2022

1) a) Immovable Property: Definition and Explanation

The term immovable property refers to assets that are
permanently attached to the earth and cannot be moved without
altering their essential character. This concept is governed by
Section 3 of the General Clauses Act, 1897, which defines
immovable property as land, benefits arising out of the land, and
things permanently attached to the earth. It excludes standing
timber, growing crops, and grass.
Similarly, under Section 2(6) of the Transfer of Property Act,
1882, immovable property includes land, buildings, hereditary
allowances, rights to ways, lights, ferries, fisheries, and other
benefits arising from the land but excludes standing timber,
growing crops, or grass.
Features of Immovable Property
1. Permanence: Immovable property remains fixed to a
particular location and cannot be moved without causing
damage to its structure or value.
2. Attachment to the Earth: This includes buildings, trees
(other than standing timber), and things rooted in the
ground, like fences or structures built on the land.
3. Legal Framework: Immovable property is governed by
statutory laws such as the Transfer of Property Act, 1882,
the Registration Act, 1908, and the Indian Stamp Act,
1899.
4. Rights: It encompasses tangible rights such as ownership of
land and intangible rights such as the right to collect rent,
easement rights, or profits arising from the land.
Examples of Immovable Property
 1. Land and its components, such as soil, trees, and minerals.
2. Buildings, houses, and other structures constructed on the
land.
3. Rights and benefits arising from the land, such as the right to
fish in a particular pond or ferry services over a river.
Illustrations
1. Land: Ravi owns a plot of agricultural land in Haryana. This
plot, being a part of the earth, is classified as immovable
property.
2. Buildings: Sita constructs a house on a piece of land in
Bengaluru. The house becomes an integral part of the
immovable property since it is permanently attached to the
land.
3. Rights: If Rajesh has the right to collect rent from a building
he owns, the benefit (rent) is also considered part of the
immovable property.
Case Laws
1. Maharashtra State Electricity Board v. Official Liquidator
(1988): The court ruled that electrical machinery
permanently affixed to the ground is classified as
immovable property.
2. Shantabai v. State of Bombay (1958): The Supreme Court
held that standing timber, though rooted to the ground, does
not constitute immovable property if intended to be cut and
removed.
Key Differences from Movable Property
• Immovable Property: Includes land, buildings, and benefits
arising from the land, requiring legal documentation for
transfer and registration.
 • Movable Property: Includes tangible goods like furniture,
jewelry, or cars, which can be easily moved and do not
require registration during transfer.
Conclusion
Immovable property is a fundamental legal concept in India,
serving as a basis for ownership and property rights. It includes
land, structures, and rights attached to the land, and its transfer
is subject to stringent laws to ensure transparency and prevent
disputes. With its broad definition and illustrations, immovable
property plays a crucial role in the Indian legal and economic
framework.
1) c) Consequences of Improper Attestation
Attestation refers to the process of witnessing a document’s
execution and verifying the signatures by an authorized person.
Proper attestation ensures that legal documents like wills,
mortgages, and deeds are valid and enforceable under the law.
Improper attestation, however, can have serious legal
consequences, particularly under the Indian legal framework, as
outlined in the Transfer of Property Act, 1882 and the Indian
Succession Act, 1925.
Consequences of Improper Attestation
1. Invalidity of the Document
o If attestation is not performed in compliance with
statutory requirements, the document may be
declared invalid.
o For example, under Section 59 of the Transfer of
Property Act, 1882, a mortgage must be attested by at
least two witnesses. Non-compliance renders the
mortgage unenforceable.
 2. Inadmissibility as Evidence
o A document improperly attested may not be
admissible in court as evidence. This can lead to
significant setbacks in legal disputes.
o In Kundan Lal v. Raj Kumar (1971), the court
emphasized that attestation by uninterested and
competent witnesses is crucial to validate a deed.
3. Failure to Enforce Rights
o Improper attestation may bar a person from enforcing
the rights conferred under the document.
o For example, an improperly attested will might not
allow the beneficiary to claim property as per the
testator’s wishes.
4. Legal Disputes and Challenges
o Improper attestation can lead to challenges in court,
resulting in prolonged litigation and disputes among
parties.
o In Janki Narayan Bhoir v. Narayan Namdeo Kadam
(2003), the court held that non-compliance with
attestation requirements invalidates the will.
5. Loss of Legal Intent
o Improper attestation may defeat the legal intent of the
parties, causing the document to lose its purpose and
function.
Conclusion
Proper attestation is crucial to ensure the validity and
enforceability of legal documents. Improper attestation not only
renders a document ineffective but also exposes the parties to
legal risks, disputes, and potential losses. Thus, strict adherence
to legal requirements is essential.
3) b) Rights and Liabilities of Seller and Buyer Before and After
Completion of Sale
Under the Transfer of Property Act, 1882, the rights and liabilities
of the seller and buyer in a sale transaction are defined in
Sections 55(1) and 55(2). These rights and liabilities vary based
on whether the sale has been completed or is still pending.

