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TRANSFER OF PROPERTY ACT

Ministry of Law and Justice

Act nº 4 of 1882


  • Chapter 1
  • Chapter II. Of Transfers of Property by Act of Parties
  • Chapter III
  • Chapter IV
  • Chapter V
  • Chapter VI
  • Chapter VII
  • Chapter VIII. Of Transfers of Actionable Claims
  • Schedules
  • Amending Acts
  • Act nº 4 of 1882

Preamble

THE TRANSFER OF PROPERTY ACT, 1882

[Act, No. 4 of 1882]

[17th February, 1882]

PREAMBLE

An Act to amend the law relating to the Transfer of Property by act of Parties

WHEREAS it is expedient to define and amend certain parts of the law relating to the transfer of property by act of parties.

It is hereby enacted as follows:

Chapter 1

Section 1. Short title

This Act may be called the Transfer of Property Act, 1882.

Commencement.-It shall come into force on the first day of July, 1882.

Extent.-1 [It extends2 in the first instance to the whole of India except 3 [the territories which, immediately before the 1st November, 1956, were comprised in Part BStates or in the States of] Bombay, Punjab and Delhi.]

4 [But this Act or any part thereof may by notification in the Official Gazette be extended to the whole or any part of the 5 [said territories] by the 6 [State] Government concerned.]

6 [And any State Government may 7 [* * * * *] from time to time, by notification in the Official Gazette, exempt, either retrospectively or prospectively, any part of the territories administered by such State Government from all or any of the following provisions, namely: -

Sections 54, paragraph 2 and sections 3, 59, 107 and 123.]

8 [Notwithstanding anything in the foregoing part of this section, sections 54 paragraphs 2 and 3, 59,107 and 123 shall not extend or be extended to any district or tract of country for the time being excluded from the operation of the Indian Registration Act,9 [1908], (16 of 1908) under the power conferred by the first section of that Act or otherwise.]

1. Substituted by the A.O.1950, for the original third paragraph.

2. The application of this Act was barred in the Naga Hills District, including the Mokokchang Sub-Division, the Dibrugarh Frontier Tract, the North Cachar Hills, the Garo Hills, the Khasi and Jaintia Hills and the Mikir Hills Tract, by notification under Section2 of the Assam Frontier Tracts Regulation, 1880 (2 of 1880).

The Act has been declared to be in force in Panth Piploda by the Panth Piploda Laws Regulation, 1929 (1 of 1929), Section2, and continued in force, with modifications, in the territory transferred to Delhi Province by the Delhi Laws Act, 1915 (7 of 1915), Section3 and Schedule III. It has also been partially extended to Berar by the Berar Laws Act, 1941 (4 of 1941).

The Act has been extended with effect from 1st January, 1893, to the whole of the territories, other than the Scheduled Districts, under the administration of the Govt. of Bombay.

Section54, 107 and 123 have been extended from 6th May, 1935 to all Municipalities in the Punjab and to all notified areas declared and notified under Section 241 of the Punjab Municipal Act, 1911 (Pun Act 3 of 1911), see Punjab Gazette, Extra.,1925, p. 27. These sections and section 129 have been extended to certain areas in Delhi Province, see Notifications No. 198/38-III, dated 30th May, 1939, Gazette of India, 1939, Pt. I, p. 918, and No.61/40-Judl., dated 16th November, 1940, Gazette of India, 1940, Pt. I, p.1639, respectively.

The Act has been extended to Manipur by the Union Territories (Laws) Amendment Act, 1956 (68 of 1956).

It has been rep. as to Government Grants by the Government Grants Act, 1895 (15 of 1895) and rep. or modified to the extent necessary to give effect to the provisions of the Madras City Tenants Protection Act, 1921 (Mad Act 3 of 1921) in the City of Madras; see Section 13 of that Act.

It has been amended in Bombay by Bombay Act 14 of 1939, and in Uttar Pradesh by Uttar Pradesh Act 24 of 1954.

It has been extended to Pondicherry by Act 26 of 1968, Section 3, Schedule, Part I.

3. Substituted by the Adaptation of Laws (No. 2) Order, 1956, for " Part BStates ".

4. Substituted by the A.O. 1937, for the original paragraph.

5. Substituted by the Adaptation of Laws (No.2) Order, 1956, for "said States".

6. Substituted by Act 3 of 1885, Section1, for the original para.

7. The words " with the previous sanction of the Governor General in Council" omitted by Act 38 of 1928, Section 2 and Schedule I.

8. Added by Act 3 of 1885, Section 2 (with retrospective effect). Section54, paras 2 and 3 and Section59, 107 and 123 extended to every cantonment-see Section 287 of the Cantonment Act, 1924 (2 of 1924).

9. Substituted by Act 20 of 1929, Section 2 for "1877".


Section 2. Repeal of Acts-Saving of certain enactments, incidents, rights, liabilities, etc.

