Law of Transfer of Property PPQ NOTES WM
Law of Transfer of Property PPQ NOTES WM
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➞ How is Lease made? What are the rights and duties of lessee?
➞ What is Lease? Explain the rights and duties of lessor?
11. ➞Explain the law relating to election as provided in section.35 in Transfer of Property Act. 50
12. ➞Explain the law relating to transfer of property by way of Gift as provided in Transfer of Property Act, 1882. 53
13. ➞Explain the Principle of Subrogation? 56
14. ➞Explain the principle of prohibition on tacking. 60
15. ➞Explain the principle of marshaling securities. 63
16. ➞What is the concept of “Bonafide Purchase” without notice with consideration? Please explain with reference to 66
Section 41 of Transfer of Property Act, 1882.
SECTION B: LAND ACQUISITION ACT 1894
18. ➞Discuss the procedure of acquisition of land as laid down in the Act? 70
➞What is award as provided in land acquisition act 1894? What steps a land acquisition collector takes before 73
making an award?
➞ What is Award by the Collector and what are the important ingredients which must be mentioned in the Award
of Collector regarding acquisition of land?
➞ What is an Award by the collector? Explain the procedure of making an Award. What is the remedy available to
the aggrieved party against the award?
19. ➞ What are the matters which are neglected by the court in determining compensation? 77
➞ What are the matters which are considered by court in determining compensation?
20. ➞ Explain the difference between a reference to the court made under section 18 and section 30 of the land 81
acquisition act.
➞ What do you mean by Reference to Court under section 18 of the Land Acquisition Act, 1894? What are the
grounds relevant to be taken for filing of reference?
➞ What is reference to the court? What is the procedure of filling the reference?
21. ➞ Explain the procedure of acquisition of land in case of urgency as provided in the land acquisition act, 1894. 85
➞ What are the special powers granted in case of urgency as provided under section 17 of the Land Acquisition
Act, 1894?
22. ➞Explain the procedure of acquisition of land for companies as provided in Land Acquisition Act. 89
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31. ➞ What are the contents of the succession certificate? Explain in detail? 131
➞ What are the contents of application for the succession certificate?
32. ➞ What is succession certificate? How it is acquired? Explain. 135
➞ Explain the restrictions on grant of Succession Certificate and describe how it can be revoked?
➞ What are the restrictions on grant of succession certificate? Explain the procedure for grant of succession
certificate and how it is revoked?
33. ➞What do you mean by an executor or administrator of property? Explain his duties as laid down in the act? 139
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34. ➞What are the grounds and procedure for the revocation of a Succession Certificate? What is the remedy available 143
to aggrieved person against such Revocation?
35. ➞ What is the procedure provided under the Succession Act, 1925 for the protection of property of the deceased? 150
36. ➞Explain the transfer of property by gift made in contemplation of death under section.191 of Succession Act. 153
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Q: Define Transfer of property as provided in section 5 of Transfer of Property Act. Explain what may be transferred under
section 6 of the Transfer of Property Act.
Introduction:
The Transfer of Property Act, 1882 is a comprehensive legislation that regulates the transfer of property in Pakistan. It lays down the
procedures, conditions, and types of property that can be legally transferred from one person to another. The Act defines the term
transfer of property and specifies what can and cannot be transferred under different sections. The objective is to ensure legal clarity
and prevent disputes regarding property transfers.
Section 5 of the Transfer of Property Act, 1882 provides a statutory definition of the term transfer of property as:
A transfer of property means passing the ownership of property from one person to another.
The property can be movable or immovable and the transfer can be made by a living person to:
The transfer can be done now or in the future, and it can include the entire property or just a part of it.
1. Act of Conveyance:
o The term conveyance refers to the act of transferring property from one person to another. This can include sale,
mortgage, lease, exchange, or gift.
o The conveyance can occur either immediately (present interest) or at a future date (future interest).
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2. Living Person:
o The term living person includes not only natural persons (individuals) but also juridical persons such as companies,
associations, and corporations.
o The inclusion of juridical persons expands the scope of transfer to include corporate entities, partnerships, and
societies.
3. Self and Others:
o A person may transfer property to himself and others jointly, for instance, a transferor can create a joint tenancy with
himself and another person.
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Section 6 of the Transfer of Property Act, 1882, specifies the types of property that can be legally transferred and also enumerates the
exceptions. It states:
“Property of any kind may be transferred, except as otherwise provided by this Act or by any other law for the time being in
force.”
General Rule:
• The general rule under Section 6 is that all kinds of property are transferable, whether movable or immovable, tangible or
intangible, present or future.
• However, there are specific exceptions where the law prohibits the transfer of certain properties.
2. Right of Re-entry:
o A mere right of re-entry for breach of a condition subsequent cannot be transferred.
o This right arises in cases where the transferor reserves the right to re-enter and reclaim property upon the occurrence
of a specific event.
o The right of re-entry can only be transferred to the owner of the property.
3. Easements:
o An easement right (e.g., right to pass through another’s land) is not independently transferable.
o It is considered an incorporeal right and can only be transferred with the dominant tenement (the property benefiting
from the easement).
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7. Public Office:
o The right to a public office or any salary or benefits attached to it is non-transferable.
o Such rights are considered to be of a public nature and not personal property.
8. Pension:
o A pension or stipend granted in consideration of past services or as a compassionate allowance cannot be transferred.
o The law protects such rights to ensure the financial security of the grantee.
Conclusion:
Section 5 and Section 6 of the Transfer of Property Act, 1882, play a vital role in defining the scope and limitations of property transfers
in Pakistan. Section 5 lays down the fundamental principles for a valid transfer, focusing on the conveyance of property by a living
person, either in present or future. Section 6 further elaborates on the types of property that can and cannot be transferred, ensuring that
the rights of both transferor and transferee are protected and that public policy is not violated.
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Q: Explain the law relating to Transfer of Property to an unborn person as provided in Transfer of Property Act 1882?
Introduction:
The Transfer of Property Act, 1882 is a fundamental legal framework that regulates the transfer of property in Pakistan. It defines the
methods, conditions, and restrictions on property transfers to ensure legality and prevent disputes. One of the important aspects covered
by the Act is the transfer of property to an unborn person, which is provided under Section 13 and 14 of the Act. These sections
establish the rules and limitations for transferring property to a person who does not yet exist at the time of the transfer.
Section 13 of the Transfer of Property Act, 1882 deals with the transfer of property to an unborn person. It states:
“If a property is given to one person with instructions that after that person, it will go to an unborn person (a person not yet
born), the transfer is considered valid only if the unborn person gets the entire interest in the property.”
• This means that the first person will enjoy the property only during their lifetime, and once they pass away, the entire
interest in the property will go to the unborn person.
• The unborn person will receive the property as a full owner, not just a limited share or interest.
• However, the transfer to the unborn person will only be valid if that person is born and can accept the property as a
complete owner.
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o This prior interest serves as a life estate or temporary interest, which is held by a living person until the unborn person
comes into existence.
Example:
• A property owner transfers property to his wife for her lifetime, and then to his unborn grandson.
• Here, the wife holds a life interest until the grandson is born and attains a vested interest.
Example:
• If A transfers property to B for life, and after B’s death, the property is to vest in A’s unborn grandson C, C must receive the
entire interest in the property after B’s death.
5. Time of Vesting:
o The unborn person will receive the property only if he is born during the lifetime of the prior interest holder or within
the period specified by the transferor.
o If the unborn person does not come into existence within this period, the transfer fails, and the property reverts to the
transferor or his heirs.
Section 14 of the Transfer of Property Act, 1882 imposes a restriction on the transfer of property to an unborn person under the
rule against perpetuity. It states:
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“This section says that property cannot be tied up or restricted for an indefinite period.”
If a person transfers a property but puts conditions that it cannot be fully enjoyed or owned by anyone for an extremely long time
(beyond a set legal limit), such conditions are considered invalid.
In simple terms, you cannot make a property transfer in such a way that it keeps passing on indefinitely without anyone truly
owning or using it. The law wants to prevent situations where the property is locked up for generations without being freely available
for use or transfer.
The maximum time limit for such restrictions is generally the lifetime of a living person at the time of the transfer plus 18 years.
Any condition that tries to go beyond this limit is not legally valid.
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• Limitation Period: The interest must vest within the lifetime of the living person(s) and the minority period of the unborn
person.
Conclusion:
Sections 13 and 14 of the Transfer of Property Act, 1882 provide comprehensive guidelines for the transfer of property to an unborn
person. The law establishes that the transfer must first create a life interest in a living person, and only upon the birth of the unborn
person can the remaining interest be vested absolutely. Additionally, the rule against perpetuity under Section 14 ensures that property
is not indefinitely tied up and that the interest in the property must vest within a specified period. This legal framework serves to protect
the rights of both living and unborn persons while preventing speculative or uncertain transfers of property.
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Introduction:
The Transfer of Property Act, 1882 is a comprehensive law that governs the transfer of property in Pakistan. It provides detailed rules
for transferring movable and immovable property and defines the rights and obligations of the parties involved. One of the significant
doctrines under the Act is the principle of Lis Pendens, which is addressed in Section 52. The term Lis Pendens means a pending legal
action and ensures that property involved in a legal dispute cannot be transferred to third parties, preventing fraudulent or unjust transfers
during litigation.
Section 52 of the Transfer of Property Act, 1882 deals with the doctrine of Lis Pendens. It states:
“When a legal case relating to any property is ongoing in a court of law, the property cannot be transferred or dealt with by any
party to the case in a way that affects the rights of the other party.”
• This rule applies from the time the case is filed until it is finally decided, including any appeal period.
• Any transfer or dealing with the property during this time will not affect the rights of the other party in the case, even
if the transfer is made in good faith or for valuable consideration.
This principle is called Lis Pendens, which means “a pending lawsuit,” and it is intended to prevent the rights of the parties in a legal
dispute from being defeated or disturbed by transferring the property while the case is ongoing.
The term Lis Pendens is derived from the Latin words Lis, meaning suit or dispute, and Pendens, meaning pending. Thus, Lis Pendens
refers to a pending legal action involving property rights.
• The principle of Lis Pendens is based on the maxim: “Pending litigation, nothing new should be introduced”.
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• The objective of this doctrine is to maintain the status quo of the property during litigation, ensuring that the rights of the
parties involved are not defeated by any alienation or transfer of the disputed property.
• The doctrine prevents the transfer of property that is the subject of a dispute, thereby ensuring that the court's final decree or
order is effectively enforced.
For the application of the principle of Lis Pendens, the following essential elements must be present:
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The doctrine of Lis Pendens does not apply in the following cases:
1. Transfer by a Stranger:
o If the transfer is made by a person who is not a party to the suit, the doctrine does not apply.
2. Transfer Made With Court’s Permission:
o If the court permits the transfer during the pendency of the suit, it will not be affected by Lis Pendens.
3. Movable Property:
o The doctrine only applies to immovable property and not to movable assets.
4. Fraudulent or Collusive Suits:
o If the suit is filed collusively or fraudulently to prevent a genuine transfer, the doctrine will not apply.
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➠Conclusion:
The doctrine of Lis Pendens as provided under Section 52 of the Transfer of Property Act, 1882 is a fundamental principle aimed at
preserving the integrity of court proceedings involving immovable property. It ensures that no party can defeat the court’s
judgment by transferring the disputed property during litigation. The principle maintains the status quo of the property and protects
the rights of the decree holder, ensuring that the court’s decision is effectively enforced. By laying down specific requirements and
exceptions, the doctrine of Lis Pendens serves as a powerful tool to prevent fraudulent or collusive transfers of property during
pending legal actions.
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Q: Explain the law relating to the transfer by an unauthorized person who subsequently acquires interest in property transferred
as provided in sec.43 of TPA.
Introduction:
The Transfer of Property Act, 1882 is a key legal framework that governs the transfer of property in Pakistan. It sets forth the rules
regarding the transfer of property, including circumstances where a person without proper authority or title transfers property and
subsequently acquires interest in the same property. This concept is covered under Section 43 of the Transfer of Property Act,
1882, known as the Doctrine of Feeding the Grant by Estoppel.
Section 43 addresses the situation where a person fraudulently or erroneously represents that he is authorized to transfer property,
which he does not own at the time of transfer but later acquires. In such cases, the law provides protection to the transferee under certain
conditions.
“If a person fraudulently or mistakenly transfers property that they do not own but later acquires ownership of that property,
the person to whom the property was transferred can choose to:
• Claim the property as if the transferor had the right to transfer it at the time of the original transfer, or
• Cancel the transfer and demand a refund or compensation.”
This applies only if the transferee acted in good faith and paid consideration (money or value) for the property.
This section is based on the principle of Feeding the Grant by Estoppel, which means that a transferor who fraudulently or mistakenly
claims ownership of a property and subsequently acquires an interest in that property must feed the transfer made earlier by
transferring the acquired interest to the transferee.
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• The transferor must fraudulently or mistakenly claim that he has the authority to transfer a specific property.
• The representation may be intentional (fraudulent) or unintentional (erroneous).
• Example: A, who is not the owner of a house, falsely claims to own it and sells it to B. Later, A inherits the house from his father.
• The section applies only to the transfer of immovable property, such as land, buildings, or interests in land.
• Movable property is not covered under Section 43.
• The transfer must be made for valuable consideration, meaning that the transferee must have paid money or provided some
form of compensation for the property.
• If the transfer is made as a gift or without consideration, the doctrine under Section 43 does not apply.
• After the initial transfer, the transferor must subsequently acquire interest in the property.
• This acquisition could be through inheritance, purchase, gift, or any other lawful means.
• Example: If A sells property to B without owning it, and later A acquires the property through inheritance, A is bound to transfer
the acquired interest to B.
• The doctrine under Section 43 operates only at the option of the transferee.
• The transferee can choose to enforce the transfer or rescind the contract.
• If the transferee opts to enforce the transfer, the transferor must fulfill his promise and transfer the acquired interest to the
transferee.
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• The contract must be valid and subsisting at the time the transferor acquires the interest.
• If the contract is rescinded or terminated, the transferee cannot enforce the transfer under Section 43.
➠ Illustration:
• A falsely represents that he is the owner of a piece of land and sells it to B for Rs. 500,000.
• At the time of the sale, A does not own the property.
• Later, A inherits the property from his deceased father.
• Under Section 43, B has the option to enforce the sale and compel A to transfer the acquired interest to B.
The doctrine under Section 43 does not apply in the following cases:
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3. Collusive Transfers:
o If the transfer was made to defraud creditors or third parties, the transferee cannot claim the benefit of Section 43.
• The doctrine under Section 43 provides protection to the transferee, enabling him to claim the property upon subsequent
acquisition by the transferor.
