You are on page 1of 13

Page |1

INTRODUCTION
A transfer of property involves the transfer of interests. From the perspective of its
quantum, the interest may be partial or absolute. In terms of the time of accrual (when the
transferee actually receives the interest), the interest may be vested or contingent. Where
the interest transferred is vested, the transferee gets the interest immediately. In other
words, as soon as the transfer is complete, the interest accrues to the transferee with
immediate effect and the transferees title is complete.
Where the interest is contingent, the transferee gets the interest only upon the happening of
an uncertain future event specified in the transfer. In a transfer of property if the interest
transferred is contingent the title of the transferee is not complete unless the specified
event happens. Section 19 defines vested interest and Section 21 defines contingent
interest.

1.

VESTED INTEREST

Section 19 of Transfer of Property Act deals with vested interests it deals with situations
where interest is created in favour of a person without specifying the time when it is to take
effect, or in terms specifying that it is to take effect forthwith or on the happening of an event
which must happen, such in interest is vested, unless a contrary intention appears from the
terms of the transfer.
A vested interest is not defeated by the death of the transferee before he obtains
possession.
Illustration- In 1993, A makes a gift of his house in Delhi to his son B, and specifies that this
gift is to take effect in 1995. In this case, B will have a vested interest, because after 1993, the
year 1995 is inevitable (it is an event that must occur).
The interest created in favour of the transferee is said to be vested where(a) No time has been specified as to when it is to take effect, or
(b) It is specified that it shall take effect immediately, or
(c) It is to take effect upon the happening of an event which must happen.
Normally, when a property is transferred, the transferor simply effects it according to
procedure prescribed for the same. He may not mention the date as to when the interest shall
pass on to the transferee. In such cases, the intention of the transferor is that the transferee
shall get the interest forthwith. Such intention is presumed by law if the transferor does not
specify as to when the interest shall accrue to transferee. On the other hand, in order to be
more specific, the transferor may express his intention that intension shall accrue to transferee
with immediate effect. In both the cases the interest transferred is a vested interest. Where the
transferor provides that the transfer shall take effect upon the happening of an event of must
nature which is bound to occur in future, the interest of the transferee is a vested interest.
For Example, any future date or year, any particular age of the transferee or, death of any
person are future events of must nature. Where transfer of property is to take effect upon the
death of a person, the interest accrues to the transferee immediately.1

1 Dr. R.K. Sinha, The Transfer Of Property Act, 13th Edition, 2012, p 112.

Page |2

It may be noted that death is as certain as birth, therefore, where it is provided that the
property is transferred upon the death of a person the interest of the transferee is vested
because although death is a future event, it is certain.
There is no certainty as to when a person dies or whether or not a person survives upto a
particular age or year but, his death, as such, is certain. Similarly, any future date or future
year is also an event of must nature because they are bound to occur. Thus, in 1993, if a
person makes a gift for his property to take effect in 1995, the done gets a vested interest
because after 1993 the year 1995 is bound to come.

Illustration
A makes a gift of Rs. 10,000/- to B on the death of C. B has a vested interest in Rs. 10,000/even before C dies. But the money shall be paid to B only upon Cs death. If B dies before the
death of C the money shall be paid to Bs legal heirs.

Explanation- Explanation to Section 19 makes it clear that vested interest is not effected
by the fact that right of enjoyment has been postponed. The vested interest remains
unaffected also when the title is to pass on to another person on the happening of a particular
event in future.
The explanation provides that in the following situations, although it may appear that the
transferee has no vested interest, nevertheless the interest is vested.

