Transfer of Property Act, 1882 Test 5 — Questions & Solutions
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A grants a usufructuary mortgage of his undivided share in joint property to M and delivers possession. So long as that mortgage subsists, who is entitled to unity of joint possession with the other co-owners?
aM the usufructuary mortgagee, and A cannot exercise any right to joint possession
bThe original co-owner A, since he remains the owner of the share
cBoth A and M jointly, in equal turns
dNeither, until the property is first partitioned by a court
Answer: A
Where a co-owner makes a usufructuary mortgage of his share with possession, it is the mortgagee (not the original co-owner) who is entitled to unity of possession; while the mortgage subsists the co-owner cannot claim joint possession.
Q2Mortgages (S58–104)
A debtor in embarrassed circumstances secretly executes a usufructuary mortgage of ALL his property to his uncle for a fictitious book debt, on terms that the uncle pay allowances out of the usufruct to the debtor's wife and children. What is the status of the mortgage?
aValid, since a usufructuary mortgage needs no registration
bVoidable, as it put all the debtor's property beyond creditors' reach and reserved a benefit for him — the secrecy evidencing fraudulent intent
cVoid ab initio for want of consideration
dValid up to the amount of the genuine portion of the debt
Answer: B
A mortgage of all one's property reserving a benefit to the debtor and effected secretly is voidable as a transfer to defeat or delay creditors (s53), the secrecy being evidence of fraudulent intent.
Q3Mortgages (S58–104)
A mortgagor gives two successive usufructuary mortgages of the same property to different persons. As between the two usufructuary mortgagees, who is entitled to possession?
aThe subsequent mortgagee, having paid more recent consideration
bPossession is shared rateably between both mortgagees
cThe prior usufructuary mortgagee is entitled to possession
dThe mortgagor retains possession until both debts are paid
Answer: C
Where the same property is given in two usufructuary mortgages, the prior mortgagee is entitled to possession; priority of time governs.
Q4Mortgages (S58–104)
A coparcener to whom mortgaged joint-family property is allotted in an oral partition (the partition not disturbing the scheme of the mortgage) then transfers his right to redeem to T. What is T's position?
aT acquires nothing, as the right to redeem is personal and non-transferable
bT can redeem only with the consent of all the other coparceners
cT must first set aside the oral partition before redeeming
dT, as transferee of the right to redeem, is also entitled to redeem the mortgage
Answer: D
A coparcener allotted mortgaged property becomes its absolute owner and may redeem; where he transfers the right to redeem, the transferee is likewise entitled to redeem the mortgage (Sita Ram Prasad v Mahadeo Rai).
Q5Mortgages (S58–104)
A mortgages property to B and B obtains a preliminary decree for sale. A then makes a usufructuary mortgage of the same property to C. B obtains a final decree, and at the execution sale D purchases the property. What happens to C's usufructuary mortgage?
aC's usufructuary mortgage is invalid against D under the rule of lis pendens, and D may recover possession and rents collected by C from the date of purchase
bC's mortgage prevails, having been created before the final decree
cD takes the property subject to C's usufructuary mortgage and cannot disturb C's possession
dC and D become co-mortgagees and share possession
Answer: A
The usufructuary mortgage to C, created during the pendency of B's suit, is hit by lis pendens (s52) and is invalid against the auction-purchaser D, who may recover possession and the rents C collected after the purchase (Nagendra v Sarat Kamini).
Q6Mortgages (S58–104)
A delivers the title deeds of his Mumbai house to B as security for a loan, with the intention to create a security thereon. No deed is registered. Which type of mortgage is this, and is it valid?
aSimple mortgage; valid only if registered
bMortgage by deposit of title-deeds (equitable mortgage) under S58(f); valid in a notified town without registration
cUsufructuary mortgage; void for want of registration
dEnglish mortgage; valid only if attested by two witnesses
Answer: B
Under S58(f), a mortgage by deposit of title-deeds requires (i) debt, (ii) deposit of title deeds and (iii) intention that the deeds be security; it may be created in towns notified by the State (Mumbai included) without a registered instrument.
Q7Mortgages (S58–104)
In which kind of mortgage does the mortgagor bind himself to repay on a certain date, transfers the property absolutely to the mortgagee, subject to a proviso that the mortgagee will re-transfer it upon repayment?
aSimple mortgage [S58(b)]
bMortgage by conditional sale [S58(c)]
cEnglish mortgage [S58(e)]
dUsufructuary mortgage [S58(d)]
Answer: C
S58(e) defines an English mortgage: the mortgagor binds himself to repay on a certain day and transfers the property absolutely to the mortgagee, subject to a proviso for re-transfer on repayment.
