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Labour Law

The document outlines the Transfer of Property Act, 1882, defining transfer of property, immovable property, and the conditions under which property can be transferred. It details exceptions to property transfer, the concept of trusts, and various types of mortgages and leases. Additionally, it discusses legal requirements for valid transfers, rights of beneficiaries, and the implications of fraudulent transfers.

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0% found this document useful (0 votes)
4 views19 pages

Labour Law

The document outlines the Transfer of Property Act, 1882, defining transfer of property, immovable property, and the conditions under which property can be transferred. It details exceptions to property transfer, the concept of trusts, and various types of mortgages and leases. Additionally, it discusses legal requirements for valid transfers, rights of beneficiaries, and the implications of fraudulent transfers.

Uploaded by

hancockmedia01
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
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1. Define transfer of property and state properties which cannot be transferred.

Definition:
According to Section 5 of the Transfer of Property Act, 1882, "Transfer of property" means an act by
which a living person conveys property, in present or in future, to one or more other living persons, or
to himself and one or more other living persons.

Properties that cannot be transferred (Section 6):


The following are exceptions under Section 6:

• Spes successionis (chance of an heir-apparent succeeding to an estate)

• Right of re-entry for breach of condition subsequent

• Easement rights

• Restricted interest such as a life interest

• Right to future maintenance

• Public office and associated salary

• Stipends to military/naval/civil pensioners

• Right to sue

• Property prohibited by law

• Interest in property restricted by nature or agreement

2. Explain the concept of immovable property and transfer of property.

Immovable Property:
Though not exhaustively defined in the Act, Section 3 states that immovable property does not
include standing timber, growing crops, or grass. Courts have interpreted it to include:

• Land

• Benefits arising out of land

• Things attached to the earth (e.g., houses, trees)

Transfer of Immovable Property:


Immovable property can be transferred by sale, mortgage, lease, exchange, or gift. The transfer
must be:

• Between living persons

• In compliance with relevant formalities (registration, writing if required)

• Made by a competent person


3. Define transfer of property. State whether partition, surrender, compromise, and gift amount to
transfer under the Act.

Definition (repeated from Q1):


Section 5 defines transfer of property as an act by which a living person conveys property to one or
more living persons.

Whether the following are "transfers" under the Act:

• Partition: Not a transfer; it’s the separation of joint ownership.

• Surrender: Not a transfer in the technical sense; it’s giving up of leasehold rights.

• Compromise: May amount to a transfer if it involves exchange of rights.

• Gift: Yes, it is a recognized mode of transfer under Section 122.

4. Discuss the law relating to the transfer of property made for the benefit of an unborn person.

Relevant Provision: Section 13


The Act allows a transfer for the benefit of an unborn person only under strict conditions:

• The property must be transferred to a living person first.

• The unborn person must be given absolute interest, not life interest or limited interest.

• The transfer must take effect after the lifetime of the original transferee.

Illustration:
If A transfers property to B for life, and after B’s death to A's unborn son C (who is born later), then
such a transfer is valid only if C is given absolute interest.

5. Write a note on oral transfer and essentials of valid trust.

Oral Transfer:
As per Section 9, a transfer of property may be made without writing in all cases except:

• Where writing is required by law (e.g., sale of immovable property over ₹100, gift of
immovable property, mortgage, lease over 1 year)

• Hence, oral transfer is valid for movable property or small-value immovable properties.

Essentials of a Valid Trust (under Indian Trusts Act, 1882):

1. Author of the trust (creator)

2. Trustee (person managing the trust)


3. Beneficiary

4. Trust property

5. Declaration of the object of the trust

6. Lawful purpose

7. Transfer of ownership to the trustee

Let me know if you'd like the next 5 questions (6–10) answered in the same format.

You said:

next 10 questions

ChatGPT said:

Here are the next 10 answers (Questions 6–15) from your list, explained in exam-appropriate
format under the Transfer of Property Act, 1882 and Indian Trusts Act, 1882:

6. State the provisions governing the transfer made during the pendency of litigation.

Doctrine of Lis Pendens (Section 52):


This doctrine states that no property that is the subject of a pending suit can be transferred or
otherwise dealt with by any party to the suit so as to affect the rights of any other party under the
decree.

Essentials:

• There must be a suit or proceeding in a competent court.

• The suit must relate to immovable property.

• Transfer must be by a party to the suit.

