General Rule: Property of any kind may be transferred unless otherwise provided.

Exceptions — What CANNOT be transferred:

• (a) Chance of heir-apparent succeeding to estate / spes successionis (mere chance)
• (b) Mere right of re-entry for breach of condition subsequent (except to owner of property)
• (c) Easement — cannot be transferred apart from dominant heritage
• (d) Interest restricted to personal enjoyment of owner
• (dd) Right to future maintenance (cannot be transferred)
• (e) Mere right to sue
• (f) Public office / salary of public officer
• (g) Stipends of military, naval, air-force, civil pensioners; political pensions
• (h) Transfer opposed to nature of interest; for unlawful object; to legally disqualified person
• (i) Tenant with untransferable right of occupancy cannot assign interest

Every person competent to contract AND entitled to transferable property, or authorised to dispose of another's transferable property, is competent to transfer.

• Must be of sound mind and majority
• Can transfer wholly or in part, absolutely or conditionally
• A minor cannot transfer property

Unless different intention expressed, transfer passes to transferee all the interest the transferor is then capable of passing, including legal incidents such as:

• Land: Easements annexed, rents & profits after transfer, things attached to earth
• House: Easements annexed, rent after transfer, locks, keys, bars, doors, windows for permanent use
• Machinery attached to earth: Moveable parts thereof
• Debt/Actionable Claim: Securities therefor (except for other debts), but NOT arrears of interest before transfer
• Money/Income-yielding property: Interest/income accruing AFTER transfer

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

• Writing is required for: Sale of immoveable property ≥ ₹100 (Sec 54), Mortgage ≥ ₹100 (Sec 59), Leases from year to year or exceeding 1 year (Sec 107), Gift of immoveable property (Sec 123)
• Moveable property below ₹100 — oral transfer valid

Section 10: Condition absolutely restraining alienation is void. Exception: lease condition for benefit of lessor; married woman (non-Hindu/Muslim/Buddhist) restriction during marriage.

Section 11: Where absolute interest is created but direction restricts its enjoyment in a particular manner — such direction is void. Transferee can receive and dispose freely.

Section 12: Condition making interest cease on insolvency or attempted alienation is void. Exception: lease condition for benefit of lessor.

• Interest can be created for an unborn person, subject to a prior interest created by the same transfer
• The interest for the unborn person must extend to the whole of the remaining interest of the transferor
• Partial interest for unborn person is NOT valid

No transfer can create an interest to take effect after:

• The lifetime of one or more living persons at the date of transfer, AND
• The minority of some person who shall be in existence at the expiration of that period

Exception — Section 18: Restrictions in Ss. 14, 16, 17 do NOT apply to transfers for benefit of public (religion, knowledge, commerce, health, safety, etc.)

Where interest is created for an unborn person's benefit — upon birth, the person acquires a vested interest, even if not entitled to immediate enjoyment.

Where a person professes to transfer property he has no right to transfer, and as part of same transaction confers benefit on the true owner — the owner must:

• Confirm the transfer (accept it), OR
• Dissent — but then must relinquish the benefit received

• Acceptance of benefit for 2 years without dissent = deemed election to confirm
• Disability → election postponed until disability ceases

Section 36: Rents, annuities, pensions, dividends and other periodical payments shall accrue from day to day and be apportionable accordingly (in absence of contrary contract).

Section 37: When property is divided and held in several shares — benefit of any obligation passes proportionately to the value of each owner's share.

Direction to accumulate income is void to the extent it exceeds the longer of:

• The life of the transferor, OR
• 18 years from the date of transfer

Exceptions: Accumulation for: payment of transferor's debts; provision of portions for children; preservation/maintenance of property — these are allowed.

Where with consent of the persons interested, a person is the ostensible owner and transfers for consideration — transfer is not voidable if:

• Transferee took reasonable care to ascertain the transferor's power to transfer
• Transferee acted in good faith

Where a person fraudulently or erroneously represents he is authorised to transfer immoveable property and transfers for consideration — such transfer shall, at the option of transferee, operate on any interest the transferor subsequently acquires.

During pendency of any suit in which any right to immoveable property is directly and specifically in question — the property cannot be transferred so as to affect the rights of any party to the suit.

• Pendency commences from date of presentation of plaint
• Continues until final decree and complete satisfaction of decree
• Transfer during lis pendens is NOT void but subject to the outcome of the suit
• The suit must be non-collusive

Sub-section (1): Every transfer of immoveable property made with intent to defeat or delay creditors is voidable at the option of any creditor so defeated/delayed. (Good faith transferee for consideration is protected.)

Sub-section (2): Transfer without consideration with intent to defraud a subsequent transferee is voidable at the option of that transferee.

Doctrine of Part Performance applies when:

• Contract to transfer immoveable property for consideration — in writing, signed
• Terms can be ascertained with reasonable certainty
• Transferee has taken possession OR continues in possession in part performance
• Transferee has done some act in furtherance of the contract
• Transferee has performed or is willing to perform his part

Then: Transferor or anyone claiming under him is debarred from enforcing rights against the transferee.

Where a person creates rights in or over same immoveable property at different times — rights created earlier have priority over later created rights.

At any time after principal money has become due, mortgagor has right to redeem by paying mortgage-money and requiring mortgagee to:

• Deliver the mortgage-deed and all documents
• Deliver possession (if in possession)
• Re-transfer property OR execute acknowledgement of extinguishment

This right is called the "Right to Redeem" and suit to enforce it is a "Suit for Redemption."