(1) Postponement of enjoyment


Postponement of the enjoyment of property does not mean that the
interest of the transferee is not vested. In a transfer of property, the primary thing is
the transfer of interest of title. Possession of property is secondary. Therefore, from
the fact that right of enjoyment has been postponed, it cannot be inferred that vested
interest has not been given. Possession or enjoyment of property, being secondary, it
may be postponed for sometime.
Where A transfers his properties to B to be given to B on Bs attaining the age of
majority, the interest of B is vested although he is to get the possession and enjoyment
of property only on attaining the age of majority. As soon as he attains the age of
majority, he is to get possession and enjoyment. However, if B dies before attaining
the age of majority, the possession and enjoyment of the property shall go to Bs
representatives or legal heirs together with title which B already had and died having
it. The postponement of enjoyment of property, therefore, does not prevent the vesting
of interest in favour of the transferee.
On the contrary, a condition which postpones the enjoyment (beyond the age of
majority) is itself void after the transferee has attained majority.2 The enjoyment of the
property may be postponed till any further date or a future event which is of must
nature and is bound to happen.
In Lachman v. Baldeo,3 A made a gift of his property to B and directed that B was to
take possession of a portion of the property only after the death of A and As wife. It
was held that the interest of B was a vested interest.

(2) Prior interest


2 Sewdayal v. Official Trustee, A.I.R. 1931 Cal 651.
3 (1919) 21 O.C. 312 : 48 I.C. 396.

Page |3

Were a prior interest is created in the same transfer, there is a


postponement of the enjoyment of the property. The vesting of interest is not
postponed. Where A transfers property to B for life and then to C the interest of C is a
vested interest. It may be noted that here, C has a vested interest immediately when
the transfer was made but his right of enjoyment is postponed till the life of B. Bs
death is a future event of must nature. Accordingly, although a prior life interest
intervenes yet, C gets immediate vested interest.

(3) Direction for accumulation of income


Direction for accumulation of income is valid provided it
is within the period prescribed in Section 17 of the Act. Where a property is
transferred with such direction, the interest of the transferee is nevertheless vested. In
such cases too it is only the right of enjoyment which is postponed; vesting is not
postponed. However, when in a transfer of property, if the direction is that right of
enjoyment is to terminate only on the death of the transferor, the transfer does not
create a vested interest.
In Kokilambal v. N. Raman Kokilambal,4 there was a deed of family settlement in
which the settler created a limited interest (right to receive the income from rents).
The property of the settler was to vest in the settlee (brothers of settler) only on death
of settler. The Supreme Court held that the family settlement did not create a vested
interest in favour of the settlee (i.e brothers of the settler) and settlee could not be
absolute owner during the life of settler. Therefore, the settlee (brothers of settler)
could not succeed the property on the settlors death.

(4) Conditional limitation


A condition that upon the happening of a particular event the
interest vested in a person shall pass on to another person is called a conditional
limitation under English law. In India, this provision is contained in Section 28 of the
Transfer of Property Act. In a transfer of property a conditional limitation does not
prevent the vesting of the interest. Rather, it is implied that the interest which had
already been vested may be divested and my vest somewhere else.
For example, A transfers his house to B with a condition that if B does not take
possession of this house within six months from the date of the transfer, the house
shall belong to C. The interest of B is a vested interest although it is likely to be
divested in case B does not fulfil the condition within six months.

1.1 NATURE OF VESTED INTERESTS


(a) Present fixed right
Vested interest is a present fixed right to property. In a transfer
of property where a vested interest is created in favour of the transferee, the
transferee gets a present fixed right to property. On the other hand, where the
interest created is contingent the transferee gets merely a future possible right in
property. Contingent interest may or may not become vested in future depending
upon the happening or not happening of future event.

4 AIR 2005 SC 2468.

Page |4

But where the interest is vested, it accrues to the transferee immediately. In a


vested interest the title of the transferee is complete as soon as the transfer is
completed.
An interest may be vested in possession or vested not in possession.
Where the interest is vested not in possession, there is a present indefeasible
right to future possession in which case the transferee gets the possession or
enjoyment not immediately but in future. Thus, a vested interest confers a present
right to property even though the right of enjoyment is postponed or suspended.