• The transferor is estopped from denying the validity of the transfer, as he had originally represented that he was authorized
to transfer the property.
• The doctrine prevents fraud and unjust enrichment, ensuring that a transferor does not escape liability after acquiring the
interest.
• In the case of Ghulam Haider v. Ghulam Nabi (PLD 1996 SC 345), the Supreme Court held that the doctrine under Section
43 applies only when the transferor acquires interest in the same property that he had previously transferred without title.
• The court emphasized that the transferee is entitled to enforce the transfer upon the subsequent acquisition of interest,
provided the original contract remains subsisting and valid.
Conclusion:
Section 43 of the Transfer of Property Act, 1882, is a protective provision that ensures that a transferee is not deprived of his right
when the transferor fraudulently or erroneously claims ownership of property and later acquires the interest in the same property.
This doctrine of Feeding the Grant by Estoppel protects the rights of the transferee, allowing him to enforce the transfer upon the
subsequent acquisition of interest by the transferor. It prevents fraudulent representations and ensures that the transferor is held
accountable for his false representations, thereby upholding justice and equity in property transactions.
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Q: Explain the law relating to Transfer of Property by Ostensible owner as provided in section 41 of Transfer of Property Act.
Q: Explain the term “Ostensible Owner”. Under what law, can an ostensible owner transfer the property? Please discuss.
Q: Explain the law of transfer of property by ostensible owner. What remedy can the real owner avail of such a transfer?
Introduction:
The Transfer of Property Act, 1882 governs the rules and regulations related to the transfer of property in Pakistan. One important
concept under the Act is the transfer of property by an ostensible owner as provided in Section 41. The term “ostensible owner” refers
to a person who appears to be the real owner of a property but is not the actual owner. This provision protects bona fide transferees
who have acted in good faith and without knowledge of the true ownership of the property.
An ostensible owner is a person who is not the true owner but appears to be the owner and is allowed by the real owner to act as
the owner. The true owner, either by his conduct or express consent, allows the ostensible owner to deal with the property as if he
were the real owner.
• A is the actual owner of a property but allows B to possess the property and represent himself as the owner.
• B, as the ostensible owner, sells the property to C, a bona fide purchaser for value without notice of A’s ownership.
• C is protected under Section 41, provided the transfer was made with the consent or conduct of A.
“If a person (the “ostensible owner”) sells or transfers property to another person, claiming to be the owner, but in reality, the
ostensible owner does not have full ownership rights, the buyer (transferee) will still get good title to the property if:
• The buyer believes the seller is the true owner of the property.
• The buyer buys the property in good faith and without knowing that the seller is not the true owner.
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The real owner of the property cannot claim the property back from the buyer just because the buyer bought it from someone who
wasn’t the full owner, as long as the buyer didn’t know this.”
Section 41 provides that if a person appears to be the owner of a property with the consent of the real owner and transfers it for
consideration, the transfer will be valid and binding on he real owner, provided the transferee has acted in good faith and with due
diligence.
1. Ostensible Ownership:
• The person making the transfer must be the ostensible owner, i.e., someone who appears to be the owner but is not the actual
owner.
• The true owner must have permitted or allowed the ostensible owner to hold himself out as the owner.
• The ostensible ownership may arise through:
o Express consent (direct permission), or
o Implied consent (conduct or behavior).
• The transfer by the ostensible owner must be made for valuable consideration.
• If the transfer is made without consideration (e.g., a gift), the doctrine under Section 41 does not apply.
• The transfer must be made with the consent, express or implied, of the real owner.
• If the real owner has not consented to the transfer or the transfer was made without his knowledge, the transfer cannot be
enforced under Section 41.
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• The transferee must have exercised reasonable care in ascertaining the authority of the ostensible owner to transfer the property.
• The transferee must have acted in good faith, without notice of the true ownership or any adverse claim.
• If the transferee fails to exercise reasonable care, he cannot claim protection under Section 41.
5. No Voidable Transfer:
• If all the above conditions are met, the transfer by the ostensible owner cannot be challenged by the real owner on the ground
that the ostensible owner lacked authority to transfer the property.
• A is the real owner of a property but allows his brother B to live in the house and represent himself as the owner.
• B sells the property to C, a bona fide purchaser who paid full consideration and acted in good faith.
• Since A allowed B to appear as the owner, C’s purchase is protected under Section 41, and A cannot claim the property back
from C.
The concept of ostensible ownership is also recognized under the principle of estoppel, as provided in the Contract Act, 1872.
According to Section 115 of the Contract Act, when a person intentionally induces another to believe in a particular state of affairs
and act upon such belief, he cannot later deny the existence of such state of affairs.
Therefore, under Section 41 of the Transfer of Property Act and Section 115 of the Contract Act, the real owner is estopped from
denying the validity of the transfer if he has allowed the ostensible owner to appear as the true owner.
The real owner, in case of a transfer by the ostensible owner, has limited remedies:
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In Muhammad Bashir v. Fazal Karim (PLD 1997 SC 256), the court held that if the real owner voluntarily permits the ostensible
owner to act as the owner, he cannot later challenge the transfer made to a bona fide purchaser who has paid consideration and acted
in good faith.
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Conclusion:
Section 41 of the Transfer of Property Act, 1882, provides a safeguard to bona fide purchasers who have acted in good faith and paid
consideration while dealing with an ostensible owner. If the real owner, by his express or implied conduct, permits another person to
represent himself as the owner, he cannot later deny the validity of the transfer. The doctrine protects the transferee while ensuring
that the real owner is estopped from claiming the property, provided the transferee has acted in good faith and without notice of
the true ownership.
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Introduction:
The Transfer of Property Act, 1882 governs the transfer of immovable property in Pakistan. One of the significant doctrines under the
Act is the principle of Part-Performance, provided under Section 53-A. This principle was introduced to protect the rights of a
transferee who has taken possession of a property under a contract that is not yet formally executed but is substantially performed by
the transferee.
The doctrine of Part-Performance prevents the transferor from denying the validity of the contract and the transferee’s possession of
the property. It is a protective shield for the transferee, ensuring that they are not unfairly deprived of the property for which they have
already performed substantial obligations under the contract.
When a person makes a written agreement to transfer property for some payment (consideration) and the buyer has either
taken possession of the property or is already in possession and continues to stay in possession as part of the agreement, and the
buyer has done some act related to the agreement and is ready and willing to complete their part of the agreement, then:
• Even if the agreement is not properly registered or the transfer deed is not completed as required by law, the seller or
anyone claiming under the seller cannot deny the transfer or take back possession of the property against the buyer.
• However, this protection does not apply if a third person has bought the property for value without knowing about the
agreement or part performance.
The doctrine of Part-Performance operates as a shield, not as a sword. This means that the transferee can use it as a defense to protect
their possession but cannot use it to enforce the transfer in the absence of a registered deed.
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The doctrine is based on the principle of equity and fairness, preventing the transferor from denying the contract once the transferee
has already performed or has substantially performed the agreed obligations.
To invoke the doctrine of Part-Performance, the following essential elements must be present:
• There must be a written contract of transfer that is signed by the transferor or by someone on his behalf.
• The contract must contain clear and definite terms from which the transfer can be reasonably ascertained.
• Oral agreements are not sufficient to invoke the doctrine of Part-Performance.
• The contract must be for the transfer of immovable property, such as land, houses, or any interest in immovable property.
• The contract must also be for valuable consideration, meaning that the transferee must have paid or promised to pay a certain
amount for the property.
• The transferee must have taken possession of the property or a part of it in pursuance of the contract, or if the transferee is
already in possession, they must have continued to possess it in furtherance of the contract.
• The possession must be unequivocally referable to the contract, meaning it must be clear that the possession is pursuant to the
contract and not for any other reason.
• The transferee must have performed or undertaken to perform some acts in furtherance of the contract.
• Such acts may include:
o Payment of purchase money, either in full or in part.
o Making improvements or constructions on the property.
o Settling disputes or debts as agreed in the contract.
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• The transferee must be ready and willing to perform his part of the contract.
• If the transferee refuses to perform their obligations, they cannot claim protection under the doctrine of Part-Performance.
• The doctrine of Part-Performance provides a defensive remedy, meaning the transferee can defend their possession against
the transferor who tries to reclaim the property.
• However, it does not confer a title to the transferee.
• The transferee can only use this doctrine as a shield, not as a sword, meaning they cannot compel the transferor to complete
the transfer if the deed is not registered.
➠ Illustration:
• A agrees to sell his house to B for Rs. 1,000,000. A written contract is signed, and B takes possession of the house and pays Rs.
800,000 as part payment.
• Later, A refuses to complete the transfer, claiming that the deed is not registered.
• Under Section 53-A, B can defend his possession by proving that he has taken possession in furtherance of the contract and is
willing to complete the payment as per the agreement.
• A will be debarred from asserting any right to evict B, except for those rights specifically provided in the contract.
1. No Written Agreement:
o If the agreement is oral, the doctrine of Part-Performance does not apply.
2. Transferor Not the Real Owner:
o If the person transferring the property is not the actual owner, the doctrine cannot be invoked against the real owner.
3. Acts Not Referable to the Contract:
o If the acts done by the transferee are not clearly referable to the contract, they cannot claim protection under Section
53-A.
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The real owner can take the following remedies if the doctrine of Part-Performance is invoked:
In the case of Muhammad Siddiq v. Muhammad Rafique (PLD 1984 SC 120), the Supreme Court of Pakistan held that the doctrine
of Part-Performance can only be invoked if the transferee has acted in furtherance of the contract and is willing to perform the remaining
obligations. Mere possession without fulfilling other obligations does not entitle the transferee to claim protection under Section 53-
A.
Conclusion:
The doctrine of Part-Performance under Section 53-A of the Transfer of Property Act, 1882 is a protective provision for transferees
who have acted in furtherance of a written contract of transfer, taken possession, and performed or are willing to perform their part of
the agreement. The doctrine acts as a defensive shield, preventing the transferor from asserting ownership rights against the transferee.
However, it does not confer a title, nor can it be used as a sword to enforce the transfer. It seeks to prevent fraud and injustice, ensuring
that the transferee’s rights are safeguarded in property transactions.
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Q: What is Contract of Sale? What are the rights and duties of Buyer as provided in Transfer of property Act 1882?
Q: Explain the rights and duties of seller and buyer.
Q: Define sale? How it is made? Explain the rights and duties of seller.
Introduction:
The Transfer of Property Act, 1882 provides the framework for the transfer of property rights in Pakistan. One of the important
modes of transfer under the Act is the contract of sale, which is specifically dealt with under Sections 54 to 57. A sale is a transaction
where the ownership of immovable property is transferred from one person to another in exchange for a price paid or promised. It
is a complete transfer of rights and interests in the property.
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• An agreement to sell is a contract where the seller agrees to transfer the property to the buyer at a future date or upon
the fulfillment of certain conditions.
• It does not transfer ownership immediately, but it creates a right to obtain ownership in the future.
• The buyer can enforce the agreement in court if the seller refuses to complete the sale.
The seller of immovable property has both duties to perform and rights to claim under the contract of sale.
Duties of Seller:
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Rights of Seller:
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The buyer also has specific rights and duties under Section 55.
Duties of Buyer:
Rights of Buyer:
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In the case of Abdul Ghafoor vs. Muhammad Iqbal (2020 CLC 543), the court held that the seller’s right to lien continues until the
full payment of the purchase price is made. However, the buyer also has the right to demand possession upon making full payment
as per the contract.
Illustration:
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➠ Conclusion:
A contract of sale under Section 54 of the Transfer of Property Act, 1882 is a complete transfer of ownership of property in exchange
for money. The section also clearly distinguishes between a sale and an agreement to sell, establishing that a sale immediately
transfers ownership, while an agreement to sell creates a right to obtain ownership in the future.
Section 55 further elaborates the rights and duties of the seller and the buyer, ensuring that both parties are aware of their legal
obligations during the transaction. The Act aims to provide a comprehensive legal framework for property transactions, ensuring fair
dealing and protection of rights for both the seller and the buyer.
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Introduction:
The Transfer of Property Act, 1882 governs the transfer of immovable property in Pakistan. One of the significant modes of transfer
under this Act is the Mortgage. The concept of mortgage is detailed in Chapter IV (Sections 58 to 104) of the Act. This chapter defines
the term mortgage, its types, rights and liabilities of the parties, and the procedure for recovery of the debt.
Definition:
According to Section 58(a) of the Transfer of Property Act, 1882, a mortgage is defined as:
“A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of a debt or
the performance of an obligation.”
A mortgage is when the owner of a property (the mortgagor) gives a legal right or interest in that property to a lender (the
mortgagee) to secure a loan or fulfill an obligation. If the borrower fails to repay the debt, the lender can recover the money by
selling the property.
• A mortgage involving a value of Rs. 100 or more must be created through a written and registered deed.
• The mortgage deed must be:
o Signed by the mortgagor, and
o Registered under the Registration Act, 1908.
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• If the value of the property is less than Rs. 100, the mortgage can be created by delivery of possession only, but this is rare for
immovable property.
Example:
A takes a loan of Rs. 5 lakhs from B and mortgages his house as security. A remains in possession of the house, but B can sell it if A
fails to repay the loan.
• The mortgagor sells the property to the mortgagee with a condition that:
o The sale will become absolute upon non-payment of the debt.
o The sale will become void if the debt is repaid.
o The property will be reconveyed to the mortgagor upon repayment.
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Example:
A borrows Rs. 3 lakhs from B and executes a mortgage deed stating that if A fails to repay, the sale will be absolute in favor of B. If
A repays, the property will be reconveyed to A.
Example:
A mortgages his shop to B for Rs. 2 lakhs. B takes possession of the shop and collects rent from tenants to recover his loan.
Example:
A borrows Rs. 10 lakhs from B and executes an English Mortgage, transferring ownership of his house to B. If A repays the debt, B
will retransfer the house to A.
• The mortgagor deposits title deeds of the property with the mortgagee as security for the loan.
• This type of mortgage is common in urban areas and big cities.
• It does not require registration if created in certain notified towns.
Example:
A borrows Rs. 2 lakhs from B and deposits the title deeds of his house as security for the loan.
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• A mortgage that does not fall under any of the above categories or is a combination of two or more types is considered an
anomalous mortgage.
• It is governed by the terms of the contract.
Example:
A mortgages his land to B with the condition that B will take possession, collect rent, and also have the right to sell the property if
the debt is not repaid.
Rights of Mortgagee to Sale and Foreclose the Mortgaged Property (Section 67 & 67-A):
Meaning:
• The mortgagee (lender) has the right to sell the mortgaged property if the mortgagor (borrower) fails to repay the mortgage
debt within the stipulated period.