Clog on Equity of Redemption: Any provision that unreasonably prevents or limits the right to redeem is a "clog" and is void. "Once a mortgage, always a mortgage."

After mortgage-money becomes due, mortgagee can obtain:

• Decree for Foreclosure: Mortgagor absolutely debarred of right to redeem — only Mortgagee by Conditional Sale and Anomalous Mortgage (if entitled by terms) can foreclose
• Decree for Sale: Property sold; proceeds applied to debt

Section 69: Power of sale WITHOUT Court intervention is valid in specific cases: English mortgage (where neither party is Hindu/Muslim/Buddhist), where power expressly conferred and mortgagee is Government, or property situate in notified towns.

Any person who redeems mortgaged property (other than mortgagor) acquires the same rights as the mortgagee whose mortgage he redeems. This is called subrogation.

• Requires redemption in full
• Includes: co-mortgagors, persons with interest in property, surety, creditor with decree for sale

If owner mortgages two properties to one person (P1) and then mortgages one to another person (P2) — subsequent mortgagee (P2) is entitled to have prior mortgage debt satisfied out of the property NOT mortgaged to him, so far as possible, without prejudicing P1.

Where immoveable property of one person is made security for payment of money to another, and the transaction does NOT amount to a mortgage — it is a charge.

• Provisions of simple mortgage apply to charges (so far as may be)
• Charge is NOT enforceable against transferee for consideration and without notice

In absence of written contract or local usage:

• Agricultural or Manufacturing purposes: Lease from year to year, terminable by 6 months' notice
• Any other purpose: Lease from month to month, terminable by 15 days' notice

Notice period commences from date of receipt of notice. Notice must be in writing, signed.

• Lease from year to year, or for term exceeding 1 year, or reserving yearly rent → Registered instrument only
• Other leases → registered instrument OR oral agreement with delivery of possession
• Registered lease → must be executed by BOTH lessor and lessee

A lease determines (ends) by:

1. (a) Efflux of time (expiry of period)
2. (b) Happening of conditional event limiting the time
3. (c) Termination of lessor's interest in property
4. (d) Merger — interests of lessee and lessor vest in one person
5. (e) Express surrender by lessee to lessor (mutual agreement)
6. (f) Implied surrender (e.g., accepting new lease during existing lease)
7. (g) Forfeiture — breach of express condition; renouncing character as lessee; adjudication as insolvent + lease so provides
8. (h) Expiration of notice to quit

If lessee remains in possession after determination of lease AND lessor accepts rent or assents to lessee continuing — the lease is renewed:

• Agricultural/manufacturing: Renewed from year to year
• Other purposes: Renewed from month to month

Section 112 — Waiver of Forfeiture: Forfeiture is waived if lessor, knowing the forfeiture, accepts rent that became due after forfeiture, or does any act showing intention to treat lease as subsisting. Exception: accepting rent after institution of suit for ejectment is NOT waiver.

Section 114 — Relief against Forfeiture for Non-Payment of Rent: If lessee pays/tenders arrears of rent + interest + full costs at hearing of suit, Court may relieve lessee against forfeiture (instead of ordering ejectment).

Section 114A — Relief against Forfeiture (Other Cases): No suit for ejectment lies unless lessor first serves written notice specifying breach and requiring remedy (if capable of remedy).

• Immoveable property: Transfer must be by registered instrument signed by or on behalf of donor, attested by at least two witnesses
• Moveable property: By registered instrument OR by delivery

A gift comprising both existing and future property is:

• Valid as to existing property
• Void as to future property

A gift CAN be revoked/suspended if:

• Donor and donee agree on happening of a specified event not depending on donor's will
• Any ground that would justify rescission of a contract (except want/failure of consideration)

A gift revocable at mere will of donor is void (wholly or to that extent).

Single transfer of several things (one onerous): Donee must accept all or none. Cannot cherry-pick the beneficial ones.

Two or more separate and independent transfers: Donee may accept one and refuse the other(s), even if some are onerous.

Minor/Disqualified donee: Not bound by acceptance of onerous gift. BUT if, after becoming competent to contract, he retains the property knowing the obligation — he becomes bound.

Where gift consists of donor's whole property — the donee is personally liable for all debts and liabilities of donor at the time of the gift, to the extent of the property received.

• Transfer must be by instrument in writing, signed by transferor or authorised agent
• Transfer is complete and effectual on execution of instrument (notice NOT required for transfer to be complete)
• All rights and remedies of transferor vest in transferee on execution
• Transferee can sue in his own name without transferor's consent

Proviso: Any dealing by the debtor with the original transferor remains valid until the debtor receives express notice of the transfer (Section 131).

Every notice of transfer of actionable claim must be:

• In writing
• Signed by transferor or his authorised agent (or by transferee if transferor refuses to sign)
• Must state name and address of transferee

Transferee takes the actionable claim subject to all liabilities and equities to which the transferor was subject at the date of transfer — including set-off rights of the debtor.

No Judge, legal practitioner, or officer connected with any Court of Justice shall buy or traffic in, or stipulate for any share of or interest in any actionable claim. No Court shall enforce such a claim at his instance.

Chapter VIII does NOT apply to: stocks, shares, debentures, or instruments negotiable by law or custom, or any mercantile document of title to goods (bill of lading, dock-warrant, warehouse-keeper's certificate, railway receipt, etc.).