Trace Your Case

Categories
General Rules of Transfer

Tanu Ram Bora v. Promod Ch. Das (2019) 4 SCC 173

ISSUE:

Whether the suit property purchased by the plaintiff was misled, fraudulent and erroneous made by the transferor, lead to the cancellation of sale deed?

RULE:

If at the time of transfer, the vendor might have defective title or have no title or no right or interest, however subsequently the transferor acquires the right, title, or interest and the contract of transfer subsists, such a transfer is valid. In such a situation, the transferor cannot be permitted to challenge the transfer and the transferor has no option to raise the dispute in making the transfer.

The intention of Section 43 of TP Act is based on the principle of estoppel as well as equity. The intention seems to be that after procuring money and transferring the land, thereafter the transferor is estopped from saying that though he has sold the land on payment of sale consideration, still the transfer is not binding on him.
That is why Section 43 gives an option to the transferee and not the transferor.

Subscribe to Read More.
Join Now
Already a member? Log in here
Categories
General Rules of Transfer

Umadevi Nambiar v. Thamarasseri Roman Catholic Diocese (2022) 7 SCC 90

ISSUE:

Whether there is a binding principal in the absence of an authority to sell?

Whether there could be a cancellation of alienations setting aside of documents of transfer of property, under the section 3, 7, 8, 54 and 41 of the Transfer of the Property Act?

RULE:

One is that the alienees as well as the co-sharer are still entitled to sustain the alienation to the extent of the share of the co-sharer. It may also open to the alienee, in the final decree proceedings, to seek the allotment of the transferred property to the share of the transferor, so that the equities are worked out in a fair manner.

Subscribe to Read More.
Join Now
Already a member? Log in here
Categories
General Rules of Transfer

Usha Subbarao v. B. N. Vishveswaraiah (1996) 5 SCC 201

ISSUE:

Whether the Appellant (who is the wife of B. N. Subbarao) entitled to the one-fifth share in the properties mentioned in the Will of her deceased father-in-law?

Whether the interest created is a vested or a contingent interest, defined in Section 19 and 21 of The Transfer of Property Act?

RULE:

For the purpose of determining the date of vesting of the interest in the bequest, it is necessary to bear in mind about the distinction between a vested interest and the contingent interest.

An interest is said to vested interest when there is immediate right of present enjoyment or a present right for future enjoyment. Whereas, an interest is said to be contingent if the right of enjoyment is made dependent upon some event or condition that may or may not happen.

On the happening of the event or condition, a contingent interest becomes a vested interest.

Subscribe to Read More.
Join Now
Already a member? Log in here
Categories
General Rules of Transfer

Vasanthi v. Venugopal (2017) 4 SCC 723

ISSUE:

Whether the original defendant was entitled to avail protection under Section 53-A of the Transfer of Property Act?

Whether the Appellant was the title-holder to the suit property?

RULE:

The predecessor-in-interest or the respondents had not taken recourse to law for specific performance of the agreement. This assumes importance in view of the averment made in the written statement that even prior to the demise of the predecessor-in-interest.

Further, the predecessor-in-interest did not comply with the requests of the original defendant to get the sale deed executed and his legal heirs after his demise and also adopted the same non-cooperative stance.

Subscribe to Read More.
Join Now
Already a member? Log in here
Categories
Void Agreements

Charlesworth v. MacDonald (1899) ILR 23 BOM 103

ISSUE:

Whether there was an agreement between the two parties?

If an agreement for three years was entered into by the defendant with the plaintiff, was it obtained by the misrepresentation of the plaintiff’s agent?

Whether the plaintiff in any event is entitled to an injunction?

RULE:

The restrictive covenant in the employment contract due to the fact that contracts of personal service for a fixed period do not fall within Section 27 of Indian Contract Act.

Subscribe to Read More.
Join Now
Already a member? Log in here
Categories
Free Consent And Vitiating Factors

Delhi Development Authority v. Skipper Construction Co. Ltd (2000) 10 SCC 130

ISSUE:

Whether the purchasers under agreements in respect of Jhandevalan property have a statutory charge in view of Section 55 (6) (b) of the Transfer of Property Act?

Whether the purchasers are entitled to interest under the same section?

Whether the period of limitation for enforcing claims by the purchasers would be 12 years under the Limitation Act?

Whether in view of the words “subject to contract to the contrary” used in Section 55 (6) (b) of the Transfer of Property Act and in view of the term in agreement of sale that Skipper will not be liable for interest, the purchasers cannot claim interest?

Whether the purchasers can rely on finding of fraud given by the Supreme Court to claim for interest that was sustainable?

RULE:

The buyer will have a charge on the seller’s interest in the property which is the subject-matter of the sale agreement insofar as the purchase money and interest on such amount are concerned, unless the buyer has improperly declined to accept delivery.

When the property upon which the charge is created gets converted into another form, the buyer will be entitled to proceed against the substituted security.

The limitation period remains the same even after the enforcement of the charge on the substituted security.

Accepting bookings from excess number of buyers without adequate notice to them about the contingent nature of their contracts cannot be said to be fair dealing and the amounts paid by the buyers will not carry interest is wholly unconscionable.

Subscribe to Read More.
Join Now
Already a member? Log in here
Categories
Capacity To Contract

Ajudhia Prasad v. Chandan Lal (1937 SCC OnLine All 80)

ISSUE:

Whether a mortgage deed can be enforced against parties who were incompetent to contract at the time of agreement if the parties deliberately misinterpreted themselves to be competent?

RULE:

A contract by a minor is void and Sections 64 and 65 of the Contract Act have no application in such cases.

The plea of estoppel cannot prevail against a statutory provision protecting minors, and no new rule of equity can be invented contrary to established principles.

Section 65 is applied only to the contracts agreements which from their very nature were void and were either discovered to be void later or became void, and not agreements made by persons who were altogether incompetent to enter into an agreement and the agreement was, therefore, null from the very beginning (void ab initio).

Section 64 and 65 of the Indian Contract Act, 1872 cannot be invoked against minor defendants.

Subscribe to Read More.
Join Now
Already a member? Log in here
Categories
Free Consent And Vitiating Factors

Allcard v. Skinner (1887) 36 Ch D 145

ISSUE:

Whether a fiduciary relationship gives rise to a presumption of undue influence?

RULE:

When there is a fiduciary or influential relationship (such as a religious leader and a devotee), the law presumes undue influence when one party makes a large, voluntary gift to the other.

The person in the dominant position must prove that the transaction was the result of free, informed, and independent consent of the donor.

A person who claims relief from an undue influence transaction must act promptly after being freed from the influence, if not done so, he may be devoid of claiming the compensation.

Principle that equity does not assist those who delay in asserting their rights.

Subscribe to Read More.
Join Now
Already a member? Log in here
Categories
Free Consent And Vitiating Factors

Bisset v. Wilkinson (1927) A.C.177

ISSUE:

Whether the Appellant is liable for the misrepresentation made by him during the agreement?

Whether the Appellant can recover a sum of money payable to him by the Respondents?

RULE:

The Appellant honestly and in fact held the opinion which he stated remained to be considered. This involved examination of the history and condition of the property. If a reasonable man with the Appellant’s knowledge could not have come to the conclusion he stated, the description of that conclusion as an opinion would not necessarily protect him against rescission for misrepresentation.

Subscribe to Read More.
Join Now
Already a member? Log in here