(b)Transferable and heritable interest


Vested interest is transferable and heritable. Being a
present fixed right and also since the title of the transferee is complete, a vested
interest is divisible and transferable interest.5
A vested interest is such a present fixed right of the transferee that it is regarded
as his property. It is transferable interest within the meaning of Section 6 of the
Act even though the transferee has no possession or right of enjoyment. Further, a
vested interest can also be attached and brought to sale in execution of a decree.6
A vested interest is a heritable interest. Where a person (transferee) dies having vested
interest in a property, his interest vests in his legal heirs whether or not he has obtained
possession.
Heritability of the interest is a test for ascertaining whether the interest is contingent or
vested. In a transfer of property, if it is found that the interest of the transferee is heritable, the
interest is undoubtedly vested. But, where it is found that interest is not heritable, the interest
is a contingent interest.
In Rajes Kanta Roy v. Shanti Devi7 is an interesting case on this point. Ramani
Kanta Roy executed a trust deed. The deed provided that the trust existed for the
payment of debts incurred by settler (Ramani Kanta Roy). After termination of
the trust, the property was to belong absolutely to settlors two sons. The trust was
to terminate (1) upon the death of the settler and (2) full payment of all the debts.
The deed further provided that if either of the sons died before the payment of all
the debts, the heirs of the sons were entitled to get the shares of the sons. The
settler died before total discharge of debts.
Question before the Court was: whether the interest of the two sons was vested or
contingent?
The Supreme Court held that under the trust deed the interest conferred upon the
two sons was a vested interest. The Supreme Court observed that the schemes of
the trust - deed was that the enjoyment was to be restricted until the debts are
discharged. What was postponed was not the vesting of property but the income
thereof burdened with certain monthly payments and with the obligation to
discharge debts there from. The Court further observed that since it was provided
in the deed that if either of the two sons died before full payment of debts, his
heirs were entitled to get their shares the interest of the sons was a heritable
5 Elokassee Dasee v. Darponarain, 5 Cal. 59
6 Lal Bahadur Singh v. Rajendra Narain Singh, (1934) Oudh 454.
7 A.I.R. 1957 S.C 255.

Page |5

interest. And, since the interest conferred upon the two sons was made heritable,
their interest was vested.

1.2 TIME OF VESTING OF INTEREST


On a transfer of property, ordinarily the interest created in
favour of the transferee vests immediately. Section 19 provides that the interest
created is vested when no time of its vesting is specified or it is to vest
immediately or where through enjoyment is postponed but it is intended to vest
with immediate effect. However, the transferor may specify particular time of
vesting of the interest. Where the transferor specifies any particular time of
vesting this would constitute his contrary intention as contemplated under Section
19 by the words unless a contrary intention appears. The intention of the
transferor is to be gathered from the words used by him in the deed. In construing
whether certain words mean to convey vested interest or contingent interest, the
words used must be interpreted in their plain ordinary meaning.
According to the Supreme Court, the question is really one of intention to be
gathered from a comprehensive view of all the terms of a document and also that
a Court has to approach the task of construction, in such cases, with a bias in
favour of a vested interest unless the contrary is definite and clear.8
However, where words used are to be paid or payable or to be given to the
transferee at a certain age, the interest is vested and only enjoyment is postponed.
But, where the words used are when or if or provided the transferee attains
a certain age, the interest is a contingent interest.
In P.K. Mohan Ram v. B.N. Ananthachary,9 A document created an unequivocal
right in favour of 16 persons presently (in praesenti). They (the beneficiaries)
were to enjoy the property along with the settler during his lifetime. They were to
get specified shares after his death. The settler made it clear that he would have
no right to cancel the settlement deed or alter its terms. The document also
provided that two beneficiaries and, after their death, their legal heirs, were to
receive temple honours. There was also the provision that respective shares would
be divided after disposal of the property. These two conditions were held as not
leading to the inference that the document was a will. The Court said that the
document has to be construed as a whole and its substance has to be examined to
know whether it is a settlement or will. Its form and nomenclature is not
conclusive.

