Please enable javascript to view this site.

SRD Law Notes

Law Notes for Law students. study materials for BSL,LLB, LLM, and Various Diploma courses.

Transfers Of Actionable Claims (Section 130 to Section 132 of the Transfer of Property Act)

Transfer of actionable claim,  notice to be in writing, signed -, see also..., 3 comments:.

transfer of actionable claim 130

It’s my first time to visit this site & I’m really surprised to see such impressive stuff out there. best web design service

We recommend them as a reliable design agency for our customers who need sophisticated product design. best logo design company in the world

Communication has played a critical role throughout the development, with key decisions emerging in the middle of work top web designers

  • Objective Questions with Answers on Law Of Contracts - 19 1) Consider the following statements : A) Every promise is an agreement. B) Every agreement is a contract. C) A contrac...
  • Objective Questions with Answers on Law Of Contracts - 18 1) Which one of the following element is not necessary for a contract ? A) Competent parties B) Reasonable terms and condition...
  • Objective Questions with Answers on Law Of Contracts - 17 1) Give correct answer : A) Void agreements are always illegal. B) Illegal agreements are always voidable . C) Illegal a...
  • Advantages of Law Advantages of Law -         There are many Advantages of law... some of the them  are as follows : 1) Uniformity and Certainty:   ...
  • The importance of a Computerized Accounting System              Computer is an important part of an accounting system.   Computerized accounting systems are important to business in various...
  • Constitution of India
  • Indian Penal Code
  • Indian Contract Act
  • Indian Evidence Act
  • Transfer of Property
  • Intellectual Property Rights
  • Consumer Protection
  • Right to Information
  • Human Rights
  • Voice of Women
  • Expert Corner
  • Case Summary
  • Legal Maxims
  • General Knowledge
  • Submit Post

Actionable claim and transfer of actionable claim.

Actionable claim

Introduction: 

Actionable claim.

The transfer of property act is generally based on immovable property, but some of its provisions can also be laid on movable property.

Actionable claim in general terms signifies a claim or a debt for which you can take an action. It means there’s a claim and you can approach court for enforcement of the same. The debt here is unsecured.  According to section 3 of the transfer of property Act, “actionable claim means a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in movable property not in the possession, either actual or constructive, of the claimant, which the civil courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing confidential or contingent”. 

Examples of actionable claim;

  • Arrears of rent;
  • Interest of the partner in a dissolved partnership;
  • Annuities under a deed of waqf;
  • Money due for goods sold;
  • A mohammadam  widow’s claim for unpaid dower;
  • A claim to rent to fall due in future;

Exceptions to Actionable claim;

  • Debts secured by mortgage of immovable property;
  • Damages for breach of contract;
  • Damages in tort; 
  • A claim to mesne profits; 
  • Share in company;
  • Claim to copyright. 

For a better understanding, let’s break the above definition in two parts; 

  • Actionable claim means a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of movable property, or to any beneficial interest in movable property. 

In the above section debt means not only loan, rather than any obligation to pay certain sum of money may be called a “debt”

Hence, debt may be of two types; i. secured and ii. Unsecured. 

A secured debt is a debt in which the creditor or the person who provides debt takes security; it can be of both movable or immovable property; from the debtor or the person to whom the debt is given for repayment of its money. When debt is secured by immovable property it is mortgage, and when debt is secured by immovable property it is secured by pledge or hypothecation. 

An unsecured debt is exactly opposite of secured debt. If there is no security of movable or immovable property the debt is unsecured. Under section 3 only unsecured debt is actionable claim.   

  • Whether such debt or beneficial interest be existent, accruing, conditional or contingent. 

Debt may be;

  • Existent Debt: The debt is existent when a debt or sum of money becomes due and has to be payable at present for instance, the claim of arrears of salary.

b)  Accruing debt: Accruing means to increase over a period of time, so, where a debt is payable on a future date, the debt is accruing. For example, if Mr. A promises to pay Rs. 3,000/- to Ms. B as maintenance allowance on 15th of every month, the claim of Ms. B against Mr. A is an accruing debt before 15th of that month.

  • Conditional or contingent debt: As the word indicates, conditional means based on some condition which can be fulfilled by parties and contingent means any condition which is beyond the control of parties. 

For instance: Mr. A promises to Mr. B Rs. 5,000/- if he marries Ms. C within one year.  So, in this case, the claim of Mr. B of Rs. 5,000/- is based on the condition of his marriage. Hence it is conditional debt. And if Mr. A promises to give Mr. B Rs. 5,000/- on the birth of the first child of Mr. B only the male child, this is a contingency which makes it contingent debt. 

Transfer of Actionable Claim .  