• Transfer must be during the pendency of the suit.

• The transfer does not become void, but it is subject to the outcome of the case.

7. Explain the provision of doctrine of election.

Doctrine of Election (Section 35):


When a person professes to transfer property which he does not own but confers a benefit to the
real owner, the real owner must choose (elect) to:

• Accept the benefit, and hence confirm the transfer; or


• Reject the transfer, and forgo the benefit.

Example: A bequeaths B’s house to C and gives a gift to B in the same will. B must choose either:

• Accept the gift and allow C to take the house, or

• Retain his house and forgo the gift.

8. Write a note on right of redemption.

Right of Redemption (Section 60):


The mortgagor has a statutory right to redeem the mortgaged property:

• On repayment of the mortgage amount.

• At any time after the principal money has become due but before foreclosure or sale.

• The mortgagor can reclaim property free from encumbrances.

This is a legal right, and any clause preventing redemption is void (known as a clog on redemption).

9. What are the rights of mortgagor?

Under Sections 60–66, the mortgagor has the following rights:

• Right of redemption (Section 60)

• Right to accession and improvements (Section 63)

• Right to inspect and produce documents (Section 60B)

• Right to transfer to third party instead of redemption (Section 60A)

• Right to recover surplus on sale (Section 69C)

• Right to receive property back after payment (Section 61)

10. Explain the statutory provisions of trustee.

As per the Indian Trusts Act, 1882:

Duties of a Trustee:

• To execute the trust honestly and faithfully (Sec 11)

• To maintain impartiality between beneficiaries

• To protect and preserve trust property


• To maintain proper accounts

• To transfer the property to rightful beneficiary

Powers of a Trustee:

• To sell, lease or invest the trust property

• To carry out acts necessary for trust administration

Liability:
If the trustee breaches duty, he is personally liable to make good the loss (Sec 23).

11. Define mortgage. Explain the different kinds of mortgages.

Definition (Section 58):


A mortgage is the transfer of an interest in specific immovable property as security for repayment of
a loan.

Types of Mortgages:

1. Simple Mortgage – No possession; personal liability.

2. Mortgage by Conditional Sale – Sale with condition to re-transfer on repayment.

3. Usufructuary Mortgage – Possession given; mortgagee uses rents/profits.

4. English Mortgage – Absolute transfer with condition to retransfer on repayment.

5. Mortgage by Deposit of Title Deeds – Common in urban areas; no registration.

6. Anomalous Mortgage – Any combination of above types.

12. Explain the circumstances in which the mortgagee can sell the mortgaged property without
intervention of court.

As per Section 69:


Sale without court intervention is allowed if:

• It is an English Mortgage, and

• The mortgagee is either the Government or notified under the Act.

Other conditions:

• Mortgage deed must contain power of sale clause.

• Notice of default must be served.


• 3 months must have passed since demand.

13. Define sale. Explain the rights and liabilities of seller.

Definition (Section 54):


Sale is the transfer of ownership in exchange for a price paid or promised.

Rights of Seller:

• To receive purchase money.

• To retain possession until payment (in absence of contract to the contrary).

Liabilities of Seller (Sec 55):

• To disclose material defects

• To answer all questions regarding property

• To give possession

• To ensure marketable title

14. What are the modes of termination of lease?

Section 111 of the TPA lists the following modes:

• By lapse of time

• By notice from either party

• By mutual agreement

• By forfeiture due to breach

• On death (in personal leases)

• By merger (lessor and lessee become same person)

• By express surrender or implied surrender

15. Discuss the various types of trusts as given in the Indian Trusts Act.

Types of Trusts:

1. Express Trusts – Intentionally created by settlor.

2. Implied Trusts – Arising from conduct or legal obligation.


3. Constructive Trusts – Created by courts for equity and justice.

4. Private Trusts – For specific persons.

5. Public Trusts – For public or charitable purposes.

Examples:

• Religious trusts, charitable trusts, and family trusts fall under public and private categories.

Let me know when you're ready for Q16–25, and I’ll provide the next batch.

You said:

next 10

ChatGPT said:

Here are the next 10 answers (Q.16 to Q.25) in clear, exam-focused format under the Transfer of
Property Act, 1882 and Indian Trusts Act, 1882:

16. What is an actionable claim? How can an actionable claim be transferred?

Definition (Section 3):


An actionable claim is a claim to any:

• Debt (not secured by mortgage or pledge), or

• Beneficial interest in movable property, which the claimant does not possess, but which can
be claimed through legal action.