• This right is a legal remedy available to the mortgagee to recover the mortgage money.
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Example:
• A mortgages his house to B for Rs. 5 lakhs. If A fails to repay the loan, B can serve a notice to A and then sell the property by
public auction to recover the mortgage money.
Meaning:
• The right to foreclose means the mortgagee can bar the mortgagor’s right to redeem the property after the debt becomes due
and the mortgagor fails to repay it.
• This right is applicable in the case of a mortgage by conditional sale and anomalous mortgage.
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Example:
• A mortgages his land to B by a mortgage by conditional sale. The condition is that if A does not repay the debt by 1st June, the
sale will become absolute in favor of B. If A defaults, B can apply for a foreclosure decree to obtain full ownership of the land.
Meaning:
• The right to redeem the property is a fundamental right of the mortgagor under the Transfer of Property Act, 1882.
• It is the right of the mortgagor to recover the mortgaged property by paying off the entire mortgage debt, including interest
and other costs.
• This right is also known as the Equity of Redemption.
Clog on Redemption:
• A clog on redemption refers to any condition in the mortgage deed that restricts or prevents the mortgagor from redeeming
the property.
• The law does not permit any clause that makes redemption impossible or excessively difficult for the mortgagor.
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• If a mortgage deed states that the mortgagor can never redeem the property, such a clause is considered a clog on redemption
and is void and unenforceable.
1. The mortgagor must tender the full payment of the mortgage debt to the mortgagee.
2. The mortgagor can request the return of title deeds and demand a reconveyance deed.
3. If the mortgagee refuses to accept payment, the mortgagor can file a suit for redemption in the court.
Example of Redemption:
• A mortgages his house to B for Rs. 3 lakhs. If A repays the entire debt with interest, B is bound to return the title deeds and
reconvey the property to A.
Conclusion:
A mortgage under the Transfer of Property Act, 1882 is a legal arrangement where a person transfers an interest in immovable
property to a lender as security for a loan or obligation. There are six types of mortgages, each with its own distinct features, rights,
and obligations. Understanding the types of mortgages helps both borrowers and lenders to secure their rights and minimize risks in
financial transactions.
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Introduction:
The Transfer of Property Act, 1882 provides comprehensive provisions regarding mortgages and related rights and liabilities. One
such provision deals with the contribution to mortgaged debt, which is addressed in Section 82 of the Act. This section is particularly
significant when a property is owned by multiple persons and is mortgaged as a whole or in parts. It ensures that each co-owner or
party is held responsible for paying their proportionate share of the mortgage debt.
• The term contribution to mortgaged debt refers to the obligation of multiple owners of a property to pay their share of the
mortgage debt when the property is jointly mortgaged.
• If the property is owned by several persons and is mortgaged as a single entity, each co-owner is liable to contribute
proportionately towards the repayment of the debt.
• The contribution is based on the extent of the interest or share of each co-owner in the mortgaged property.
• When a property owned by multiple people is mortgaged and the mortgage money is paid by one or some of the co-owners, the
other co-owners are also liable to contribute their share of the mortgage debt.
• Each co-owner must pay a proportionate amount based on the value of their share in the property.
• If one co-owner pays more than his share, he can recover the excess amount from the other co-owners.
• A, B, and C jointly own a property. The property is mortgaged to X for Rs. 3 lakhs.
• The shares of the co-owners are:
o A: 1/2 share (Rs. 1.5 lakhs)
o B: 1/4 share (Rs. 75,000)
o C: 1/4 share (Rs. 75,000)
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• If A pays the entire mortgage amount of Rs. 3 lakhs, he can demand contribution from B and C as follows:
o B’s Contribution: Rs. 75,000
o C’s Contribution: Rs. 75,000
➠ Recovery of Contribution:
• If one co-owner pays more than his share of the mortgage debt, he is entitled to recover the excess amount from the other co-
owners.
• The amount recoverable is based on the proportionate share of each co-owner.
• If a co-owner refuses to pay his share, the paying co-owner can file a suit for contribution in the court.
• In Sundaram v. Valli Ammal (1961), it was held that a co-owner who has paid the entire mortgage debt has the right to recover
the proportionate share from the other co-owners under Section 82.
Conclusion:
Section 82 of the Transfer of Property Act, 1882 ensures that the burden of the mortgage debt is fairly distributed among all co-
owners based on their respective shares in the property. This provision is vital to protect the paying co-owner and to prevent unjust
enrichment of other co-owners. It also ensures that the mortgage debt is effectively recovered without placing the entire burden on a
single co-owner.
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Introduction:
The Transfer of Property Act, 1882 defines and regulates the leasing of immovable property in Pakistan. A lease is a contractual
arrangement where the lessor (owner) transfers the right to use the property to the lessee (tenant) for a specified period in exchange
for rent or consideration. The provisions related to leases are contained in Sections 105 to 117 of the Act.
A lease is created through a legal contract or agreement. This contract can be either written or oral, but it is always advisable to have
a written agreement to avoid disputes.
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1. Written Agreement:
o If the lease period is one year or more, it must be in writing, signed, and registered.
o If the lease period is less than one year, it can be created orally or in writing.
2. Essential Elements:
o Offer and Acceptance: Both parties must agree on the terms of the lease.
o Rent or Consideration: The lessee must agree to pay rent or any other valuable consideration.
o Agreement: A formal lease agreement is created and signed by both parties. The agreement should specify:
1. Description of the property
2. Term of the lease (whether for months, years, or indefinitely)
3. Rent amount and payment method
4. Duties and responsibilities of both parties
5. Conditions for termination of the lease
o Duration of Lease: The period must be clearly defined.
o Delivery of Possession: The lessor must transfer the right to use the property to the lessee.
Mode of Execution:
• The lease deed must be executed on a stamp paper, and in case of a lease for more than one year, it must be registered with
the relevant authority.
Example:
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• Either party can terminate the lease by serving a notice to the other party as per the lease agreement.
Example:
• If the lessee violates any condition of the lease, the lessor may terminate the lease.
Example:
• If the lessee sublets the property without permission, the lessor can terminate the lease.
• The lessor can forfeit the lease and re-enter the property in case of:
o Non-payment of rent.
o Breach of condition.
o Denial of lessor’s title by the lessee.
• The lessee can surrender the lease voluntarily before the expiry of the lease term.
• If the lessee acquires the property as the owner, the lease is automatically terminated.
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• If the property is destroyed by fire, flood, or any other unavoidable event, the lease is terminated.
The rights and duties of the lessor (property owner) and the lessee (tenant) are fundamental to a lease agreement. Both parties have
distinct roles and responsibilities that ensure the smooth functioning of the tenancy. Let’s explore these in greater detail.
The lessor retains ownership of the property, even though they transfer the right of possession to the lessee. The rights of the lessor
are designed to safeguard the property owner's interests while ensuring the tenant fulfills the lease terms.
• The lessor has the right to receive rent or compensation from the lessee as agreed upon in the lease agreement.
• The rent must be paid on time and in the agreed amount.
• If the rent is not paid, the lessor can take legal action to recover the overdue rent or terminate the lease (Section 111 of the
Transfer of Property Act).
Example:
• If A rents a house to B for Rs. 10,000 per month, A has the right to receive Rs. 10,000 every month.
• After the lease term expires or if the lease is terminated early, the lessor has the right to recover possession of the property.
• If the lessee refuses to vacate, the lessor can file a suit for eviction to regain possession.
Example:
• If A rents a flat to B for one year, at the end of the year, A can ask B to vacate the property and take possession if B refuses.
• The lessor has the right to inspect the property at reasonable times to ensure the lessee is maintaining the property properly.
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• If necessary, the lessor can also carry out repairs to ensure the property is in good condition for living. However, the lessor
must give the lessee notice before entering the property.
Example:
• If A is the owner of a building and notices the plumbing is damaged, A has the right to send a plumber to fix the damage.
However, A must inform B (the lessee) beforehand.
• The lessor can terminate the lease if the lessee violates the terms of the agreement, such as non-payment of rent, damaging
the property, or using the property for unlawful purposes.
• The lessor can also claim compensation for any damage caused by the lessee.
Example:
• If B does not pay the rent for three months, A (the lessor) can terminate the lease and ask B to vacate the property.
The lessor has certain duties towards the lessee, which ensure the lessee has a safe and habitable space for living or working.
• The lessor must hand over possession of the property to the lessee at the beginning of the lease.
• The lessee should not be deprived of the property during the term of the lease.
Example:
• If A and B agree on a lease, A must give B the keys to the house and allow B to move in at the start of the lease.
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• The lessor must ensure the lessee can peacefully enjoy the property without any interference during the term of the lease.
• The lessor cannot disturb the lessee's possession unless specified in the lease agreement.
Example:
• If A (the lessor) continuously enters the house without prior notice, it would be a violation of B’s right to quiet enjoyment.
• The lessor should not unnecessarily interfere with the lessee's possession of the property, unless the terms of the lease allow
it (such as entering for repairs or inspection).
Example:
• A cannot show up at B's house without notice or permission just to check on the property.
The lessee has the right to occupy and use the property for the duration of the lease. These rights ensure the lessee can live or use the
property as agreed without undue interference.
• The lessee has the right to enjoy the property for the lease period as long as they abide by the terms of the lease.
• The lessee can use the property for the purpose stated in the lease (residential, commercial, etc.).
Example:
• If A rents a house to B, B can live in the house for the agreed period without interference from A.
• The lessee has the right to receive the property in a habitable condition, suitable for the agreed use.
• If the property is not in good condition, the lessee can request the lessor to fix the problems.
Example:
• If A rents an office to B, and the office has broken windows, B can ask A to repair them before moving in.
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• If the lease agreement provides an option for renewal or extension, the lessee has the right to renew the lease at the end of
the term, typically on the same terms and conditions.
Example:
• A rents an apartment to B for one year, and the agreement states that B can renew the lease for another year if both parties
agree.
• The lessee has the right to sublet the property or assign the lease to another person, but only if the lessor agrees to it in
writing.
• Subletting without the lessor's permission is a violation of the lease.
Example:
• B (the lessee) rents a house from A but wants to sublet the property to C. B must first get written permission from A to do so.
The lessee has specific responsibilities to ensure the property is well-maintained and that the lessor’s rights are respected.
• The lessee must pay the agreed rent to the lessor on time, as specified in the lease agreement.
• If the lessee fails to pay rent, the lessor has the right to terminate the lease and ask for eviction.
Example:
• If A rents a flat to B for Rs. 20,000 per month, B must pay A the agreed amount each month.
• The lessee must take reasonable care of the property and avoid causing any damage to it.
• Lessee is responsible for minor repairs due to normal wear and tear during their stay.
Example: If B accidentally breaks a door knob, B must replace or repair it.
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• The lessee should not make any structural changes or alterations to the property without the lessor's written consent.
• This includes things like painting walls, building partitions, or installing heavy equipment.
Example:
• If B wants to install a new kitchen countertop, B must get approval from A.
• At the end of the lease term, the lessee must vacate the property unless there is an agreement to renew or extend the lease.
• The lessee should return the property to the lessor in the same condition as when they received it, subject to normal wear and
tear.
Example:
• If B’s lease expires and there is no renewal option, B must leave the property and return it to A.
Conclusion:
A lease under the Transfer of Property Act, 1882 is a vital legal mechanism that transfers the right to use immovable property for
a specified time in exchange for rent. The Act clearly outlines the procedure for creating and terminating leases, as well as the rights
and duties of lessor and lessee. These provisions ensure a balance of interests between both parties and provide remedies in case of
breach or default.
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Q: Explain the law relating to election as provided in section.35 in Transfer of Property Act.
Introduction:
The concept of Election under the Transfer of Property Act, 1882 deals with situations where a person is given a benefit under a
transfer of property but is also required to relinquish some other property in return. This doctrine is governed by Section 35 of the
Act. The purpose of this section is to prevent injustice and to ensure fairness in property transactions.
➠ What is Election?
Election means a situation where a person has to choose between two conflicting rights or claims. Under Section 35, if a person is
given a benefit under a transfer of property, but the transferor also disposes of some other property belonging to that person, the
beneficiary must elect (choose) either to:
Section 35 - Election:
• When a person gives some property to another person and, in the same transaction, disposes of another property belonging to
the same person, the beneficiary has to elect between the two.
• The beneficiary cannot take both the benefit and retain his own property unless the donor clearly intended to give both.
• If the beneficiary accepts the benefit, he must give up his own property as per the transfer.
• If the beneficiary does not elect, the law will assume that he has chosen to accept the benefit.
➠ Example of Election:
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For the doctrine of Election to apply, the following conditions must be fulfilled:
➠ Modes of Election:
1. Express Election:
o The beneficiary may expressly state his choice to accept the benefit and relinquish his own property.
2. Implied Election:
o If the beneficiary acts in a manner that indicates acceptance, it will be considered an implied election.
o For example, taking possession of the benefit is considered an election to accept the benefit.
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➠ Effect of Election:
➠ Exceptions to Election:
➠ Conclusion:
The doctrine of Election under Section 35 of the Transfer of Property Act, 1882 is a principle of equity and fairness. It prevents the
beneficiary from accepting a benefit and retaining his own property, thereby preventing unjust enrichment. This section ensures
that a balance is maintained between the transferor's intention and the beneficiary’s right to property.
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Q: Explain the law relating to transfer of property by way of Gift as provided in Transfer of Property Act, 1882.
Introduction:
The law relating to the transfer of property by way of Gift is governed by Sections 122 to 129 of the Transfer of Property Act,
1882. A gift is a voluntary transfer of property without any consideration. It is a form of gratuitous transfer where the donor gives away
the property without receiving anything in return.
Definition of Gift:
According to Section 122, a Gift is a transfer of movable or immovable property that is made voluntarily and without
consideration. The transfer must be made by a donor to a donee, and the donee must accept the gift during the lifetime of the donor.
1. Transfer of Property: The subject of the gift must be property, either movable or immovable.
2. Voluntary Transfer: The gift must be given freely and voluntarily.
3. Without Consideration: There should be no monetary or other consideration involved in the transfer.
4. Acceptance by Donee: The donee must accept the gift during the lifetime of the donor.
5. Delivery of Possession: The donor must deliver the property to the donee, and the donee must take possession of it.
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➠ Illustration:
• A wants to gift his house to B. A executes a gift deed and registers it, and B accepts it. The gift is valid and complete.
• If A wants to gift his watch to B, he can simply hand it over to B, and the gift is complete.
Illustration:
• A gifts a house to B with the condition that if B sells the house, the gift will be revoked. If B sells the house, A can revoke the
gift.