Section 130 of the transfer of property act, states that the transfer of both actionable claims, with or without consideration are affected by written instrument. The instrument must be signed by the transferor or his agent.  Transfer of claim takes place only after execution and signing of instrument.  

Section 131 of TP Act, states that every notice of transferable claim must be duly signed by the transferor or his agent. 

Section 132 of the act deals with liability of transferee of actionable claim.

Section 133 provides that the transferee is not bound to give any warranty as to the solvency of the debtor.

Section 134 provides for mortgage debt, it says that if a transfer of an actionable claim is made by way of mortgage for securing an existing or future debt, the money should firstly be applied in payment of the cost of such realization, secondly towards satisfaction of the amount secured by the transfer.  

Section 135 provides assignment of rights under policy of insurance. Section 136 provides for the incapacity of officers connected with the court of justice. Section 137 lays down the saving of negotiable instruments. 

Conclusion:  

Negotiable Instruments are governed by the provisions of Negotiable Instrument Act, 1881, such instruments are assigned or transferred by endorsement and delivery or mere delivery. However, a negotiable instrument may also transfer like and actionable claim. The assignee under the Transfer of Property Act, 1882 will acquire no more than the right, title and interest of the assignor but under transfer in Negotiable Instrument Act, 1881 the endorsee will have all rights and advantages of a holder of instrument in due course. 

State of Kerala and Others v. Mini Shamsudin and Other 2009, The court said that actionable claims are “goods” and movable property but it is not covered under the provisions of sales tax acts.

Jugal Kishore Saraf v. Raw Cotton Limited 1954, The Supreme Court held that a judgment debt or decree isn’t an actionable claim. Sunrise Associates v. Government of NCT of Delhi 1998 Appeal (2006), Supreme Court held that the right to participate in a draw is a beneficial interest in movable property. The object of the participation would be to win the prize. Transfer of right is thus a beneficial interest in movable property not in permission. It was held that a lottery is an actionable claim.

RELATED ARTICLES MORE FROM AUTHOR

Constituents of a valid mortgage, sale and agreement to sell, memorandum of association, popular posts, contract of bailment and pledge, what are the different classifications of law, actus non facit reum nisi mens sit rea – legal..., popular category.

  • News Update 2379
  • Bare Acts PDF 938
  • Case Summary 408
  • Legal Maxims 269
  • Articles 191
  • Indian Penal Code 104
  • Articles 89
  • Voice of Women 74
  • Intern with Us
  • Privacy Policy
  • Terms & Conditions
  • Copyright Policy

LexForti

  • Property Law

Transfer of Actionable Claim

Avatar

  • July 11, 2020
  • No Comments

transfer of actionable claim 130

Prachurya Sahu | Symbiosis Law School, Pune.

Table of Contents

Transfer of Property Act, 1882

Actionable claim is defined in Section 3 of the Transfer of Property Act, 1882 which was included by the Amending Act II of 1990. It is an intangible movable property, and its transfer is discussed in Chapter VIII of the Act. It has been laid down in the following words:

“actionable claim means a claim to any debt, other than a debt secured by mortgage of immoveable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in the possession, either actual or constructive, of the claimant, which the Civil Courts recognise as affording grounds for relief, whether such debt or beneficial interest be existent, accuring, conditional or contingent”

Therefore, essentially an actionable claim may be:

  • A claim to a debt which is unsecured, excluding that of mortgage, hypothecation or pledge of immovable property
  • Beneficial interest in movable property

The reason debts secured by means of mortgage, pledge or hypothecation are not included within the purview of “actionable claims” is because they do not manifest as claims to property, but of property itself. All claims under a contract are also excluded, except claims to payment of a sum of money or debt or price. Similarly, a right to sue by virtue of it being non-transferable in isolation is not considered to be actionable claim. [1]  

However, the definition extends to include beneficial interests in movable property irrespective of whether they are existent, accruing, conditional or contingent.

Unsecured Debt

A debt may be succinctly defined as an obligation to pay a liquidated sum of money. [2] An unsecured debt refers to a monetary obligation which is not secured in any form by way of mortgage, pledge or hypothecation. Therefore, three conditions need to be fulfilled for a transaction to be qualified as unsecured debt: (1) Monetary obligation, (2) Lack of any security (3) Certainty of the money so obligated.

In Sunrise Associates v. Govt. of NCT of Delhi, [3] the Supreme Court held that a debt can be a present, future or accruing and conditional or contingent in nature. A present debt is one which exists and is due now. A future debt is one which is existent but accruing in the future. Present and future debts are attachable and considered actionable claims. [4] Contingent or conditional debts are those that become due on the fulfilment of some condition or contingency. The slight difference between contingent and conditional debts are the former is within human control while the latter isn’t. Examples of such debts are future rents, [5] letter of credit, [6] amount due under a policy of insurance [7] etc; these though unattachable, are also considered actionable claims.