Examples:
Unsecured loan, arrears of rent, life insurance benefits.

Transfer:
As per Section 130, an actionable claim:

• Must be in writing, and

• Must be signed by the transferor or his authorized agent.

• Registration is not mandatory, but notice to the debtor is required to bind the debtor.

17. Write a note on onerous gift and apportionment.

Onerous Gift (Section 127):


When a gift imposes a burden (liability) on the donee, it is called an onerous gift.
• The donee cannot accept the benefit and reject the burden.

• If multiple gifts are given together (benefit + burden), either both must be accepted or both
rejected.

Apportionment:
This involves division of liability or benefit:

• Apportionment by Time: Rent, interest or income divided based on time.

• Apportionment by Estate: Applied when estate is sold in parts and income is distributed
accordingly.

18. Certain obligations are in the nature of trust. Discuss.

Under Section 88 of Indian Trusts Act, certain relationships impose a constructive trust:

• If a person gains property or advantage through fraud, misrepresentation, breach of trust,


undue influence, etc., he holds it in trust for the rightful person.

• These are obligations similar to a trust, even though no formal trust was created.

Example: A bribes B’s agent to gain a contract. B can claim that the agent holds that bribe amount in
trust for him.

19. Explain the rights of a beneficiary in a trust.

Under the Indian Trusts Act, beneficiaries have the following rights:

• Right to rent/profit/income from trust property

• Right to specific execution of the trust (Sec 55)

• Right to inspect and take copies of trust documents

• Right to be indemnified if trustee mismanages

• Right to transfer interest, unless restricted

Beneficiaries can also sue for breach of trust if the trustee acts dishonestly.

20. Who is an ostensible owner? When is a transfer by an ostensible owner protected against the
real owner?

Definition (Section 41):


An ostensible owner is someone who appears to be the owner with the express or implied consent
of the real owner.
Protection of Transfer:

• Transfer is valid if:

1. Real owner gave consent (express or implied),

2. Transferee acted in good faith,

3. Transferee paid consideration, and

4. Transferee took reasonable care before buying.

Example: A lets his wife appear as owner. She sells the land. Buyer is protected under Section 41.

21. What is Lis Pendens? Mention the conditions necessary before this plea can be raised.

Lis Pendens (Section 52):


It is the principle that "pending litigation concerning property, no party can transfer it to affect the
rights of other parties."

Conditions:

• There must be a suit or proceeding pending.

• The suit must relate to specific immovable property.

• The transfer is made by a party to the suit.

• Transfer is made during the pendency.

• The Court must be competent to try the case.

22. All kinds of properties are transferrable – Comment.

General Rule (Section 6):


Property of any kind may be transferred.

Exceptions (Non-Transferable Properties):

• Spes successionis

• Right of re-entry

• Maintenance rights

• Easement

• Right to future maintenance

• Public office/salary
• Pension/stipends

• Right to sue

• Property prohibited by law

Hence, not all properties are transferable. There are statutory and public policy-based exceptions.

23. What do you mean by vested interest and contingent interest?

Vested Interest (Section 19):

• Takes effect immediately, even if possession is delayed.

• Cannot be defeated by future events.

• Transferable and heritable.

Contingent Interest (Section 21):

• Depends on the happening of an uncertain event.

• No ownership until condition is fulfilled.

• Not heritable, unless condition is fulfilled.

Example:

• A gives property to B after B turns 21.

o If B is already 21: vested interest.

o If B is not yet 21: contingent interest.

24. Explain the effects of condition restraining alienation of property.

Section 10 – Rule Against Restraint on Alienation:

• Any condition that absolutely restrains the transferee from transferring the property is
void.

• Partial restraints (reasonable ones) may be valid.

Exceptions:

• Property given for the benefit of a woman (Hindu or Muslim) with reasonable restrictions.

• Lease restrictions under tenancy laws.

Effect: The transfer stands but the condition is void.


25. What are the essentials of valid lease?

As per Section 105, TPA:

Essentials of a Valid Lease:

1. Parties competent to contract

2. Transfer of right to enjoy property

3. For a certain time or recurring period

4. Consideration (premium or rent)

5. Proper formalities:

o Lease of 1 year or more must be in writing and registered

o Delivery of possession is essential

A lease creates interest in immovable property, unlike a license.