In the territories to which this Act extends for the time being the enactments specified in the schedule hereto annexed shall be repealed to the extent therein mentioned. But nothing herein contained shall be deemed to affect-

(a) the provisions of any enactment not hereby expressly repealed:

(b) any terms or incidents of any contract or constitution of property which are consistent with the provisions of this Act, and are allowed by the law for the time being in force;

(c) any right or liability arising out of a legal relation constituted before this Act comes into force, or any relief in respect of any such right or liability; or

(d) save as provided by section 57 and Chapter IV of this Act, any transfer by operation of law or by, or in execution of, a decree or order of a Court of competent jurisdiction;

and nothing in the second chapter of this Act shall be deemed to affect any rule of1[ * * * * *] Muhammadan2[ * * * * *] law.

1. The word " Hindu " omitted by Act 20 of 1929, Section 3.

2.The words " or Buddhist " omitted by Act 20 of 1929, Section 3.


Section 3. Interpretation-clause

In this Act, unless there is something repugnant in the subject or context,-

"immoveable property" does not include standing timber, growing crops or grass:

"instrument" means a non-testamentary instrument;

1 ["attested", in relation to an instrument, means and shall be deemed always to have meant attested by two or more witnesses each of whom has seen the executant sign or affix his mark to the instrument, or has seen some other person sign the instrument in the presence and by the direction of the executant, or has received from the executant a personal acknowledgment of his signature or mark, or of the signature of such other person, and each of whom has signed the instrument in the presence of the executant; but it shall not be necessary that more than one of such witnesses shall have been present at the same time, and no particular form of attestation shall be necessary:]

"registered" means registered in 2 [3 [any part of the territories] to which this Act extends] under the 4 law for the time being in force regulating the registration of documents:

"attached to the earth" means-

(a) rooted in the earth, as in the case of trees and shrubs;

(b) imbedded in the earth, as in the case of walls or buildings; or

(c) attached to what is so imbedded for the permanent beneficial enjoyment of that to which it is attached;

5 ["actionable claim" means a claim to any debt, other than a debt secured by mortgage of immoveable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in the possession, either actual or constructive, of the claimant, which the Civil Courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent;]

6 ["a person is said to have notice" of a fact when he actually knows that fact, or when, but for wilful abstention from an enquiry or search which he ought to have made, or gross negligence, he would have known it.

Explanation I. -Where any transaction relating to immoveable property is required by law to be and has been effected by a registered instrument, any person acquiring such property or any part of, or share or interest in, such property shall be deemed to have notice of such instrument as from the date of registration or, where the property is not all situated in one sub-district, or where the registered instrument has been registered under sub-section (2) of section 30 of the Indian Registration Act, 1908 (16 of 1908), from the earliest date on which any memorandum of such registered instrument has been filed by any Sub-Registrar within whose sub-district any part of the property which is being acquired, or of the property wherein a share or interest is being acquired, is situated:]

Provided that-

(1) the instrument has been registered and its registration completed in the manner prescribed by the Indian Registration Act, 1908 (16 of 1908), and the rules made thereunder,

(2) the instrument or memorandum has been duly entered or filed, as the case may be, in books kept under section 51 of that Act, and

(3) the particulars regarding the transaction to which the instrument relates have been correctly entered in the indexes kept under section 55 of that Act.

Explanation II. -Any person acquiring any immovable property or any share or interest in any such property shall be deemed to have notice of the title, if any, of any person who is for the time being in actual possession thereof.

Explanation III. -A person shall be deemed to have had notice of any fact if his agent acquires notice thereof whilst acting on his behalf in the course of business to which that fact is material:

Provided that, if the agent fraudulently conceals the fact, the principal shall not be charged with notice thereof as against any person who was a party to or otherwise cognizant of the fraud.

1. Inserted by Act 27 of 1926, Section 2, of 1926, Section 2 as amended by Act 10 of 1927, Section 2 and Schedule I.

2. Substituted by Act 3 of 1951, Section 3 and Schedule, for "a Part A State or a Part C State" (w.e.f. 1-4-1951).

3. Substituted by the Adaptation of Laws (No. 2) Order, 1956, for "any State".

4. See the Indian Registration Act, 1908 (16 of 1908).

5. Inserted by Act 2 of 1900, Section 2.

6. Substituted by Act 20 of 1929, Section 4 as amended by Act 5 of 1930, Section 2 for the original paragraph.


Section 4. Enactments relating to contracts to be taken as part of Contract Act and supplemental to the Registration Act.

The Chapters and sections of this Act which relate to contracts shall be taken as part of the Indian Contract Act, 1872 (9 of 1872).

1 [And sections 54, paragraphs 2 and 3, sections 59, 107 and 123 shall be read as supplemental to the Indian Registration Act, 2 [1908 (16 of 1908)].]

1. Added by Act 3 of 1885, Section 3.

2. Substituted by Act 20 of 1929, Section 5, for "1877".


Chapter II
Of Transfers of Property by Act of Parties

1. Nothing in Chapter II is to be deemed to affect any rule of Muhammadan Law, see section 2, Act 20 of 1929.


Section 5. Transfer of property defined

In the following sections "transfer of property" means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself 1 [or to himself] and one or more other living persons; and "to transfer property" is to perform such act.