Beneficial Interest in Movable Property

A person is said to have beneficial interest in a movable property if such person has the right to possess such property but the same is not in constructive or actual possession of such person. [8] Therefore, the essential ingredients are: (1) the property must be movable, (2) the property is not in possession of the claimant, and (3) the claimant has the legal right to possess such a property.

Examples of such interest in movable property include right to the recovery of insurance money after an assured person expires [9] , right to recover back purchase money on invalidation of sale, [10] right to the proceeds of a business [11] or dividends of a share in a company [12] etc. All such interests figure within the purview of actionable claims and can be transferred.

Claims uncovered under Actionable Claims

  • Right to claim damages – Such right to claim damages whether arising from tortuous liability or contractual liability are not considered actionable claims. [13] This is so mainly because of the uncertainty of the amount of money which may be deemed to be payable. Furthermore, given that this right is based out of a personal infringement or injury, the redressal of such injury cannot be transferred.
  • Mesne profits – These money for possession of immovable property which is received by a tenant, who themselves do not have the permission to allow for possession of such property. In the case of Jai Narayan v. Kishun Dutta , [14] it was held that a claim for mesne profits is not an actionable claim as they are essentially unliquidated damages; they are not considered as any claim to beneficial interest in property or in possession of such a claimant. It is simply a right to sue.
  • Decree or judgement of debt- Any decree or judgement of debt cannot be transferred under actionable claim. [15] This is so because once such a judgement has been pronounced, no action subsists which can be transferred.
  • Intellectual Property- Intellectual properties such as patents, copyrights etc. do not operate as claims but are special rights which already vest in a person. They have exclusive governing legislations and cannot be transferred as actionable claims.

Transfer of Actionable Claims

Section 130 of the Transfer of Property Act lays down how such actionable claims can be transferred as:

“ Transfer of actionable claim —(1) The transfer of an actionable claim shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, shall be complete and effectual upon the execution of such instrument, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not: Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.”

Therefore, the essential elements of such a transfer are:

  • The instrument of transfer must be in writing
  • The transferor or a duly appointed agent must have signed such an instrument.
  • Consideration may or may not be extended.
  • Such a transfer will be complete and deemed effective only when it has been executed.

Written Instrument

The obligation of having a written instrument is an important but significant altercation of law. [16]  However, in Bharat Nidhi Ltd v. Takhatmal [17] , it was observed by the Supreme Court that a document can amount to equitable assignment independent of Section 130. Therefore, transfer for actionable claims, in certain circumstances may be recognised even if it is in violation of Section 130. However, if such a transfer is effected by virtue of Section 130, an oral transfer is invalid. [18]

Mode of Assignment

For the assignment to be effected, no rigid wording is necessary as long as the intention of such assignment is clear from the language used. [19] This intention should be extremely evident by the receipt which represents the transfer of claim. [20] In Hunsraj v. Nathoo , [21]  even an endorsement written on the back of a contract for the purchase of goods which stipulated that the purchaser sold his rights and interest in the contract was held to be a valid transfer of actionable claim.

Consideration

Act 20 of 1929 inserted the words “whether with or without consideration.” This was done to bring cases of gifts within its purview. The whole question of payment of consideration is exclusive to the assignor and assignee; non-payment of the consideration for an assignment is not ground to take advantage of by a debtor to invalidate transfers. [22]

Effective when Executed

The assignment or transfer of claims is effectual only from the date of the assignment. This is a deviation from the English Law where such assignment manifests from the date of notice, except in cases of equitable assignment. [23]

Without the notice of an assignment such assignment is invalid against the debtor. [24] A transfer involving a registered document can be the only exception to this principle. [25] The effect of such notice is the protection of the debtor’s dealings with the original creditor rather than perfecting the title to the assignee of a debt. [26]

Exceptions to Section 130

  • Negotiable instruments such as checks, money orders etc, as well as financial market items such as stocks, shares and debentures.
  • Marine insurance policies.
  • Fire insurance policies.
  • All cases falling under Section 38 of the Insurance Act, 1938.

[1] Abu Mahomed v S C Chunder, (1909) ILR 36 Cal 345

[2] Sabju Sahib v Noordin, (1899) ILR 22 Mad 139.

