Transfer Of Property Act, 1882:
The Supreme Court recently held that rents receivable by a borrower can be assigned to a lender as an “actionable claim” as per the Transfer of Property Act, 1882 (TPA).
Transfer of Property Act, 1882:
- The TPA is an important piece of legislation that governs the transfer of property between living beings (inter vivos) in India.
- The TPA primarily applies to a transfer of immovable property; however, some sections and clauses of this Act deal with a transfer of movable property as well.
- This Act was first introduced in 1882 and has undergone several amendments since then.
- It outlines the various modes of required transfer and the legal requirements to ensure the transfer is valid.
- The Act applies to all citizens of India who are involved in the transfer.
Transfer of Property:
- According to the law, the transfer of property is defined as the act of a living person transferring property to one or more living persons, either presently or in the future.
- This definition also encompasses companies, associations, or groups of individuals.
- The TPA considers the term “transfer” to include various modes such as sale, mortgage, lease, actionable claim, gift, or exchange.
- However, it does not apply to transfers that occur through the operation of law, such as inheritance, forfeiture, insolvency, or sale through a decree’s execution.
- Additionally, the Act does not govern property disposal through wills or cases related to the succession of the property.