Q8Mortgages (S58–104)
Regarding the doctrine of clog on the equity of redemption embodied in S60, which statement is correct?
aAny term in the mortgage deed postponing redemption is automatically void
bThe right of redemption can be permanently extinguished by a clause in the original mortgage deed
cThe mortgagor loses the right to redeem the moment the mortgage money becomes due
dA condition that totally defeats or unreasonably fetters the mortgagor's right to redeem is void, as 'once a mortgage always a mortgage'
Answer: D
S60 secures the right of redemption once the principal money has become due; any stipulation that clogs or fetters that right is void, reflecting the maxim 'once a mortgage, always a mortgage' (Stanley v. Wilde / Seth Ganga Dhar v. Shankar Lal).
Q9Mortgages (S58–104)
A mortgages his land to B, and later mortgages the same land to C without disclosing B's mortgage. B's mortgage is unregistered while C's is duly registered first. As between B and C, who has priority under the TPA?
aC, because where there is no special priority, qui prior est tempore potior est jure does not apply when the prior interest is unregistered and the later is registered for value without notice
bB, because his mortgage was created earlier in point of time
cBoth rank equally and share rateably
dNeither, both mortgages are void for non-disclosure
Answer: A
Under S48 read with S78, a prior mortgagee whose fraud, misrepresentation or gross neglect (here non-registration enabling deception) caused the later mortgagee to advance money is postponed; the bona fide registered subsequent mortgagee for value without notice gains priority.
Q10Mortgages (S58–104)
The right of a mortgagee to obtain a decree that the mortgagor be absolutely debarred of his right to redeem the mortgaged property is known as:
aRedemption under S60
bForeclosure under S67
cMarshalling under S81
dSubrogation under S92
Answer: B
S67 confers on the mortgagee the right of foreclosure or sale—obtaining a decree that the mortgagor be debarred absolutely of his right to redeem; foreclosure is available chiefly in a mortgage by conditional sale and an anomalous mortgage.
Q11General principles of transfer (S5–37)
A transfers property to B in trust for A and A's intended wife successively for their lives, and after the death of the survivor, to the eldest son of the marriage for life, and after his death to A's second son. As regards the interest created for the eldest son, what is the position under section 13?
aIt is valid because it is preceded by a prior life interest
bIt is valid because it is created through the machinery of a trust
cIt does not take effect because it is only a life interest, not the whole remaining interest of the transferor
dIt is valid but takes effect only when the eldest son attains majority
Answer: C
Section 13 requires that the interest created for an unborn person extend to the whole remaining interest of the transferor; a mere life interest to the unborn eldest son fails (illustration to s.13; Girish Dutt v Data Din).
Q12General principles of transfer (S5–37)
Under section 14 of the Transfer of Property Act, 1882, the maximum permissible period for which the vesting of an interest may be postponed is:
aLife or lives in being plus 21 years in gross
bLife or lives in being plus the period of gestation only
cA fixed period of 18 years from the date of transfer
dLife or lives in being plus the minority of a person in existence at the expiration of that period
Answer: D
Section 14 permits postponement of vesting up to the lifetime of one or more living persons plus the minority of a person in existence at the expiration of that period; unlike English law (21 years in gross), Indian law allows only the period of minority.
Q13General principles of transfer (S5–37)
On a transfer of property an interest is created for the benefit of a class of persons, and as to some members of the class the interest fails by reason of sections 13 and 14. After the Amending Act of 1929, what is the effect on the interest under section 15?
aThe interest fails only in regard to those persons and not the whole class
bThe interest fails as regards the whole class
cThe interest is suspended until all members are ascertained
dThe interest vests entirely in the members who survive the transferor
Answer: A
As amended in 1929, section 15 provides that where the interest fails as to some members of a class by reason of sections 13 and 14, it fails in regard to those persons only and not the whole class (overruling the position in Soundara Rajan v Natarajan).
Q14General principles of transfer (S5–37)
Section 18 relaxes the rule against perpetuity and certain other restrictions for transfers for the benefit of the public. The restrictions in which sections are made inapplicable to such public-benefit transfers?
aSections 10, 11 and 12
bSections 14, 16 and 17
cSections 13, 14 and 15
dSections 19, 20 and 21
Answer: B
Section 18 provides that the restrictions in sections 14 (perpetuity), 16 (transfer to take effect on failure of prior interest) and 17 (accumulation) do not apply to transfers for the benefit of the public in the advancement of religion, knowledge, commerce, health, safety, etc.
