The most confused topic in transfer of property act, 1881. it includes case laws and also examples of vested and contingent interest.

1. By – D.PRIYANKA

2. What is an interest?
 Interest means having an ownership in
property or having a kind of right to do
something with or on the property.
 Example: lease

3. Vested interest-
Section 19 of transfer of property act,1882
Postponement of enjoyment
Prior interest
Directed to be accumulated until the time of enjoyment
arrives

4.  It takes place in 2 stages
Vested interest -
1. 1. Immediate transfer
2. Acquire possession but right to
enjoyment is postponed
No specified time
Take effect immediately
Take effect upon happening of
event which is bound to happen

5. Characteristics:
 Vested interest is both transferrable and heritable right.
 If the transferee dies before actual possession or enjoyment, it passes on
to his heirs.
 Interest is not defeated by the death of the transferee before actual
possession is attained by him.
 Interest is not defeated even if prior interest in the same property is given
to someone else.
Cases:
1. Ramaswami Naidu v.s M.S. Velappan
2. Sundar Bibi vs Rajendra Narayan

6. Contingent interest:
 Section 21 of transfer of property act, 1882.
 An interest created in favour of a person shall come into effect after certain event
occurs.
 It is transferable but not heritable.
 It cannot take effect if the transferee dies before the condition is met.
 Subject matter is 'specified uncertain event'

7. Cases:
 Leake v. Robinson
Difference:
When an interest is vested, the transfer is complete but
when the interest is contingent, the transfer depends upon a
condition precedent

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