[3] Sunrise Associates v. Govt. of NCT of Delhi, AIR 2006 SC 1908

[4] Gorakhpur Steels and Metals Pvt Ltd v Presiding Officer, DRT, AIR 2017 All 224 

[5] Poothekka Nachiar v Annamalai Chetty, AIR 1926 Mad. 1173 

[6] Joseph Pyke & Sons (Liverpool) Ltd v Kedarnath, AIR 1959 Cal 328

[7] Varjivandas v Maganlal, (1937) 39 Bom LR 493 : AIR 1937 Bom 382

[8] mulla, Transfer of Property Act, 1882, 13 th ed.

[9] Somashekarrao v K S Mishra, AIR 1944 Ngp 185

[10] Chinnapareddi v Venkataramanappa, AIR 1942 Mad. 209

[11] Alkash Ali v Nath Bank, AIR 1951 Assam 56

[12] Daya Bai v Ambalal, AIR 1981 SC 156

[13] Moti Lal v. Radhey Lal, (1933) All 642; Inder v. Raghubir Singh, (1930) 5 Luck 547.

[14] Jai Narayan v. Kishun Dutta, AIR 1924 Pat 551.

[15] Govindarajulu v. Ranga Rao, AIR 1921 Mad 113.

[16] Velayuthan v Pillaiyar Chetti, (1911) 9 Mad LT 102 

[17] Bharat Nidhi Ltd v Takhatmal, AIR 1969 SC 313 

[18] Raman Chetty v Nagarathana Naicker, (1912) 11 Mad LT 246

[19]  Mohanlal v Loan Co of Assam, AIR 1960 Assam 191 

[20] Simon Thomas v State Bank of Travancore, (1976) KLT 554.

[21] Hunsraj v Nathoo, (1907) 9 Bom LR 838 

[22] Narain Food Products Ltd v Tikam Chand, AIR 1973 All 573

[23] Gorringe v Irwell, (1886) 34 ChD 128 (CA).

[24] Tata Iron & Steel Co Ltd v Baidyanath, AIR 1924 Pat. 118.

[25] Prem Chand v Onkar Dutt, AIR 1972 All 415

[26] Balthazar v Official Assignee, AIR 1938 Rang 426

  • actionable claims under proprty law
  • property law
  • section 3 of transfer of property
  • transfer of actionable claim
  • transfer of property

Leave a Reply Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Notify me of new posts by email.

Avatar

LexForti Legal News Network

LexForti Legal News and Journal offer access to a wide array of legal knowledge through the Daily Legal News segment of our Website. It provides the readers with the latest case laws in layman terms. Our Legal Journal contains a vast assortment of resources that helps in understanding contemporary legal issues.

Doctrine of Part Performance

Types of transfers governed by the transfer of property act, gift under the transfer of property act.

Avatar

Contact us for Legal Drafting and Reviewing

transfer of actionable claim 130

logo

Take notes as you read a judgment using our Virtual Legal Assistant and get email alerts whenever a new judgment matches your query ( Query Alert Service ). Try out our Premium Member services -- Free for one month .

Union of India - Section

Section 130 in the transfer of property act, 1882, 130. transfer of actionable claim.—.

IBC Laws

All about Indian Insolvency Laws

Section 130 of Transfer of Property Act, 1882: Transfer of actionable claim

The transfer of property act, 1882, 1 [chapter-viii of transfers of actionable claim , section 130: transfer of actionable claim..

130 . (1) The transfer of an actionable claim 2 [ whether with or without consideration ] shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, 3 [ *** ] shall be complete and effectual upon the execution of such instrument, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not:

Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.

(2) The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor’s consent to such suit or proceedings and without making him a party thereto.

Exception .—Nothing in this section applies to the transfer of a marine or fire policy of insurance 4 [ or affects the provisions of section 38 of the Insurance Act, 1938 (4 of 1938) ].

Illustrations

(i) A owes money to B, who transfers the debt to C. B then demands the debt from A, who, not having received notice of the transfer, as prescribed in section 131, pays B. The payment is valid, and C cannot sue A for the debt.

(ii) A effects a policy on his own life with an Insurance Company and assigns it to a Bank for securing the payment of an existing or, future debt. If A dies, the Bank is entitled to receive the amount of the policy and to sue on it without the concurrence of A’s executor, subject to the proviso in sub-section (1) of section 130 and to the provisions of section 132.

1. Subs. by Act 2 of 1900, s. 4, for the original Chapter VIII.

2. Ins. by Act 20 of 1929, s. 62.

3. The words and figures “and notwithstanding anything contained in section 123” ins. by Act 38 of 1925, s. 2, omitted by Act 20 of 1929, s. 62.

4. Added by Act 4 of 1938, s. 121 (w.e.f. 1-7-1939).

Either type keywords in “Search here” bar or follow below instructions:

  • Step-I : If you have IBC Laws Case Citation, selection in “Case Citation” otherwise select the query subject using “Case Subject” or select “Section wise Cases” or any other parameter(s) from drop-down.
  • Step-II: Scroll down, the function will list all relevant case laws.
  • Step-III : To filter more, select Tribunal/Court/Bench etc.

