“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.”
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.
- 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.
- 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
- 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.
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.
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.