Example:
• A gifts a house to B but also imposes a debt of Rs. 1,00,000 on the house. B can either accept both the house and the debt or
reject both.
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• A universal donee is a person to whom the donor gifts all of his property.
• The universal donee is liable for all the debts and liabilities of the donor existing at the time of the gift.
Illustration:
• A transfers all his property to B. B becomes a universal donee and is responsible for paying off A’s debts.
• The donee must accept the gift during the lifetime of the donor.
• If the donee fails to accept the gift during the lifetime of the donor, the gift becomes void.
• The acceptance can be express or implied and must be done immediately after the gift is made.
• A gift can be revoked if it was made subject to a condition and that condition is subsequently fulfilled.
• The condition must be expressly stated in the gift deed and should not be immoral or illegal.
➠ Conclusion:
The law of Gift under the Transfer of Property Act, 1882 is based on the principle of voluntary transfer without consideration.
The donor must transfer the property without receiving anything in return, and the donee must accept the gift during the lifetime of the
donor. The Act also specifies the manner in which gifts must be made, how they can be revoked, and the implications of accepting
onerous gifts or becoming a universal donee.
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➠Introduction:
The principle of Subrogation under the Transfer of Property Act, 1882 deals with the rights of a third party who discharges the
debt of a mortgagor. Subrogation means stepping into the shoes of another person. It allows a person who has paid off a debt on
behalf of another to claim the rights and remedies of the original creditor. The concept is explained in Section 92 of the Act.
➠ Meaning of Subrogation:
Subrogation means the substitution of one person in place of another with respect to a claim or debt. It occurs when a third party
pays off the debt of the mortgagor and is then entitled to all the rights of the original mortgagee as if he were the original creditor.
Section 92 - Subrogation:
• When a person other than the mortgagor or a person deriving title from him pays off a mortgage debt, he is said to be
subrogated to the rights of the mortgagee.
• The person who pays off the debt steps into the shoes of the original mortgagee and can enforce all the rights of the mortgagee,
including the right to foreclose or sell the property.
• Subrogation can occur in the following cases:
1. Conventional Subrogation: Where subrogation is expressly stated in the transaction.
2. Legal Subrogation: Where subrogation occurs by operation of law.
➠ Types of Subrogation:
1. Legal Subrogation:
o It occurs by operation of law when a person, who is bound to pay off the debt, pays it on behalf of the mortgagor.
o The person automatically gets all the rights of the original mortgagee.
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oExample: If a second mortgagee pays off the debt of the first mortgagee, he is subrogated to the rights of the first
mortgagee.
2. Conventional Subrogation:
o It arises by express agreement between the parties.
o The person who pays off the debt must be expressly given the right of subrogation in the agreement.
o Example: If A pays off the mortgage debt of B, and there is an agreement that A will stand in the place of the original
mortgagee, it is a case of conventional subrogation.
➠ Essentials of Subrogation:
➠ Rights of Subrogee:
A person who is subrogated to the rights of the original mortgagee has the following rights:
1. Right to Foreclose:
o The subrogee can initiate foreclosure proceedings just like the original mortgagee.
2. Right to Sell the Property:
o The subrogee can sell the mortgaged property to recover the debt, if the mortgage was a mortgage by conditional sale
or a simple mortgage.
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3. Right to Possession:
o If the mortgage was a usufructuary mortgage, the subrogee can claim possession of the property until the debt is
repaid.
4. Right to Recover the Debt:
o The subrogee can recover the debt amount from the mortgagor just like the original mortgagee.
➠ Exceptions to Subrogation:
1. Payment by Mortgagor:
o If the mortgagor himself pays off the debt, he cannot claim subrogation.
2. No Agreement for Conventional Subrogation:
o If there is no agreement for subrogation, the person paying off the debt cannot claim the rights of the mortgagee.
3. Partial Payment:
o If the third party pays only a part of the debt, he is not entitled to subrogation.
➠ Effect of Subrogation:
• The original mortgagee loses his rights once the debt is paid off.
• The subrogee acquires all the rights of the original mortgagee.
• The mortgagor is bound to repay the debt to the subrogee instead of the original mortgagee.
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Conclusion:
The principle of Subrogation under Section 92 of the Transfer of Property Act, 1882 is a powerful legal tool that allows a third
party to step into the shoes of the mortgagee upon paying off the mortgage debt. It serves to protect the interests of the person
paying the debt and ensures that he is not left without remedy. This doctrine promotes equity and justice, ensuring that the person
paying the debt is compensated by acquiring the rights of the original mortgagee.
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Introduction:
The principle of Prohibition on Tacking is an important concept under the Transfer of Property Act, 1882. It is explained in Section
93 of the Act. The purpose of this principle is to prevent a mortgagee from combining different debts or securities to gain priority
over other creditors without the consent of those creditors. The doctrine of tacking is primarily aimed at protecting the rights of
subsequent mortgagees or creditors.
➠ Meaning of Tacking:
Tacking refers to the combining of a new debt or advance with an existing mortgage debt to gain priority over subsequent
encumbrancers. It involves adding a new loan or debt to a prior mortgage debt and claiming both as one debt to gain priority over
other creditors.
Example:
• If a property is mortgaged to A for Rs. 1,00,000 and then to B for Rs. 50,000, the mortgagee A cannot add a subsequent loan
of Rs. 30,000 to the first mortgage to gain priority over B’s mortgage.
• A mortgagee who has a prior mortgage on a property cannot combine or add a subsequent loan or advance to the original
mortgage debt to gain priority over any subsequent mortgagee.
• The principle of tacking does not apply unless the subsequent mortgagee has expressly consented to such tacking.
• If a mortgagee advances further money without the consent of the subsequent mortgagee, he cannot claim priority for the
subsequent advance over the intervening mortgagee.
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➠ Illustration:
• A lends Rs. 1,00,000 to B against the security of B’s property (First Mortgage).
• Later, B takes another loan of Rs. 50,000 from C against the same property (Second Mortgage).
• Subsequently, A advances an additional loan of Rs. 30,000 to B without the consent of C.
• In this situation, A cannot combine the subsequent advance of Rs. 30,000 with the original mortgage debt to gain priority over
C’s mortgage.
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➠ Conclusion:
The principle of Prohibition on Tacking under Section 93 of the Transfer of Property Act, 1882 serves to protect the rights of
subsequent mortgagees and maintain the priority order of debts. It prevents the first mortgagee from combining subsequent
advances with the original mortgage debt to gain priority over intervening creditors. Thus, the principle of tacking ensures fairness
and equity in the distribution of debt priority.
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Introduction:
The principle of Marshalling of Securities is a legal doctrine provided under Section 56 of the Transfer of Property Act, 1882. This
principle is designed to protect the rights of a subsequent mortgagee or creditor by allowing him to claim payment from specific
securities or assets in a manner that does not prejudice his interests. The main objective is to ensure fairness in the distribution of
assets when multiple claims are involved.
Marshalling of Securities means that when a senior creditor or mortgagee has the right to claim payment from multiple properties,
and the subsequent creditor has a charge on only one of those properties, the senior creditor must first realize his debt from the
property not subject to the subsequent charge.
Example:
• If a mortgagee or creditor has the right to claim payment from two or more properties, and a subsequent mortgagee or
creditor can only claim payment from one of those properties, the senior mortgagee must first recover from the property
not charged to the subsequent mortgagee.
• The senior creditor may still proceed against the other property if the remaining property is insufficient to satisfy his debt.
• This principle applies only if it does not prejudice the rights of the senior creditor.
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➠ Purpose of Marshalling:
A subsequent mortgagee can request the application of the marshalling principle to ensure that:
1. The senior creditor first recovers from the property not subject to the subsequent charge.
2. The property subject to the subsequent charge remains available for the subsequent mortgagee to recover his debt.
➠ Illustration:
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• If Property Y is insufficient, B can proceed against Property X to the extent of the unpaid debt.
1. Insolvency of Mortgagor:
o If the mortgagor becomes insolvent, the principle of marshalling does not apply.
2. Insufficient Security:
o If the remaining security is insufficient, the senior creditor may proceed against both properties.
3. Consent of Parties:
o Marshalling cannot be enforced if the parties have expressly agreed to the contrary.
4. No Right to Prejudice:
o The senior creditor’s rights cannot be prejudiced by marshalling.
➠ Effect of Marshalling:
• The senior creditor is required to first exhaust the security not encumbered by the subsequent mortgagee.
• If the senior creditor’s debt is not fully satisfied, he can then proceed against the property encumbered by the subsequent
mortgagee.
• The subsequent mortgagee is protected from losing his security interest due to the actions of the senior creditor.
• Equitable Distribution: Ensures that the debt recovery is fair to all creditors.
• Protection of Subsequent Creditors: Prevents the senior creditor from unfairly exhausting the security held by the subsequent
creditor.
• Orderly Distribution of Assets: Maintains the priority order of debts and prevents conflicts.
➠ Conclusion:
The principle of Marshalling of Securities under Section 56 of the Transfer of Property Act, 1882 serves to protect the interests
of subsequent mortgagees or creditors by allowing them to claim payment from specific properties without prejudice. This
principle ensures equity and fairness in debt recovery, preventing unfair advantage to the senior creditor and maintaining the
rights of subsequent mortgagees.
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Q: What is the concept of “Bonafide Purchase” without notice with consideration? Please explain with reference to Section 41
of Transfer of Property Act, 1882.
Introduction:
The concept of Bonafide Purchase without Notice with Consideration is addressed under Section 41 of the Transfer of Property
Act, 1882. This section protects the rights of a person who purchases property in good faith, without any knowledge of the real
owner’s interest and by paying valuable consideration. It primarily deals with the concept of Ostensible Ownership and the rights of a
bonafide purchaser when the property is transferred by an ostensible owner.
A Bonafide Purchase without Notice refers to a transaction in which a person purchases a property:
• If a person represents himself as the owner of a property, with the consent, express or implied, of the real owner, and a
third party purchases the property in good faith for valuable consideration, such a purchaser is protected, provided that he
had no knowledge of the real owner’s interest.
• The real owner cannot claim the property back against the bonafide purchaser if the purchaser acted in good faith without
notice of the real owner’s interest.
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1. Ostensible Ownership:
o The person transferring the property must be an ostensible owner, i.e., someone who appears to be the owner but is
not the real owner.
2. Consent of Real Owner:
o The real owner must have given consent (express or implied) to the ostensible owner to represent himself as the owner.
3. Good Faith Purchase:
o The purchaser must have acted in good faith, genuinely believing that the ostensible owner is the real owner.
4. Without Notice:
o The purchaser must be without notice or knowledge of the real owner’s interest or claim in the property.
5. For Valuable Consideration:
o The purchaser must have paid a reasonable and adequate price for the property.
o Gratuitous transfers or gifts do not qualify for protection under Section 41.
• A is the real owner of a property but allows B to represent himself as the owner.
• B sells the property to C, a bonafide purchaser, for Rs. 5,00,000, without C having any knowledge of A’s real ownership.
• Here, C is protected under Section 41 and A cannot claim the property back from C, as C is a bonafide purchaser for
value without notice.
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• The real owner loses his right to claim the property against the bonafide purchaser.
• The bonafide purchaser gains a valid title to the property, even if the ostensible owner was not the actual owner.
• This principle ensures equity and fairness, preventing the real owner from asserting ownership after allowing the ostensible
owner to appear as the true owner.
• It protects the interests of bonafide purchasers who acted in good faith and without notice of any prior claim.
• It ensures fair dealing in property transactions by holding the real owner accountable for allowing an ostensible owner to
represent himself as the true owner.
• It prevents fraudulent claims by real owners who have consented to the representation of ownership by another person.
➠ Conclusion:
The principle of Bonafide Purchase without Notice under Section 41 of the Transfer of Property Act, 1882 is a vital protection for
purchasers who acquire property in good faith and without notice of any prior claim. It prevents the real owner from asserting
ownership against such a purchaser when the real owner had consented to the representation of another as the owner. This doctrine
ensures equity and justice in property transactions and promotes transparency and fairness.
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➠ Introduction:
The Land Acquisition Act, 1894 provides a legal procedure through which the government can acquire private land for public
purposes like roads, schools, hospitals, and other development projects. This process balances the needs of the government and the
rights of landowners by following clear steps and ensuring fair compensation.
The main sections of the Act that govern the procedure of land acquisition are:
• The government first issues a public notification under Section 4 to declare that a particular piece of land is required for a
public purpose.
• This notification is published in the official gazette and local newspapers.
• It informs the owners and interested persons that the land will be acquired.
• The notification invites any person who claims an interest in the land to raise objections.
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• After the notification, any landowner or interested person can file objections against the acquisition.
• The Collector (government officer) conducts an inquiry to hear these objections.
• The Collector examines whether the acquisition is truly necessary and for a lawful public purpose.
• If the objections are found valid, acquisition may be stopped or modified.
• If not, the Collector proceeds to the next step.
• After completing the inquiry and being satisfied about the need for the land, the government issues a declaration under Section
6.
• This declaration confirms the government’s intention to acquire the land officially.
• It acts as a formal order to proceed with the acquisition.
• The Collector sends a written notice to all landowners or persons interested in the land.
• This notice informs them of the declaration under Section 6 and their rights regarding compensation.
• It provides details about the land to be acquired and compensation terms.
• The Collector carries out a survey and measurement of the land to determine its exact area and boundaries.
• This helps in calculating the market value for compensation.
• After completing the survey and assessing the value, the Collector prepares an award fixing the amount of compensation
payable to the landowners.
• The award must be fair and just, reflecting the current market value and any damages caused by acquisition.
• The award is announced publicly and copies are sent to the landowners.
• The award is final unless challenged through legal reference.
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• The government or acquiring body must pay the compensation to the landowners without delay.
• If the landowners refuse to accept the compensation, the amount can be deposited in court.
• Once payment is made or deposited, the Collector can take possession of the land.
• In case of urgency, possession can be taken even before the award, under special powers of Section 17 (discussed separately).
• If a landowner is dissatisfied with the amount of compensation, they can file a reference to the court for a fair determination.
• The court will re-examine the valuation and decide the just amount payable.
• This legal remedy protects the rights of landowners.
➠ Conclusion:
The procedure under the Land Acquisition Act, 1894 ensures that land acquisition is carried out in a fair, transparent, and lawful
manner. It balances the government’s need to develop public infrastructure with the protection of landowners’ rights, including
notice, inquiry, compensation, and legal remedies. This process helps maintain justice and public trust during land acquisition.
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Q: What is award as provided in land acquisition act 1894? What steps a land acquisition collector takes before making an
award?
Q: What is Award by the Collector and what are the important ingredients which must be mentioned in the Award of Collector
regarding acquisition of land?