Q15General principles of transfer (S5–37)
A fund is bequeathed/transferred to A for life, and after his death to B. As regards B's interest on the death of the transferor, what is the position under section 19?
aB's interest is contingent until A actually dies
bB's interest fails if B dies before A
cB's interest is vested immediately, the prior life interest being a certain determining event
dB acquires only a spes successionis
Answer: C
Under section 19, the intervention of a prior interest does not postpone vesting; since the determination of A's life interest is a certain event, B's interest is vested at once and is not defeated by B's death before obtaining possession (illustration (iii), s.119 ISA).
Q16General principles of transfer (S5–37)
An estate is transferred to A until he shall marry, and after that event to B. Marriage being an uncertain event, how is B's interest classified under section 21?
aVested, because the gift to A is certain
bVoid as a transfer to an unborn person
cA spes successionis incapable of transfer
dContingent until the condition is fulfilled by A's marriage
Answer: D
Under section 21, an interest to take effect only on the happening of a specified uncertain event (here, A's marriage) is contingent; it becomes vested when the event happens (illustration (vi), s.120 ISA).
Q17General principles of transfer (S5–37)
A transfers Rs 5,000 to B on condition that he shall marry with the consent of C, D and E. E dies; B then marries with the consent of C and D. As to fulfilment of the condition under section 26, what is the result?
aB is deemed to have fulfilled the condition by substantial compliance
bB has not fulfilled the condition because E's consent was lacking
cThe transfer fails because the condition became impossible
dB must obtain the consent of E's heirs to fulfil the condition
Answer: A
A condition precedent is deemed fulfilled if substantially complied with (section 26); marriage with the consent of the surviving persons C and D, after E's death, satisfies the condition (illustration (a) to s.26; contrast condition subsequent under s.29 which requires strict fulfilment).
Q18General principles of transfer (S5–37)
By a gift deed A professes to transfer to B the farm of Sultanpur (worth Rs 800) which actually belongs to C, and by the same instrument A gives Rs 1,000 to C. C elects to keep his own farm. What is the consequence under the doctrine of election in section 35 (A being alive)?
aC may keep both the farm and the Rs 1,000
bC forfeits the gift of Rs 1,000
cThe entire gift to B and C is void
dC must pay Rs 800 out of the Rs 1,000 to B
Answer: B
Under section 35, one who takes a benefit under an instrument must give effect to the whole of it; electing to retain his own property against the transfer, C forfeits the Rs 1,000 conferred on him (illustration to s.35). (Charging the donee out of the forfeited sum arises only if the transferor has died.)
Q19General principles of transfer (S5–37)
A lets his house at a rent of Rs 100 payable on the last day of each month and sells the house to B on 15 June. As to the June rent payable on 30 June, what does section 36 provide?
aB is entitled to the whole Rs 100 as he owns the house when rent falls due
bA is entitled to the whole Rs 100 as he owned the house when the period began
cRent accrues from day to day; A gets Rs 50 (1–15 June) and B gets Rs 50 (15–30 June)
dThe rent is not apportionable as it does not accrue from day to day
Answer: C
Section 36 deems rents and other periodical payments in the nature of income to accrue from day to day and to be apportionable accordingly (apportionment by time), so A and B each take Rs 50, though payable on the appointed day.
A bequeaths Rs 100 to B, to be paid to him at the death of C. B dies before C. Which statement is correct?
aThe legacy lapses because B died before obtaining possession
bB's interest was contingent and never vested, so nothing passes
cThe legacy reverts to C as the surviving named person
dB's interest vested in interest on A's death and his representatives are entitled to the legacy
Answer: D
Under section 19, a gift to take effect on an event certain to happen (death of C) creates a vested interest; the legacy vested in B on the testator's death and, a vested interest not being defeated by death before possession, passes to his representatives.
Under section 21, a sum is bequeathed to A 'when he shall attain the age of 18', with a direction that the income of that very legacy be applied for A's benefit until he reaches that age. What is the nature of A's interest?
aVested, because the exception to section 21 applies where the income of the same interest is given or directed to be applied for the transferee
bContingent, because the words 'when he shall attain' import a condition precedent
cContingent, because no interest can vest before majority
dVested, but only if the direction relates to income of a different fund
Answer: A
Although 'when he shall attain' is prima facie contingent, the exception to section 21 makes the interest vested where the transferor gives the income arising from that interest, or directs it to be applied, for the transferee's benefit before he attains the age; this requires the income of the same fund (contrast illustration (xiii) to section 120, ISA).
