ho /as not 7orn at the date o transer o interest durin: his $inorit0 %eriod i.e. interest vested 7e0ond 1, 0ears o a:e /oud 7e void.
$inorit0.


1

 Singh Avatar, “The Transfer of Property Act”, Universal la P!"lishing #$% P&T% 'T(%, Allaha"a) ,*2++6, p 64

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2.

Kestin: o interest in avour o uti$ate 7eneiciar0 $a0 7e %ost%oned on0 u% to the

ie or ives o ivin: %ersons %us $inorit0 o uti$ate 7eneiciar0 7ut not 7e0ond that.

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=or e;a$%e) A transers certain %ro%ertied to B or ie and then to " or ie and then to an un7orn %erson /hen he attains the a:e o $ajorit0. B and " are ivin: at the date o transer and un7orn) the uti$ate 7eneiciar0 is not in e;istence even in $other’s /o$7.
case o a chid in $other’s /o$7) ie o " %us %eriod o :estation  plus %eriod o $ajorit0. POSITION UN"ER EN!#ISH #A/:

Ender ?n:ish La/) the s%eciied a:e or an un7orn or acuirin: interest in the %ro%ert0 is 21 0ears. I an a:e $ore than 21 0ears is s%eciica0 $entioned 70 the transeror) the transaction is sti vaid. >o/ever) the interest 7eco$es vested /hen the %erson turns 21. In ?n:ish La/) vestin: o %er%etuit0 $a0 7e %ost%oned or an0 nu$7er o ives in 7ein: and an additiona ter$ o 21 0ears ater/ards) irres%ective o the $inorit0 o the %erson entited. Ender Indian La/) ho/ever) as reuired under section 13) such uti$ate 7eneiciar0 $ust 7e  7orne 7eore the ter$ination o the ast %recedin: interest. Accordin:0 there shoud not 7e an0 interva 7et/een the ter$ination o %recedin: interest and its conseuent vestin: in the uti$ate 7eneiciar0 vestin: o interest cannot 7e %ost%oned even or a $o$ent. B0 /a0 o rea;in: this strict rue o section 13 it is %rovided in section 14 that vestin: o interest $a0 7e  %ost%oned 7ut not 7e0ond the ie o %recedin: interest and $inorit0 o the uti$ate  7eneiciar0. -here %ro%ert0 is $ade to vest /ithin the %eriod %rescri7ed in this section) the transer is vaid. An0 dea0 7e0ond this %eriod /oud $ae the transer void. Accordin:0 /here a %ro%ert0 is transerred to A or ie and then to un7orn %erson /hen he attains the a:e o 19 0ears) the transer to E.B is void under section 14.

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Additiona %eriod is conined to the $inorit0 o the %erson concerned. =or e;a$%e) a :rant is $ade to A or ie and re$ainder to A’s edest son) three 0ears ater death o A. +u%%ose on A’s death) son is $ajor. In this case) vestin: is %ost%oned or three 0ears in :ross. But in Indian La/) it is void since the 7eneiciar0 /as not a $inor on e;%ir0 o ie in 7ein:.

th

Sinha, .%/, “The Transfer of Property Act” ,#entral la Agency Allaha"), 14  e), p 1++ S!pranote 1, pg0 64

S!pranote 2, pg0 1+1



PERPETUITY E.P#AINE" /ITH THE HE#P OF A "IA!RA-: eyon) Stage 4 the property goes to the !ltiate "eneciary

STA 1 STA 2 STA 3 STA 4 *life tie of  *living persons or tie *irth of the !ltiate *7inority of   Transferor given to prior estate hol)ers transferee !lti3ate transferee,

At +ta:e 1 and 2) the transeror is ree to %ut an0 condition and $a0 transer the %ro%ert0 to one or $an0 concurrent0 or consecutive0) or a da0) $onth) 0ear or ie $a;i$u$ %rior estate is ie estate.

1(

-hie e;a$inin: the transer o %ro%ert0 under +ection 14) courts oo at the %ossi7e events accordin: to the ter$s o the deed and not on actua events on the date o transer.

