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CHARACTERISTICS OF OWNERSHIP
An analysis of the concept of ownership, it would show that it has the following characteristics:
Ownership ma either be absolute or restricted, that is, it may be exclusive or limited. Ownership
can be limited by agreements or by operation of law.The right of ownership can be restricted in
time of emergency. An owner is not allowed to use his land or property in a manner that it is
injurious to others. His right of ownership is not unrestricted.The owner has a right to posses
the thing that he owns. It is immaterial whether he has actual possession of it or not. The most
common example of this is that an owner leasing his house to a tenant. Law does not confer
ownership on an unborn child or an insane person because they are incapable of conceiving the
nature and consequences of their acts. Ownership is residuary in character. The right to
ownership does not end with the death of the owner; instead it is transferred to his heirs.
Restrictions may also be imposed by law on the owners right of disposal of the thing owned.
Any alienation of property made with the intent to defeat or delay the claims of creditors can be
set aside.
KINDS OF OWNERSHIP
There are many kinds of ownership and some of them are corporeal and incorporeal ownership,
sole ownership and co-ownership, legal and equitable ownership, vested and contingent
ownership, trust and beneficial ownership, co- ownership and joint ownership and absolute and
limited ownership.
The equitable ownership of a legal right is different from the ownership of an equitable right.
The ownership of an equitable mortgage is different from the equitable ownership of a legal
mortgage.
There is no distinction between legal and equitable estates in India. Under the Indian Trusts Act,
a trustee is the legal owner of the trust property and the beneficiary has no direct interest in the
trust property itself. However, he has a right against the trustees to compel them to carry out the
provisions of the trust.
INTRODUCTION
The concept of ownership is one of the fundamental juristic concepts common to all
systems of law. This concept has been discussed by most of the writers before that of
possession. However, it is pointed out that it is not the right method. Historically,
speaking the idea of possession came first in the minds of people and it was later on that
the idea of ownership came into existence. The idea of ownership followed the idea of
possession.
The idea of ownership developed by slow degrees with the growth of civilization. So
long as the people were wandering from place to place and had no settled place of
residence, they had no sense of ownership. The idea began to grow when they started
planting trees, cultivating lands and building their homes. The transition from a pastoral
to an agricultural economy helped the development of the idea of ownership. People
began to think in terms of mine and thine. To begin with, no distinction was made
between ownership and possession. However with the advancement of civilization, the
distinction became clearer and clearer. This distinction was made very clearly in
Roman law. Two distinct terms were used to point out the distinction and these were
Dominium and possession. Dominium denoted the absolute right to a thing. Possessio
implied only physical control over a thing. The English notion of ownership is similar
to the conception of dominium in Roman law. According to Holdsworth, the English
law reached the concept of ownership as an absolute right through developments in the
law of possession.[i]
1. Inheritance
2. Gain
3. Purchase
4. Conquest
5. Investment of wealth
6. Employment
7. Acceptance of gifts
According to manu, only property of the king or state could be acquired by conquest but
the king had no right to interfere or acquire the private property of the subjects of the
conquered territory. As regards the property of no-ones land (i.e. res nullius) Manu
says that it belonged to him who first reclaimed it under cultivation. Where a thing had
no previous owner such as bird or a fish, the rule of res nullius was to apply and the one
who took it first was its owner. In case of some treasure was discovered, the person who
found it took the whole of it if it was found on his land, and if it was found on some
others land, he could acquire only half of it.[ii]
DEFINITION OF OWNERSHIP
Ownership, in this generic sense, extends to all classes of rights, whether proprietary or
personal, in rem or in personam, in re propria or in re aliena. I may own a debt, or a
mortgage, or a share in a company, or money in the public funds, or a copyright, or a
lease, or a right of way, or the fee simple of land. Every right is owned; and nothing can
be owned except a right. Every man is the owner of the rights which are his.