There is a gift to A for life, and then to B in case B is called to the Bar, no time being mentioned for that event. B is called to the Bar two years after A's death. Under section 23, what is the result?
aB takes the property, the condition having been fulfilled
bB's interest fails, because the contingent event did not happen before or at the same time as the prior interest ceased
cThe property is held in suspense until B is called to the Bar
dB takes a vested interest accelerated on A's death
Answer: B
Section 23 provides that where no time is mentioned, a subsequent contingent interest fails unless the event happens before or at the same time as the precedent interest ceases; since B was called to the Bar only after A's death, the gift fails.
A makes a gift of his field to B with a proviso that if B does not within a year set fire to C's haystack, the gift shall be void. What is the effect of this condition?
aThe gift fails entirely, being founded on an unlawful condition
bB takes only a life interest because of the void condition
cThe gift is good and unaffected, the condition being a void condition subsequent
dThe field reverts to A because the condition was not performed
Answer: C
Distinguishing section 25 (void condition precedent, where the transfer itself fails) from section 32, a void condition subsequent does not affect the interest; the gift is a good gift and B takes the field free of the invalid divesting condition.
A transfers Rs 500 to B on condition that he shall marry with the consent of C, D and E. E dies, and B then marries with the consent of C and D. What is the position under section 26?
aB has not fulfilled the condition because E's consent was indispensable
bThe transfer fails as performance became impossible
cB may marry without anyone's consent since the condition has lapsed
dB is deemed to have fulfilled the condition, it being a condition precedent substantially complied with
Answer: D
Under section 26, a condition precedent is deemed fulfilled if substantially complied with; marriage with the consent of the surviving persons (C and D) after E's death is substantial compliance, so the transfer to B takes effect.
A transfers Rs 500 to B on condition that he shall execute a certain lease within three months after A's death, and if he should neglect to do so, then to C. B dies in A's lifetime. Under section 27, what is the result?
aThe disposition in favour of C takes effect, though the failure did not occur in the manner contemplated
bBoth gifts fail because B predeceased A
cThe Rs 500 reverts to A's estate as the contingency did not arise as worded
dC cannot take because the prior gift failed by death, not by neglect
Answer: A
Section 27 provides that the ulterior disposition takes effect upon failure of the prior disposition although the failure may not have occurred in the manner contemplated by the transferor; the gift over to C is accelerated even though B failed by dying rather than by neglecting the lease.
The farm of Sultanpur is C's property, worth Rs 800. By one instrument of gift A professes to transfer it to B and by the same instrument gives Rs 1,000 to C. A dies before C elects, and C elects to retain his farm. What follows under the doctrine of election in section 35?
aC keeps both the farm and the full Rs 1,000
bC forfeits the Rs 1,000 and, the transfer being gratuitous and A dead, his representative must pay Rs 800 out of it to B
cC keeps the farm and the gift to B is simply void with no compensation
dC must give up the farm because acceptance of the instrument binds him to all its terms
Answer: B
Under section 35, one taking under an instrument must bear its burden; C, electing to keep his own farm, forfeits the Rs 1,000, and because the transfer is gratuitous and the transferor died before election, the forfeited benefit is charged with making good to the disappointed transferee B the value (Rs 800) of the property attempted to be transferred.
A transfers property to B in trust for A and his intended wife successively for their lives, and after the death of the survivor, for the eldest son of the intended marriage for life, and after his death for A's second son. As regards the interest created for the eldest son of the marriage, which is correct?
aIt is valid because it is preceded by a prior life interest
bIt is void because property cannot be transferred to an unborn person even through a trust
cIt does not take effect because it does not extend to the whole of A's remaining interest in the property
dIt vests on the eldest son's birth as an absolute interest
Answer: C
Under section 13 (and its illustration), an interest for an unborn person must extend to the whole of the transferor's remaining interest; a mere life estate to the unborn eldest son does not, so it fails.
Q28Sale of immovable property (S54–57)
Which of the following is essential for the right of marshalling by a subsequent purchaser under Section 56 to arise?
aThe property must have been sold subject to the mortgage
bA lessee, equally with a purchaser, may invoke the right
cThe right may be exercised even at the cost of prejudicing the mortgagee
dThere must be a common debtor who mortgaged two or more properties and then sold one or more of them
Answer: D
Marshalling under Section 56 presupposes a common debtor who mortgaged two or more properties to one person and then sold one or more; it arises where property is sold free from encumbrances, a lessee cannot claim it, and it cannot prejudice the mortgagee.