Bookmark IP Tool  or remember this link:   https://ibclaw.in/ibc-case-laws/   for future reference. For YouTube Guide, Click here .

  • Member can add new topic in a Forum or Sub-Forum and also can reply existing topic(s).
  • Member can subscribe a specific Topic or specific Forum/sub-forum or can subscribe all forum, in which they will receive email on new updates/reply on such topic/forum. This is also available free of cost.
  • All Topics are categorised in Forums and Sub-Forums which is helpful to identify the each topic in separate category for existing as well as new visitors and can find it in easy way.
  • We have nos. of Whatsapp Groups but unable to maintain trailing of discussed topics for the time being. This Forum will help to create such trailing.
  • Member can see recently activities in Activity Section.
  • We minimised complexity in designing to make it simple for our visitors.

You feedback is highly appreciated and help us to motivate our team. Feedback here.

IBC Commentary Index(Clickable)

Recent IBBI Clarifications and Regulations Amendments, Click here | 2023-Annual Casea Digests, Click here

LexTechSuite

Members' Log In

Transfer of property act, 1882.

LawyerServices

w w w . L a w y e r S e r v i c e s . i n

130. Transfer of actionable claim. —(1) The transfer of an actionable claim 1[whether with or without consideration] shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, 2[***] shall be complete and effectual upon the execution of such instruments, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not:

Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.

(2) The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor’s consent to such suit or proceeding and without making him a party thereto.

Exception.— Nothing in this section applies to the transfer of a marine or fire policy of insurance 3[or affects the provisions of section 38 of the Insurance Act, 1938 (4 of 1938)].

Illustrations (i) A owes money to B , who transfers the debt to C. B then demands the debt from A, who, not having received notice of the transfer, as prescribed in section 131, pays B. The payment is valid, and C cannot sue A for the debt. (ii) A effects a policy on his own life with an Insurance Company and assigns it to a Bank for securing the payment of an existing or future debt. If A dies, the Bank is entitled to receive the amount of the policy and to sue on it without the concurrence of A’s executor, subject to the proviso in sub-section (1) of section 130 and to provisions of section 132.  

-------------------

  1. Ins. by Act 20 of 1929, sec. 62.

  2. The words and figures “and notwithstanding anything contained in section 123” ins. by Act 38 of 1925, sec. 2 and omitted by Act 20 of 1929, sec. 62.

  3. Added by Act 4 of 1938, sec. 121 (w.e.f. 1-7-1939).

#LawyerServices #Section #Act #Law #Statute #IndianLaw #Kanoon

  • Law Articles
  • Law Q&A

Section 130 TPA

Chapter viii – of transfer of actionable claims, 130. transfer of actionable claim..

(1) The transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, shall be complete and effectual upon the execution of such instruments, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not: Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.

(2) The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor’s consent to such suit or proceeding and without making him a party thereto.

Exception- Nothing in this section applies to the transfer of a marine or fire policy of insurance or affects the provisions of section 38 of the Insurance Act, 1938 (4 of 1938).

Bare Act PDFs

Illustrations (i) A owes money to B, who transfers the debt to C. B then demands the debt from A, who, not having received notice of the transfer, as prescribed in section 131, pays B. The payment is valid, and C cannot sue A for the debt.

(ii) A effects a policy on his own life with an Insurance Company and assigns it to a Bank for securing the payment of an existing or future debt. If A dies, the Bank is entitled to receive the amount of the policy and to sue on it without the concurrence of A’s executor, subject to the proviso in sub-section (1) of section 130 and to provisions of section 132.

Transfer of Property Act full bare act.

Download Transfer of Property Act PDF.

  • Latest Posts

WL Staff

  • Top 138 Legal Maxims for Law Exams - 7th January 2024
  • 10 Legal Jobs and Career Options After Law in 2024 - 7th January 2024
  • 11 Tips to Pass AIBE With Bare Acts and MCQ Tests in 2024 - 7th January 2024

Law Study Material PDFs and MCQ Tests

10 Legal Jobs and Career Options After Law in 2024

Tips, Syllabus, Exam Date, Bare Acts and MCQ Tests for AIBE

11 Tips to Pass AIBE With Bare Acts and MCQ Tests in 2024

Career as a judge in India

Career as a Judge – Eligibility, Benefits, Allowances, and More

Best Books for Judiciary Exam Preparation

Best Books for Judiciary Exam Preparation in 2024

How to Write the Best Answer in Judiciary Mains Exam

How to Write the Best Answer in Judiciary Mains Exam in 2024

How to Study Law - For new, existing and old students

How to Start Studying Law – For New, Existing, and Old Students

My name is Ankur . I am a law graduate. I was my college topper for five years. In March 2018, I started  WritingLaw.com . The main motive was to make a modern law website that is clean and comfortable.

