Object, Nature, and Scope of Transfer of Property Act, 1882
Table of Contents
Object and Scope of Transfer of Property Act, 1882
Introduction
In India, personal laws governed the transfer of property assisted by orders of Courts under the Civil Procedure Code before the Transfer of Property Act, 1882 came into existence. Transfer of movable property was regulated to an extent by Chapter VII (Sections 76 to 123) of the Indian Contract Act, 1872. In the absence of any specific enacted law for the transfer of immovable properties by act of parties, the Anglo-Indian Courts were used to decide the cases by applying the principles of Justice, Equity, and Good Conscience as it prevailed in England at the time. There were certain regulations that also contained rules for the transfer of immovable properties. For example, the Madras Regulation of 1802, Bombay Regulation of 1827, Bengal Regulations of 1798 and 1806, etc. laid down some of the basic rules of transfer of immovable property. However, these regulations were not exhaustive. There were no sufficient provisions in these Regulations for all types of transfers. The result was that in most of the cases, the courts had to apply the rules of English law based on equity, justice, and good conscience. This rarely did any good due to the vast differences in customs and society between the two countries. Of course, the rapidly growing commerce and infrastructure in the late nineteenth century led to more conflicts, even in business. Thus, an immediate need was felt for a clear and pragmatic law regarding property and transfers suited to India and its peculiar problems as well as to take care of the potential economic problems. The task of drafting such legislation fell upon the First Law Commission and was later referred to the Second Law Commission.
After being eventually presented to the Legislative Council, a bill was signed into law on February 17, 1882, and it became effective on July 1st of the same year. The transfer of immovable property is the primary focus of the Transfer of Property Act of 1882. Transfers made by operation of law, such as the transfer of real estate required by a court order for insolvency or forfeiture, are exempt from this rule. Eight chapters have been created from the 137 sections that are present within.
The object of the Transfer of Property Act.
The object of the Transfer of Property Act is to provide and regulate the law related to the transfer of property from one person to another in a legal and orderly manner. The Act aims to ensure that the rights and interests of both the transferor and the transferee are protected during the process of transfer.
Preamble of Transfer of Property Act, 1882-
Whereas it is expedient to define and amend certain parts of the law relating to the Transfer of Property by act or parties; It is hereby enacted as follows:
The preamble to the Transfer of Property Act of 1882 outlines its object. The ‘preamble’ at the start of nearly all Acts provides a brief overview of the enactment’s goals. The Transfer of Property Act of 1882 was passed because it was “expedient to define and amend certain parts of the law relating to the transfer of property by act of parties,” according to the Act’s preamble. Thus, this Act was passed in order to provide a clear definition and modify some of the regulations that at the time controlled property transfers through the actions of parties. “By act of parties” refers to a transfer that occurs between two living individuals. Such transfers are also called ‘transfer inter vivos’.
The following succinctly describes the purpose of the Transfer of Property Act:
(i) The Transfer of Property Act, of 1882, establishes a precise, unambiguous, and uniform law for the purpose of transferring immovable property between living individuals (by the act of the parties).
(ii) Some of the rules that were in place before the Act’s enactment have been altered and changed. The modifications were made in order to adapt the legislation to India’s socioeconomic circumstances.
(iii) The Code of Law of Contract was completed by the Transfer of Property Act. Before this Act, transfers that used to occur in support of a contract were not covered by any enacted laws, despite the fact that there was a Code (enacted law) for contracts.
(iv) The Transfer of Property Act created a law that is analogous to the existing laws of testamentary and intestate transfers, i.e., transfers of property under wills and inheritance laws, by providing provisions for inter vivos transfers.
Scope of the Transfer of Property Act:
The Transfer of Property Act has a narrow scope. It is not a comprehensive property transfer code. There are numerous ways in which this Act’s applicability is limited. It exclusively addresses one particular mode, which is the transfer of property between live individuals. Additionally, the Act’s territorial jurisdiction is limited; it does not apply consistently throughout the nation. Furthermore, several property rights and situations have been specifically exempted from the application of this law. The following briefly describes the Transfer of Property Act’s scope:
The following points outline the Act’s scope:
1. Living Persons:
For a conveyance to qualify as a transfer under this provision, both the transferor and the transferee must be living individuals. Devotion to an idol or to God does not transfer to a living being. This also applies to corporations.
2. Applicability:
According to Section 1 of the Act, “it extends in the first instance to the whole of India except the territories which, immediately prior to the 1st November 1956, were comprised in Part B States or in the States of Bombay, Punjab, and Delhi.” This suggests that it covers all of India, with the exception of the part-B territories, which include the States of Bombay, Punjab, and Delhi. As a result, its scope is constrained.
3. Not Extensive:
As explained in its prelude, the Transfer of Property Act is not comprehensive. Several types of properties are not included by the Act, and the Act does not govern their transfer. Additionally, the word “consolidate” is not mentioned in the preamble.
4. Transfers Mainly of Immovable Property:
The transfer of immovable property is the main focus of this Act; it is only partially covered. The Sale of Goods Act of 1930 primarily deals with movable property.
5. Transfers by Operation of Law excluded:
The Act does not apply to transfer by operation of law.
6. Additionally, the Transfer of Property Act does not apply to Muslim law. Consequently, Muslim Personal Law will take precedence over the Act in the event of a property dispute.
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