The document summarizes key aspects of Section 6 of the Transfer of Property Act regarding what types of properties can and cannot be transferred. It outlines 10 categories of properties that cannot be transferred: 1) spes successionis, 2) a mere right of re-entry, 3) an easement apart from the dominant heritage, 4) restricted interests, 5) a right to future maintenance, 6) a mere right to sue, 7) a public office or salary of a public officer, 8) certain types of pensions, 9) transfers that are opposed to the nature of the interest, unlawful, or to a legally disqualified transferee, and 10) certain un-transferable interests like those of tenants, farmers with
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
923_Transferable_Property__Section6_UCOL.ppt
1. Transfer of Property Act, 1882
Section 6
What Properties may or may not be
transferred?
2. • The general rule is that property of any kind
may be transferred as laid down in Section 6,
except as provided by this Act and by any
other law for time being in force.
• The person urging non-transferability must
prove the existence of some law or custom
which restricts the right of transfer.
• Property of any kind means Movable,
Immovable and Intangible. (Not future – as
clarified in Section 5)
3. Prohibition on transfer by Transfer of Property
Act
• Section 6 itself provides for the restrictions on
transfer of certain property. These instances
are discussed below:
1) Spes Successionis [Section 6(a)]
i) Chance of an Heir-Apparent succeeding to
an estate
ii) Chance of a relation obtaining a legacy (on
death of kinsman)
iii) Mere possibility of like nature
4. 2) A MERE right of re-entry for breach of condition
subsequent can not be transferred [Section 6(b)]–
Exception – Can be transferred to the owner
In lease right of re-entry is a term in the contract- Section
111(g)- lessor may re-enter for a breach of condition and it
is a ground for termination of lease
Eg. If rent not paid on time possession to be taken back;
Building given for residential purposes and if used for other
purposes possession to be taken back
MERE – Only the right to re-entry can not be transferred to
an outsider by the owner. However, it can be transferred
along with any other right like with ownership.
Rationale – Personal right of owner can not be transferred
to an outsider. Outsider must not be allowed to interfere.
5. Illustrations [Section 6(b)]-
(a) A grants a lease of a plot of land for 5 years to B
with the condition that B shall not dig a tank on the
land. B digs the tank. A relates to transfer C the right of
re-entry for the breach of the condition committed by
B. The transfer is invalid.
(b) A grants a lease of plot for 5 years to B.
Subsequently A transfers his right of re-entry at the
expiry of 5 years to C. The transfer is valid as at the
expiry of lease the right of reentry is transferred along
with the land to C.
6. 3) Easement can not be transferred apart from
Dominant Heritage [Section 6(c)] –
Easement alone can not be transferred i.e. ONLY
easement can not be transferred. Easement can be
transferred along with Dominant Heritage.
Rationale is that Easement will be useless without
property. Easement is legal incident of Property,
wherever property goes Easement goes.
Dominant Heritage – The Property which enjoys or is
benefitted by the Easementry Rights.
Subservient Heritage – The Property over which the
Easementry Right is exercised, which is burdened by
the easement.
7.
8. 4) Restricted interests can not be transferred [Section
6(d)] –
An interest in the property may be restricted or
reserved for enjoyment of the owner personally. Such
interests can not be transferred. Eg. if a house is lent to
a man for his personal use, he cannot transfer his right
of enjoyment to another.
Rationale was given in S.K. Asawa v. Satyanarayan
(Bom HC) – this is based on the principle that what is
intended to be enjoyed by a person as such can not be
transferred as it is not intended to be enjoyed by any
person other than the person in whose favour the
interest is created.
9. Most of the cases that fall under this clause deal with
attempted transfers of maintenance rights, service
tenure rights, alienation of office by trustee or religious
office like mutwali of wakf or mahant of math.
Cases:
Karupati v. Sungervelu (Mad HC)
A Hindu widow was given property in a family hose to
be enjoyed by her only and as her shelter. She was not
allowed to transfer it.
Balmukund v. Tula Ram (All HC)
Religious offices of Pujari, etc. can not be transferred.
This is also applicable to the office of Shebait.
10. 5) A right to FUTURE maintenance, in whatsoever manner
arising secured or determined, cannot be transferred
[Section 6(dd)] – It was added in the year 1929 as prior to
this there were conflicting decisions
A right to receive maintenance is a personal right and it is
solely for the personal benefit of the qualified person to
whom it is granted, and it cannot be transferred.
Rationale: For understanding the logic behind this definition
of right of Maintenance given in Tara Sundari v. Saroda
Charan (Cal HC) can be considered. It was said that the right
of a person to receive for boarding, lodging, clothing and
other necessaries is known as right of Maintenance. Thus,
for person without means this is the way that they can exist
and survive in the society, so it should not be transferred as
it is against public policy and the purpose of providing
maintenance will be frustrated.
However, the arrears of maintenance which have already
accrued can be assigned to others as the maintenance has
already become due.
11. 6) A MERE right to sue can not be transferred [Section
6(e)] –
A right to sue is personal to the party aggrieved, as for,
e.g., damages for the breach of contract or for tort,
claims for past mesne profit for suing an agent for
accounts, for pre-emption, etc. These rights cannot be
transferred.
Rationale – Agreement to encourage litigation is void
as it is champertous i.e. object is unlawful. The object
of any law is to prevent multiplicity of suit, thus such
transfer is void under Sec. 23 of ICA. Secondly, Locus
Standi is very important issue. Right to sue without any
interest will not give locus standi.