Everything is going well . This is because of law students, advocates, judges and professors like you, who give me satisfaction, hope and the motivation to keep working. Thank you for your love and support. I hope you have a fruitful time here.

Law Study Material

© 2018-2024 About Us Contact Us Disclaimer Cookies Copyright and Privacy Policy Sitemap

  • The Courts Today By LatestLaws.com| 22.02.2024 |
  • 7th National Law Fest Arguendo 2024 at UILS, Panjab University, Chandigarh [Cash prizes of Rs. 1.5 L]: Register by Feb 28
  • Terminating employment of a Woman on grounds of her Marital Status is Discrimination and Inequality, rules SC
  • Police can't act as Civil Court for Recovery of Money: SC stresses Civil Wrong & Criminal Offence not alike [Read Order]
  • Put in abeyance privileges committee proceedings against suspended BJP MLAs: High Court
  • US Supreme Court declares Frozen Embryos created by IVF as 'Children'
  • HC reiterates: In India “Fraud” & “Special Equities” are the only grounds for restraining encashment of Bank Guarantees, Read Judgement
  • दरोगा की हत्या के दोषी को आजीवन कारावास; घर पर चढ़कर मारी थी गोली; मामूली कहासुनी के बाद चली थी गोलियां
  • सुशांत सिंह राजपूत मामले में रिया चक्रवर्ती को बड़ी राहत, कोर्ट ने दिया ये ऑर्डर
  • यूपी सरकार के वकील ने किया महिला और उसकी बेटी की भरण-पोषण याचिका का विरोध, सुप्रीम कोर्ट ने जताई हैरानी
  • US Lawyers tell UK Court why Julian Assange should face spying charges
  • The Orange Capital Debate- British Parliamentary Debate Competition 2024 at NLU Nagpur (Cash Prizes Upto Rs. 49k): Register by Feb 24
  • High Court orders Netflix to first screen Indrani Mukerjea docu-series for CBI
  • महुआ मोइत्रा से जुड़े 'गोपनीय सूचना लीक' मामले में हाईकोर्ट ने सुरक्षित रखा फैसला, कोर्ट में क्या-क्या हुआ?
  • हाईकोर्ट ने शुआट्स से पूछा, किस नियम के तहत एक प्रोफेसर को दिया दो पदों का वेतन

transfer of actionable claim 130

  • Central Acts
  • Latest News
  • Corporate Law News
  • Human Rights News
  • Intellectual Property News
  • Did you Know?
  • International News
  • हिंदी न्यूज़
  • Law Firm News
  • Marriage and Divorce News
  • Tourism News
  • World of Petroleum & Natural Gas
  • Case Analysis Supreme Court High Courts Tribunal Courts
  • Cheque Bounce News
  • Legal Services News
  • Petroleum News

Supreme Court Judgments

  • Supreme Court

High Court Judgments

  • Delhi High Court
  • Allahabad High Court
  • Bombay High Court
  • Calcutta High Court
  • Madras High Court
  • Punjab & Haryana High Court
  • Andhra High Court
  • Chattisgarh High Court
  • Gauhati High Court
  • Gujarat High Court
  • Himachal Pradesh High Court
  • Jammu & Kashmir High Court
  • Jharkhand High Court
  • Karnataka High Court
  • Kerala High Court
  • Madhya Pradesh High Court
  • Meghalaya High Court
  • Manipur High Court
  • Orissa High Court
  • Patna High Court
  • Rajasthan High Court
  • Sikkim High Court
  • Tripura High Court
  • Telangana High Court
  • Uttarakhand High Court
  • Arbitration
  • Conciliation

Campus Buzz

  • Call for Papers
  • Conferences & Seminars
  • Courses & Workshops
  • Debate Competitions
  • Essay Competitions
  • Fellowships
  • Fests, MUNs and Other Competitions
  • International Opportunities
  • Internships
  • Moot Court Competitions
  • Scholarships
  • Legal Documents
  • Legal Forms for Advocates
  • Legal Dictionary
  • SC Collegium Resolutions
  • Law Commission of India Reports
  • NCRB Reports
  • Justice Verma Committee Report, 2013
  • Justice BN Srikrishna Report on Institutionalisation of Arbitration
  • Legal Maxims
  • Web Links Directory

Legal Education

  • Law School Entrance Exams
  • Law Schools and Colleges in India
  • Overseas Law Schools
  • Careers in Law