Q29Sale of immovable property (S54–57)
Regarding the court's power under Section 57 to provide for encumbrances and sell property freed therefrom, which statement is correct?
aOn the application of any party to the sale, the court may direct/allow payment into court of a sum to meet the encumbrance plus an additional amount, ordinarily not exceeding one-tenth, for contingencies
bThe court may act suo motu to free any property of encumbrances before sale
cIt applies only to sales made by the court and never to a private sale out of court
dThe additional amount for contingencies can never exceed one-tenth in any circumstance
Answer: A
Section 57 lets the court, on the application of any party to the sale (court or out-of-court sale), direct or allow payment into court of the sum needed plus an additional amount for contingencies ordinarily not exceeding one-tenth, which may be exceeded for special reasons recorded.
Q30Sale of immovable property (S54-57)
A owns tangible immovable property worth Rs. 80. He transfers it to B by simply placing B in possession, without executing any registered instrument. Which of the following best states the legal position under Section 54 of the Transfer of Property Act, 1882?
aThe sale is void because all sales of immovable property require a registered instrument
bThe sale is valid, as tangible immovable property of value less than Rs. 100 may be transferred either by registered instrument or by delivery of possession
cThe sale is valid only if it is also evidenced in writing, though registration is not required
dThe transaction is a mere contract for sale and passes no title until registration
Answer: B
Under Section 54, tangible immovable property of value less than Rs. 100 may be transferred either by a registered instrument or by delivery of the property, delivery being effected by placing the buyer in possession; registration is mandatory only for property of Rs. 100 and upwards or for a reversion/intangible thing.
Q31Sale of immovable property (S54-57)
S sells his tangible immovable property worth Rs. 5 lakh to B by a registered sale deed, but B has paid only part of the price, the balance remaining promised. Which statement is correct regarding completion of the sale under Section 54?
aThe transaction is only a contract for sale and creates a charge on the property
bThe sale is incomplete until the whole price is actually paid
cThe sale is complete on execution and registration even though the whole price has not been paid
dThe sale is void for want of consideration as price was not fully paid at execution
Answer: C
Per Section 54 read with Vidyadhar v. Manikrao (AIR 1999 SC 1441), price may be 'paid or promised or part-paid and part-promised'; actual payment of the whole price at execution is not a sine qua non, so the sale of property over Rs. 100 is complete once the deed is executed and registered.
Q32Sale of immovable property (S54-57)
Under Section 55, where the whole of the purchase-money has been paid but the seller retains a part of the property comprised in the title documents, what is the position regarding delivery of the documents of title?
aThe seller must hand over all the documents of title to the buyer in every case
bThe buyer is entitled to retain the originals and the seller may keep only copies
cThe documents must be deposited in court until the retained portion is also sold
dThe seller is entitled to retain all the documents, but must produce them and furnish copies on the buyer's reasonable request at the buyer's cost
Answer: D
Section 55(3), proviso (a): where the seller retains any part of the property contained in the documents, he is entitled to retain them all, but must, on every reasonable request and at the requesting buyer's cost, produce them and furnish true copies/extracts, keeping them safe and undefaced.
Q33Sale of immovable property (S54-57)
X owns three properties P, Q and R, all mortgaged to M. X then sells P to A free from the mortgage. A claims that the mortgage debt should be satisfied first out of Q and R. Which principle governs A's claim under Section 56?
aMarshalling, entitling A to have the debt satisfied out of Q and R so far as they extend, independent of notice, but not so as to prejudice the mortgagee or others who acquired an interest for consideration
bContribution, which would require A's property P also to bear a rateable share of the debt
cMarshalling, but only if A proves he was a bona fide purchaser without notice of the mortgage
dSubrogation, allowing A to step into the shoes of the mortgagee against Q and R
Answer: A
Section 56 confers on the subsequent purchaser the right of marshalling: he may require the mortgage debt to be satisfied out of the property not sold to him, so far as it extends; this right is independent of notice but cannot prejudice the mortgagee, those claiming under him, or any person who for consideration acquired an interest in the properties.
