When does the conditional transfer fail?

Section 23 provides that, where on transfer of property, an interest therein is to accrue to a spectified person, if a specified uncertain event shall happen and, no time is mentioned for the occurrence of such event, the interest fails, unless such event happens before, or at the time of cessation of the intermediate or precedent interest.

Section 25 provides that an interest, created on the transfer of property and, dependent upon a condition, fails, if the fulfillment of the condition is impossible, or is forbidden by law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another or the court regards it as immoral or opposed to the public policy.

Illustrations:

  • A lets a farm to B on the condition that he shall walk 100 miles in an hour. This lease is void because the fulfillment of the condition is impossible.
  • A transfer Rs. 500 to B on condition that he shall murder C. The transfer is void because the condition in this case is forbidden by law.
  • A transfer Rs. 500 to his niece C if she will desert her husband. The transfer is void because the transfer in this case, if permitted, would imply injury to the person or property of another.

How should a condition precedent be fulfilled?

Whenever there is a condition precedent to the transfer of interest, according to which a transfer is to take effect on fulfillment of a condition, mentioned, then, according to section 26 of the Act, such condition is deemed to have been fulfilled when it is substantially complied with.

Illustration:

A transfers Rs.5000 to B on condition that he shall marry with the consent of C, D and E. E dies. B marries with the consent of C and D. B is deemed to have fulfilled the condition.

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2 Comments

  • Vijay Malhotra says:

    We had booked two 3 BHK flats with a builder who had contracted the super built up area to be 1350 sq.ft. of each. On the day of booking the towers were 3-4 stories already up. For two years all the payments whenever demanded were paid on time through cheques/drafts. All the receipts mentioned the said area as 1350 till 95% of the payments were made. With the letter of offer of possession for the first time it said the super built up area has become 1484 sq.ft. on measurement and additional amounts were demanded and paid and protested. Telephonic inquiries from the marketing staff which had mentioned at the time of booking that super area can not change since towers area already under construction, did not give any reply at all. Later builder initially said he will check with project officer how area has increased, then said all other buyers have been charged in the same way, then said the word approx. was prefixed to the 1350 fig in the agreement, then that vide a clause in agreement we had authorised him to increase the area, when told that the said provision could be applicable only on change of the layout plans he said the plans had been changed but on asking photocopies of original and changed plan he maintained that you come and see those in office, a RTI query revealed that plans were approved by approving authority only once, a company manager in meeting confirmed no plans had been changed, then it says that at the time of booking plans shown were tentative and could be changed all through the construction, one being told that that was illegal practice and construction too was illegal, he maintains that some fine tuning of the area has been done hence increase, then he further says that the salable area is 1484 and flat of 1484 area has been sold to us, we told it that sale is not there and there is no such mention of salable area in agreement the only term there is super built up area. In pursuance of letter of offer of possession we went twice after due fixing of date & time of our visit, it failed to hand over the physical possession. He is threatening and time and again putting pressure on us to take physical possession. Sale deed of one flat had been done but the physical possession was not given. Our stand is that the entire deal is within the ambit of fraud and cheating and we would not like to be part of it and we can take possession only when the paper work indicates super area as 1350 sq.ft. only or the company retains the flats and returns our amounts spent with interest as provided in the agreement. Booking date was 27.1.2011.
    Please advise if it would be proper to file a complaint with the police authorities for fraud and cheating.
    Please advise if it would be proper to file a case in the consumer court/since builder has blatantly violated the provisions of the agreement and embarked on giving false and misleading explanations/pleas the agreement has become defunct and he cannot force us to take physical possession.
    OR what should be the best course to go about. We are no desirous to have those flats as it would involve us in fraud and that can come in the way whenever we may wish to dispose those off.
    Best Wishes and thanks for your time.

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  • KG SRIKUMAR says:

    Sir,
    Iam in the process of registering a portion of land to my neighbour.He wanted to use this land for bringing his vehicle to his house.However we are not interested to sell this portion of land as it reduces the cost of the property as well as shape of the land become narrow.we may not able to sell other portion of the property as it lies in a rectangular shape.
    we intend to register it for easement right only.What is the implications of this type of agreement?
    We do not want this property become a public pathway or any other person than agreed people for this.
    There are other property lies adjoining to my neighbours property.We fear that others also will eventually use this pathway.
    Please advise me how can i execute an easement agreement to one household who agrees to pay for the portion of land.
    with regards
    srikumar

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