Rights and Liabilities Before Completion of Sale

Rights of the Seller
1. Right to Retain Possession:
o The seller has the right to retain possession of the
property until the full payment of the sale price is
made.
o This is referred to as the seller's lien under Section
55(4)(b).
2. Right to Receive Sale Price:
o The seller has the right to demand the agreed purchase
price from the buyer.
Liabilities of the Seller
1. Duty to Disclose Defects:
o The seller must disclose any material defects in the
property or title that the buyer is unaware of and could
not reasonably discover (Section 55(1)(a)).
o Failure to disclose can lead to the rescission of the
contract, as held in Dhirajlal v. Karamsibhai (1925).
 2. Duty to Preserve the Property:
o Until the property is handed over, the seller is obligated
to maintain and protect it as a prudent owner (Section
55(1)(c)).
Rights of the Buyer
1. Right to Inspection:
o The buyer has the right to inspect the property and its
title documents before completing the sale.
2. Right to Seek Remedies for Non-Disclosure:
o The buyer can seek damages or rescission if the seller
fails to disclose defects in the property.
Liabilities of the Buyer
1. Duty to Pay Purchase Price:
o The buyer must pay the purchase price at the time and
place agreed upon in the contract.
2. Duty to Bear Costs:
o The buyer is liable to bear the costs of registration,
stamp duty, and other legal charges unless otherwise
agreed (Section 55(5)(b)).

Rights and Liabilities After Completion of Sale

Rights of the Seller
1. Right to Payment:
o If the entire sale price is not paid at the time of
execution, the seller retains a right to sue for the
unpaid amount.
Liabilities of the Seller
1. Duty to Hand Over Possession:
o The seller must transfer possession of the property to
the buyer along with all relevant title documents
(Section 55(1)(f)).
o In Vidhyadhar v. Manikrao (1999), the Supreme Court
emphasized the seller's obligation to hand over
possession after the sale deed's execution.
2. Duty to Warrant Title:
o The seller is liable to ensure that the buyer receives a
valid and marketable title to the property, free from
encumbrances (Section 55(2)).
Rights of the Buyer
1. Right to Possession:
o Upon completing the sale, the buyer has the right to
receive possession of the property from the seller.
2. Right to Quiet Enjoyment:
o The buyer is entitled to enjoy the property without
interference or claims from third parties.
3. Right to Sue for Eviction:
o If the seller's title proves defective or if the buyer is
dispossessed by a third party, the buyer can sue the
seller for breach of warranty.
Liabilities of the Buyer
1. Duty to Take Possession:
 o The buyer is obligated to take possession of the
property within a reasonable time after the sale's
completion.
2. Duty to Pay Outstanding Dues:
o The buyer assumes liability for all future taxes, rents,
and dues related to the property.

Key Distinction Between Pre-Sale and Post-Sale Liabilities

Aspect Before Completion After Completion

Retained by the
Possession Transferred to the buyer.
seller.

Seller must disclose Seller guarantees the title

Title Warranty
defects in the title. after sale.

Buyer assumes
Liability for Seller maintains the
responsibility for the
Maintenance property.
property's upkeep.

Payment Buyer must pay the Buyer is liable for taxes

Obligation agreed sale price. and other charges.