Circulars & Notices

  • RBI Circulars
  • RBI Notices
  • SEBI Circulars
  • SEBI Notices
  • MCA Circulars
  • MCA Notices
  • Supreme Court Calendar 2023
  • Supreme Court Bar Association
  • Supreme Court Advocate-On-Record
  • All High Courts Calendar
  • High Courts Portals
  • Judicial Exam Notice Board
  • Judicial Services Exam Question Papers
  • Bar Councils
  • Bar Associations

O P Jindal Global University

Category SideBar

  • Section 1. TPA, Short title.
  • Section 2. TPA, Repeal of Acts.
  • Section 3. TPA, Interpretation clause.
  • Section 4. TPA, Enactments relating to contracts to be taken as part of Contract Act and supplemental to the Registration Act.
  • Section 54. TPA, “Sale” defined.
  • Section 55. TPA, Rights and liabilities of buyer and seller.
  • Section 56. TPA, Marshalling by subsequent purchaser.
  • Section 57. TPA, Provision by Court for encumbrances and sale freed therefrom.
  • Section 58. TPA, “Mortgage”, “mortgagor”, “mortgagee”, “mortgage-money” and “mortgage-deed” defined.
  • Section 59. TPA, Mortgage when to be by assurance
  • Section 59A. TPA, References to mortgagors and mortgagees to include persons deriving title from them.
  • Section 60. TPA, Right of mortgagor to redeem.
  • Section 60A. TPA, Obligation to transfer to third party instead of re-transference to mortgagor.
  • Section 60B. TPA, Right to inspection and production of documents.
  • Section 61. TPA, Right to redeem separately or simultaneously.
  • Section 62. TPA, Right of usufructuary mortgagor to recover possession.
  • Section 63. TPA, Accession to mortgaged property.
  • Section 63A. TPA, Improvements to mortgaged property.
  • Section 64. TPA, Renewal of mortgaged lease.
  • Section 65. TPA, Implied contracts by mortgagor.
  • Section 65A. TPA, Mortgagor’s power to lease.
  • Section 66. TPA, Waste by mortgagor in possession.
  • Section 67. TPA, Right to fore-closure or sale.
  • Section 67A. TPA, Mortgagee when bound to bring one suit on several mortgages.
  • Section 68. TPA, Right to sue for mortgage-money.
  • Section 69. TPA, Power of sale when valid.
  • Section 69A. TPA, Appointment of receiver.
  • Section 70. TPA, Accession to mortgaged property.
  • Section 71. TPA, Renewal of mortgaged lease.
  • Section 72. TPA, Right of mortgagee in possession.
  • Section 73. TPA, Right to proceeds of revenue sale or compensation on acquisition.
  • Section 74. TPA, Right of subsequent mortgagee to pay off prior mortgagee.
  • Section 75. TPA, Rights of mesne mortgagee against prior and subsequent mortgagees.
  • Section 76. TPA, Liabilities of mortgagee in possession.
  • Section 77. TPA, Receipts in lieu of interest.
  • Section 78. TPA, Postponement of prior mortgagee.
  • Section 79. TPA, Mortgage to secure uncertain amount when maximum is expressed.
  • Section 80. TPA, Tacking abolished.
  • Section 81. TPA, Marshalling, securities.
  • Section 82. TPA, Contribution to mortgage-debt.
  • Section 83. TPA, Power to deposit in Court money due on mortgage.
  • Section 84. TPA, Cessation of interest.
  • Section 85. TPA, Parties to suits for foreclosure, sale and redemption.
  • Section 86 to Section 90, TPA
  • Section 92. TPA, Subrogation.
  • Section 93. TPA, Prohibition of tacking.
  • Section 94. TPA, Rights of mesne mortgagee.
  • Section 95. TPA, Right of redeeming co-mortgagor to expenses.
  • Section 96. TPA, Mortgage by deposit of title-deeds.
  • Section 98. TPA,Rights and liabilities of parties to anomalous mortgages.
  • Section 99. TPA, Attachment of mortgaged property.
  • Section 100. TPA, Charges.
  • Section 101. TPA, No merger in case of subsequent encumbrance.
  • Section 102. TPA, Service or tender on or to agent.
  • Section 103. TPA, Notice, etc., to or by person incompetent to contract.
  • Section 104. TPA, Power to make rules.
  • Section 41. TPA,Transfer by ostensible owner.
  • Section 42. TPA, Transfer by person having authority to revoke former transfer.
  • Section 43. TPA, Transfer by unauthorised person who subsequently acquires interest in property transferred.
  • Section 44. TPA, Transfer by one co-owner.
  • Section 45. TPA, Joint transfer for consideration.
  • Section 46. TPA, Transfer for consideration by persons having distinct interests.
  • Section 47. TPA, Transfer by co-owners of share in common property.
  • Section 48. TPA, Priority of rights created by transfer.