Illustrations of Vested Interest


(a) A transfers his property to B and C in equal shares to be paid (or to be given)
to them on their attaining the age of 18 years and if B and C die under the age
of 18 years, the property shall go to D. B and C have vested interest even
though their interests are likely to be divested upon the happening of an
uncertain future event.
(b) In a trust deed, the settler directed that after the death of the tenant for life and
after making provision out of the trust fund for the payment of a monthly
allowance to the widow for life, the trustee was to hold the rest of the trustproperty for the use and benefit of his sons to be made over to them on their
8 Ibid, at p 115
9 AIR 2010 SC 1725.

Page |6

attaining the age of 21 years. It was held that the language of the trust-deed
suggested that vested interest was conferred to the sons.10
(c) A husband made settlement on his wife for her life and thereafter the sons
born to them were to take the property absolutely. The sons acquired vested
remainder (interest).11

2.

SECTION 20 (WHEN UNBORN PERSON ACQUIRES VESTED


INTEREST, ON TRANSFER FOR HIS BENEFIT)

Where, on transfer of property, an interest therein is created for the benefit of a


person then living, he acquires upon his birth, unless a contrary intention appears
from the terms of the transfer a vested interest, although he may not be entitled to
the enjoyment thereof immediately on his birth.
Section 13 and 14 deal with transfer foe the benefit of an unborn person. This section
provides that the interest created in favour of an unborn person becomes vested as soon as
that person is born alive. Even where the unborn person is not given possession immediately
on his birth, the interest is vested. For Example, if A makes a settlement on himself and his
intended wife for their joint lives and thereafter on the eldest son of their marriage, the son
gets vested interest immediately upon his birth. The fact that he is not entitled to possession
till his parents are alive, shall not effect the vesting of interest. The section contemplates the
normal situation that a person while he is in mothers womb (and is capable of holding
property under Section 5) is born alive. The interest created in favour of an unborn is always
contingent subject to his being born alive. Where a person dies in mothers womb and is not
born alive this section does not apply.
However, the rule that the interest created in favour of an unborn person vests immediately
on his birth, is applicable in the normal situations where no particular time of vesting has
been specified by the transferor. Where the transferor expresses a contrary intention, for
example, where the interest is made contingent interest, the transferors intention shall prevail
against this rule. Thus, where A transfers property to B for life and then to Bs such son from
her (Bs) intended marriage who first attains the age of 18 years, the interest of the son is
contingent.

3.

CONTINGENT INTEREST
Section 21 of Transfer of Property Act deals with Contingent interest, where on a
transfer of property, an interest therein is created in favour of person to take effect
only on the happening of a specified uncertain event, or if a specified uncertain
event shall not happen, such person thereby acquires a contingent interest in the
property. Such interest becomes a vested interest, in the former case, on the
happening of the event, in the latter, when the happening of the event becomes
impossible.

Contingent means uncertain future event. In a transfer of property where the vesting of
interest depends on any contingency i.e. uncertain future event, the interest is contingent. In a

10 Sewadayal v. Official Trustee of Bengal, (1931) Cal. 651.


11 Adimoola v. Pavadai Padayachi, (1958) 2 Mad. L.J. 57.

Page |7

transfer of property where the vesting of estate is dependent upon an event that may or may
not happen the interest is contingent.12
A contingent interest is an interest which is created to take effect only when
(i)
some specified uncertain future event happens or
(ii)
specified uncertain event does not happen.
Where the creation of interest is made dependent on the happening or not happening of any
uncertain future event, it does not vest in the transferee immediately. It vests only upon the
happening or not happening, as the case may be, of that event.
For example, where A makes a gift to B provided X survives (i.e. lives upto) the age of 20
years, the interest of B is contingent.
Similarly, where A makes a gift to B provided X does not survive (i.e. dies
before) the age of 20 years, here too the interest of B is contingent. In both the
examples, the vesting of interest in favour of B depends on an event which is
uncertain. In the first, the vesting would take effect on the happening (i.e.
survival) of that event whereas in the second, it depends on not happening of
that event. The happening or not happening of an uncertain future event is the
condition precedent for vesting. Until the condition precedent is fulfilled, the
transfer does not take place and the interest of the transferee remains a
contingent interest. In other words, contingent interest becomes vested only
upon the fulfilment of the condition precedent i.e upon the happening of the
contingency.
Contingency or specified uncertain event may be of two kinds. First, where the happening or
not happening of the event depends upon the will and desire of the parties e.g. marriage,
payment of a sum of money or execution of a deed etc.
For example, A makes a gift to B provided C marries within one year of the
transfer, The interest of B until C marries is a contingent interest. Secondly,
where specified event does not depend on the will or desire of the parties e.g.
death of a person on or before a certain age. Thus, where A makes a transfer
of his property to B provided C dies at the age of 40 years, the interest of B is
contingent. It may be noted that death of a person is a certain event therefore
where property is transferred with a condition precedent of the death of any
person, the interest of the transferee is vested. But when and at what age does
a person die, is an uncertain event. Therefore, where a transfer is made with
words: when, provided or, if a person dies at a given age, or in a specified year
or, dies before or after the death of another person, the interest of the
transferee is contingent.