Q34Sale of immovable property (S54-57)
Immovable property subject to an encumbrance is being sold in execution of a decree. A party to the sale wishes to have the property sold free from the encumbrance by paying money into court. Which of the following is correct regarding the court's power under Section 57?
aThe court may act suo motu to discharge the encumbrance once it learns of it
bThe court may, on the application of a party to the sale and after notice to the encumbrancer (unless dispensed with for recorded reasons), allow payment into court of a sufficient amount plus an additional sum for contingencies and declare the property freed from the encumbrance
cThe power is exercisable only after the sale has been completed
dSection 57 applies only to sales by a court and never to a sale out of court
Answer: B
Section 57 is invoked on the application of a party to the sale (court, execution, or out-of-court sale); the court may allow payment into court of an amount sufficient to meet the encumbrance plus an additional contingency sum, and after notice to the encumbrancer (dispensable for recorded reasons) declare the property freed and make a vesting/conveyance order.
Q35Leases (S105–117)
Under Section 116, holding over results in a renewal of the lease where the lessee remains in possession after determination of the lease and the lessor—
amerely fails to file an eviction suit immediately
bissues a second notice to quit
caccepts rent from the lessee or otherwise assents to his continuing in possession
dremains silent for twelve years
Answer: C
Section 116 requires two things: the lessee remaining in possession after determination, and the lessor accepting rent or otherwise assenting to continued possession. Holding over is a bilateral consensual act; mere continuance in possession without the lessor's assent does not create it (Bhawanji Lakhamshi v Himatlal).
Q36Leases (S105–117)
Under Section 117, the provisions of Chapter V (Leases) apply to leases for agricultural purposes—
ain full, in the same manner as all other leases
bnot at all, with no possibility of being made applicable
conly where the lease exceeds a term of three years
donly to the extent the State Government, by notification in the Official Gazette, declares them applicable
Answer: D
Section 117 exempts leases for agricultural purposes from Chapter V, except in so far as the State Government may, by notification in the Official Gazette, declare all or any of the provisions applicable, with or subject to the local law in force.
Q37Leases (S105–117)
A leased a vacant plot to B by an oral agreement, possession being delivered. B used the plot for running a flour mill grinding grain into flour. There was no written contract, local law or usage fixing the duration. To terminate this tenancy, what notice must A give under Section 106 of the Transfer of Property Act, 1882?
aSix months' notice, the lease being deemed from year to year as it is for a manufacturing purpose
b15 days' notice, since an oral/unregistered lease can never be treated as a yearly lease
c30 days' notice, since the lease is of a building
dNo notice, as the lease is oral and hence void
Answer: A
Grinding grain into flour is a manufacturing purpose (Umrao Mal v Heera Lal); under Section 106 a lease for manufacturing purposes, absent a contract to the contrary, is deemed from year to year and is terminable by six months' notice.
Q38Leases (S105–117)
B, a lessee, erected a permanent building on the leased land. The lease deed is silent as to fixtures and there is no local usage. Which statement correctly reflects B's right to remove the building under Section 108(h) of the Transfer of Property Act, 1882?
aB may remove the building only during the subsistence of the term, never after determination of the lease
bB may remove the building during the term and even after determination of the lease, but only whilst he is in possession of the property, and not afterwards
cB may remove the building at any time, even years after he has surrendered possession to the lessor
dB has no right to remove the building; he can only claim compensation from the lessor
Answer: B
Section 108(h), as amended, lets the lessee remove things he has attached to the earth even after determination of the lease, but only ‘whilst he is in possession of the property leased and not afterwards’; once he quits possession the fixtures vest in the lessor (Govind Prasad Shaha v Charusheela Dasee).
Q39Leases (S105–117)
A, owner of a property, had leased it to B at ₹1,400 per month. A sells seven-eighths of the property to C and the remaining one-eighth to the lessee B. C claims that B's lease is wholly extinguished by merger under Section 111(d) and sues B for the full profits. Which is correct?
aThe lease is wholly extinguished, since the lessee has acquired part of the reversion
bThe lease is extinguished only as to one-eighth, and B becomes a tenant of C for the rest
cThe lease is not extinguished, because the lessee did not acquire the reversion in the whole of the property; C is entitled only to seven-eighths of ₹1,400 from B
dThe lease is extinguished because C and B together now own the whole property
Answer: C
Under Section 111(d) a lease is determined by merger only when the interests of lessor and lessee in the whole of the property vest in one person; purchase of part of the reversion does not extinguish the lease (Faqir Bakhsh v Murli Dhar), so C recovers only seven-eighths of ₹1,400.