Q: What is an Award by the collector? Explain the procedure of making an Award. What is the remedy available to the aggrieved
party against the award?
➠ Introduction:
The Land Acquisition Act, 1894 is a comprehensive law that governs the process of acquiring private land for public purposes. One of
the key elements of this Act is the Award, which is made by the Land Acquisition Collector (LAC) after the completion of the
necessary inquiries and assessments. The award is a formal decision regarding the compensation to be paid for the acquired land.
An Award under the Land Acquisition Act, 1894 is the final determination of the amount of compensation payable to the landowner
whose land is acquired. It is a legal declaration that specifies the compensation, the area of land acquired, and other necessary details.
➠ Relevant Provisions of the Award under the Land Acquisition Act, 1894:
The provisions related to the Award are primarily found in the following sections of the Land Acquisition Act, 1894:
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Before making an Award, the Land Acquisition Collector is required to follow a systematic and structured procedure. The steps
involved are as follows:
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6. Completion of Inquiry:
o The inquiry is completed after considering all relevant evidence, statements, and documents.
7. Preparation of Award:
o The Award is prepared in writing, containing all necessary details, including the amount of compensation and the
apportionment.
1. Identification of Land:
o Detailed description of the land acquired, including its location, area, boundaries, and nature of the property.
2. Interested Persons:
o The names of all persons who have a legal interest in the land and are entitled to receive compensation.
3. Assessment of Compensation:
o The Award must clearly state the compensation amount, which is based on:
▪ Market value of the land.
▪ Value of any structures, crops, or trees.
▪ Damages due to severance or injurious affection.
▪ Any other losses or expenses incurred by the claimant.
4. Apportionment of Compensation:
o The method of distribution of compensation among various claimants is clearly mentioned in the Award.
5. Grounds for Determination:
o The reasons and basis for the determination of compensation are explained in detail.
6. Date of Award:
o The Award must include the date on which it is made and signed by the Collector.
• The Award is prepared in writing, signed by the Collector, and announced publicly.
• A copy of the Award is provided to the interested parties.
• The Award is binding unless challenged through a reference to the court under Section 18.
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If any person is dissatisfied with the award, the following remedies are available:
➠ Conclusion:
The Award under the Land Acquisition Act, 1894 plays a pivotal role in ensuring fair compensation for landowners whose properties
are acquired for public purposes. The Land Acquisition Collector must strictly follow legal procedures to avoid disputes and ensure
justice. If the award seems unjust, affected parties have the right to challenge it through legal means.
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Q: What are the matters which are neglected by the court in determining compensation?
Q: What are the matters which are considered by court in determining compensation?
➠ Introduction:
The Land Acquisition Act, 1894 provides a detailed framework for the acquisition of private land for public purposes and for
determining the amount of compensation payable to the affected landowners. While determining compensation, the court considers
specific factors to ensure fair compensation and disregards certain matters that could unfairly inflate or reduce the compensation amount.
The provisions relating to the matters that must be neglected and considered by the court are covered under Sections 23 and 24 of the
Act.
➠ Relevant Provisions:
Section 23 of the Land Acquisition Act, 1894 lays down the criteria for determining compensation to ensure that the affected person
receives fair and reasonable compensation for the acquired land. The matters considered by the court are as follows:
• The court must consider the market value of the land at the time of the publication of the notification under Section 4(1).
• The market value is determined based on:
o Recent sale transactions of similar properties,
o Location and surroundings,
o Potential for development,
o Current use of the land.
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• The court considers any damage sustained by the landowner due to the acquisition of the land, including standing crops,
trees, or other properties on the land.
• If the acquired land forms part of a larger estate, the court considers the damage caused to the remaining land due to the
separation or severance of the acquired portion.
4. Injurious Affection:
• Compensation is also considered for any injurious affection to other property of the claimant, which may arise from the use of
the acquired land for public purposes.
• Example: If the remaining land loses its access to a main road due to the acquisition, compensation for such loss is considered.
• If the acquisition forces the landowner to vacate their residence or business, the court considers the cost of resettlement or
relocation.
• The court takes into account the expenses incurred for re-establishing business or residence at a new location.
• Under Section 23(2), an additional amount of 15% on the market value of the land is awarded as solatium, which serves as
compensation for the compulsory nature of the acquisition.
• The court may also award interest on the compensation amount from the date of possession until the final payment is made.
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Section 24 of the Land Acquisition Act, 1894 specifies the matters that must be neglected by the court while determining
compensation. These matters are considered irrelevant as they do not reflect the true value of the acquired property. The matters
neglected are as follows:
1. Urgency of Acquisition:
• The court does not consider the urgency or special need of the acquiring authority to complete the acquisition.
• The focus remains on the fair market value, not the urgency or necessity of the acquisition.
• The court neglects any increase in the value of the land that is directly attributed to the intended acquisition.
• Example: If the market value of land increases due to the announcement of a public project, such speculative increase is
disregarded.
• The court does not consider the potential use of the land for future projects.
• Compensation is determined based on the current use and value, not on the speculative future use.
• The court ignores any sentimental attachment the landowner may have with the land.
• Compensation is assessed objectively based on market value, without considering emotional or sentimental factors.
• Any increase in the value of the land that results from the proposed project itself is not taken into account.
• Example: If the land is acquired for a highway project, the value of adjoining land may increase, but such increase is not
considered for compensation purposes.
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• The court does not consider the income or benefits the acquiring authority might gain from the land after its acquisition.
• Compensation is based solely on the market value at the time of notification, not on potential future earnings.
• The court neglects any claim for loss of profits or business that might result from the acquisition.
• Compensation is restricted to the market value of the land and damages sustained directly due to the acquisition.
➠ Conclusion:
Sections 23 and 24 of the Land Acquisition Act, 1894 provide a comprehensive framework for determining the amount of
compensation payable for acquired land. While Section 23 lays down the matters to be considered, Section 24 enumerates the matters
to be neglected to ensure that the compensation remains fair, reasonable, and justifiable. The emphasis remains on the market value,
direct losses, and legitimate claims, excluding speculative or emotional factors.
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Q: Explain the difference between a reference to the court made under section 18 and section 30 of the land acquisition act.
Q: What do you mean by Reference to Court under section 18 of the Land Acquisition Act, 1894? What are the grounds relevant
to be taken for filing of reference?
Q: What is reference to the court? What is the procedure of filling the reference?
➠ Introduction:
The Land Acquisition Act, 1894 provides the legal procedure for the acquisition of private land for public purposes and the
determination of compensation for affected landowners. After the Award is made by the Land Acquisition Collector, if any party is
dissatisfied with the award, they have the right to seek a Reference to the Court.
A Reference to the Court allows the affected party to challenge the amount of compensation, apportionment of compensation, or
measurement of the land. The provisions for making a reference are provided under Sections 18 and 30 of the Act.
➠ Relevant Provisions:
A Reference to the Court under the Land Acquisition Act, 1894 is a legal process by which the aggrieved party can challenge the
Award made by the Land Acquisition Collector (LAC) before a Civil Court.
• The reference can be made if the party is dissatisfied with the amount of compensation, apportionment of compensation, or
measurement of the land.
• The objective is to allow the court to review and adjudicate the award and ensure that the compensation is fair and just.
The procedure for filing a Reference to the Court is provided under Section 19 of the Act. The procedure involves the following steps:
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• The aggrieved party must submit a written application to the Collector, requesting him to make a reference to the court.
• The application must state the grounds for objection against the Award.
3. Contents of Application:
• The court issues notices to the interested persons and the Collector, informing them about the reference.
6. Hearing of Reference:
• The court conducts a hearing of the reference and considers the evidence presented by both parties.
• The court has the authority to:
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• The court may confirm, modify, or set aside the award of the Collector.
• The decision of the court is final and binding, subject to the right of appeal.
1. Inadequacy of Compensation:
• If the claimant believes that the compensation awarded is insufficient based on the market value of the land.
4. Non-consideration of Damages:
• If the Collector fails to consider damages or losses sustained by the landowner due to the acquisition.
• If the claimant contends that the interest or additional compensation (15% solatium) was not properly calculated.
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Section 30 deals with a specific type of reference related to the apportionment of compensation among different claimants.
• This section applies when there is a dispute regarding the apportionment of the compensation awarded by the Collector.
• The Collector can refer the matter to the court to determine the share of each claimant in the awarded compensation.
• Unlike Section 18, which primarily deals with the quantum of compensation, Section 30 focuses on distribution among
multiple claimants.
➠ Conclusion:
The Land Acquisition Act, 1894 provides a comprehensive mechanism for addressing disputes arising from the acquisition process.
Sections 18 and 30 serve distinct purposes:
• Section 18 allows for a reference to the court when the claimant is dissatisfied with the quantum of compensation,
measurement, or damages.
• Section 30 provides a remedy for disputes regarding the apportionment of compensation among multiple claimants.
Both provisions ensure that the aggrieved parties have the opportunity to seek judicial intervention and obtain a fair and equitable
determination of compensation.
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Q: Explain the procedure of acquisition of land in case of urgency as provided in the land acquisition act, 1894.
Q: What are the special powers granted in case of urgency as provided under section 17 of the Land Acquisition Act, 1894?
➠ Introduction:
The Land Acquisition Act, 1894 primarily regulates how the government can acquire private land for public purposes. Normally, the
acquisition process follows a detailed procedure involving notifications, hearings, and awards. However, in urgent situations, the
government needs to acquire land quickly without following the full usual process.
To handle such situations, the Act provides special provisions under Section 17, which allow the government to take immediate
possession of land even before the formal compensation award is made. This is essential for projects where delay would cause harm or
loss to public interest.
➠ Relevant Provisions:
In urgent cases, the government can skip or shorten these steps under Section 17 to take immediate possession. The detailed procedure
is as follows:
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• The government or authorized officer issues a notification stating urgency for acquisition of land.
• This notification is usually made when there is an imminent threat to public safety, public interest, or national security, or
when delay would cause serious harm.
• The Collector is empowered to take possession of the land immediately after issuing the notification, even before the
compensation is decided.
• This means the landowner has to vacate the land quickly, allowing government projects to proceed without delay.
3. Payment of Compensation:
• The Collector must pay some amount of compensation to the landowner immediately.
• This payment is generally an advance or estimated compensation based on the market value of the land.
• The final compensation is determined later by the Collector after proper assessment.
• After taking possession, the Collector completes the usual enquiry process under Sections 5 to 7 of the Act.
• The Collector then passes the final Award specifying the exact compensation amount.
• If the initial amount paid was less, the balance is paid; if it was more, the excess is adjusted.
Section 17 gives the government some extraordinary powers in cases of urgency, which are explained below in simple words:
• The Collector can take possession of the land immediately without waiting for the usual inquiry or Award.
• This power is exceptional and is only used in genuine emergencies.
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• The usual procedure of hearing objections and inquiries by the landowners is temporarily waived.
• This prevents any delay caused by objections or legal challenges before possession.
• The Collector must pay some compensation immediately to the landowner, even if the final amount is not decided yet.
• This is to ensure that the owner is not left without any monetary benefit while the land is taken.
• Though possession is immediate, the Act safeguards the landowner by requiring a final award after proper assessment.
• The landowner retains the right to challenge the compensation through legal means once the Award is made.
5. Limitation on Usage:
➠ Summary:
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Collector decides Award after inquiry. Collector takes possession and pays advance compensation
immediately.
Final Award is passed later determining exact Final Award is passed after possession to decide exact compensation.
compensation.
Compensation paid after Award. Advance compensation paid before Award.
➠ Conclusion:
Section 17 of the Land Acquisition Act, 1894 empowers the government to acquire land quickly in situations of urgency, bypassing
normal procedures to protect public interest and safety. It allows immediate possession and advance payment of compensation but
still ensures the landowner’s rights to final compensation and legal recourse.
This balance helps the government act swiftly in emergencies while maintaining fair treatment for landowners.
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Q: Explain the procedure of acquisition of land for companies as provided in Land Acquisition Act.
➠ Introduction:
The Land Acquisition Act, 1894 allows the government to acquire private land for public purposes. One such public purpose includes
land acquisition for companies, such as railway companies, electricity companies, or other government-authorized companies that need
land for their projects.
This process is governed by special provisions in the Act which ensure that the land required by these companies is acquired legally,
fairly, and with due compensation to the landowners.
➠ Acquisition of Land for Companies (Section 9 of the Land Acquisition Act, 1894):
• Only a company authorized by the government can apply for land acquisition.
• This includes companies like railway companies, electricity companies, or any other company allowed by law to acquire
land for public purposes.
• The company must submit a formal application to the government (or the competent authority) requesting the acquisition of
specified land.
• The application must clearly mention:
o The purpose for which the land is needed,
o The exact location and description of the land.
3. Government’s Role:
• The government will consider the application carefully to ensure the purpose is indeed public or government-approved.
• If the government is satisfied, it will issue a notification under Section 4 of the Act, declaring the land to be acquired for the
company’s use.
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• The government publishes a public notice (Section 4) stating that a certain land is required for acquisition for the company’s
public work.
• This notice invites objections from any person interested in the land.
• Any person who owns or claims interest in the land can file objections against the acquisition.
• The Collector or authorized officer will hold an inquiry to hear objections and decide whether the land is indeed needed for the
stated purpose.
• If the Collector confirms that the acquisition is necessary, a declaration is issued under Section 6, which officially confirms the
government’s intention to acquire the land.
• The Collector serves a notice to the landowners informing them about the proposed acquisition and compensation.
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• After the award and payment (or depositing the compensation amount in court if the owner refuses), the Collector or company
can take possession of the land for the company’s use.
• The company must use the land only for the specified public purpose mentioned in the application and notification.
• Any misuse of the land may be challenged legally by the landowners or the government.
• The company is bound to follow the Land Acquisition Act’s procedures strictly to protect landowner rights.
➠ Summary of Procedure:
Step Details
Application by Company Company applies to government for land acquisition.
Government Notification (Section 4) Government issues public notice declaring land required.
Inquiry & Objections (Section 5) Hearing objections from landowners.
Declaration of Intent (Section 6) Government declares the intention to acquire land.
Notice to Landowners (Section 7) Inform landowners of acquisition and compensation.
Collector’s Award (Section 11) Collector fixes compensation amount.
Payment & Possession Compensation paid and land possession handed over.
➠ Conclusion:
The Land Acquisition Act, 1894 provides a clear and fair process for companies to acquire land for public projects. The government
supervises the entire procedure to ensure the land acquisition is necessary and compensation is fair. Landowners are protected by
rights to object, receive compensation, and seek legal remedies if required. This legal framework balances the needs of companies with
the rights of landowners effectively.