Case Laws
1. Kishan Lal v. Lachmi Chand (1959):
The court held that the seller must disclose all known
defects in the title before completing the sale.
2. Bishan Singh v. Khazan Singh (1958):
The Supreme Court ruled that the buyer has the right to quiet
possession and enjoyment after the sale's completion.
 3. Lal Chand v. Sohan Singh (2007):
The court upheld that the seller's lien for unpaid purchase
money exists until the entire amount is settled.

Conclusion
The rights and liabilities of the seller and buyer under the Transfer
of Property Act, 1882 ensure a balanced and fair transaction.
While the seller is obligated to transfer a clear title and
possession, the buyer must fulfill the financial obligations and
assume responsibility for the property after the sale.
Understanding these rights and liabilities is crucial to avoid
disputes and ensure a seamless transfer of ownership.
4) a) "Once a Mortgage, Always a Mortgage"
The principle "Once a Mortgage, Always a Mortgage" is a
fundamental doctrine in mortgage law, originating from English
equity jurisprudence and recognized in Indian law under the
Transfer of Property Act, 1882. This doctrine ensures that the
nature of a mortgage as a security interest in property cannot be
altered or compromised by any conditions or terms that would
extinguish the mortgagor's equity of redemption.

Meaning of the Doctrine

The doctrine asserts that:
1. A mortgage is a security for a loan and nothing more.
2. The mortgagor (borrower) retains the right to redeem the
mortgaged property by repaying the loan amount, interest,
and costs as agreed.
3. Any agreement or condition that prevents the mortgagor
from exercising the right to redeem is invalid.
The essence of this principle is that the mortgagee (lender)
cannot impose conditions that restrict or extinguish the
mortgagor's right of redemption. This right is protected under
Section 60 of the Transfer of Property Act, 1882, which states
that the mortgagor has the right to redeem the property upon
repayment of the loan.

Illustration
Ravi mortgages his house to Suman for ₹10 lakhs. If Suman
attempts to impose a condition that Ravi cannot redeem the
property even after repaying the loan, such a condition would be
invalid. The mortgage would remain a mortgage, and Ravi's right
to redemption would be upheld.

Judicial Recognition
1. Kreglinger v. New Patagonia Meat Co. (1914):
This English case laid the foundation for the doctrine. The
court ruled that a mortgagee cannot impose conditions that
prevent redemption, even if the mortgagor consents at the
time of the agreement.
2. Ganga Dhar v. Shankar Lal (1958):
The Supreme Court of India held that any condition that
directly or indirectly prevents redemption is void. The right to
redeem is inherent in a mortgage and cannot be bargained
away.
3. Chunchun Jha v. Ebadat Ali (1954):
The court reiterated that a mortgage cannot be converted
into an outright sale, as this would violate the principle of
"once a mortgage, always a mortgage."
Key Elements of the Doctrine
1. Equity of Redemption:
o This is the mortgagor’s right to reclaim the mortgaged
property upon fulfilling the repayment obligation.
o Section 60 of the Transfer of Property Act guarantees
this right.
2. Invalidity of Clauses in Restraint of Redemption:
o Any condition or agreement that seeks to extinguish or
fetter the mortgagor's right to redeem is void.
3. Prevention of Oppressive Practices:
o The doctrine safeguards the mortgagor from
exploitation by the mortgagee, ensuring the mortgage
remains a security interest only.

Exceptions to the Doctrine

1. Mortgage by Conditional Sale:
o In this type of mortgage, the mortgagor's right to
redeem exists only within the specified period. If the
period lapses, the mortgagee gains ownership of the
property.
o However, courts scrutinize such agreements to prevent
misuse.
2. Foreclosure:
o If the mortgagee forecloses the mortgage, the
mortgagor’s right to redeem ceases.
Importance of the Doctrine
• Protects Borrowers: Prevents lenders from exploiting
borrowers by imposing unfair conditions.
• Ensures Fairness: Maintains the equitable nature of
mortgages as security rather than a tool for absolute transfer
of ownership.
• Preserves the Right to Redemption: Ensures the mortgagor
can reclaim the property after repayment.

