Friday, 24 January 2025

Doctrines in Property Transactions.

 Guiding Principles for Fairness, Justice, and Legal Integrity in Property Transactions.


S. No.

Doctrine

Explanation 

Legal Provision


Doctrine of Escheat

Property of a deceased person reverts to the State if there are no legal heirs to inherit it.

Under the Indian Succession Act, 1925, the property of a person who dies intestate and without heirs escheats to the government


If a person dies without a will or legal heirs, their property is taken over by the government for public use.


Doctrine of Eminent Domain

in The government has the power to acquire private property for public use, with fair compensation to the owner.

Governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013.


Land is acquired to construct a national highway, and fair compensation is provided to the owner.


Doctrine of Lis Pendens

Prevents parties from transferring or dealing with property under litigation to protect the rights of the opposing party

Under Section 52 of the Transfer of Property Act, 1882, property under dispute cannot be transferred without affecting the litigating parties' rights.


A property being sold during a court dispute over ownership remains subject to the court's final decision.


Doctrine of Part Performance

Protects a person who has acted upon an incomplete contract if possession has been delivered or part payment has been made.

Section 53A of the Transfer of Property Act, 1882, provides protection for possession under an unregistered agreement.


A buyer who has paid part of the price and taken possession can defend their rights despite incomplete documentation.


Doctrine of Election

Prevents a person from simultaneously enjoying and rejecting different parts of a single transaction or instrument.

Section 35 of the Transfer of Property Act, 1882, mandates that beneficiaries choose between conflicting benefits in a transaction.


A beneficiary must decide between keeping a gifted property or retaining another conflicting benefit under a will.


Doctrine of Fixtures

Anything permanently attached to the land becomes part of the land and cannot be removed without the owner's consent.

Under Section 108 of the Transfer of Property Act, 1882, fixtures attached during tenancy become part of the land.


A tenant planting trees or constructing a shed cannot remove them upon lease termination without consent.


Doctrine of Accretion

Section 4 of the Indian Easements Act, 1882, allows landowners to claim naturally deposited land over time.

A farmer gains additional land along a riverbank due to consistent soil deposits over the years.


Doctrine of Bona Fide Purchaser

Protects the rights of a buyer who has purchased property in good faith and without notice of any defect or prior claim

A bona fide purchaser's rights are upheld in various jurisdictions, even if prior unregistered claims exist.


A person buys a piece of land, believing the seller has full ownership, unaware of an earlier unregistered agreement*. If the buyer acted in good faith and without knowledge, their ownership is protected.


Doctrine of Priority

In case of competing interests in the same property, the first in time generally prevails.

Section 48 of the Transfer of Property Act, 1882, states that earlier registered interests take precedence.


If Person A mortgages a house to Bank X in January and later mortgages the same house to Bank Y in March, Bank X’s claim will be satisfied first since their mortgage was registered earlier


Doctrine of Marshalling

Allows subsequent mortgagees to claim property not exclusively charged in favor of the prior mortgagee.

Section 81 of the Transfer of Property Act, 1882, ensures subsequent creditors can claim unsatisfied property.


If a person mortgages two houses (House A and House B) to one lender and later mortgages only House B to a second lender, the second lender can claim House A if the debt is not fully recovered from House B.


*An unregistered agreement refers to a contract or document related to property, such as a sale agreement, mortgage, or lease, that has not been formally recorded with the appropriate government authority or registrar. 

In the context of the example mentioned, the earlier unregistered agreement could be something like a contract in which the seller had promised to sell the property to someone else or had mortgaged it to a bank, but that agreement was not registered with the relevant authorities. Because it wasn't registered, it might not be visible in public records.


No comments:

Post a Comment

Imp. Rulings - Travel beyond Pleadings

  Imp. Rulings - Travel beyond Pleadings Index; NCLT Kolkata (2024.02.08) in Urban Infraprojects Private Limited Vs. EDCL Infrastructure Lim...