5

In Ram Newaz case )  R had a share in a via:e /hich he sod to the deendant reservin: t/o  7i:has o and to hi$se under the oo/in: condition C
 *1826 82 9# 4+1%

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have no ri:ht to transer the and e;cuded i none o $0 inea descendants 7e aive then and sha 7e the o/n %ro%ert0 o the vendee.
>ere ’s interest de%ended u%on $ae inea descendant. Interest on $ae inea descendant is void) since 0ou cannot $ae a transer /ithhodin: the %o/er o aienation) thereore) ’s interest is void and  cannot cai$ the %ro%ert0. I +%0i+i ?u%stios o r%4ot%%ss, r%ar+ 4ust 6% &a+ to 6% ossi6l% a+ ot to 6

a0tual %'%ts % -here at the ti$e o transer o %ro%ert0 there is %ossi7iit0 or  %ro7a7iit0 that in uture it /oud 7e a transer in %er%etuit0) the dis%osition sha 7e void even i at

the ti$e o actua vestin: o interest there is no vioation o rue a:ainst %er%etuit0. #o+o @ S(/( Rail7a '( !o44 ;1882= 2> C&( "( 5<2

!

,

In London & S.W. Railway v. Gomm  the %ainti Rai/a0 "o. no on:er reuired a %iece o and or the %ur%ose o the rai/a0 and 70 a deed o 1,65 conve0ed the and to G a7soute0. G covenanted that he and his heirs /oud at an0 ti$e) thereater) /henever the and /as reuired 70 the rai/a0 and ater si; $onths’ notice reconve0 the and to rai/a0s or 1** %ounds. In 1,!9) the deendant Go$$ %urchased the and ro$ G’s heir /ith notice o covenant. In 1,,* the ainti Rai/a0 :ave notice to ,

Go$$ to reconve0 the and and on his reusa sued or s%eciic %eror$ance o the covenant. #a0) M.) hed) that the covenant did not create an estate or interest in and and /as thereore) not aected 70 the rue a:ainst %er%etuit0 and decreed the suit.
.a :ea; v% :an
S!pranote 2, pg0 1+3 *12 2+ #h% (% 562%

1+

Basi+%o Rais Cas% I(#(R *< A##( 333( 9

e died and jain co$$unit0 cai$ed it ro$ the co$in: :eneration.
 In Ram Baran rasad v. Ram !o"it #azra  , the "ourt considered /hether covenant o %reJ e$%tion contained in an ar7itration a/ard vioates the rue a:ainst %er%etuit0 and /hether the sa$e is 7indin: on assi:nees or successorJinJinterest o the ori:ina contractin: %arties.
9%'%.% 46 A''% 333% A%9%. 186- S%#% -44

11

 %reerence to the other %art0 that is each %art0 sha have the ri:ht o %reJe$%tion 7et/een each other.N Ater the ar7itration a/ard 7eca$e rue o the court) i:h "ourt /hich /as dis$issed. Beore this "ourt) it /as ar:ued that the covenant or %reJ e$%tion /as $ere0 a  %ersona covenant 7et/een the contractin: %arties and /as not 7indin: a:ainst successorsJinJ interest or the assi:nees o the ori:ina %arties to the contract. 1

A s"e$aits o a te$%e a:reed to a%%oint the a$i0 o " as  pu%aris or :eneration to :eneration to %eror$ the services in the te$%e and $ade %rovision or the e;%enses and re$uneration o the oice. It /as hed that t&% ar%%4%t is 'ali+ a+ ot a%0t%+ 6 t&% rul% aaist %r%tuit si0% o it%r%st i t&% ro%rt o t&% t%4l% is 0r%at%+( Pa+4aa6&a Aar '( Sita Ra4 Aar 1>< I(C( 158(