Conclusion
The doctrine of "Once a Mortgage, Always a Mortgage" is crucial in
safeguarding the equitable interests of mortgagors and ensuring
that a mortgage remains a security for a loan rather than a
mechanism for transferring ownership. The Indian legal system,
through statutory provisions and judicial interpretations, upholds
this principle, ensuring fairness and justice in mortgage
transactions.
4) b) Rights of a Mortgagee to Foreclose the Mortgaged
Property
A mortgagee, under certain types of mortgages, has the right to
foreclose the mortgaged property when the mortgagor fails to
repay the loan or perform the obligations stipulated in the
mortgage agreement. The right of foreclosure allows the
mortgagee to terminate the mortgagor’s right of redemption and
take ownership or possession of the mortgaged property. This
right is governed by Section 67 of the Transfer of Property Act,
1882.

Foreclosure under the Transfer of Property Act, 1882

The right to foreclosure is specifically available to the mortgagee
in a mortgage by conditional sale. In this type of mortgage:
• The mortgagor agrees to transfer the property to the
mortgagee absolutely if the debt is not repaid within the
specified time.
• The mortgagee, upon exercising this right, extinguishes the
mortgagor’s right to redeem the property.

Conditions for Foreclosure

A mortgagee can foreclose the mortgaged property only under the
following conditions:
1. Non-Payment of Debt: The mortgagor has failed to repay
the loan within the stipulated period mentioned in the
agreement.
2. Mortgage by Conditional Sale: The mortgage must be a
mortgage by conditional sale; the right to foreclosure is not
available in other types of mortgages such as simple
mortgage or usufructuary mortgage.
3. No Redemption by Mortgagor: The mortgagor must not
have exercised the right to redeem the property before
foreclosure.
4. Court’s Decree: Foreclosure requires a decree from the
court, as per Section 67.

Rights of the Mortgagee under Foreclosure

1. Right to File a Suit:
The mortgagee can file a suit for foreclosure if the mortgagor
 fails to fulfill the terms of the mortgage. The court may grant
a foreclosure decree in favor of the mortgagee.
2. Extinguishment of Redemption:
Once foreclosure is decreed, the mortgagor loses the right to
redeem the property. The mortgagee becomes the absolute
owner.
3. Right to Sell the Property:
In cases where foreclosure is not possible, the mortgagee
can request the court to allow the sale of the property under
Section 67.
4. Right to Possession:
Upon foreclosure, the mortgagee gains the right to possess
the property and use it as an owner.

Illustration
Ramesh mortgages his agricultural land to Suresh under a
mortgage by conditional sale. According to the agreement,
Ramesh must repay ₹10 lakhs within two years, failing which
Suresh can foreclose the property. Ramesh defaults, and Suresh
files a foreclosure suit. The court decrees foreclosure, allowing
Suresh to take ownership.

Judicial Pronouncements
1. Mathurai Pattar v. Rangammal (1910):
The court ruled that foreclosure can be initiated only if the
mortgage is by conditional sale and the mortgagor fails to
repay the debt.
2. Ganga Dhar v. Shankar Lal (1958):
The Supreme Court reiterated that foreclosure extinguishes
 the mortgagor’s equity of redemption, making the mortgagee
the absolute owner.

Restrictions on Foreclosure
The right to foreclosure is subject to restrictions:
• The mortgagee cannot foreclose if the mortgagor has repaid
the loan or is willing to repay it.
• Foreclosure is not allowed in cases of usufructuary
mortgages or English mortgages.

Conclusion
The right of foreclosure is an essential remedy available to a
mortgagee under the Transfer of Property Act, 1882, ensuring that
the mortgagee can recover their dues when the mortgagor
defaults. However, this right is limited to specific types of
mortgages and is exercised under judicial scrutiny to ensure
fairness.
5) a) Exchange: Meaning and Definition
The term "exchange" refers to the mutual transfer of ownership of
one property for another. It is governed by Section 118 of the
Transfer of Property Act, 1882, which defines exchange as "the
transfer of ownership of one property for the ownership of
another, where neither property is money." If money is involved in
the transaction on one side, it becomes a sale, not an exchange.
In an exchange, the properties involved must be of the same
nature (movable or immovable). The ownership rights are
transferred between the parties as agreed upon.
Essentials of Exchange
1. Transfer of Ownership:
Exchange involves the transfer of ownership of properties,
not just possession.
2. Two Parties:
There must be two parties involved, each transferring
property to the other.
3. Consideration:
The consideration for an exchange is not money but another
property.
4. Mode of Transfer:
If the exchange involves immovable property, the transfer
must be carried out in the same manner as a sale under the
Act, such as by registered deed if the value exceeds ₹100.