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➠ Introduction:
The Land Acquisition Act, 1894 provides a legal framework for the acquisition of private land for public purposes by the
government. When land is acquired, the government is required to pay compensation to the landowners. The compensation is
determined based on the market value of the land.
The concept of market value is crucial as it ensures that the landowner receives a fair and just amount for the land acquired. The
market value is determined based on specific factors and principles provided in the Act.
• Market Value refers to the price at which the land could be sold in the open market by a willing seller to a willing buyer.
• It is the fair and reasonable value of the land, taking into consideration its location, condition, and potential use.
• The objective is to ensure that the landowner receives a fair price as if the land were sold in the open market under normal
circumstances.
The Market Value of the acquired land is determined by considering various factors as outlined in the Land Acquisition Act, 1894.
The following points explain how it is calculated:
• The Market Value is calculated as of the date of publication of the notification under Section 4.
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• This means that any increase or decrease in value after this date is generally not considered.
• The aim is to provide consistency and fairness in valuation.
• The Market Value of the Land at the date of the publication of the notification.
• Damage sustained by the person interested due to the taking of any standing crops or trees.
• Damage due to severance of the land acquired from the owner's other property.
• Loss of earnings or profits due to the sudden acquisition, especially if the land was generating income.
• Any other loss resulting from the acquisition that affects the landowner.
• Any increase in value of the land that occurred after the notification due to the project itself (like road construction).
• The urgency or necessity for the acquisition on the part of the acquiring authority.
• Any special suitability or adaptability of the land for a particular purpose if that suitability arises from the use of land already
acquired.
• Any improvement or enhancement made to the land after the notification to increase compensation.
• The Collector examines recent sale deeds of similar land in the nearby area to calculate the market value.
• The average of the sale prices is often used to estimate the current value.
• Only authentic and registered sales are considered valid for this purpose.
b) Income Approach:
• The value is assessed based on the income generated by the land, such as rent or agricultural yield.
• This approach is common for commercial or agricultural lands.
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c) Cost of Replacement:
• In cases where the acquired land has structures or buildings, the cost of constructing similar structures is taken into account.
• Depreciation of the building or structure is also calculated.
d) Expert Opinion:
• Sometimes, the opinion of valuers or experts is sought to determine the accurate market value.
• These experts assess the land considering location, usage, and demand.
• The Collector is responsible for calculating the Market Value based on the above methods and factors.
• An Award is prepared specifying the amount to be paid to the landowner.
• The Award must be based on transparent and just calculations to avoid disputes.
• If the landowner is dissatisfied with the market value fixed by the Collector, they have the right to file a reference to the
court under Section 18.
• The court re-examines the valuation and may enhance the compensation if justified.
• This provides a legal remedy to the affected person, ensuring that justice is served.
➠ Important Considerations:
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• The landowner’s rights to a reasonable market value are safeguarded under the Act.
• Any discrepancy in valuation can be challenged in court.
• Suppose the government acquires a 10-acre plot of agricultural land for a public project.
• The market value of similar agricultural land in the area is PKR 1,000,000 per acre.
• Therefore, the basic compensation for the acquired land would be:
o 10 acres × PKR 1,000,000 = PKR 10,000,000.
• Additionally, compensation for any standing crops, trees, or structures on the land would also be included.
➠ Conclusion:
The Land Acquisition Act, 1894 provides a detailed mechanism for determining market value to ensure that landowners receive
fair compensation for their acquired land. The market value is assessed based on the prevailing market rate, potential use of the land,
and damages caused to the landowner. However, certain factors, such as sentimental value and speculative increases, are excluded from
consideration to maintain fairness and prevent inflated compensation claims.
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Q: Under what provision of law, objections are heard for the land to be acquired coupled with the fact that the same is being
acquired for public purpose?
➠ Introduction:
Under the Land Acquisition Act, 1894, the government is empowered to acquire private land for public purposes such as construction
of roads, schools, hospitals, and other development projects. However, before finalizing the acquisition, the Act provides a legal
opportunity to the landowners and interested persons to raise objections regarding the proposed acquisition. This ensures that the
rights of affected persons are safeguarded and their concerns are heard.
The procedure for filing and hearing objections is governed by the specific provision of the Act.
• The acquisition process begins with the government issuing a public notification under Section 4 of the Act.
• The notification declares that the land is needed for a public purpose or for a company.
• The notification is published in the official gazette and local newspapers and is also affixed in the locality of the land.
• The purpose of the notification is to inform the public about the proposed acquisition and to provide them with an opportunity
to raise objections.
Provision of Law:
• The right to file objections against the acquisition is provided under Section 5 of the Land Acquisition Act, 1894.
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• Any person interested in the land, including the owner, tenant, or any person having an interest in the property, can file
objections.
• The objections must be filed within 30 days from the date of the notification under Section 4.
• Written Objections: The objections must be filed in writing before the Collector within the specified period.
• Grounds of Objections: The objections can be raised on various grounds such as:
o The land is not suitable for the intended public purpose.
o The land is not required for the stated purpose.
o The acquisition is being made in bad faith.
o The proposed compensation is inadequate.
• After conducting the inquiry, the Collector prepares a report based on the objections.
• The report is submitted to the appropriate government authority for further consideration.
• The authority may:
o Accept the objections and cancel the acquisition, or
o Reject the objections and proceed with the acquisition, or
o Modify the acquisition plan as deemed appropriate.
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• If the government is satisfied that the land is required for a public purpose or for a company, it issues a declaration under
Section 6.
• This declaration confirms the government’s intention to acquire the land despite the objections raised.
• The declaration must be made within one year from the date of the notification under Section 4.
• 30 Days Period: Objections must be filed within 30 days from the notification under Section 4.
• Written Objections Only: Verbal objections are not considered valid under the Act.
• Public Purpose Verification: The Collector must confirm that the acquisition is for a genuine public purpose.
• Legal Remedy: If the objections are rejected, the affected person may seek legal remedy under Section 18 by filing a reference
to the court.
➠ Conclusion:
The procedure for hearing objections under Section 5 of the Land Acquisition Act, 1894 provides an important safeguard to protect
the rights of affected persons. It ensures that the voice of the landowner and interested parties is heard before the acquisition is
finalized. The Collector is required to conduct a fair inquiry and make a reasoned decision based on the objections. This mechanism
helps in maintaining transparency and fairness in the acquisition process.
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SECTION C:
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Introduction:
The Registration Act, 1908 is a law in Pakistan that regulates the registration of certain documents, especially related to immovable
property (like land and buildings). Registration means officially recording a document with the government office called the Registrar.
Registration helps protect the rights of people involved in a transaction and makes the document legally strong and public. However,
not all documents must be registered; some documents require compulsory registration, while others are optional.
Under the Registration Act, 1908, certain documents can be registered but it is not compulsory. These are called documents of which
registration is optional.
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1. Inadmissibility as Evidence:
o Unregistered documents cannot be presented as evidence in court to prove any transaction affecting immovable property.
o Example: An unregistered sale deed cannot establish ownership in a property dispute.
2. Loss of Title or Interest:
o The intended transfer of title or interest in immovable property becomes void if the document is not registered.
o Example: A mortgage deed that is not registered does not create any enforceable security interest.
3. No Legal Validity:
o The document becomes void against any subsequent registered document related to the same property.
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The Registration Act, 1908 under Section 18 lists the documents whose registration is optional. These documents do not necessarily
have to be registered, but registration can add legal validity and provide official evidence.
• Bills of Exchange
• Promissory Notes
• Contracts for Sale of Goods
Since these documents pertain to movable assets, their registration is at the discretion of the parties involved.
• For instance, a document creating an interest in property that may be acquired later does not require compulsory registration.
• Such documents are optional since the property is not currently tangible or existent.
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5. Wills:
As per Section 18(e), Wills are not required to be registered.
• Registration is optional and can be done either during the lifetime of the testator or after their death.
• Registering a will, however, can prevent disputes regarding its authenticity.
• This includes government-issued orders or notices that do not affect immovable property.
• These may include documents dealing with intellectual property rights, trademarks, or copyrights.
• Registration, in this case, is optional and based on the needs of the parties.
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➠ Conclusion:
The Registration Act, 1908 (Pakistan) plays a crucial role in ensuring transparency and authenticity in transactions involving
immovable property. The Act clearly specifies the documents requiring compulsory and optional registration, the consequences of
non-registration, and the provisions for re-registration to correct errors or omissions. Proper registration serves as a safeguard against
fraudulent claims and secures the rights of parties involved in property transactions.
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Q: Explain the principles regarding the time from which a registered document shall take effect.
Q: What are the law relating to the time and place, regarding the registration of a document?
Introduction:
The Registration Act, 1908 regulates the process of registering important legal documents, mainly those involving immovable
property (like land, houses). Two very important rules are about:
These rules help make sure documents are registered properly, protecting all parties involved and making sure records are kept in an
orderly manner.
The main sections of the Registration Act, 1908 dealing with time and place are:
• According to Section 19 of the Act, a document that must be registered must be presented to the Registrar within four
months from the date it was signed.
• This means the clock starts ticking on the day the document is signed by the parties involved.
• If the document is signed on 1st January, the last day to present it for registration is 30th April (4 months later).
• This period allows parties enough time to arrange for registration but encourages prompt action.
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• The law wants documents to be registered quickly, so rights are publicly recorded.
• Prompt registration avoids disputes caused by delays.
• Late registration can cause legal uncertainty about ownership or rights.
• If a document is presented after 4 months, the Registrar can refuse to register it.
• The person who submitted the document must take it back.
• However, late presentation does not invalidate the document itself. It only means it will not be recorded officially.
4. Extension of Time:
• In some cases, the Registrar or courts may allow more time if the delay was due to a good reason.
• This is not automatic but can be granted on special circumstances like illness or unavoidable delay.
• Such extensions protect parties but should not be abused.
• Timely presentation makes the document part of the official public record.
• This helps protect the rights of buyers, sellers, or other parties against third parties.
• Without registration within the time limit, the document may not be good evidence against third parties who register first.
• Section 20 of the Act says the document must be presented at the proper registration office.
• The proper office is the one where the property related to the document is located.
• For example:
o If you sell a house in Karachi, the document must be registered at the Registrar’s office in Karachi.
o If the property is in Islamabad, the document must go to the Islamabad Registrar.
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• Keeping documents at the location of the property helps the Registrar maintain organized and easy-to-access records.
• It prevents confusion over which Registrar office holds the official record.
• It helps courts and officials to check ownership easily.
• Section 21 says if a document is wrongly presented at an incorrect Registrar’s office, the Registrar will return it without
registering.
• The person submitting the document must then take it to the correct office.
• The Registrar cannot register the document at the wrong office unless specifically authorized.
• In some cases, the Registrar may send the document to the correct office if allowed by law or the parties agree.
• Otherwise, it is the responsibility of the person who presented the document to take it to the proper office.
• If the document involves property in different locations, the law generally requires separate registration in each proper
office.
• This means you may need to register parts of the document at different Registrar offices based on the property’s location.
• If a document is wrongly presented at the wrong Registrar’s office, the Registrar will return the document without registering
it.
• The document must then be presented at the correct office.
• The Registrar can send the document to the correct office for registration only if the law allows or if the parties agree.
• Otherwise, the document must be taken to the right place by the person presenting it.
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• If a document is presented after the allowed time (more than four months) or at the wrong place, the Registrar can refuse to
register it.
• The Registrar must return the document to the person who presented it.
• The refusal does not affect the validity of the document itself; it only means it is not registered.
➠ Practical Examples:
• Example 1:
Sale deed for land signed on 10th March in Lahore.
It must be presented to the Lahore Registrar’s office for registration by 9th July (within four months).
Presenting after this date or at any other city’s office will lead to refusal.
• Example 2:
Lease deed for a shop in Karachi signed on 1st February.
It must be presented at Karachi office within four months.
Presenting it in Islamabad office will cause return without registration.
Summary Table:
Conclusion:
The Registration Act, 1908 clearly guides when (time) and where (place) documents must be registered. Following these rules helps
protect property rights and keeps public records organized and reliable.
If a document is presented late or at the wrong place, registration may be refused, but the document itself remains valid between the
parties involved.
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Introduction:
The Registration Act, 1908 creates the role of Registering Officers, commonly called Registrars. These officers are responsible for
the registration of documents, mainly those related to immovable property (land, buildings).
The law gives these officers specific duties and powers so they can properly manage the registration process, protect parties’ rights,
and maintain official public records.
The key sections in the Registration Act related to the duties and powers of registering officers are:
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Summary:
Conclusion:
The duties and powers of Registering Officers are crucial for ensuring the authenticity, legality, and proper recording of documents
under the Registration Act, 1908. They act as gatekeepers to verify that documents are properly executed and genuinely presented.
These officers ensure that the registration process is transparent and reliable, maintaining public trust in official records. They also
have the power to refuse and investigate documents that appear fraudulent or improperly presented, thereby protecting property rights
and legal transactions.
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Q: What is the remedy available to the person aggrieved by the orders of sub-registrar?
Q: What is the remedy available to the person aggrieved by the order of the registrar?
Q: What is the procedure to register a document if Sub-registrar refuses to register the same? Please discuss it in detail.
Introduction:
The Registration Act, 1908 lays down the procedures and rules for the registration of documents relating to immovable property
and other essential transactions. In some cases, a Sub-Registrar or Registrar may refuse to register a document due to various
reasons such as incomplete execution, lack of authority, fraud, or forgery.
However, the Act provides specific remedies to the aggrieved person to challenge such refusals and seek registration through legal
means. The remedies are structured to ensure that the refusal is not arbitrary or unjustified and that the parties have a fair opportunity
to present their case.
The relevant provisions under the Registration Act, 1908 that deal with the remedies for refusal to register a document by the Sub-
Registrar and Registrar are as follows:
• If a Sub-Registrar refuses to register a document, he is required to record the reasons for such refusal in writing.
• The Sub-Registrar must:
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Purpose:
• The purpose of this provision is to ensure transparency and accountability in the registration process.
• It allows the aggrieved person to understand the specific grounds of refusal and to prepare a proper application for appeal.
• If the Sub-Registrar refuses to register a document, the aggrieved person can file an application to the Registrar within 30
days from the date of refusal.
• This application serves as a first step to challenge the refusal and must be filed in writing.
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Important Points:
• The application must be filed within 30 days of the refusal by the Sub-Registrar.
• If the applicant fails to apply within this time, the right to challenge the refusal before the Registrar is lost.
• The decision of the Registrar at this stage is final, but further remedy is available under Section 77.
• The procedure for dealing with an application under Section 72 is detailed in Section 73.