It is practically impossible to enumerate the wide variety of ways in which the things
owned may used by the owner. However, the Austin describes ownership as
aindefinite in point of user , it may not be taken to mean that the owner has an
absolute right to use his property in whatever way he likes. All legal system impose
condition on the user of property .It is well accepted that every owner must use the
object of ownership so as not to injure the rights of other persons. For instance, the
owner cannot use his property in such a way as to cause nuisance to his
neighbours. Similarly, an owner cannot prevent the entry of officers of the state into
his property, when such entry is authorized by law as in case an officer of justice
entering the premises of anyone in pursuance of a warrant issued by a court.
Ownership is also subject to encumbrance in favour of others , in which case the
power of user enjoyed by the owner is curtailed by the rights of encumbrances.
When we describe ownership as unlimited in the point of duration, it means that a right
is capable of existing so long as a thing owned exists. The right is not extinguished even
on the death of the owner, because ownership devolves upon his heirs who are the
persons of appointed by law to succeed the property remaining undisposed at time of
his death.
This quality of ownership also cannot be taken as absolute. There are situations, which
limit the duration of ownership. For instance, a testator may settle his property on his
widow with a condition that on her remarriage the property shall devolve upon his
children. Here the widow remains the vested owner of the property until her remarriage,
but his ownership is limited in point of duration. The rule against perpetuity is another
limitation upon the unlimited duration and power or disposition of the owner.
SALMOND DEFINITION:
CHARACTERISTICS OF OWNERSHIP
Broadly speaking there are two modes of acquiring ownership, namely, (1) Original,
and (2) Derivative.
Absolute When a thing is acquired res nullius, i.e. , which has no previous
owner.
This has been called Parigrah by Manu who stated that the first striker of an
arrow to a prey whether a bird or wild animal, becomes its owner.
Original acquisition of ownership may also be by specification which means a
person by working up on material belonging to another makes a new thing. For
example, if a sculptor makes a statue from the clay belonging to the another, he
becomes the original owner of that statue.
Extinctive Acquisition of ownership , that is when a person by some act on his
part extinguishes the ownership of the previous owner and acquires its
ownership himself, it is called extinctive acquisition. For example, acquisition
of ownership by prescription or adverse possession for a prescribed period
which is 12 years in India.
Accessio This is called accessory acquisition that is, when the ownership of
property is acquired by way of accession to some existing property. Examples
are produce of lands or animals or fruits of trees. Manu has termed this mode of
acquisition as Prayog which means acquiring by accession.
Custody is a relation of a person to an object in which he has no full control over the
thing, in the other words, he has no required animus to exclude others. For example, a
customer examining a piece of cloth in a shop before the shopkeeper who has custody
of that cloth.
Detention is a relation where person has in fact possession over a thing but law due to
certain reasons does not recognize it as possession. For example, a servant has the
detention over things of his master with him.
It is important to remember that ownership is not merely a bundle of rights, liberties and
powers. It is also carries with it corresponding burdens in the nature of duties,liabilities
and disabilities which prescribe and regulates how an owner should utilise his property
for the benefit of other individuals or society. Property owned by person is liable to
execution for the debts incurred by him. The liability to pay property tax,wealth tax,etc,
is also imposed in the social interest. When control legislation imposes restriction on
the way in which one may use his property.
The typical individualist approach to ownership is reflected in the definition of
Austin,which we have analysed earlier. However,gradually the emphasis began to shift
from the individual to society-from ownership as a fundamental right of property to the
wants of people and ones duty towards others. It came to be recognised that limitation
are integral to the concept of property,and not exception to an otherwise unlimited
right.
The Marxist theory of ownership draws attention to the evil role it has played. It
begins with individual working with its own tools and raw materials. Later,the profit
accumulated through trading manufactured products elevates him to position to provide
the tools and raw materials, and get other people to provide the labour.The
manufactured products, however remain in his ownership,not in that of the labourer,
and he continues to trade it as his own property. It is the concept of ownership that
enables the exploitation of workers. Ownership of the means of production-tools and
raw materials-became a source of power over persons for private profit.
This promoted inequality, because using the power of dismissal and threat of
unemployment and consequent starvation,the employer was able to dictate unfair terms
of service. The owners of the means of production became industrial commanders
wielding enormous powers that strike at the fundamentals of society.
