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Tpa 5

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21 views2 pages

Tpa 5

Uploaded by

Laxmi Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Conditional Transfer:

Section 25 of the TPA, 1882 provides for Conditional Transfer. It means that
any transfer that happens on the fulfilment of a condition that is imposed on the
other party for the transfer of property. For example, A agrees to transfer his
property to B if he gets selected for a job. The requirement of A for B to get a job is
called a condition.

For any kind of a conditional transfer to be valid, the condition that is imposed
should not be:
Prohibited by law,
Should not be an act that involves fraudulent acts,
Should not be an act that is termed as violative of public policy,
Should not be immoral,
Any act that incurs any harm to any person or his property.

For example, X transfers a property ‘B’ to Y stating that he shall murder Z as a


condition for the transfer. Such transfer is void as the condition is prohibited by
law.

Types of Conditions on Transfer:


There are three specific types of conditions that are imposed in a transfer of
property and there are some more types provided. All these conditions should also
satisfy all the requirements of a condition as mentioned in Section 25 of the
Transfer of Property Act, 1882.
Condition Precedent
Condition Subsequent
Condition Collateral

Meaning of Fraudulent Transfer: – Fraudulent Transfer means


the illegal transfer of property to defraud creditors. Every transfer of
immovable property made with intent to defeat or delay the creditors of the
transferor shall be voidable at the option of any creditor so defeated or delayed. To
constitute a fraudulent transfer there should be an intention to hinder the
creditor from his equitable and legitimate rights. Where the transfer is made with
a fraudulent intention, it means intending to defeat the interest of the creditor or
interest of any subsequent transferee. Where the transfer is made with a fraudulent
intention, the object of the transfer would be bad in the eyes of equity and justice,
though it is valid in law.
Section 53 of the Transfer of Property Act, 1882 talks about fraudulent
transfers. Fraudulent Transfer in general parlance, therefore, refer to transfers
which are made with an intention to defraud. Thus a fraudulent transfer
arises in a creditor-debtor relationship. In the fraudulent transfer, the property is
put out of reach of the creditor so that the creditor is delayed from satisfying his
debt.
For example: – When ‘A’ transfers his property to ‘B’ without giving him his
ownership of the property with the intention to keep his assets out of reach of his
creditor, such a transfer is called a fraudulent transfer.essentials of Fraudulent
Transfer under Transfer of Property Act?
The essentials of Fraudulent Transfer under Transfer of Property Act are as follows:
–
1. Transfer of the property done by the transferor
2. It should be immovable property
3. The transfer is done without consideration
4. The transfer is done with the intention to defraud a subsequent transferee and
with intention to defeat or delay his creditors
5. Such transfer is voidable at the option of the subsequent transferee.
Exceptions of Fraudulent Transfer under Transfer of Property Act are: –
1. Acted in good faith, and
2. The transfer was for consideration

Contract for sale:


A contract for the sale of immovable property is a contract that a sale of such
property shall take place on terms settled between the parties.
It does not, of itself, create any interest in or charge on such property.

A contract of sale is different from a sale, as it does not require registration.


However, it does not create a charge or an interest in the property. It is merely a
document or an agreement that gives a right to obtain another document, i.e., a sale
deed. Therefore, it does not require registration (Dave Ramushankar v. Bai
Kailasgoure, 1974). However, some equities do arise in favour of the transferee. For
instance: where, despite an agreement of sale, the property is transferred to another
person, the subsequent transferee with notice of the earlier transaction holds the
property in trust for the prior agreement holder (Kondapalli Satyanarayan v.
Kondapalli mayullu, 1999).

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