• The Registrar has the authority to:
o Summon witnesses for verification of the document.
o Examine records and other evidence related to the execution of the document.
o Hear both the applicant and the Sub-Registrar to understand the reasons for refusal.
Registrar’s Order:
• If the Registrar confirms the refusal of the Sub-Registrar, the aggrieved person can:
o File a civil suit under Section 77.
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• The civil suit must be filed within 30 days from the date of the Registrar’s refusal order.
• The suit must include:
o Copy of the refusal order by the Registrar.
o Details of the document refused for registration.
o Grounds for seeking registration.
• The final remedy against the refusal of both the Sub-Registrar and the Registrar is to file a civil suit in the civil court.
• The suit must be filed within 30 days from the Registrar’s refusal order.
Court’s Decree:
• If the court finds the refusal to be unjustified, it will issue a decree directing the Sub-Registrar to register the document.
• The decree is binding on the Sub-Registrar, who must register the document as per the court’s order.
• Time Limits:
o Application to Registrar: 30 days from Sub-Registrar’s refusal.
o Civil Suit: 30 days from Registrar’s refusal.
• Effect of Registrar’s Order:
o The order of the Registrar is final at the administrative level.
o If the Registrar confirms the refusal, the only remedy is to file a civil suit under Section 77.
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• Evidence Required:
o The applicant must present evidence of execution, identification, and verification of the document.
o Witnesses may be called to confirm the authenticity of the document.
If the Registrar refuses to register a document, the only remedy available to the aggrieved person is to file a civil suit under Section
77. This is the final and decisive remedy provided under the Act.
• Section 77 of the Registration Act, 1908 provides a remedy to a person whose document has been refused registration by the
Registrar.
• The aggrieved person can file a civil suit in a civil court of competent jurisdiction for a decree directing the registration of the
document.
• The civil suit must be filed within 30 days from the date of the Registrar’s refusal.
• If the suit is not filed within the specified time, the right to seek registration is lost, and the refusal becomes final and binding.
The following is the detailed procedure for filing a civil suit under Section 77:
• The aggrieved person must prepare a written application (plaint) that includes:
o Details of the document refused registration.
o Grounds for refusal as stated by the Registrar.
o Facts and reasons why the document should be registered.
o A request to the court to issue a decree directing registration.
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2. Attachment of Documents:
• The suit must be filed in the civil court of the area where the property is located or where the document was presented for
registration.
5. Court’s Decree:
• After examining the evidence and hearing both parties, the court will:
o Determine the validity of the document.
o Verify the grounds of refusal by the Registrar.
o Pass a decree directing the Registrar to register the document if it finds that the refusal was unjustified.
6. Execution of Decree:
• The aggrieved person must submit the decree to the Registrar within 30 days of the court’s order.
• The Registrar is legally bound to comply with the decree and proceed with the registration.
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• The Registrar erroneously refused registration despite proper execution and presentation of the document.
• The refusal was based on unreasonable grounds or suspicion.
• The refusal was based on misinterpretation of law or facts.
• The document was refused registration due to clerical or procedural errors.
• The civil suit under Section 77 is a comprehensive remedy that allows the court to examine the entire transaction and the
validity of the document.
• The court can override the order of the Registrar if it finds that the refusal was based on irrelevant or unjustified grounds.
• The decree issued by the court is binding upon the Registrar, and the Registrar is obligated to comply with the court’s
directions.
• If the aggrieved person fails to file the civil suit within 30 days, the right to seek registration is extinguished, and the Registrar’s
refusal becomes final.
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Summary Table:
Conclusion:
The Registration Act, 1908 provides comprehensive remedies to a person aggrieved by the refusal to register a document. The aggrieved
person can initially apply to the Registrar under Section 72 if the Sub-Registrar refuses registration. If the Registrar also refuses, the
aggrieved person can file a civil suit under Section 77.
The Act ensures that the rights of the parties are protected by providing multiple levels of remedies, allowing the court to examine
the evidence and determine whether the refusal was justified or arbitrary. These provisions maintain the integrity and fairness of the
registration process.
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Q: Explain the law relating to the deposit of Wills under Registration Act, 1908.
Q: What is the procedure of registration of Wills, as provided in the Registration Act 1908?
Introduction:
The Registration Act, 1908 provides specific provisions for the deposit and registration of Wills. Although the registration of a Will
is optional, depositing it ensures safe custody and authenticity. The Act outlines the procedure for depositing a Will during the
testator’s lifetime and the process for opening and registering the Will after the testator’s death.
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• Purpose of Deposit:
o Ensures safe custody and confidentiality of the Will.
o Prevents tampering or destruction of the document.
• Right to Withdraw:
o The testator may withdraw the Will at any time during his lifetime.
• Procedure for Withdrawal:
o The testator must:
▪ Apply in person to the Registrar.
▪ Present the receipt issued at the time of deposit.
▪ Establish his identity to the satisfaction of the Registrar.
o The Registrar shall:
▪ Verify the identity of the testator.
▪ Return the sealed cover to the testator.
▪ Make a note of the withdrawal in the register of deposits.
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• Procedure:
o Upon the death of the testator, the sealed cover will be opened in the presence of:
▪ The applicant (executor or beneficiary).
▪ Any interested parties or their representatives.
o The Registrar will:
▪ Open the cover and read the contents of the Will.
▪ Record the opening of the Will in the register.
▪ Proceed with the registration, if requested.
Conclusion:
The Registration Act, 1908 provides a detailed procedure for the deposit and registration of Wills, ensuring that the Will remains
safe and confidential during the lifetime of the testator and is duly opened and registered after the testator’s death. The provisions
are designed to prevent tampering, establish authenticity, and provide a clear process for claiming the benefits under the Will.
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SECTION D:
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➠ Introduction:
Domicile is an important legal concept in succession law because it decides which law will apply to a person's property after they die.
In simple words, domicile means the place where a person has their permanent home or intends to live forever. It helps to decide how
a person's property will be distributed when they pass away.
➠ What is Domicile?:
Domicile is the country or place where a person has their permanent home and where they intend to stay indefinitely. It is not just
about where a person lives temporarily but where they want to live permanently or for a very long time. Everyone has a domicile for
legal purposes.
1. Meaning of Domicile:
The Succession Act, 1925, refers to domicile to decide which law governs inheritance and succession rights. It means the
country where the deceased person had their permanent home or principal residence.
2. Purpose of Domicile:
The law uses domicile to find out which country's rules of inheritance apply to the deceased's property.
3. Types of Domicile:
o Domicile of Origin: This is the place where a person is considered domiciled at birth, usually the father’s domicile for
a child.
o Domicile of Choice: This is when a person moves to a new place with the intention to live there permanently or
indefinitely.
o Domicile of Dependence: For example, a child or a married woman may have the domicile of the person on whom
they depend.
According to the Succession Act and general principles of law, a new domicile is acquired by fulfilling two conditions:
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1. Physical Residence:
The person must actually live in the new place. Merely planning or thinking about moving is not enough. The person must
physically be in the new country or place.
2. Intention to Reside Permanently:
The person must have the intention to make the new place their permanent home or at least to stay there indefinitely. This
intention must be genuine and clear.
The main grounds on which a person can acquire a new domicile are:
1. Change of Residence:
The person moves to a new place with the purpose to live there for a long time.
2. Intention to Reside Permanently:
Along with the move, the person must intend to make the new place their permanent or long-term home.
3. Capacity to Acquire Domicile:
The person must be legally capable of changing domicile (for example, minors usually have the domicile of their parents).
4. Absence of Fixed Time Requirement:
There is no fixed period of time a person must live in a new place to acquire domicile. It depends on the person's intention and
circumstances.
5. Not Mere Temporary Stay:
If a person stays in a place temporarily (like for work, studies, or vacation), it does not change their domicile.
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• Domicile is like a "home base" that decides which country's law applies to important personal matters.
• If you move to a new country and want to live there forever, your domicile changes.
• You must actually live there and have the strong intention to stay there for a long time, not just for a holiday or short job.
• Children’s domicile depends on their parents until they become adults.
• When a person dies, the law of their domicile decides who inherits their property.
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➠ Introduction:
A Will is a legal document in which a person, called the testator, declares how their property should be distributed after their death.
The Succession Act 1925 (Pakistan) provides rules about making a valid Will and how Wills are interpreted if there is any confusion
about their meaning. Understanding these rules is important to ensure the testator’s wishes are properly followed.
➠ Relevant Provisions on Law Relating to Will under Succession Act 1925 (Pakistan):
• Section 57: A Will is a legal written declaration of how a person wants their property distributed after death.
• Section 58: A Will must be signed by the testator and witnessed by at least two witnesses.
• Section 62: The testator can revoke (cancel) the Will by destroying it or making a new one.
• Section 63: The intention to revoke must be clear; accidental damage is not enough to revoke a Will.
1. Definition of a Will:
A Will is a written statement in which a person says who should get their property after death.
2. Who Can Make a Will:
Any person who is an adult and of sound mind can make a Will.
3. How to Make a Will:
• It must be written.
• The testator must sign it or have someone sign it for them in their presence.
• It must be signed by at least two witnesses who saw the testator sign it.
4. Revoking a Will:
A Will can be canceled by the testator any time before death, either by making a new Will or by destroying the old one
intentionally.
5. Validity of Will:
The Will must be made freely without pressure or fraud and must follow the legal formalities to be valid.
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• Section 76: If the Will’s wording is unclear, the court tries to understand what the testator intended.
• Section 77: The whole Will should be read together to understand the testator’s true wishes.
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➠ Conclusion:
In conclusion, the Succession Act 1925 clearly lays down the rules for making a valid Will and the method for interpreting it if there
is any doubt. A valid Will must be written, signed, and witnessed, and can be revoked or changed anytime before death. When the
Will’s language is unclear, the court carefully interprets the entire document to honor the true intentions of the testator. These
provisions ensure that the testator’s property is distributed according to their wishes and provide legal certainty and protection to heirs
and beneficiaries. Understanding these rules is essential for anyone planning their estate or dealing with inheritance matters.
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➠ Introduction:
A Succession Certificate is a legal document issued by a court that authorizes a person, usually a legal heir or nominee, to collect
debts, money, or securities owed to a deceased person. This certificate is important because it helps avoid disputes and protects the
holder from legal claims while collecting such debts or securities. The procedure and contents of a Succession Certificate are governed
by the Succession Act 1925 (Pakistan). In this answer, we will discuss the detailed contents of the Succession Certificate and the
contents of the application for it, with relevant legal provisions and simple explanations.
• Section 370: This section empowers civil courts to issue Succession Certificates to the legal heirs or nominees of a deceased
person to collect debts and securities due to the deceased.
• Section 371: This section outlines who can apply for the Succession Certificate and the basic procedure for application.
• Section 372: This section describes what details must be included in both the Succession Certificate itself and the application
for it.
The Succession Certificate issued by the court must clearly state the following details:
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When applying for a Succession Certificate, the application must include the following:
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➠ Detailed Explanation:
This clarity helps protect both the heirs and the people who owe money to the deceased from future claims or problems.
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This helps the court confirm that the right person gets the certificate.
6. Verification Statement:
The applicant confirms that all information provided is true. This means if false information is given, the applicant could face legal
consequences.
➠ Conclusion:
The Succession Certificate under the Succession Act 1925 is a vital legal document that facilitates the smooth collection of debts and
securities after a person’s death. It clearly lists all essential details such as the deceased, heirs, debts, and grants authority to the
certificate holder. The application for this certificate must be carefully prepared, containing complete and truthful information about
the deceased, the applicant, debts, and other heirs. This process ensures fairness, avoids disputes among heirs, and protects the rights
of all parties involved. Understanding these contents and provisions helps heirs efficiently claim what is legally theirs under Pakistani
law.
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➠ Introduction:
A Succession Certificate is a legal document issued by a civil court that allows a person (usually a legal heir or nominee) to collect
debts, securities, or money due from the estate of a deceased person. It helps avoid disputes among heirs and protects the certificate
holder while collecting the deceased’s debts or securities. The rules for issuing, restricting, and revoking a Succession Certificate are
found in the Succession Act 1925 (Pakistan).
• Section 370: Provides the authority to grant Succession Certificates for debts and securities of the deceased.
• Section 371: Details the procedure for applying for the Succession Certificate.
• Section 373: Specifies the restrictions on granting the Succession Certificate, including the existence of a Will and disputes
among heirs.
• Section 374: Lays down the conditions for revocation of the Succession Certificate.
A Succession Certificate is a court-issued document that authorizes the holder to collect and transfer debts, securities, or other financial
assets of a deceased person. The certificate is generally granted to the legal heir(s) or nominee(s) of the deceased and protects the
certificate holder from future claims while collecting such assets.
• It ensures that the rightful heirs receive the deceased’s debts and securities.
• It prevents fraudulent claims by unauthorized persons.
• It provides legal protection to the debtors who pay the certificate holder.
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1. Application Submission:
o The legal heir or nominee must file an application in the civil court where the deceased last resided or where the assets
are located.
o The application must contain:
▪ Full name and address of the applicant.
▪ Relationship of the applicant with the deceased.
▪ Detailed list of debts and securities to be collected.
▪ Names and addresses of other legal heirs, if any.
2. Notice to Legal Heirs:
o After receiving the application, the court issues a notice to all legal heirs and interested parties.
o This notice gives them an opportunity to raise objections against the issuance of the certificate.
3. Hearing:
o The court conducts a hearing to verify the authenticity of the applicant’s claims.
o During the hearing, the court examines:
▪ The relationship of the applicant with the deceased.
▪ The validity of the debts or securities listed.
▪ Any objections raised by other heirs.
4. Security Bond:
o The court may require the applicant to provide a security bond or surety to cover the value of the debts or securities in
case of any future disputes.
5. Issuance of Certificate:
o If the court is satisfied, it issues the Succession Certificate, stating:
▪ The name of the deceased.
▪ The names of the legal heirs.
▪ The amount or value of debts and securities.
▪ The authority given to the certificate holder to collect these assets.
Under Section 373 of the Succession Act 1925, the court may refuse or delay the grant of a Succession Certificate under the
following conditions:
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• If a valid Will exists that deals with the debts, securities, or assets of the deceased, the court will not issue a Succession
Certificate.
• The reason is that the Will governs the distribution of the deceased’s estate, and the executor named in the Will is
responsible for handling the assets.
• In such cases, the heirs must apply for Probate of the Will instead of a Succession Certificate.
• If there are conflicting claims among the heirs, the court may refuse or delay the certificate until the dispute is resolved.
• Example: If two or more persons claim to be the legal heirs for the same assets, the court will not issue the certificate until it
determines the rightful claimant(s).