Exception- Exception to Section 21 provides that where a transferee is to get the interest at
a particular age but is entitled to get absolutely the income of that interest before attaining
that age, the interest given to him is a vested interest. It may be noted that where an interest is
created in favour of a person on attaining a particular age, his interest is contingent. But, if
the transferor gives to the transferee also an absolute right in the income arising out of that
interest (property) or, directs that so much of such income as is necessary for his benefit be
applied with immediate effect, the interest of the transferee is a vested interest.13

4.

NATURE OF CONTINGENT INTEREST

12 Chinna Reddy v. Pujari Keshanna, AIR 1954 Hyd. 185.


13 Bare Act, The Transfer of Property Act, 1882, 2015, p 11

Page |8

(a) Future possible interest


Contingent interest is a future possible interest. In a
transfer of property where the transferees interest is contingent, he has
only a future possible right in respect of property transferred to him. It is
neither a present right nor a certain right. Since the happening or not
happening of the event, is uncertain, the interest dependent on it is also
uncertain. In a contingent interest, the right of enjoyment is also
dependent on some event or condition which may or may not happen or be
performed.

(b)Not heritable
A contingent interest is not a heritable interest. Where a person
having contingent interest dies (i.e. dies before vesting) his legal heirs do
not get anything, not even the contingent interest. After the death of
person his legal heirs are entitled to inherit only those properties in which
he had a vested interest at the time of his death.
In Rajesh Kanta Roy v. Smt. Shanti Devi14 the Supreme Court observed
thus:
In the case a contingent interest, one of the features is that if a person
dies before the contingency disappears and before the vesting occurs, the
heirs of such person do not get the benefit of the gift (transfer).

(c) Transferable interest


Contingent interest is a transferable interest. However,
since a contingent interest is itself an uncertain interest in the property and
transferors own title is not perfect, the transferee too gets an imperfect
title. If the contingent interest subsequently becomes vested, the
transferees interest also becomes vested. But, if the contingency could not
happen the transferee does not get any title in the property. In other words,
although a contingent interest is transferable, the transferees title is
subject to the same contingency as it was before the transfer was made.

Sale of inchoate contingent interest prior to vesting


A father and his son purported to transfer certain property as
owners when in fact the father had only life interest in it and the son had
an inchoate contingent interest which had not become vested, i.e. an
undivided share in the family property which was to vest on his fathers
death. The sale was held to be in efficacious till partitioning of the
property.15

5.