Q40Leases (S105–117)
A lease was determined by forfeiture for non-payment of rent and the lessor sued to eject the lessee. At the hearing the lessee, a chronic and persistent defaulter, tendered the arrears with interest and costs and prayed for relief against forfeiture under Section 114, Transfer of Property Act, 1882. Which statement is correct?
aRelief is mandatory; once arrears, interest and costs are tendered at the hearing the court must relieve against forfeiture
bRelief can be claimed only where the lease has been determined by a notice to quit under Section 111(h)
cRelief is barred because tender at the hearing of the suit is not permitted; it must be made before suit
dRelief under Section 114 is discretionary and may be refused, since equity requires clean hands and the tenant is a persistent defaulter
Answer: D
Section 114 confers a discretionary equitable jurisdiction; even on tender of arrears, interest and costs, relief may be refused where the tenant is a chronic/persistent defaulter who does not come with clean hands (Namdeo Lokman v Narmadabai). It applies to forfeiture for non-payment of rent, not to determination by notice to quit.
Q41Leases (S105–117)
A lets a house (not for agricultural or manufacturing purposes) to B for five years. B sub-lets it to C at a monthly rent. The five-year term expires by efflux of time, but C continues in possession and A accepts rent directly from C. What is the legal effect under Section 116 of the Transfer of Property Act, 1882?
aC's lease is renewed from month to month
bC's lease is renewed from year to year
cC becomes a tenant at sufferance, since A's acceptance of rent is immaterial
dC becomes the direct lessee for a fresh five-year term
Answer: A
Under Section 116 and its Illustration (1), where the under-lessee holds over after determination of the head lease and the lessor accepts rent, the lease is renewed according to the purpose under Section 106 — here, a non-agricultural/non-manufacturing purpose, hence from month to month.
Q42Exchange & gift (S118–129)
A executes and registers a gift deed of immovable property in favour of B, an adult who has accepted it. Before the document is actually registered by the registering officer, A purports to revoke the gift. Following Kalyanasundaram v Karuppa, the gift is:
aValidly revoked, since title passes only on registration
bIrrevocable, because once the donor has handed over the deed and the donee has accepted, the donor has done all in his power and registration is the act of an officer of law
cRevocable, because registration depends on the donor's continued consent
dVoid, because a gift cannot be revoked under any circumstances
Answer: B
In Kalyanasundaram v Karuppa the Privy Council held that after delivery of the deed and acceptance by the donee, the donor cannot revoke the gift before registration; registration does not depend on his consent but is the act of an officer appointed by law (reading Section 123 with Section 47 of the Registration Act).
Q43Exchange & gift (S118–129)
A gift deed comprises both certain existing property and certain future property of the donor. What is the effect under Section 124 of the Transfer of Property Act?
aThe entire gift is void
bThe gift is valid as to the future property but void as to the existing property
cThe gift is valid as to the existing property but void as to the future property
dThe gift takes effect only when the future property comes into existence
Answer: C
Section 124 provides that a gift comprising both existing and future property is void as to the latter; the deed remains valid as to the existing property even though it also professes to include future property.
Q44Exchange & gift (S118–129)
A makes a gift of one immovable property to B and C jointly as tenants in common. C refuses to accept the gift. Under Section 125 of the Transfer of Property Act, the consequence is that the gift is:
aWholly void, as one of the donees has refused
bVoid as to the entire property until C's share devolves on B
cValid in full, C's refusal being treated as acceptance on his behalf
dVoid only as to the interest that C would have taken had he accepted; B takes his own share
Answer: D
Section 125 provides that a gift to two or more donees, of whom one does not accept, is void only as to the interest which the non-accepting donee would have taken; the refusal of one does not defeat the gift as to the others where they take as tenants in common.
Q45Exchange & gift (S118–129)
A gift deed provides that the donor may, at his mere will and pleasure, take back the whole of the gifted property at any time. With respect to the validity of revocation under Section 126:
aSuch a gift, made revocable wholly at the mere will of the donor, is void to that extent
bThe gift is valid and the reservation is enforceable as a condition subsequent
cThe gift is valid but the revocation clause is enforceable only with the donee's later consent
dThe gift is voidable at the option of the donee alone
Answer: A
Under Section 126, while the parties may agree that a gift shall be suspended or revoked on the happening of a specified event not depending on the donor's will, a gift agreed to be revocable wholly or in part at the mere will of the donor is void wholly or in part, because a gift revocable at pleasure is no gift at all.