Illustration
Suppose Ramesh transfers his agricultural land to Suresh in
return for Suresh’s commercial property. This is an exchange
because both parties transfer ownership of their properties to
each other without involving money.

Relevant Case Law

• Vidyadhar v. Manikrao (1999): The court observed that for
an exchange to be valid, the ownership of both properties
must be effectively transferred.

Conclusion
An exchange is a lawful way of transferring property ownership
without monetary consideration. It promotes the mutual benefit
of both parties, provided the transaction complies with the legal
requirements under the Transfer of Property Act.
5) b) Characteristics or Features of Exchange
Exchange, as defined under Section 118 of the Transfer of
Property Act, 1882, involves the mutual transfer of ownership of
one property for another, excluding money. The following are the
key characteristics or features of an exchange:

1. Mutual Transfer of Ownership

Exchange involves the transfer of ownership rights in one property
by one party in return for ownership rights in another property.
Both parties agree to exchange their respective properties without
involving money as consideration.
Example: Ramesh transfers his agricultural land to Suresh in
return for Suresh’s house.

2. Consideration Must Be Property

The consideration for an exchange is another property. If the
consideration is money, the transaction becomes a sale, not an
exchange.
Illustration: If Ramesh pays ₹5 lakhs to purchase Suresh’s
property, it is a sale, not an exchange. However, if Ramesh gives
his land in return for Suresh’s house, it is an exchange.

3. Property Can Be Movable or Immovable

The property involved in an exchange can either be movable (e.g.,
vehicles, goods) or immovable (e.g., land, buildings). However,
both properties should belong to the same category (either both
movable or both immovable).

4. Registration Requirement
When immovable property worth more than ₹100 is exchanged,
the transfer must be completed through a registered deed as per
the Indian Registration Act, 1908. For movable properties,
delivery of possession suffices.

5. Mode of Transfer
The mode of transfer in an exchange is similar to a sale. The rights
and obligations of the parties regarding delivery, possession, and
ownership are governed by the same principles as a sale under
the Transfer of Property Act.

6. Ownership, Not Possession

The key element of an exchange is the transfer of ownership, not
just possession. Both parties must legally transfer the title of their
respective properties.

7. Governed by General Rules of Transfer

An exchange is subject to the general provisions of the Transfer of
Property Act, such as competency of the parties, free consent,
and lawful object.
Relevant Case Law
• Vidyadhar v. Manikrao (1999): The court held that an
exchange requires the effective transfer of ownership of both
properties.

Conclusion
Exchange is a legally recognized method of transferring property
ownership. Its primary feature is the mutual transfer of properties
without involving monetary consideration, making it a practical
and equitable method of transfer.
5) c) Distinction Between Sale and Exchange
Sale and exchange are both modes of transferring ownership of
property under the Transfer of Property Act, 1882, but they differ
in terms of consideration, purpose, and mode of transfer. Below
are the key points of distinction:

Basis Sale Exchange

An exchange involves
A sale is the transfer of the transfer of
ownership of property in ownership of one
Definition
exchange for money property for another,
(consideration). without money as
consideration.

Defined under Section Defined under Section

Governing
54 of the Transfer of 118 of the Transfer of
Section
Property Act. Property Act.
Basis Sale Exchange

The consideration for

The consideration for a
Consideration an exchange is always
sale is always money.
property, not money.

Can also involve

movable or immovable
Subject Can involve movable or
property, but they must
Matter immovable property.
be exchanged for each
other.

Ownership is
Requires payment of
Mode of transferred by mutual
consideration and
Transfer agreement and delivery
delivery of ownership.
of properties.

Sale of immovable
Exchange of immovable
property worth more
property worth more
Registration than ₹100 requires
than ₹100 also requires
registration under the
registration.
Registration Act, 1908.

