Transfer of property

Topic 3.Actionable Claim

We are here …

1. Movable and immovable property2. Attestation and notice3. Actionable claim4. Transfer of property5. Restraints on transfer6. Rule against perpetuities7. Vested and contingent interest8. Doctrine of election9. Sale of immovable property

Actionable claim

• Is a species of property. Hence capable of ownership and transfer.

• Sec. 3 of TP Act defines actionable claim to a claim:– To any debt other than a debt secured by mortgage of

immovable property or by hypothecation or pledge of movable property

– To any beneficial interest in movablesd not in possession actual or constructive of the claimant

– Which the Civil Courts recognise as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.

In brief

• Actionable claim means:– A claim to an unsecured debt or – A claim to any beneficial interest in movable

property not in possession of the claimant

Chose-in-action

• In England: personal property, not in the possession of the claimant, which can only be recovered by taking action in the court.

• If an amount is certain, then only it can be considered debt

• If the amount is uncertain, it is not debt• Debts may be payable in future or

conditional or contingent

illustrations

• “A” owes Rs. 1000 to “B”. “B”’s claim is an actionable claim. Because, “B” can bring an action in a court and claim back the amount

• “A” borrows Rs. 1000 from “B” and mortgages his house to him. Mortgage is not an actionable claim.

• “A” contracts to buy goods from “B”. On the due date, A fails to take delivery and B sells the goods in the open market at a loss of Rs. 1000. B has a right to claim the damages from A, but this claim is not an actionable claim.

• A contracts to sell to B, 100 bales of cotton deliverable on a future day. B has a beneficial interest in the goods and it is an actionable claim

Cases

• Doraiswamy Mualiar v. D. Aiyangar

• Jafer Meher Ali v. Budge Jute Mills

• Official Assignee v. Hukum Chand

The contents of this file have been compiled from various reliable sources. Due care has been taken to avoid

errors. The author of this work takes no responsibility for the consequences arising out of error. The reader is

advised to cross check with the text books and the Act in case of confusion. You are allowed to share this file with your friends without making changes to the contents of

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- Gagan K.University of Mysore

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