Q46Exchange & gift (S118–129)
By a single transfer A gives B all his shares, comprising shares in a prosperous company X and heavily-burdened shares in a struggling company Y. B wishes to take only the X shares and refuse the Y shares. Under Section 127 of the Transfer of Property Act:
aB may keep the X shares and refuse the Y shares, since each is a distinct asset
bB cannot take the X shares unless he accepts the gift fully, including the onerous Y shares
cB may refuse both and instead claim their cash equivalent from A
dB's partial acceptance binds A to take back the Y shares as a separate gift
Answer: B
Section 127, first paragraph, provides that where a gift is a single transfer of several things, one onerous and others not, the donee can take nothing unless he accepts it fully; the illustration of the X and Y company shares is directly on point.
X, a tenant already in possession of a shop under a monthly tenancy, later enters into a written agreement to purchase the shop but does no further act and merely continues to occupy as before. In the landlord's eviction suit X claims protection under Section 53A. Which is the CORRECT legal position?
aMere continuance of the pre-existing possession is itself sufficient part performance, so X is protected
bSection 53A never applies to a person already in possession, even if he does fresh acts referable to the contract
cWhere a person was already in possession in another capacity, something independent of mere retention of possession, done in furtherance of the contract, must be shown; otherwise Section 53A does not protect him
dX is automatically converted into a purchaser the moment the agreement is signed
Answer: C
Per Nanjegowda v Gangamma and Sardar Govindrao Mahadik v Devi Sahai, where the claimant was already in possession before the contract, mere retention of possession is not an act of part performance; he must show something independent, done in furtherance of the contract, unequivocally referable to it.
While a non-collusive suit in which a right to immovable property is directly and specifically in question is pending, the defendant sells the suit property to P, a purchaser who had genuinely no notice of the pending suit and paid full value. The plaintiff ultimately obtains a decree. Under Section 52 (doctrine of lis pendens), what is P's position?
aP takes the property free of the decree because the doctrine of lis pendens rests on the principle of notice
bThe transfer to P is absolutely void ab initio and creates no rights even between P and the defendant
cP is protected because lis pendens applies only to gratuitous transfers, not to sales for value
dP is bound by the decree just as if he were a party to the suit; the transfer is not void but remains subservient to the rights determined by the decree, and the plea of bona fide purchaser without notice is no defence
Answer: D
Section 52 rests on expediency/public policy, not on notice (Bellamy v Sabine; Faiyaz Husain Khan v Prag Narain); a transfer pendente lite is not void but voidable/subservient to the decree, binds the transferee as if a party, and the defence of bona fide purchaser for value without notice is unavailable.
D, who owes money to several creditors, transfers immovable property for adequate consideration to one of his creditors, C, in genuine satisfaction of C's debt, reserving no benefit for himself, with the effect of leaving another creditor, E, unable to recover. E sues to avoid the transfer under Section 53. Which statement is CORRECT?
aThe transfer cannot be impeached merely because one creditor is preferred and another loses; Section 53 requires intent to defeat or delay creditors generally with the debtor retaining a benefit for himself, not mere preference of one creditor
bThe transfer is voidable because any transfer that has the effect of leaving a creditor unpaid defeats or delays creditors
cThe transfer is void because Section 53 prohibits a debtor from preferring one creditor over another
dE can avoid the transfer only in his individual capacity and need not sue on behalf of all creditors
Answer: A
Under Section 53 and Musahar Sahu v Hakim Lal / Mina Kumari v Bijoy Singh, a debtor may pay or prefer one creditor in satisfaction of a genuine debt for adequate consideration without retaining any benefit; the section strikes only at transfers intended to defeat/delay creditors generally where the debtor keeps a benefit, and a creditor's suit must be brought for the benefit of all creditors.
Which of the following is an 'actionable claim' that can be validly transferred under Section 130 of the Transfer of Property Act, 1882?
aA claim for mesne profits, being unliquidated damages awaiting assessment
bA partner's right to sue for an account of a dissolved partnership, being a beneficial interest in movable property not in possession
cA judgment debt under a decree, since action is still needed to realise it
dA debt secured by a mortgage of immovable property
Answer: B
A partner's right to sue for an account of a dissolved partnership is an actionable claim (beneficial interest in movable property not in possession) and is assignable (Thawerdas v Vishindas); mesne profits are unliquidated damages and a mere right to sue (s 6(e)), a judgment debt/decree is not an actionable claim, and a mortgage debt is expressly excluded by the definition.
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