11

A covenant o rede$%tion in a $ort:a:e does not oend the rue. 12

In admana$"an yyar v. Sita Ram yyar ,  it /as hed that the rue a:ainst %er%etuities a%%ies on0 to the cases /here there /as a ne/ interest in i$$ova7e %ro%ert0 conte$%ated to 7e created ater the e;%ir0 o the ti$e %rescri7ed 70 the rue and that in the case o a $ort:a:e) there /as no such uture interest in %ro%ert0 conte$%ated to 7e created 7ecause it /as o the ver0 essence o the $ort:a:e that the euit0 o rede$%tion /as a %resent interest in the %ro%ert0 in e;ercise o /hich aone the %ro%ert0 /as sou:ht to 7e redee$ed. >ouse o Lords is aso o the vie/ that the rue a:ainst %er%etuities had no a%%ication to $ort:a:es. %4ra$ '( -Ds Barto @ Co( A(I(R 1)> S(C( 183

Rue does not a%%0 to contracts or %er%etua rene/a o eases and aso a:ree$ents.

th

 Tripathi %P, “The Transfer of Property Act”, #entral la P!"lications, 11  e), Allaha"a), p 142% 1+6 %9%#% 15%

12

In a "ontract or ease) cause /hich %rovides or %er%etua rene/a o eases is not hit 70 this 13

section. In 'empra% v. !(s Barton & )o.,  the +u%re$e "ourt o India hed that a ease /ith a covenant or rene/a does not oend he rue a:ainst %er%etuit0.

14


15

-aa %ro%ert0 is static and nonJtransera7e 70 virtue o the -aa Kaidatin: Act o 1913. S%0tio 1* o t&% Tras%r o Pro%rt A0t, 1882 is 4ostl i+%ti0al to S%0tio 11* o t&% I+ia Su00%ssio A0t, 1)25( S%0tio 11* o t&% I+ia Su00%ssio A0t also las +o7 t&% Rul% aaist P%r%tuit 6ut ol i 0as% o tras%r o ro%rt to a u6or %rso t&rou& a 7ill( S%0tio 11* o I+ia Su00%ssio A0t ro'i+%s t&at:

114. Rue a:ainst %er%etuit0.Ho 7euest is vaid /here70 the vestin: o the thin:  7eueathed $a0 7e dea0ed 7e0ond the ieJti$e o one or $ore %ersons ivin: at the testator’s death and the $inorit0 o so$e %erson /ho sha 7e in e;istence at the e;%iration o that %eriod) and to /ho$) i he attains u a:e) the thin: 7eueathed is to 7eon:. Iustrations A und is 7eueathed to A or his ie and ater his death to B or his ie and ater B’s death to such o the sons o B as sha irst attain the a:e o 25. A and B survive the testator. >ere the son o B /ho sha irst attain the a:e o 25 $a0 7e a son 7orn ater the death o the testator such son $a0 not attain 25 unti $ore than 1, 0ears have ea%sed ro$ the death o the on:er iver o A and B and the vestin: o the und $a0 thus 7e dea0ed 7e0ond the ieti$e o A and B and the $inorit0 o the sons o B.
A%9%.% 18-+ S%#% 1-3% Section 1 , Transfer of Property Act, 12% S!pranote 2, pg0 1+4

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testator) eavin: one or $ore sons. In this case the sons o B are %ersons ivin: at the ti$e o the testator’s decease) and the ti$e /hen either o the$ /i attain 25 necessari0 as /ithin his o/n ieti$e. ere the ti$e or the division o the und $ust arrive at the atest at the e;%iration o 1, 0ears ro$ the death o B) a %erson ivin: at the testator’s decease. A the 7euests are vaid. A und is 7eueathed to trustees or the 7eneit o the testator’s dau:hters) /ith a direction that) i an0 o the$ $arr0 under a:e) her share o the und sha 7e setted so as to devove ater her death u%on such o her chidren as sha attain the a:e o 1,. An0 dau:hter o the testator to /ho$ the direction a%%ies $ust 7e in e;istence at his decease) and an0 %ortion o the und /hich $a0 eventua0 7e setted as directed $ust vest not ater than 1, 0ears ro$ the death o the dau:hters /hose share it /as. A these %rovisions are vaid.

CONC#USION:
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BIBLIOGRAPHY  Avtar +in:h) C
Dr. G..
&ua) C
th

Dr. oona$ radhan +a;ena) Cro%ert0 La/) CLe;is e;is Butter/orths -adh/a) nd

 a:%ur) 2  ?d.