Karl Renner,following the Marxist analysis,expressed the view that law should take
account of the increasingly public character of ownership of property by investing it
with the characteristics of public law. Two concepts of ownership a public and a
private,have to be recognised. Ownership of the means of production should be
public,that is nationalised,and only ownership of consumer goods should be opened to
private individuals. The distinction lies not in the nature of ownership,but in the things
capable of being owned.
Dr. Friedmann writes that the concept of ownership has exerted considerable
influence as a source of social power in various stages of the development of society.
Professor Renner has traced the gradual evolution of ownership in its social
perspective. He pointed out that in early stages of development of society the owners of
industries had to themselves collect tools, raw materials and labour resources to run the
industry and they earned huge profits by the sale of their products. When they amassed
sufficient wealth, they could afford to hire labour and run the industry by providing
tools and raw material to them. The industrialist was still the sole owner of the goods so
produced and had complete ownership of the profits earned by the industry. Thus the
ownership of means of production become the source and symbol of power and social
status which the industrialists enjoyed on the strength of the labour working under them.
This eventually led to the development of management labour relationship in the field
of industries. The power of the employers to sack and change the service conditions of
workers arbitrarily exhibited their influence in the society as a dominant class.
However, in course of time, the labour movement raised voice against the exploitative
tendencies of indutrialists and capitalists as a result of which public ownership gained
primacy over private ownership. The policy of nationalization of industries adopted by
progressive socialist countries is directed towards the fulfillment of this objective.[x]
Dr. Friedmann attributes three main reasons for the declining influence of private
ownership in modern social order.
Firstly, the gap between employer and labour class is gradually narrowing down due to
trade union movement, nationalization of industries and national insurance schemes
and now the employers can exploit the workers by misusing their power. As a result of
this the bargaining power of both the entrepreneurs and the workers is more or less
equal.
The industrialists are now required to contribute a considerable part of their income and
profit to the public fund of the state. This has helped in equitable distribution of wealth.
Thirdly, the encouragement provided to the corporate sector in recent decades has
helped in separating the power element from ownership. During the capitalistic era,
both ownership and power are centralized in the industrialists which was detrimental
for the labour class. But today the real power vests in the management comprising
experts in their respective fields and the owners are divested of this power. Thus power
has been separated from the ownership. Furthur in order to ensure that the management
does not misuse their power and authority, comprehensive company legislation and
labour and industrial laws have been enacted by almost all countries.[xi]
Dias and Hughes have observed that in order to appreciate the role of ownership in the
present social order, its formal analysis shall not serve any useful purpose, instead there
should be greater emphasis on its functional analysis.[xii]
CONCLUSION
Ownership and possession are two words, which we commonly use in our daily life
without thinking about their legal incidents or consequences. However, even when we
use these words in our ordinary conversation, we generally associate certain rights and
obligations with these words .It is surprising that a child who has not learned these two
words is capable of understanding the meaning of these words, and also the difference
between the concepts of ownership and possession.
For instance, if you give a toy as a birthday gift to a child, he/she immediately
understands that the toy belongs to him/her. He/ she considers himself/herself as the
owner of the toy,and does not permit other to touch it.
If he / she permits another child to play with the toy, he/ she expects that it will be
returned to him/her after same time. In his/her mind there is a clear knowledge that
he/she parting with the possession of the toy , but has no intention of giving up
ownership .
On the other hand, he/she may voluntarily give the toy as a gift to her dear friend. Now
he/she has no expectation of getting it back, and knows that he/she has relinquished not
only the possession of the toy, but also its ownership .
Law converts these simple ideas to legal concepts by defining their meaning with
precision and refinement. Ownership as a legal concepts denotes a legal relation
between a person who is called the owner of the right , and a things over which he can
exercise certain rights. The right of ownership is the most complete and supreme right
that can be exercised over anything.
It consist four rights, namely: 1.Using the things;2.excluding others from using it;
3.disposing of things; and4.destroying it.