DIFFERENCE BETWEEN CONTINGENT INTEREST AND


SPES SUCCESSIONIS

14 Ibid at p 120.
15 Bay Berry Apartments P. Ltd. V. Shobha, AIR 2007 SC 226.

Page |9

Contingent interest and spes- successionis both re future possible interests. In both, there is
no present fixed right in respect of property and in both the cases there is a possibility or
chance that it may become a perfect title in future. But, in a contingent interest the degree of
this possibility is lesser as compared to spes-successionis.
For instance where a property is transferred subject to some specified
uncertain future event, there are only two possibilities namely, either the event
happens or the event happens or the event does not happen. But spessuccessionis or mere chance of heir apparent is dependent on several
possibilities e.g.
(i) the heir apparent survives the propositus (deceased person),
(ii)
even if he survives, the propositus during his life has already
transferred the property or,
(iii)
he has made a will of that property.
So, spes-successionis has been regarded as a naked or mere future possible
interest. Therefore, under Section 6 (a) of this Act, spes-successionis is a nontransferable interest. Contingent interest is not mere possible future interest;
it is simply uncertain. Therefore, law has allowed the transfer of such interest.
Subject to contingency a contingent interest is a transferrable interest.
Pointing out the difference between a contingent interest and spessuccessionis in Ma Yait v. Official Assignee16 the Privy Council made
following observations:
...... the contingent interest which the children took was
something quite different from a mere possibility of a like nature of an heirapparent succeeding to the estate, or the chance of a relation obtaining a
legacy, and also something quite different from a mere right to sue. It is a well
ascertained form of property is certainly has been transferred in this country
for generations- in respect of which it is quite possible to raise money and
disposed of it in any way the beneficiary chooses.

6.

DISTINCTION BETWEEN VESTED AND CONTINGENT


INTEREST
VESTED INTEREST
CONTINGENT INTEREST
Definition
(1) A vested interest is created
(1) A contingent interest is created
in favour of a person- without
in favour of a person-to take
specifying the time when it is
effect only on the happening or
to take effect, or specifying that
not happening of a specified
it is to take effort, or specifying
uncertain event, which may or
that it is take effect forthwith, or
may not happen.
on the happening of a certain event.
Nature
(2) It is ownership.
(2) It is only a chance of becoming
an owner; however, it is
different from spes successionis.
Fulfilment of condition
(3) It does not depend upon the fulfil- (3) It is solely dependent upon the

16 AIR 1930 P.C. 17.

P a g e | 10

ment of any condition; it creates an


immediate right, though the enjoyment may be postponed to a future
date. Thus, the owners title is already perfect.

fulfilment of the condition (after


which it becomes a vested interest), so that if the condition is
not fulfilled, the interest may
fall through. Thus, the owners
title is as yet imperfect, but is
capable of becoming perfect.

Effect of transferees death


(4) It is not defeated by death of transf- (4) Whether it passes on the death
eree before he obtains possession.
of the transferee or not depends on the nature of contingency.
Whether transferable and heritable
(5) It is both transferable as well as heri (5) It is transferable. Whether it is
table. If the transferee of vested inteheritable or not depends on the
rest dies before actual enjoyment, it
nature of the contingency. If the
passes on to his heirs.
transferee dies before obtaining
possession, the contingent
interest fails, and do not pass to
his heirs.
Present right of enjoyment
(6) In a vested interest, there is a present (6) There is no present right of
immediate right even when its
enjoyment; there is a mere
enjoyment is postponed.
promise for giving such right;
and such promise may be
nullified by the failure of the
condition.
Examples
(7) A makes a gift to B of Rs. 100 to be (7) An estate is transferred to A if
paid to him on the death of C. B gets
he shall pay Rs. 500 to B. As
a vested interest, as the event, namely
interest is contingent until he
Cs death is certain.
Paid Rs. 500 to B.

7.

CLASS OF CONTINGENT TRANSFEREES17

Section 22 deals with transfer to a contingent class. Where the transferee constitutes a
class but who are to be included in this class is not certain, the transferee is a contingent class.
For example, where a transfer is made to such of the children of A who shall attain the age of
18 years, the transfer is in favour of a known class of person i.e the children of A. But, it is
not certain as to who among the children of A shall survive to attain the age of 18 years.
Therefore, the transfer is in favour of an uncertain or contingent class.
Section 22 provides that where an interest is created in favour of only such member of
a class who shall attain a given age, such interest does not vest in any member of the class
who does not attain that age. In the above example, no child of A who has not attained 18
years may get any interest because until he attains the prescribed age (here18 years) he is
uncertain transferee.
However, where the class of transferee is certain and known but vesting of interest in
favour of this class is uncertain, this section is not applicable. Thus, where a gift is made to
17 S.N Shukla, The Transfer of Property Act, 29th edition, 2015, p 83.