Ramesh exchanges his

Ramesh sells his house
Example land with Suresh's
to Suresh for ₹10 lakh.
house.

Vidyadhar v. Manikrao
K. Madhavan v.
(1999): Exchange
Kannamma Bhargavi
Case Law requires transfer of
(1955): Consideration
ownership of
must be in money.
properties.

Conclusion
While both sale and exchange transfer ownership of property, the
fundamental difference lies in the nature of consideration. Sale
involves money as consideration, while exchange involves
property. Both are important mechanisms under property law and
are governed by similar legal formalities for immovable
properties.
6) a) Doctrine of Lis Pendens
The Doctrine of Lis Pendens is a principle under property law that
prevents the transfer of immovable property when a dispute
involving the property is pending in a court of law. It ensures that
the subject matter of a lawsuit is not altered or transferred during
the litigation, protecting the rights of all parties involved. This
doctrine is codified in Section 52 of the Transfer of Property Act,
1882.

Meaning and Origin

The term Lis Pendens is derived from the Latin words lis (litigation)
and pendens (pending), meaning "litigation pending." It is based
on the maxim: “Pendete lite nihil innovetur” which means
"nothing should be changed during litigation."
The doctrine was developed to safeguard the rights of the parties
involved in a legal dispute, ensuring that the outcome of the
litigation is not frustrated by transferring the property during the
pendency of the case.

Essentials of Lis Pendens

For the application of the doctrine, the following essentials must
be satisfied:
 1. Litigation Must Be Pending: A suit or proceeding
concerning the immovable property must be pending in a
competent court.
2. Competent Court Jurisdiction: The court must have proper
jurisdiction to decide the case.
3. Subject Matter: The suit must relate to specific immovable
property.
4. No Collusion: The suit should not be collusive, i.e., brought
with malafide intent.
5. Transfer During Pendency: The transfer of the property
should occur after the institution of the suit but before the
final decree.
6. Affects Rights of Parties: The transfer must affect the rights
of the other party involved in the litigation.

Legal Consequences
Any transfer of immovable property made during the pendency of
litigation is subject to the final outcome of the case. The
transferee acquires no better rights than the transferor had at the
time of the transfer. If the court rules against the transferor, the
transferee is also bound by the judgment.

Relevant Case Laws

1. Gouri Dutt Maharaj v. Sheikh Sukur Mohammad (1948):
The court held that the doctrine applies even if the
transferee is unaware of the pending litigation.
 2. Rajendar Singh v. Santa Singh (1973): The Supreme Court
emphasized that the doctrine prevents third parties from
interfering with the subject matter of the dispute.
3. Jayaram Mudaliar v. Ayyaswami (1972): The doctrine was
upheld to prevent the transferor from defeating the legal
rights of the other party by alienating the property.

Exceptions
The doctrine does not apply in the following situations:
1. Transfers made with the court's permission.
2. Transfers that do not affect the subject matter of the
litigation.
3. Where the litigation is collusive or fraudulent.

Conclusion
The Doctrine of Lis Pendens is a protective mechanism in
property law, ensuring fairness and justice in legal disputes
involving immovable property. It prevents fraudulent transfers and
protects the integrity of judicial proceedings. By binding third
parties to the outcome of litigation, this doctrine safeguards the
rights of the litigating parties and upholds the principle of natural
justice.
6) b) Distinction Between Contingent Interest and Vested
Interest
The terms "contingent interest" and "vested interest" are
important concepts under property law, particularly in the context
of the Transfer of Property Act, 1882. They pertain to the transfer
of future interests in property and differ in terms of certainty,
conditions, and transferability.

Contingent Interest
1. Definition:
A contingent interest is an interest in property that depends
on the occurrence of a specified uncertain event. If the event
does not happen, the interest fails.
Statutory Reference: Section 21 of the Transfer of Property Act,
1882.
2. Characteristics:
o The transfer of interest is conditional upon the
fulfillment of an uncertain event.
o There is no immediate ownership; it arises only if the
condition is fulfilled.
o It is not transferable until the condition is satisfied.
3. Example:
Ramesh transfers his property to Suresh on the condition
that Suresh marries before the age of 25. If Suresh does not
marry before the specified age, he will not acquire the
property.
4. Relevant Case Law:
Ramnath v. Shyam Sunder: The court held that a
contingent interest depends entirely on the occurrence of
the stipulated event and does not confer any present
interest until the condition is fulfilled.