As Lord Evershed said; Property like other interests has a social obligation to perform.
The extent of this social obligation reflects the social policy of the legal system.
It is important to remember that ownership is not merely a bundle of rights, liberties and
powers. It is also carries with it corresponding burdens in the nature of duties, liabilities
and disabilities which prescribe and regulates how an owner should utilise his property
for the benefit of other individuals or society. Property owned by person is liable to
execution for the debts incurred by him. The liability to pay property tax, wealth tax, etc,
is also imposed in the social interest. When control legislation imposes restriction on
the way in which one may use his property.
The idea of ownership developed by slow degrees with the growth of civilization. So long
as the people were wandering from place to place and had no settled place of residence,
they had no sense of ownership. The idea began to grow when they started planting trees,
cultivating land, building their homes. The transition from a pastoral to an
agricultrual economy helped the development of the idea of ownership.
People began to think in terms of'mine and thine[2]. To begin with no distinction
was used to be been made between ownership and possession. However, with the
advancement of the civilization the distinction became clearer and clearer. This
distinction was made very clearly in Roman law. Two distinct terms were used to
point out the distinction and these were 'dominium' and
'possessio.'[3]Dominium denoted the absolute right to a thing. Possessio
implied only physical control over a thing. The English notion of ownership
is similar to the concept of dominium in Roman law. According to Holdsworth,
the English law reached the concept of ownership as an absolute right through
development in the law of possession.
b) It is not lawful to build something upon your land to the injury of another. In the case
of, Crowhurst v. Amersham Burial Board,[5] it was held that the burial board is
responsible for damages to the extent of price of the horse which died on account of eating
a portion of a yew tree planted by the burial board on it's own land.
3. The third attribute of the ownership is the permanent nature of the right
ownership. According to Austin right extinguishes only with the destruction
of the thing, which is owned.
4. But Austin also says that this right of ownership can be transferred by
way of succession.
According to Hibbert, ownership involves four rights and those are the rights of using
the thing, excluding others from using it, disposing of the thing, and the destruction of
it.[7]
According to Pollock. "ownership may be described as the entirety of the powers of use
and disposal allowed by law. This implies that there is some power of disposal, and in
modern times we should hardly be disposed to call a person an owner who had no such
power at all, though we are familiar with 'limited owners' in recent usage. According to
him we must not suppose that all the powers of an owner need be exercisable at once and
immediately; a person may remain owner though the person has parted with some of
them for a time. In short, the owner of a thing is not necessarily the person
who had at a given time has the whole power of use and disposal; very
often there is no such person[8].
1. Essentials of ownership
4. An owner may part with several rights in respect of the thing that is owned
by him. In spite of that, he continues to be the owner of the thing in view the
residuary character of ownership.
5. The owner has the right to destroy or alienate the thing he owns. Now
right to destroy is no more an essential.
4. Types of ownership
There are different kinds of ownership; some of them are corporeal and incorporeal,
sole ownership and co-ownership, legal and equitable ownership, vested and
contingent ownership, trust and beneficial ownership, absolute and limited
ownership.
Legal and equitable ownership. - Legal ownership is that which has its origin in
the rules of common law and equitable ownership is that which proceeds from the rule
of equity. There are some cases where equity recognizes ownership where law does not
recognize ownership owing to some legal defect. First right can be enforced in rem
whereas second one is available in person.'[13]
Absolute and limited ownership.-An absolute owner is one in whom are vested
all the rights over a thing to the exclusion of all. When there are limitations on the user,
duration or disposal of rights, of ownership, the ownership is limited ownership.[17]
In ancient time there were two types of ownership, depending upon the power to sale.
These are, a) absolute ownership, b) limited ownership. In case of absolute
ownership they had right to sale the property because the person has acquired
absolute title over it. But in case of limited ownership, the person on possession of the
property did not have absolute right to sale or dispose of the property, e.g. mortgage.
Rama Jois has opined that the essential under the ownership of Hindu law
was the title of the property. He states that through the ancient Hindus
considered possession to be one of the important attributes of
ownership, they didnt consider possession to be absolute proof of
ownership. Therefore, for a valid transfer, ownership over that property was
considered the most essential element[23].
