Scribd
Upload
111 views7 pages

Conditions Restraining Alienation Notes

Section 10 of the Transfer of Property Act, 1882 states that any condition or limitation that absolutely restrains the transferee or anyone claiming under them from disposing of their interest in the property is void, except in the case of a lease for the benefit of the lessor. The section does not apply to court sales or partition settlements between family members. However, a total restraint on the right of alienation is invalid. Section 10 aims to keep property freely transferable based on public policy. Exceptions to the rule against restraints on alienation include conditions in leases benefiting the lessor and transfers for the benefit of a married woman's interest during marriage.

Uploaded by

sunidhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
111 views7 pages

Conditions Restraining Alienation Notes

Section 10 of the Transfer of Property Act, 1882 states that any condition or limitation that absolutely restrains the transferee or anyone claiming under them from disposing of their interest in the property is void, except in the case of a lease for the benefit of the lessor. The section does not apply to court sales or partition settlements between family members. However, a total restraint on the right of alienation is invalid. Section 10 aims to keep property freely transferable based on public policy. Exceptions to the rule against restraints on alienation include conditions in leases benefiting the lessor and transfers for the benefit of a married woman's interest during marriage.

Uploaded by

sunidhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 7

Conditions Restraining Alienation

Section, 10-12

Section 10 in The Transfer of Property Act, 1882

10. Condition restraining alienation.—Where property is transferred subject to a condition or limitation


absolutely restraining the transferee or any person claiming under him from parting with or disposing of his
interest in the property, the condition or limitation is void, except in the case of a lease where the condition is
for the benefit of the lessor or those claiming under him: provided that property may be transferred to or for
the benefit of a women (not being a Hindu, Muhammadan or Buddhist), so that she shall not have power
during her marriage to transfer or charge the same or her beneficial interest therein.
Section 10 does not apply to court sales. Partition of a joint family settlements do not amount to transfer of
property, and section 10 would not be applicable to partition or family settlement. However, any total restraint
on right of alienation is void. This rule is based on public policy that property should be alienable. The
principle has universal application and there is nothing in the Hindu Law which is inconsistent with it. E.g.
where four brothers A, B, C and D, effected a partition of the joint family property and incorporated a condition
in the partition deed, that if any one of them remained childless he would not sell his share to anyone but
would leave the property for the surviving brother. The court held that as this condition amounted to an
absolute restraint on A’s power of alienation it was void and was not binding on him.
Exceptions to the Rule of Restraint on Alienation

In case of a lease where the condition is for the benefit of the lessor or those claiming under him, and the
second is where property is transferred for the benefit of a married woman (not being Hindu, Mohammedan
or Buddhist) so that she shall not have power during her marriage to transfer or charge the same or her
beneficial interest therein.
Section 11 in The Transfer of Property Act, 1882

11. Restriction repugnant to interest created. —Where, on a transfer of property, an interest therein is created
absolutely in favour of any person, but the terms of the transfer direct that such interest shall be applied or
enjoyed by him in a particular manner, he shall be entitled to receive and dispose of such interest as if there
were no such direction. Where any such direction has been made in respect of one piece of immoveable
property for the purpose of securing the beneficial enjoyment of another piece of such property, nothing in
this section shall be deemed to affect any right which the transferor may have to enforce such direction or any
remedy which he may have in respect of a breach thereof.

You might also like