SECTION 6 of TPA 1882

SECTION 6 of TPA 1882

Exceptions of — What may be transferred?

S-6 Property of any kind may be transferred, except as otherwise provided by this Act or by any other law for the time being in force, —

(a) The chance of an heir-apparent succeeding to an estate, the chance of a relation obtaining a legacy on the death of a kinsman, or any other mere possibility of a like nature, cannot be transferred;

According to the literal interpretation of section 6(a), a person can neither transfer nor renounce either a chance of inheriting the property in future or the chance of obtaining a legacy on the death of a kinsman and even if he does that, he would not be bound by such transfer/renunciation as the same is expressly prohibited. However, judicial interpretation of this section favours imposition of a rule of estoppel as against such transferors who without having any present interest, agree to transfer the property based on future possibilities for a consideration and later try to avoid the same under this legal rule.

Let’s understand the Questions and Answers Way.

Question: Discuss the types of property that cannot be transferred under Section 6 of the Transfer of Property Act of 1882.

Introduction: Section 6 of the Transfer of Property Act of 1882, enumerates the kinds of property that cannot be transferred. While property of any kind may generally be transferred, certain exceptions are specified to maintain legal clarity and prevent future disputes.

General Rule of Transferability: The Act is grounded in the maxim alienation rei prefertur juri accrescendi, meaning the law favors alienation over accumulation. This principle supports the free transfer of property, enhancing economic utility and ownership fluidity. However, certain interests are non-transferable to avoid legal and practical complications.

Exceptions to Transferability under Section 6:

1. Chance of an Heir Apparent (Spes Successionis):

• The hope or chance that an heir apparent will inherit property upon the death of a relative is non-transferable.
• Example: If A hopes to inherit property from his father, he cannot transfer this expectancy. This prohibition avoids future conflicts and ensures clarity in property rights.
• Legal Basis: The transfer of such a chance is void ab initio, meaning it is null from the outset and does not convey any rights to the transferee.

2. Mere Possibilities:

• Similar to the chance of an heir apparent, any other mere possibility, such as the hope of receiving a legacy under a will, cannot be transferred.
• Example: Y cannot transfer the house bequeathed to him by X under a will before X’s death, as Y’s interest is a mere possibility dependent on several contingencies.

3. Future Property:

• Future property refers to property not currently in existence or not owned by the grantor at the time of transfer. Such transfers are generally invalid under common law unless followed by actual delivery or ratified post-acquisition.
• Example: An agreement to transfer goods that will later come into the grantor’s possession does not pass interest unless legally executed after the property is acquired.

4. Right of Re-entry:

• A mere right of re-entry for breach of a condition subsequent cannot be transferred.
• Example: If a property is transferred with a condition that upon breach, the original owner can re-enter, this right of re-entry cannot be transferred separately from the property.

5. Personal Enjoyment Interests:

• Interests created solely for personal enjoyment, like salaries or pensions, cannot be transferred.
• Example: A person drawing a salary cannot transfer the salary itself, though once paid, the money becomes transferable.

Illustrative Case Laws:

• Official Assignee, Madras v. Sampath Naidu: The court held that a mortgage executed by an heir apparent was void even though he later acquired the property as an heir.
• Ananda Mohan Roy v. Gaur Mohun Mullick: The Privy Council ruled that contracts to transfer property based on future possibilities are void and unenforceable.
• Gulam Abbas v. Haji Kayyam Ali: The Supreme Court established that renunciation for consideration may bind the expectant heir through estoppel, preventing claims against previously agreed arrangements.

Conclusion: Section 6(a) of the Transfer of Property Act, 1882, ensures legal clarity by restricting the transfer of certain types of property interests. These exceptions, based on the principles of public policy and practical considerations, maintain the integrity of property rights and prevent future disputes. Understanding these exceptions is crucial for the effective application of property law.

Read S-43 of TPA, 1882. It is connected with this provision.

Mr Law Officer Signing off.