3. Fraud or Misrepresentation:
• If the application is found to be fraudulent or contains false information, the court will deny the certificate.
• This prevents unauthorized persons from obtaining control over the deceased’s assets.
• If the deceased’s debts or securities are already involved in other legal proceedings, such as attachment orders, insolvency
proceedings, or property disputes, the court may:
o Refuse the certificate until such disputes are settled.
o Delay the issuance to avoid conflicting court orders.
5. Non-Transferable Assets:
• If the debts or securities in question are non-transferable or restricted by law (e.g., government bonds or pension funds), the
court will not issue a Succession Certificate.
• The applicant must follow the specific legal procedure to access such assets.
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• If multiple persons file separate applications for the same debts or securities, the court will:
o Investigate the rightful claimant(s).
o Reject or consolidate applications to prevent conflicting orders.
Under Section 374 of the Succession Act 1925, the court can revoke or cancel the Succession Certificate under the following
conditions:
➠ Conclusion:
The Succession Certificate is an essential legal document that authorizes the collection of debts, securities, and other assets of a
deceased person. However, the court imposes strict restrictions to prevent fraud, protect the rights of all heirs, and avoid legal
conflicts. The presence of a valid Will, unresolved disputes among heirs, fraudulent applications, ongoing legal proceedings, and non-
transferable assets are all grounds for refusal of the certificate. Moreover, the court can revoke the certificate if it was issued based
on false information, newly discovered evidence, or legal errors. Thus, these provisions ensure a fair and lawful distribution of the
deceased’s assets under the Succession Act 1925.
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Q: What do you mean by an executor or administrator of property? Explain his duties as laid down in the act?
➠ Introduction:
An Executor or Administrator is a person appointed to manage the property and assets of a deceased person under the Succession
Act 1925 (Pakistan). If the deceased has left a Will, the person named in the Will is the Executor. If there is no Will, or if the
Executor cannot or will not act, the court appoints an Administrator to perform the same duties. Both are responsible for collecting
assets, paying debts, and distributing the remaining estate to the rightful heirs.
• Executor:
o An Executor is a person named in the Will to administer the deceased’s estate.
o The Executor ensures that the property is distributed according to the Will’s instructions.
o The court grants the Executor probate, which is the legal authority to act.
• Administrator:
o An Administrator is appointed by the court when:
▪ The deceased left no Will, or
▪ The Executor is unable or unwilling to act.
o The Administrator follows the rules of intestate succession and receives Letters of Administration from the court.
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1. Collection of Assets:
• The first duty of the Executor or Administrator is to collect all assets of the deceased.
• This includes:
o Movable property (cash, vehicles, jewelry).
o Immovable property (land, houses).
o Debts owed to the deceased.
o Securities, stocks, or shares.
• The Executor/Administrator must prepare an inventory of these assets and submit it to the court.
• The purpose is to ensure that no asset is overlooked and to establish the total value of the estate.
• The Executor or Administrator must pay all debts and liabilities of the deceased before distributing the assets.
• These include:
o Funeral expenses,
o Taxes,
o Loans or mortgages,
o Outstanding bills or liabilities.
• Section 213 states that the Executor/Administrator must ensure that all creditors are paid in full before transferring any
property to the heirs.
• Failure to settle debts can result in legal claims against the estate.
• The Executor or Administrator has the duty to manage and protect the property until it is ready to be distributed.
• This may include:
o Collecting rent from tenants,
o Ensuring property is maintained and protected,
o Preventing unauthorized access to valuable assets.
• Under Section 217, the Administrator has the same powers as an Executor to manage assets, but must follow the rules of
intestate succession.
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4. Disposition of Property:
• According to Section 220, the Executor or Administrator has the authority to sell or dispose of assets for the purpose of
paying debts or facilitating distribution.
• If a Will exists, the Executor must follow the instructions in the Will regarding the sale or transfer of property.
• If there is no Will, the Administrator must follow the rules of intestate succession.
• The court may require the Executor/Administrator to seek approval for major transactions to prevent fraud or
mismanagement.
5. Distribution of Assets:
• Once all debts and expenses are paid, the Executor or Administrator must distribute the remaining assets to the rightful heirs
or beneficiaries.
• If a Will exists, the distribution must follow the instructions in the Will.
• If there is no Will, the distribution follows the rules of intestate succession under the Succession Act.
• The Executor/Administrator must provide a detailed account of all distributions to the court, ensuring transparency and
accountability.
• The Executor or Administrator must maintain accurate records of all financial transactions.
• This includes:
o Money received from debtors,
o Payments made to creditors,
o Assets sold or transferred.
• A final account must be submitted to the court, showing all income, expenses, and distributions made.
• This report helps the court verify that the estate was properly managed and prevents disputes among heirs.
• The Executor or Administrator has the duty to defend the estate against legal claims, such as:
o Claims by creditors for unpaid debts,
o Disputes among heirs regarding asset distribution,
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9. Revocation of Appointment:
• The court can revoke the appointment of an Executor or Administrator under the following circumstances:
o Fraud or misrepresentation,
o Incompetence or misconduct,
o Inability to perform duties,
o Conflicts of interest.
• If the court finds that the Executor or Administrator is acting against the interests of the estate, it may appoint a new person
to complete the administration.
➠ Conclusion:
An Executor or Administrator under the Succession Act 1925 (Pakistan) plays a vital role in the management and distribution of a
deceased person’s estate. They have the authority to collect assets, pay debts, and distribute the remaining property to the rightful
heirs. The Executor follows the instructions of a Will, while the Administrator acts according to the rules of intestate succession
when no Will exists.
Their powers and duties are outlined clearly in the Succession Act to ensure that the estate is administered fairly, legally, and
transparently. The court also retains the power to revoke the appointment if the Executor/Administrator fails to perform their duties
or is found to be acting fraudulently. This structured framework ensures that the rights of the heirs and creditors are protected and that
the estate is managed in accordance with the law.
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Q: What are the grounds and procedure for the revocation of a Succession Certificate? What is the remedy available to aggrieved
person against such Revocation?
➠ Introduction:
A Succession Certificate is a legal document issued by the court under the Succession Act 1925 (Pakistan), granting authority to a
person to collect the debts and securities of a deceased person. However, in certain situations, the court has the power to revoke or
cancel the Succession Certificate to protect the rights of the legal heirs and prevent fraud or misrepresentation.
A Succession Certificate is a legal document that authorizes the legal heir(s) to collect the debts, securities, and movable assets of
a deceased person. It provides protection to third parties, such as banks and debtors, who make payments to the holder of the
certificate.
1. Fraud or Misrepresentation:
• If the certificate was obtained through fraudulent means or false representation, the court may revoke it.
• Fraud includes deliberate deception, false statements, or forged documents.
• Misrepresentation involves providing incorrect or incomplete information to the court.
Examples:
• The applicant falsely claims to be the sole legal heir, concealing the existence of other heirs.
• The applicant submits forged documents to prove ownership of assets.
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• If a Will is discovered after the issuance of the Succession Certificate, the court may revoke the certificate.
• The Executor named in the Will will have the legal right to administer the estate, and the previous certificate becomes void.
Example:
• A certificate is issued assuming the deceased died intestate. Later, a valid Will is discovered, and the Executor applies for
probate. The court may then revoke the certificate and issue probate to the Executor.
• If new legal heirs are discovered after the issuance of the certificate, the court may revoke the certificate to include the new
heirs.
Example:
• The applicant claims to be the only heir, but the court later discovers that the deceased had children from a previous
marriage.
• If the certificate was issued due to a clerical error or oversight, the court can revoke it.
Example:
• The applicant’s relationship with the deceased was incorrectly stated as a spouse instead of a business partner.
• If a legal dispute arises regarding the legitimacy of the certificate, the court may revoke it.
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Example:
• A relative challenges the certificate, claiming that the deceased had a Will that was not considered.
• If the holder of the certificate is found to have misused or unlawfully transferred assets, the court can revoke the certificate.
Example:
• The holder sells property without court approval and misappropriates the proceeds.
• If the holder of the certificate dies, the certificate becomes void, and the court may revoke it and reissue it to another heir.
8. Misappropriation of Assets:
• If the holder is found to have misappropriated assets or failed to provide a proper accounting, the court can revoke the
certificate.
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4. Order of Revocation:
o If the court is satisfied that the grounds for revocation are valid, it will cancel the certificate and may order the holder
to return the assets or provide compensation.
Under Section 388, the aggrieved person can seek the following remedies:
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Example:
If a certificate was revoked based on a forged Will, the aggrieved person can file an appeal to challenge the revocation, arguing that
the Will was not genuine.
Example:
If the certificate was revoked because of an error in the name or relationship of the applicant, the person can apply for re-issuance
with corrected information.
• Legal Basis: General Law of Torts and Civil Procedure Code (CPC).
• Definition:
o If the revocation caused financial loss or reputational damage, the aggrieved person can file a civil suit for
compensation or damages.
• Types of Damages:
o Actual Damages: Compensation for the actual financial loss suffered.
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Example:
If the revocation was based on a false claim that the applicant misappropriated assets, and this claim caused loss of reputation and
financial damage, the applicant can claim compensation for defamation and financial loss.
• The stay order restricts any transfer or collection of assets until the legal dispute is resolved.
Example:
If the certificate was revoked based on a false claim and the new holder attempts to sell the assets, the aggrieved person can obtain a
stay order to prevent the sale.
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Example:
If the certificate was revoked due to false claims by another party, and the applicant has new evidence proving their entitlement,
they can file a fresh application with the corrected information.
➠ Conclusion:
The Succession Act 1925 (Pakistan) provides a comprehensive framework for the revocation of a Succession Certificate to prevent
fraud, misrepresentation, and misuse of assets. The court can revoke the certificate based on grounds such as fraud, discovery of a
Will, misappropriation of assets, or pending disputes. The aggrieved person has the right to challenge the revocation by filing an
appeal or seeking re-issuance of the certificate. This legal framework ensures that the distribution of the deceased’s assets is
conducted lawfully and fairly, protecting the rights of all legal heirs.
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Q: What is the procedure provided under the Succession Act, 1925 for the protection of property of the deceased?
➠ Introduction:
When a person dies, their property and belongings are called their estate. Protecting this property is very important to make sure it is
distributed correctly to the rightful heirs or according to the will of the deceased. The Succession Act, 1925 provides rules to protect
the deceased’s property until it is properly given to the legal heirs or legatees.
• If the deceased left a will, the person named in the will as the executor takes charge of the estate.
• If there is no will, the court appoints an administrator to manage and protect the property.
• The executor or administrator is responsible for looking after the estate and making sure it is safe.
• To protect the property legally, the executor or administrator must apply to the court for:
o Probate (if there is a will), or
o Letters of Administration (if there is no will).
• This document gives them the legal authority to deal with the property of the deceased.
• Without this grant, no one has the lawful right to manage or distribute the property.
• Once the executor or administrator gets the authority, they must make a complete list of all the property, debts, and money the
deceased owned.
• This is called an inventory.
• This helps to know exactly what needs to be protected and later distributed.
➠ Protection of Property:
• The executor or administrator must take careful steps to protect the property from damage, loss, or misuse.
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• This includes:
o Keeping valuables safe, like money, jewelry, or important documents.
o Maintaining property, such as paying property taxes or bills.
o Collecting debts owed to the deceased.
o Selling property only when necessary, and usually only after permission from the court or under the rules of
succession.
• Their duty is to preserve the estate until the rightful heirs receive it.
• The executor/administrator must use the estate’s money to pay any debts left by the deceased.
• They also pay for funeral expenses and the costs related to managing the estate.
• Only after these payments can the property be distributed to the heirs.
➠ Distribution of Property:
• After all debts and expenses are paid, the remaining property is distributed:
o According to the will if there is one.
o Or according to the rules of inheritance under the law if there is no will.
• The executor or administrator hands over the property to the rightful persons.
• The executor or administrator must keep records of all actions taken related to the estate.
• They must prepare an account showing how the estate was managed.
• This account can be presented to the court or heirs for review.
➠ Court’s Supervision:
• The court supervises the whole process to make sure the property is protected and properly managed.
• The court can:
o Ask for reports from the executor/administrator.
o Remove the executor/administrator if they fail in their duties.
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Conclusion:
The Succession Act, 1925 provides a clear and legal way to protect the property of the deceased through the appointment of an
executor or administrator, obtaining court authorization, making an inventory, preserving the estate, paying debts, distributing the
property correctly, and maintaining full transparency under court supervision. This process ensures the deceased’s property is safe and
properly given to the rightful heirs.
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Q: Explain the transfer of property by gift made in contemplation of death under section.191 of Succession Act.
➠ Introduction:
Sometimes, a person who is seriously ill or believes they are going to die soon, may want to give away their property as a gift before
their death. This type of gift is called a gift made in contemplation of death or a gift causa mortis. Section 191 of the Succession Act,
1925 explains how such gifts work and what rules must be followed for them to be valid. This is different from a usual gift because it
depends on the expectation that the giver might die soon.
• Section 191 says that a person may transfer property by gift in anticipation of their death.
• This gift is only valid if the person dies from the cause they feared or the death is related to the same cause.
• If the person survives, the gift is automatically canceled.
• The property will be treated as if the gift was never made.
o The property or possession of the gift must be transferred to the receiver before the giver dies.
o This means the receiver must physically get or control the gift while the giver is alive.
4. Revocation if Survival:
o If the giver recovers or survives, the gift is automatically revoked.
o The receiver has no right to keep the property.
➠ Effect of Gift Made in Contemplation of Death:
• If all the conditions are met, the gift becomes effective only after the giver’s death.
• It is a kind of conditional transfer that depends on the death of the giver.
• The receiver only gains ownership of the property after the death of the person who gave the gift.
• Until then, the giver may still have rights over the property.
➠ Difference Between Gift Causa Mortis and Will:
• A gift causa mortis is an immediate gift made in fear of death, while a will is a document that gives property after death.
• Gifts causa mortis must be delivered physically, but wills do not require delivery.
• Gifts causa mortis are valid only if death occurs soon after, but wills become effective only after death, no matter how long
after.
➠ Legal Importance of Section 191:
• Section 191 protects the interests of both the giver and the receiver.
• It ensures that gifts made under fear of death are not misused or treated as permanent if the giver survives.
• It clarifies the conditions under which such gifts are valid or invalid.
• This prevents fraud or confusion regarding the property of the deceased.
Conclusion:
Section 191 of the Succession Act, 1925 allows a person who fears death to give a gift in anticipation of death. This gift only takes
effect if the person actually dies soon after from the feared cause. The property must be physically transferred to the receiver before
death, and if the giver survives, the gift is canceled. This rule ensures fairness and clarity in such serious situations.
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