What is Section 14 of the Transfer of Property Act?

Introduction 

“It is absurd to think that someone who has passed away may still influence things above their tomb.”

• The mentioned quote talks about the concept of transferring property from one generation to another generation, which is often seen in Indian society as legal advice is given for not doing it as it is prohibited by law.
• This means the family tree will keep the hold on the property, but no one, even within the family, has the right to sell the property to any other person outside the family. The transfers should strictly be within the generations.
• This quote also talks about the same; however, in the Indian Contract act, there is a law mentioned under section 14 of the Transfer of Property Act. 
• Section 14 of the Transfer of Property Act talks about the concept of perpetuity and the rule against it. 

What does section 14 of the Transfer of Property Act say? 

Section 14 of the Transfer of Property Act talks about the concept of transferring property from one generation to another generation.

Section 14 of the transfer of property talks about the rule against perpetuity in Indian laws.

“Any property transfer cannot be used to create an interest that will come into existence after the passing of one or more people who were alive at the time of the transfer and the minority of someone who will still be alive at the end of that time period and to whom, if he reaches full age, the interest created is to belong.”

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When the Case of Perpetuity arises?

The cases of perpetuity happen when there is a need for the power of alienation for the transfer of property, and the other is remote interest. Both cases are void in section 10 and Section 14 of the Transfer of Property Act, respectively. 

What is the Rule against Perpetuity? 

• Section 14 of the Transfer of Property Act gives a definite maximum period beyond which the possibility of transferring the property cannot be subject to legal enforcement.
• The date of transferring the property, in addition to the last interest holder’s life years, along with the 18 years of the upcoming unborn beneficiary, is taken into account.
• Beyond this maximum period, the transfer of property cannot be held valid as per section 14 of the Transfer of Property Act.

What is the ‘After Life’ time and ‘Attains Full’ age?

• The concept of after-like time and attaining full age means to safeguard the self-guarding rule given in Section 5 of the Transfer of Property Act because of which the transfer has to take place during the lifetime of the last interest and conception of the next generation before which the transfer will be held invalid. 
• Attaining full age means the transfer of property to the next upcoming beneficiary should be into three stages; the first should be during conception, the second should be the birth, and the third should be until he receives the age of majority legally.
  

Case Law of Girish Dutt and Data Din

In this case of Section 14 of the Transfer of Property Act, Sugga made a deed of gift in favor of Ramkali d/o Data Din s/o Sugga’s brother.

The gift talked about three alternate types of transactions of property that are not dependent on any other.

The facts are like this. 

1. An award to Ram Kali for life, with the remainder to her sons and grandchildren, is contingent upon the possibility that a son or a grandson or sons or grandsons were alive at the time of her death.
2. A grant to Mt. Ram Kali for life, with remainder to her daughters for life, subject to the condition that there be no sons or grandsons alive at the time of Mt. Ram Kali’s death but that there be one or more daughters alive, and
3. A grant to Mt. Ram Kali for life, with remainder to Data Din, subject to the condition that there be no sons, grandsons, or daughters alive at the time of Mt. Ram Kali’s death but that there be one.

In this case, it was held the conditions were in such a way that if the daughter and the son were not able to get the property as a deed of gift, then only Data Din should be given. The transfer here is an example of the applicability of section 14 of the Transfer of Property Act. 

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Exceptions to the Rule of Perpetuity 

There are a total of 6 exceptions to the rule of perpetuity given under Section 18 of the Transfer of Property Act. 

Section 18 of the Transfer of Property Act talks about the rule against perpetuity when there is a transfer in favour of religion, knowledge, health, science, and other social welfare activities to humankind. But there are exceptions to section 14 of the Transfer of Property Act.

• Personal agreements are not included in it.
• Lease agreements are out of this.
• Redemption of property under mortgages.
• Rents on the property which has been collected.
• Contracts that were pre-entered before.
  

Conclusion 

Section 14 of the Transfer of Property Act talks about the rule against perpetuity, every family has the desire to pass on the property to the next generation, but this is harmful to the economy of the society itself. Several legal advice from legal experts should be taken before transferring the property. So, section 14 of the Transfer of Property Act is a progressive rule for the economic benefit of society. 

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Frequently Asked Questions

Q1. What is Section 14 of the Transfer of Property Act?

Ans: Section 14 outlines the rule against perpetuity, which prevents the indefinite transfer of property across generations. It disallows creating an interest in property that comes into effect only after the lifetime of certain people living at the time of the transfer and the minority of an unborn beneficiary.

Q2. What does the rule against perpetuity mean?

Ans: It refers to the legal restriction that a transfer of property cannot create a future interest that vests too remotely — beyond the life of a living person and 18 years of an unborn person’s minority. Such transfers are void under Section 14.

Q3. When does the issue of perpetuity arise?

Ans: The issue arises when there is a condition that restricts the free transfer (alienation) of property for an indefinite period, or when the interest created is too remote to take effect. Both are void under Sections 10 and 14.

Q4. What is meant by ‘after life’ time and ‘attains full age’?

Ans: ‘After life’ refers to the time after the death of someone alive at the time of the transfer. ‘Attains full age’ means the unborn beneficiary must be conceived, born, and must reach the legal age of majority (18 years) within the permissible timeframe.

Q5. What was the significance of the Girish Dutt vs. Data Din case?

Ans: In this case, multiple alternative conditional gifts were made. The court evaluated whether these conditions violated the rule against perpetuity. It highlighted how contingent interests depending on the uncertain survival of heirs could fall under the scope of Section 14.

Q6. Are there exceptions to the rule against perpetuity?

Ans: Yes, under Section 18, the rule does not apply when property is transferred for public benefits like religion, education, health, science, or welfare. Other exceptions include personal agreements, lease agreements, mortgage redemptions, rents, and pre-existing contracts.

Q7. Does the rule apply to leases or mortgages?

Ans: No, lease agreements and mortgage redemptions are excluded from the rule against perpetuity under Section 14 and fall under separate legal rules.

Q8. Why is the rule against perpetuity important?

Ans: It prevents property from being locked within families or trusts for generations, thus promoting a free market and active economic participation. It ensures that property is not withheld from use or development indefinitely.

Q9. What legal precautions should be taken before transferring property to future generations?

Ans: It is advisable to consult legal experts to avoid violating the rule against perpetuity or any other provisions under the Transfer of Property Act. Structuring gifts, wills, and deeds carefully is essential to ensure legal validity.

Q10. How does Section 14 benefit society?

Ans: Section 14 ensures that property remains transferable and does not get stuck in legal deadlock for generations. This supports economic circulation, infrastructure development, and better utilization of land resources.