1 [In this section "living person" includes a company or association or body of individuals, whether incorporated or not, but nothing herein contained shall affect any law for the time being in force relating to transfer of property to or by companies, associations or bodies of individuals.]

1. Inserted by Act 20 of 1929, Section 6.


Section 6. What may be transferred

Property of any kind may be transferred, except as otherwise provided by this Act or by any other law for the time being in force, -

(a) The chance of an heir-apparent succeeding to an estate, the chance of a relation obtaining a legacy on the death of a kinsman, or any other mere possibility of a like nature, cannot be transferred;

(b) A mere right of re-entry for breach of a condition subsequent cannot be transferred to any one except the owner of the property affected thereby;

(c) An easement cannot be transferred apart from the dominant heritage.

(d) All interest in property restricted in its enjoyment to the owner personally cannot be transferred by him;

1 [(dd) A right to future maintenance, in whatsoever manner arising, secured or determined, cannot be transferred;]

(e) A mere right to sue 2 [* * *] cannot be transferred;

(f) A public office cannot be transferred, nor can the salary of a public officer, whether before or after it has become payable;

(g) Stipends allowed to military 3 [naval], 4 [air-force] and civil pensioners of 5 [Government] and political pensions cannot be transferred;

(h) No transfer can be made (1) in so far as it is opposed to the nature of the interest affected thereby, or (2) 6 [for an unlawful object or consideration within the meaning of section 23 of the Indian Contract Act, 1872 (9 of 1872)] or (3) to a person legally disqualified to be transferee;

7 [(i) Nothing in this section shall be deemed to authorize a tenant having an untransferable right of occupancy, the farmer of an estate in respect of which default has been made in paying revenue, or the lessee of an estate, under the management of a Court of Wards, to assign his interest as such tenant, farmer or lessee.]

1. Inserted by Act 20 of 1929, Section 6.

2. The words "for compensation for a fraud or for harm illegally caused" omitted by Act 2 of 1900, Section 3.

3. Inserted by Act 35 of 1934, Section 2 and Schedule.

4. Inserted by Act 10 of 1927, Section 2 and Schedule I.

5. The word "Government" successively Substituted by the A.O.1937 and the A.O.1950 to read as above.

6. Substituted by Act 2 of 1900, Section 3, for "for an illegal purpose".

7. Added by Act 3 of 1885, Section 4.


Section 7. Persons competent to transfer

Every person competent to contract and entitled to transferable property, or authorised to dispose of transferable property not his own, is competent to transfer such property either wholly or in part, and either absolutely or conditionally, in the circumstances, to the extent and in the manner, allowed and prescribed by any law for the time being in force.

Section 8. Operation of transfer

Unless a different intention is expressed or necessarily implied, a transfer of property passes forthwith to the transferee all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof.

Such incidents include, where the property is land, the easements annexed thereto, the rents and profits thereof accruing after the transfer, and all things attached to the earth;

and, where the property is machinery attached to the earth, the moveable parts thereof;

and, where the property is a house, the easements annexed thereto, the rent thereof accruing after the transfer, and the locks, keys, bars, doors, windows, and all other things provided for permanent use therewith;

and, where the property is a debt or other actionable claim, the securities therefor (except where they are also for other debts or claims not transferred to the transferee), but not arrears of interest accrued before the transfer;

and, where the property is money or other property yielding income, the interest or income thereof accruing after the transfer takes effect.

Section 9. Oral transfer

A transfer of property may be made without writing in every case in which a writing is not expressly required by law.

Section 10. Condition restraining alienation

Where property is transferred subject to a condition or limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or limitation is void, except in the case of a lease where the condition is for the benefit of the lessor or those claiming under him: provided that property may be transferred to or for the benefit of a women (not being a Hindu, Muhammadan or Buddhist), so that she shall not have power during her marriage to transfer or charge the same or her beneficial interest therein.

Section 11. Restriction repugnant to interest created

Where, on a transfer of property, an interest therein is created absolutely in favour of any person, but the terms of the transfer direct that such interest shall be applied or enjoyed by him in a particular manner, he shall be entitled to receive and dispose of such interest as if there were no such direction.

1 [Where any such direction has been made in respect of one piece of immoveable property for the purpose of securing the beneficial enjoyment of another piece of such property, nothing in this section shall be deemed to affect any right which the transferor may have to enforce such direction or any remedy which he may have in respect of a breach thereof.]

1. Substituted by Act 20 of 1929, Section 8, for the original paragraph.


Section 12. Condition making interest determinable on insolvency or attempted alienation

Where property is transferred subject to a condition or limitation making any interest therein, reserved or given to or for the benefit of any person, to cease on his becoming insolvent or endeavouring to transfer or dispose of the same, such condition or limitation is void.

Nothing in this section applies to a condition in a lease for the benefit of the lessor or those claiming under him.