Vested Interest
 1. Definition:
A vested interest is an interest in property that is created in
favor of a person without any condition, or where the interest
does not depend on the fulfillment of a condition precedent.
Statutory Reference: Section 19 of the Transfer of Property Act,
1882.
2. Characteristics:
o The interest is immediate and not dependent on any
uncertain event.
o The ownership is certain, even if possession is
deferred.
o It is transferable and inheritable from the moment it is
created.
3. Example:
Ramesh transfers his property to Suresh to take possession
after Ramesh's death. Suresh has a vested interest in the
property, even though he will possess it only after Ramesh's
death.
4. Relevant Case Law:
Kochunni v. State of Madras: The court held that vested
interest exists even if the right to possession is postponed to
a future date.

Key Differences
Aspect Contingent Interest Vested Interest

Depends on the
Exists from the moment
Certainty occurrence of an
it is created.
uncertain event.
Aspect Contingent Interest Vested Interest

Ownership is certain,
Conditional; no
Ownership even if possession is
immediate ownership.
deferred.

Immediately
Not transferable until
Transferability transferable and
the condition is met.
inheritable.

May involve a future

Depends on a future
Nature of Event event, but the interest is
uncertain event.
not conditional.

Governed by Section Governed by Section 19

Statutory
21 of the Transfer of of the Transfer of
Provision
Property Act. Property Act.

Conclusion
The distinction between contingent interest and vested interest
lies in the element of certainty. While vested interest ensures
immediate ownership, contingent interest is conditional and
uncertain. These distinctions are critical in determining the rights
and obligations of parties in property transactions. Understanding
these concepts aids in resolving disputes and ensuring
compliance with legal requirements.
7) a) Gift
A gift is a voluntary transfer of property from one person (the
donor) to another (the donee) without any consideration or
payment in return. In legal terms, a gift involves the act of giving
something of value or ownership without expecting anything in
return. A gift is made out of love, affection, or goodwill.
Under the Indian law, specifically the Indian Succession Act,
1925, the concept of a gift is governed by the provisions related to
"gifts" and is categorized under the transfer of property law. A gift
is an immediate and irrevocable transfer of ownership. It must be
done voluntarily and without any coercion, undue influence, or
fraud.
Essentials of a Gift:
1. Donor’s Intention: The donor must have the intention to
give the property voluntarily.
2. Acceptance by the Donee: The donee must accept the gift,
either expressly or impliedly, during the donor's lifetime.
3. Delivery of Possession: The donor must deliver the
possession of the property to the donee to complete the
transfer.
4. No Consideration: A gift is made without any exchange of
money or any other form of compensation.
Case Law: In K.K. Verma v. Union of India (1954), it was held that
a gift is valid only when the donor’s intention is clear, and the gift
is executed with proper documentation and acceptance.
7) b) Onerous Gift
An onerous gift refers to a gift that is accompanied by certain
obligations or burdens, such as debts, liabilities, or duties, which
the donee must accept along with the gift. In simple terms, it is a
gift that comes with a condition or responsibility that the recipient
must bear. The donee of an onerous gift is required to fulfill these
conditions or assume the liabilities attached to the gift.
Under Section 127 of the Transfer of Property Act, 1882, an
onerous gift is defined as a transfer of property where the donee,
by accepting the gift, agrees to assume the burden of the
property. This can include responsibility for debts, maintenance,
or any other encumbrance on the property.
Key Points:
1. Acceptance of Burdens: The donee must accept not only
the property but also the liabilities attached to it.
2. Voluntary Acceptance: The donee has the option to refuse
the gift if they do not wish to bear the burden.
3. Example: If a person gifts a house to another person but the
house has an outstanding loan, the donee must take
responsibility for repaying the loan.
Case Law: In Bharat v. Kesar (1940), the court ruled that an
onerous gift cannot be accepted by a donee without agreeing to
bear the associated burdens.
7) c) Universal Donee
A universal donee is a person who receives a gift of the entire
estate or a large portion of the property belonging to the donor.
This type of gift involves the transfer of all the property owned by
the donor, or a significant part of it, rather than specific or
individual items. The universal donee becomes the owner of the
entire estate, subject to any existing liabilities or encumbrances
on the property.
In legal terms, a universal donee accepts all the rights and
obligations associated with the property. This includes not only
the property itself but also any debts, claims, or responsibilities
that may be attached to it. The universal donee must take the gift
in its entirety, without any option to refuse specific parts of it.
Key Characteristics of a Universal Donee:
1. Entire Estate: The donee receives the whole estate or a
significant portion, rather than just individual items.
 2. Acceptance of Liabilities: Along with the property, the
donee may also accept any debts or encumbrances
attached to it.
3. No Option for Partial Refusal: The donee must accept the
entirety of the gift, including its burdens.
Example:
If a father gifts all his property, including land, buildings, and
savings, to his son, the son becomes a universal donee, inheriting
both the assets and liabilities of the father.
Case Law: In K.K. Verma v. Union of India (1954), it was observed
that a universal donee accepts the full scope of the donor's
estate, including all its obligations.
7) d) Essential Elements of a Valid Gift
A gift is a voluntary transfer of property made without any
consideration. The Transfer of Property Act, 1882, governs the law
relating to gifts in India. For a gift to be valid, certain essential
elements must be fulfilled. These elements ensure that the
transfer is legally sound and reflects the donor's true intention.

