Thursday, October 01, 2009

Transfer of Property Act_2

Arjun transfers his property to Bhanu for life and after Bhanu’s death to that of his unborn sons as shall first attain the age of 25 years and if no son of Bhanu shall attain that age, to Chandan who is living at the time of the transfer. Decide the validity of this transfer.

As per Section 13 of the Transfer of Property Act, 1882, transfer of property to an unborn person can only take place if before such a transfer; a life estate is transferred to a person existing at the date of transfer. Moreover, it should not be a partial interest, but the entire interest that is transferred to the unborn. The vesting of absolute interest in favour of an unborn person may be postponed until he attains full age. Such an unborn person should get full rights to that property, and no further rights can be created to that property after those of the unborn. Hence, the transfer is valid till it pertains to the transfer in favour of Bhanu, but the transfer to Chandan is not valid, as he is living at the time of the tranfer, while the sons of Bhanu are as yet unborn.

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