12. However, we need to consider the terminology and
here the word “MERE” has to be emphasised. A person
can not transfer mere right to sue, however he can
transfer the interest and the right to sue accompanies
it. Thus, where the right to sue has merged in a decree,
the right under the decree is assignable. Thus, a right to
mesne profit or damages under a decree is assignable.
Eg. A loan B A has a right to sue B for
creditor debtor recovery of unsecured loan
There is another person X. A can not transfer this mere
right to sue to X. However, he can transfer his debt to X
and thus right to sue accompanies this Actionable
Claim.
13. 7) A public office or salary of a Public officer can not
be transferred, whether before or after it has become
payable [Section 6(f)] –
Rationale: Why Public Office can not be transferred? –
A public office is held for qualities personai i.e. personal
qualities, thus only meritorious and competent persons
should be appointed to serve the people and for that
purpose public office can not be alienated as it will be
against public interest.
Example of Agreement to sell public office is provided
in Sec. 23 ICA under the head agreement against Public
Policy and it is held to be void.
Case: Venkatareddy v. Venkatachalan – Public office is
for Public Welfare, thus it can not be alienated.
14. Rationale: Why Salary can not be transferred? – There
are several reasons behind not allowing the salary of a
public officer to be transferred. These reasons are as
under:
•Salary is given to a public officer for upholding the
dignity of the office and for the performance of his
duties.
•Salary is an incentive for his work.
•Salary is provided so as to put the person in a state to
perform his duties with dignity and to put him in
personal comfort.
For the above reasons it is against the public policy to
transfer the salary of a public officer.
15. 8) Stipends allowed to military, naval, air force and civil
pensioners of the government and political pensions
cannot be transferred [Section 6(g)] –
This subsection provides that pensions cannot be
transferred. Pension means a periodical allowance or
stipend which is granted not in respect of any right of office
but on account of past services. These Pensions are
consideration of merit or a compensation for benefit of the
person himself or his family or dependents.
Secretary of State v. Jaychand (Bombay HC) - pension
cannot be transferred
Rationale: Secretary of State v. Khemhand, Secretary of
State v. Jaychand (Bombay HC) - pensions guarantee of
personal comfort on the basis of past services. They are and
incentive for assuring quality work.
Note: Section 60 of CPC also exempts a pension from
attachment in execution of degree against the pension
holder.
16. 9) No transfer can be made
1) in so far as it opposed to the nature of the interest
affected thereby, or
2) for an in so far unlawful object or consideration
within the meaning of Section 23 of the Indian
Contract Act, 1872, or
3) to a person legally disqualified to be a transferee.
[Section 6(h)]
17. (1) This clause forbids the transfer of certain things which
from their very nature are not transferable.
These are:
•Res communes (things of which no one in particular is the
owner and may be used by all men) –
Air, light, space, etc. belong to the Nature. Case:
Thakur v. Binderchari (Cal HC) - Res communes are
things belonging to all the persons of the world
•Res nullius (things belonging to nobody).
•Res extra commercium (things thrown out of commerce) –
there need to be certain things which are to be kept out of
commercial use and be valued for their utility or their
sentimental value. Thus, Railways and Bridges are not sold
by the Government.
Case: Durganath v. Ramchandra (Cal HC) - Property
dedicated to deity or public use can not be transferred.
18. (2) Any property otherwise transferable becomes non-
transferable when the object or the consideration of
the transfer is unlawful (within the meaning of Section
23, Indian Contract Act).
Eg. A lease of a house for use as a gambling den, being
immoral and opposed to public policy, is invalid.
19. (3) A transfer cannot be made in favour of a person who is
disqualified to be a transferee.
Transfer of Property Act itself and other laws in force for the
time being have laid down instances where a person
generally or in a particular capacity is disqualified from
being a transferee. These restrictions are based on demand
of impartiality from certain persons and to not let transfers
become against public policy. Some instances are as under:
•Section 136, TPA: A Judge, a legal practitioner or any
officer connected with Courts of Justice are disqualified
from purchasing any actionable claim. Aim is to maintain
impartial character of Judiciary. Case: Karakose v. Sarle (PC)
– The officers of the Court should not be exposed to any
suspicion. They should be charged with using personal
influence.
20. • Order 21 Rule 73, CPC: Officer connected with
Execution Sale can not purchase it himself.
• Section 52, Trusts Act: Trustee can not buy trust
property.
• Section 53, Indian Forests Act: Forest Officer can not
be a purchase of Forest Trees.
21. 10) Un-transferable Interests [Section 6(i)] –
a)Tenant cannot transfer untransferable right of occupancy:
General rule is that leaseholds are transferable but this
clause give those exceptions where this interest becomes un-
transferable. Depending upon local laws. E.g. Zamindari Act in
UP, Rent Control Act states specific conditions, Revenue laws,
etc.
b)Farmer of an estate cannot transfer the property if
government revenue is due: Government revenue should not
suffer so he must first pay and then he can dispose off the
property.
c)A lesser cannot sublet if the property is under the
management of Court of Wards: Court of Wards Act is
applicable in this matter. When the property is under the
management of Court of Wards, this means that court has
appointed a guardian for taking care of the property and lessee
of this property cannot sublet without the authority of the court.
22. Other laws and prohibition under them:
a)Under Hindu Law –
Transfer of Coparcenary Property
Property dedicated to religious uses
b)Under Muslim Law -
Sajdanasheen Property
Wakf Property
c)Under Local Laws –
Bombay – Watan land not to be transferred
Chennai – Karnam land not to be transferred
Bengal – Restriction on transfer of Ghatwal land