P a g e | 11

the children of A provided an uncertain event happens, the transfer is to a certain class of
transferee but vesting of interest is uncertain or contingent. Section 22 does not apply to such
situations.
Exception to Section 21 not applicable
The exception to Section 21 is applicable only in cases where a property is
given to a person on attaining a particular age; it has no relation to any other contingency e.g.
on his surviving a specified person etc. Where a person made a will of his property to such of
his grandsons as survived him and attained the age of 18 years, and gave also the income of
property till they attain the age of 18 years, the Privy Council held that the interest of the
grandsons was not vested under the exception to Section 21.18

Illustration
A fund is bequeathed to such of the children of A as shall attain the age of 18, with a
direction that, while any child of A shall be under the age of 18, the income of the share, to
which it may be presumed he will be eventually entitled, shall be applied to his maintenance
and education. No child of A who is under the age of 18 has a vested interest in bequest.19

8.

SUBSEQUENT CONTINGENT INTEREST

The rule enacted in this section is based on


the principal that property cannot remain without an owner even for a moment. This section
contemplates a transfer of property in which there is creation of a prior interest followed by a
subsequent contingent interest. In such transfers, after the termination of prior interest the
property is made to vest subsequently in another person upon the happening of an uncertain
event. If the subsequent contingency does not happen before termination of the prior interest,
the interest would have to remain in abeyance (void). In other words, there would be an
interval between termination of the prior interest and its subsequent vesting.
Section 23 provides that the contingent interest will fail and cannot vest unless the event
occurs before or at the time of termination of prior interest.
Thus, where a property is transferred to A for life and then to B provided B gets first division
in law- examinations, B must get first division before the death of A. If B fulfils the condition
after say, one month, of the death of A the property cannot vest in him.
In official Assignee Madras v. Vedavalli Thayarammal20, a testator bequeathed his properties
to his grandson or grandsons who might be born within ten years after his death. It was held
that the disposition through this will was void and could not take effect because there would
be an interval of ten years after the termination of last interest (death of testator) during which
the estate was not vested in any person.

9.

TRANSFERS TO PERSONS SURVIVING AT AN UNSPECIFIED


TIME

18 Sopher v. Administrator-Gn. Of Bengal, AIR 1944 P.C. 67.


19 Illustration to Section 121, Ibdian Succession Act, 1925.
20 AIR 1926, Mad. 936.

P a g e | 12

Section 22 contemplates a transfer in which an interest is created in


favour of a contingent class which is to be ascertained at the time of vesting of
interest in favour of the transferee or transferees. It is provided that where an estate
is limited to two persons jointly subject to a condition that interest therein shall
vest in such a certain persons who would be surviving at some period but, the exact
period is not specified then, the property shall go to that transferee (or transferees)
who shall survive at the time of termination of prior interest. In other words, where
property is transferred to certain persons jointly subject to a condition that they
survive the termination of a prior interest then, the person who does not survive is
to get nothing and the surviving person is to take the whole.21

Illustration
A transfers his property to B for life and then to C and D equally or, to the survivor.
C dies during the life of B whereas D survives B. Here, D is to take the whole
property after the death of B.

21 G.C. Bharuka, Mulla:The Transfer of Property Act, 10th ed., (Lexis Nexis, Butterworths,
Wadhwa,2012). p 165.

P a g e | 13

Bibliography
BOOKS
S.N Shukla, The Transfer of Property Act, Allahabad Law Agency, Haryana 29th
edition, 2015, pages 77-85.
2. Dr. R.K. Sinha, The Transfer Of Property Act, Central Law Agency, Allahabad, 13th
Edition, 2012, pages 111-121.
3. Dr. Ashok K. Jain, Property Law, Ascent Publications, Delhi, 3rd edition, reprint 2016,
pages 158-163.
1.

OTHER
Bare Act, The Transfer of Property Act, 1882, Universal Law Publications, 2015.

You might also like