1. Donor’s Intention
The first and foremost element of a valid gift is the donor’s
intention to make the gift voluntarily. The donor must intend to
transfer the property to the donee without any coercion or undue
influence. The intention must be clear and unmistakable, showing
the desire to part with the ownership of the property.
Example: Ramesh must voluntarily decide to give his car to his
son, and this intention should be communicated clearly.
2. Acceptance by the Donee
The donee, i.e., the person receiving the gift, must accept the gift.
The acceptance must be made during the lifetime of the donor
and before the donor’s death. Acceptance can be either express
(spoken or written) or implied (through actions, such as taking
possession of the gifted property). If the donee does not accept
the gift, it does not become valid.
Example: If Ramesh’s son verbally agrees to accept the gift of the
car, this constitutes acceptance.

3. Delivery of Possession
Delivery of possession is the transfer of the property from the
donor to the donee. This can either be actual (where the property
is physically handed over) or constructive (when the property is
handed over indirectly, such as handing over the key to a house).
The delivery signifies that the donee now has control over the
property.
Example: Ramesh hands over the car keys to his son, symbolizing
the transfer of ownership.

4. No Consideration
A gift must be made without any consideration, meaning the
donee does not pay for the property or exchange anything in
return. It is purely a voluntary transfer, based on the goodwill or
affection of the donor.
Example: Ramesh’s son does not pay for the car; the gift is made
out of love.
5. Legal Capacity of the Donor
The donor must be legally competent to make the gift. The person
must be of sound mind and of age (18 years or above). A person
who is mentally incompetent or a minor cannot legally make a
gift.
Example: If Ramesh is mentally sound and over 18, he can legally
give the car to his son.

6. No Fraud or Coercion
The gift must be made voluntarily, without any fraud, undue
influence, or coercion. If the gift is obtained by force or by
fraudulent means, it becomes invalid. The donor's free will is
essential for the validity of the gift.
Example: Ramesh’s son cannot force his father into gifting the car
under threat or pressure.

7. Written Document (Optional but Recommended)

Although not mandatory, it is advisable to document the gift in
writing, particularly for immovable property. A written deed of gift
helps in avoiding future disputes. In the case of immovable
property, the gift must be registered under the Indian Registration
Act.
Example: A written deed of gift is recommended if Ramesh
decides to gift his house to his son.

Conclusion
To summarize, a valid gift requires the donor’s intention, the
donee's acceptance, delivery of possession, absence of
consideration, legal capacity, and the absence of fraud or
coercion. While a written document is not a strict legal
requirement, it is advisable for clarity and record-keeping,
especially in the case of immovable property. These elements
protect both the donor and the donee, ensuring that the transfer
of property is done smoothly and legally.