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Fraudulent Transfer -Sec 53 of TPA

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Fraudulent Transfer   This article discusses fraudulent transfer. The term fraudulently has been explained by Section 25 of the Indian Penal Code. According to it, when a thing is done by a person with the intention to defraud the other, he is said to have done that thing tly. The term defraud was explained by the Supreme Court in Dr. Vimla V. Delhi Administration. Fraudulent Transfer is dealt with under Section 53 of Transfer of Property Act, 1882. This section recognizes the need to protect the   of the creditors. The rule of equity, justice, and good conscience has been incorporated in this section. It prevents a person from defeating the legitimate claims of his creditors. Essentials of Section 53 of TPA: 53 (1): Transfer by the transferor Of immovable property   With the intention to defeat or delay his creditors The transfer is voidable at the option of the creditor defeated or delayed. Provided that there is no subsequent transferee, who Acted in g...

Overview of Doctrine of Lis Pendens- Sec 52 of TPA

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Overview of Doctrine of Lis Pendens- Sec 52 of TPA I.     Meaning of Lis Pendens ‘Lis’ means an action or a suit and ‘Pendens’ means pending. Hence, Lis Pendens means during the pendency of a suit. And the doctrine of of Lis Pendens may be defined as the jurisdiction or the control that courts have during the pendency of action over the property involved therein. The doctrine is based upon the ground that the decision of the court is not only pending upon the parties to the suit but also on those who derive the title during the pendency of the suit. The term ‘suit’ indicates a legal action or proceedings initiated by a person invoking the judicial mechanism set up by the state for a peaceful relief of his grievance. This doctrine is based upon the English common law maxim  “ut lite pendente nihil innovator”, it means that during the litigation no new rights should be introduced. II.    The basic ingredients of the doctrine of Lis Pendens     Litig...

Improvements made by bona fide title holders under defective titles Section 51 - TPA

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Improvements made by bona fide title holders under defective titles Section 51 - TPA The transfer of Property Act, 1882 collaborate all the possible transactions between a transferor and a transferee. Similarly, section 51 of the Property act lays down “when the transferee of immovable property makes any improvement on the property, believing in good faith that he is absolutely entitled thereto, and he is subsequently evicted therefrom by any person having a better title, the transferee has a right to require the person causing the eviction either to have the value of the improvement estimated and paid or secured to the transferee, or to sell his interest in the property to the transferee at the then market value thereof, irrespective of the value of such improvement. The amount to be paid or secured in respect of such improvement shall be the estimated value thereof at the time of the eviction. When, under the circumstances aforesaid, the transferee has planted or sown on the ...

Ostensible Owner- Section 41 of TPA

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Ostensible Owner Ostensible means which appears to be true but in reality it is not. An ostensible owner means a person who appears to be the owner of a particular property but is not. He is not a trespasser or person having unlawful possession of the property. He behaves like the owner of the property with the consent or conduct of the real owner itself. Example: X owns property in Delhi but she lives in the USA. She allows Y, her brother who happens to live in Delhi to take care of the property including the payment of taxes, carrying major repairs, etc. Here X is the Real Owner of the property whereas Y is the Ostensible Owner. Benamidars or Benami Transactions are also an example of Ostensible Owners. Section 41 of Transfer of Property Act, 1882 deals with – the transfer by Ostensible Owner Essentials of Section 41         Done by ostensible owner           The transfer is done for a consideration         Th...