The ancient texts held that when it is established that if a vendor sold the property
without actual ownership then he should restore the property to the actual owner and
should pay the vendee the price received by him, and shall also pay a fine to the
kind[24]. In those ancient texts it was also found that in this regard criminal justice
system was very much in force and thus in all complaints relating to sale without
ownership, it was the duty of the buyer to produce the vendor before the Court and
himself to prove that the purchase made by him was under a honest and bona fide
belief that the property belonged to the vendor. But at the same time there were
provision, which said that if the person who is claiming his ownership
fails to prove it then he will be liable to be punished like a thief by the
king."
Katyayan[25] in his writing has said that when the purchase of a property has been
made before a group of merchants and in frontof the officer of the kind then the
person claiming the ownership may get back the property after paying half the price of
the property and the reason given for this was a sort of punishment for the real owner
of the property for not being careful about the property.
Manu[26] has said that if the offender (who sells the property without
ownership) is a kinsman of the real owner, he shall be fined six hundred
panas. It was said that if the person is not a kinsman then he should be
guilty of theft.33 Further it has been said in his writing that if a sale or
gift of a property is made without real ownership then it will be
considered to be null and void. He also gave a lot of importance to the
proof of a person's ownership. According to Manu where the possession
is evident, but no title is perceived, there the title shall be a proof of an
ownership.[27]
In ancient time the king was considered to be the lord of only land and not other kind
of wealth. In fact king's right was restricted to only one-sixth of the income from the
land. Thereby that time king only had a limited ownership over land, real ownership
vested with the individuals on various modes. Though that time the ownership
over land was granted to individuals, the right to minerals and mining
was still in the domain of the kinds. Therefore the king was having
monopoly over mines and mineral.
Also after the framing of Constitution the growth with regard to the concept of
ownership continued to develop as such. In this respect the Apex Court of India took
some important initiatives.[28] In old law the concept of 'acquisition and
'requisitioning' of property referred to entry 42, List III, Sch. VII of our Constitution.
The provisions in Articles 299 and 300 were results of considerable thought and
debate. In its report, Joint Parliamentary Committee[29] on Indian Constitutional
reform said in its report that an appropriate provision should be made in order to
Therefore it can be stated from the report submitted by the JPC that in
India there was private owned property, more accurately, "vested
interest," which require specific protection, namely, grants of lands or
of tenure of land free of land revenue, or subject to partial remission of
land revenue, owned under various names, of which taluk, inam, watan,
jagir, and muafi were examples, such grants were perpetual. These grants
had the authority of the British Governemnt that on the due observance by the grantee
of the specified conditions, the rights of himself and his successor would be respected
for all time or for the duration of the grant. The sanad granted by Lord Canning to the
taluqdar of Oudh was an instance of a grant in perpetuity, the rights conferred by the
Sanad being permanent, hereditary and transferable. In connection with this kind of
property the JPC said -
....Some of the claims to protection which have been urged upon us would be
satisfied by little less than a statutory declaration which would have the effect of
maintaining-unaltered and unalterable for all time, however, strong the justification
for its modification might prove to be in the light of changed circumstances, every
promise or undertaking of the kind made by the British Government in past. We
recommend, however, that the Constitution Act should contain an appropriate
provision requiring the consent of the Governor-general or the Governor, as the case
may be to any proposal, legislative or executive, which would alter and prejudice the
rights of the predecessor of any privilege of the kind to which we have referred."[32]
The above mentioned rights generally belonged to individuals before. The JPC also
dealt with the rights of zamindars and others in parts of the UP and Madras in the
eighteenth century.
The Indian law does not recognize legal and equitable estates. Therefore there can be
one 'owner.' Where the property is vested in a trustee. The right of beneficiary is, in
proper case, to call upon the trustee to convey to him. Until conveyance he is not
the .owner.[35]
The 'transfer of ownership' marks the difference between a sale and a mortgage. In
case of mortgage, the mortgagee holds the property as a security or debt, and not
absolutely, and therefore is having limited interest on the property[36].