Let me know when to proceed with Q.26 to Q.35.

You said:

next 10

ChatGPT said:

Here are the next 10 answers (Q.26 to Q.35) from your list under the Transfer of Property Act, 1882
and Indian Trusts Act, 1882, written in clear and exam-oriented format:

26. Discuss the legal requirements of a valid transfer.

Legal requirements of valid transfer (Under Sections 5–10):

1. Transfer between living persons

2. Competent transferor – major, sound mind, not disqualified by law

3. Transferee must be capable of holding property

4. Lawful object and consideration

5. Transferable property – not hit by Section 6

6. Compliance with legal formalities:


o Registration (for immovable property above ₹100)

o Writing and signature where required

Invalid transfers include transfers to unborn persons without absolute interest, or to persons not in
existence (unless allowed by law).

27. Explain the circumstances under which creditors can set aside a transfer as fraudulent.

Section 53 (Fraudulent Transfers):

• A transfer made with the intent to defeat or delay creditors is voidable at the option of such
creditors.

Conditions:

1. Transfer must be gratuitous or undervalued

2. Done with intent to defraud or defeat creditors

3. Burden of proof lies on the creditors

Exception:
Transfer made for adequate consideration and in good faith is protected.

28. Write a note on mortgagee’s power of sale without intervention of court.

Section 69 – Power of Sale without Court:

• Applies to English mortgages with express power of sale clause.

• Also applies where mortgagee is Government or notified authority.

Conditions:

1. Mortgage deed must confer this power

2. Notice in writing must be given to mortgagor

3. Default must continue for 3 months after notice

If conditions are met, the mortgagee can directly sell the mortgaged property.

29. Write a note on foreclosure.

Foreclosure (Section 67):

• A legal remedy available to mortgagee under mortgage by conditional sale


• It means termination of mortgagor’s right of redemption

Conditions:

• Mortgage money not paid on due date

• Court's intervention is needed

• Once foreclosure decree is passed, mortgagor loses all rights

Note: Not available in case of simple or usufructuary mortgage

30. Discuss the essentials of lease and state how leases are made.

Essentials of a Lease (Section 105):

1. Transfer of right to enjoy property

2. Time-bound (fixed or periodic)

3. Rent or premium payable

4. Consent of both parties

5. Competency to contract

6. Proper mode of execution

How Leases are Made (Section 107):

• Lease of more than 1 year must be by written deed and registered

• Lease up to 1 year can be made by oral agreement and delivery of possession

31. Write a note on improvements made by bona fide holder.

Section 51 – Improvements by Bona Fide Possessor:

• If a person in good faith and under belief of ownership makes improvements,

• He is entitled to:

o Compensation for the improvements made

o Or retain possession until compensated

Applies to:
Transferee under voidable/defective title, who has spent money believing himself to be the owner
32. Discuss the rights and liabilities of a beneficiary.

Rights:

• Right to rents, profits and interest

• Right to enforce the trust

• Right to information and accounts

• Right to transfer interest, unless restricted

• Right to recover compensation for breach

Liabilities:

• Cannot demand performance contrary to trust object

• If he participates in breach of trust, he can be held liable

• Must act within terms of the trust

33. Write a note on extinction of trust and public trust.

Extinction of Trust (Sec 77, Indian Trusts Act):

• By fulfillment of purpose

• By purpose becoming unlawful

• By destruction of trust property

• By revocation (if allowed)

Public Trust:
A charitable or religious trust created for public welfare. It differs from private trust:

• Beneficiaries: general public

• Supervision: by government or Charity Commissioner

• Not governed by Indian Trusts Act (except where applicable)

34. Write a note on accumulation.

Accumulation in Trust Law:

• Refers to income not distributed, but added to trust property.

• Indian Trusts Act allows accumulation unless:


o Purpose is unlawful

o Against the trust deed

o Violates the rule against perpetuity

Trustee's Duty:
To distribute income unless directed otherwise. Excessive accumulation can lead to legal challenges.

35. Define gift. Explain the principles relating to revocation.

Gift (Section 122, TPA):


Voluntary transfer of property by one person to another, made without consideration.

Essentials:

• Transfer must be voluntary

• Made without consideration

• By a living person

• Acceptance by the donee is mandatory

Revocation (Section 126):

• A gift can be revoked:

1. By mutual agreement (condition inserted at time of gift)

2. By fraud or coercion

Once accepted, a gift cannot be revoked unless the condition is valid and clearly expressed.

