The document discusses the concepts of vested and contingent interests as defined in the Transfer of Property Act, 1882. Vested interest entails an immediate transfer and the right to possession, which can be inherited or transferred, while contingent interest depends on a specified uncertain event and is not heritable. The document includes case references to illustrate these concepts.

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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