In Krishna Tanhaji v. Aba Shetta, It has been stated that compromise with regard
to a property Is only an acknowledgment of the existing rights and there is no transfer
of property and, therefore, by way of a compromised decree no valid sale can be
entered into[39].
In Indian law the concept of co-ownership was also well recognized;
according to Indian laws co-owner is not allowed to cause prejudice to
other co-sharers by putting up a substantial construction during the
pendency of a suit. Thus it can be said that in Indian law the concept of
co-ownership is still well recognized. But in case of dwelling house if the
co-owner is not in actual possession of the property, then it cannot be transferred[40].
But a co-owner will have a right to resist sale of a property owned by him jointly, when
the property is going to be sold to a third party.
According to Maitland, quoting Dr. Murrary, the term 'owner' occurred in 1340,
and the term 'ownership' in 1583.[43] A further step in the differentiation
of seisin and possession came with the tenant of years. Whereas seisin was protected
by the writ of right, the termors interest was protected by a form of trespass. de
ejection firmae. A man's interest was not seisin, it was styled possession, which
sharpened the contrast between seisin and possession. In modern law there are
many cases, which show that ownership of land is only a question of the
'better right' to retain or obtain possession relative to other party to the
dispute.
The development of the law relating to chattels took different line. There was nothing
resembling a doctrine of estates. Land holding, not the possession of chattels, was the
index to a person's public and private position. Chattels were of comparatively little
significance and there was, no ownership in them. They had a fungible character, that
is to say, transfer or restoration of equivalent chattels sufficed and later money. This
was because, in the nature of things, the interest of a person in a particular chattel was
neither so important nor so permanent as his interest in the land. Maitland doubts
'whether there was any right in movable goods that deserves the name of ownership.
To ascertain ownership over a property the concept of trespass was also introduced.
The idea of 'better right' to obtain or retain possession evolved
through trover and detinue: the plaintiff could succeed if he could have established a
'better right' over that property. Once again, this enabled the defendant to raise the jus
tertii as a defence and as in the case of land, there has been dispute as to how far this
required a plaintiff to prove an absolute right." The Sale of Goods Act 1979 refers to
'the property' in goods, which in this context means ownership' In this regard Sir
Raymond Evershed MR has made certain very important observation.[44]
There are few other points where the researcher thinks that he should
focus discussion.
An owner may be divested of his claims to such extent that he may be left with
no immediate practical benefit.
Lastly it may be said that a person is owner under English law when a
person becomes entitled in specified ways to something designated as
such, the scope of which is determined by policy; and his interest,
constituted in this way, will outlast the interests of other persons in the
same thing.
7. Conclusion
While analyzing this paper the research has come to certain conclusions. Those are as
follows,
Ownership consists of an innumerable number of claims, liberties, powers
and immunities with regard to the thing owned.
According to some jurist a person owns a house means he has just those
claims in respect of it. According to them there is no point in having the
concept of ownership without these claims. But many jurists have disagreed
on this idea of ownership. According to them ownership means a bundle of
right.
In fact this right includes complete control over a property, this gives the
owner a power to alienate and even destroy the property.
In western concept there are both corporeal and incorporeal properties. There
ownership comprises of benefits and burdens. In western concept of
ownership the owner may be divested of his claims to such extent that he may
be left with no immediate practical benefit. Though a person who holds any
property without owner's concept was considered to be a trespasser. Also in
western concept of ownership in some cases there can be a transfer of property
without a valid execution of deed.
Lastly the researcher thinks that with the recognition of intellectual property right
there has been a requirement of redefining the concept of ownership because in case
of intellectual property the idea of assignment is a sort of transfer of limited
ownership, and also the concept of moral right thus required to be revised, as it can be
transferred only in certain cases.
References
Books
2. V.D. Mahajan, Legal Theory and Justice, Orient Longman Pub., New
Delhi (1991).
Articles
Statutes
1. Constitution of India