Let me know when you're ready for Q.36 to Q.45 (the final batch).

You said:

next 10

ChatGPT said:

Here are the final 10 answers (Q.36 to Q.45) from your list, explained in exam-oriented format
under the Transfer of Property Act, 1882 and Indian Trusts Act, 1882:

36. Distinguish between apportionment by time and apportionment by estate.


Basis Apportionment by Time Apportionment by Estate

Division of income (like rent/profit) for a Division of income among different parts of
Meaning
certain time period an estate

Rent divided between buyer and seller If an estate is sold in parts, income is divided
Example
based on date of sale among new owners

Time-bound transfers like lease/sale of When property is divided among multiple


Applicability
reversion parties

Purpose Ensures fair sharing of income for a time Ensures rightful share among co-owners

37. Write a note on fraudulent transfer and transfer of property by exchange.

Fraudulent Transfer (Section 53):

• Transfer made with the intent to defeat or delay creditors

• Such transfer is voidable at the option of creditors

• Burden of proof lies on creditors

• Good faith transfers for consideration are protected

Transfer by Exchange (Section 118):

• Mutual transfer of ownership of one property for another

• Consideration is property, not money

• Applies to both movable and immovable property

• Formalities of sale apply to exchange of immovable property

38. Distinguish between trust and bailment.

Point Trust Bailment

Law Governing Indian Trusts Act, 1882 Indian Contract Act, 1872

Nature Fiduciary relationship involving ownership Delivery of goods for specific purpose

Subject Matter Movable or immovable property Only movable property

Possession Trustee may or may not have possession Bailee always has possession
Point Trust Bailment

Purpose Benefit of beneficiary Safe custody, transport, repair, etc.

39. Write a note on attestation.

Attestation (Section 3, TPA Explanation):

• Attestation means witnessing the execution of a document by two or more witnesses.

• Each witness must:

o See the executant sign, or

o Be told by the executant that he signed the deed

• Applies mainly to mortgage, gift, and sale deeds

• Without valid attestation, the document may be inadmissible in evidence

40. What are the effects of sale by co-owner?

General Rule:

• A co-owner can sell only his own share, unless authorized by others.

Effects:

• Buyer becomes co-owner with remaining owners

• Right to partition available to buyer

• If possession is not divided, buyer may possess jointly

• Good faith buyer without notice may be protected under some circumstances

41. Property of any kind may be transferred – State the exceptions.

Section 6 – Exceptions to Transferability:

1. Spes successionis

2. Right to re-entry

3. Easement

4. Future maintenance right


5. Public office and salary

6. Stipends and pensions

7. Right to sue

8. Transfer prohibited by law

9. Property restricted by nature or agreement

Hence, not all property is transferable despite the general rule.

42. Distinguish between lease and license.

Feature Lease License

Defined in Section 105, TPA Section 52, Indian Easements Act, 1882

Interest Created Transfers an interest in property Only grants permission to use property

Exclusive Possession Yes No

Registration Required if for more than 1 year Not necessary

Rights Leaseholder has legal rights Licensee has personal rights only

43. State the exceptions to rule against perpetuity.

Rule (Section 14):


No transfer shall operate to create an interest which is to take effect after the lifetime of one or
more persons living at the date of such transfer and the minority of the ultimate beneficiary.

Exceptions (Section 18):

• Charitable transfers (e.g., to religious or public purposes)

• Property for public benefit (education, medical aid, etc.)

• Leases, mortgages, or contracts for sale not affected

• Personal agreements outside the scope of TPA

44. Explain the law relating to mortgagee’s right of redemption.

Section 60 – Right of Redemption:


• Mortgagor can reclaim property on repayment of debt

• Can be exercised anytime before foreclosure or sale

• Right is statutory, and cannot be taken away

• Any clause preventing redemption is called a clog and is void

45. Discuss the doctrine of part performance. State the difference between Indian law and part
performance.

Section 53A – Doctrine of Part Performance:

• Protects transferee in possession if:

1. There is a written agreement,

2. Possession is given, and

3. Transferee is willing to perform his part.

• Even without registration, the transferee’s possession is protected.

• The transferor cannot evict the transferee.

Difference with English Law:

• In English Law, part performance can be used to enforce the contract.

• In Indian law, it only protects possession; it cannot be used as a basis to claim ownership

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