  • Section 49. TPA, Transferee’s right under policy.
  • Section 50. TPA, Rent bona fide paid to holder under defective title.
  • Section 51. TPA, Improvements made by bona fide holders under defective titles.
  • Section 52. TPA, Transfer of property pending suit relating thereto.
  • Section 53. TPA, Fraudulent transfer.
  • Section 53A. TPA Part performance.
  • Section 5. TPA, “Transfer of property” defined.
  • Section 6. TPA, What may be transferred.
  • Section 7. TPA Persons competent to transfer.
  • Section 8. TPA, Operation of transfer.
  • Section 9. TPA, Oral transfer.
  • Section 10. TPA, Condition restraining alienation.
  • Section 11. TPA, Restriction repugnant to interest created.
  • Section 12. TPA, Condition making interest determinable on insolvency or attempted alienation.
  • Section 13. TPA, Transfer for benefit of unborn person.
  • Section 14. TPA, Rule against perpetuity.
  • Section 15. TPA, Transfer to class some of whom come under sections 13 and 14.
  • Section 16. TPA, Transfer to take effect on failure of prior interest.
  • Section 17. TPA, Direction for accumulation.
  • Section 18. TPA, Transfer in perpetuity for benefit of public.
  • Section 19. TPA, Vested interest.
  • Section 20. TPA, When unborn person acquires vested interest on transfer for his benefit.
  • Section 21. TPA, Contingent interest.
  • Section 22. TPA, Transfer to members of a class who attain a particular age.
  • Section 23. TPA, Transfer contingent on happening of specified uncertain event.
  • Section 24. TPA, Transfer to such of certain persons as survive at some period not specified.
  • Section 25. TPA, Conditional transfer.
  • Section 26. TPA, Fulfilment of condition precedent.
  • Section 27. TPA, Conditional transfer to one person coupled with transfer to another on failure of prior disposition.
  • Section 28. TPA, Ulterior transfer conditional on happening or not happening of specified event.
  • Section 29. TPA, Fulfilment of condition subsequent.
  • Section 30. TPA, Prior disposition not affected by invalidity of ulterior disposition.
  • Section 31. TPA, Condition that transfer shall cease to have effect in case specified uncertain event happens or does not happen.
  • Section 32. TPA, Such condition must not be invalid.
  • Section 33. TPA, Transfer conditional on performance of act, no time being specified for performance.
  • Section 34. TPA, Transfer conditional on performance of act, time being specified.
  • Section 35. TPA, Election when necessary.
  • Section 36. TPA, Apportionment of periodical payments on determination of interest of person entitled.
  • Section 37. TPA, Apportionment of benefit of obligation on severance.
  • Section 38. TPA, Transfer by person authorised only under certain circumstances to transfer.
  • Section 39. TPA, Transfer where third person is entitled to maintenance.
  • Section 40. TPA, Burden of obligation imposing restriction on use of land
  • Section 105. TPA, Lease defined.
  • Section 106. TPA, Duration of certain leases in absence of written contract or local usage.
  • Section 107. TPA, Leases how made.
  • Section 108. TPA, Rights and liabilities of lessor and lessee.
  • Section 109. TPA, Rights of lessor’s transferee.
  • Section 110. TPA, Exclusion of day on which term commences.
  • Section 111. TPA, Determination of lease.
  • Section 112. TPA, Waiver of forfeiture.
  • Section 113. TPA,Waiver of notice to quit.
  • Section 114. TPA, Relief against forfeiture for non-payment of rent.
  • Section 114A. TPA, Relief against forfeiture in certain other cases.
  • Section 115. TPA, Effect of surrender and forfeiture on under-leases.
  • Section 116. TPA, Effect of holding over.
  • Section 117. TPA, Exemption of leases for agricultural purposes.
  • Section 118. TPA, “Exchange” defined.
  • Section 119. TPA, Right of party deprived of thing received in exchange.
  • Section 120. TPA, Rights and liabilities of parties.
  • Section 121. TPA, Exchange of money.
  • Section 122. TPA, “Gift” defined.
  • Section 123. TPA, Transfer how effected.
  • Section 124. TPA, Gift of existing and future property.
  • Section 125. TPA, Gift to several of whom one does not accept.
  • Section 126. TPA, When gift may be suspended or revoked.
  • Section 127. TPA, Onerous gifts.
  • Section 128. TPA, Universal donee.
  • Section 129. TPA, Saving of donations mortis causa and Muhammadan Law.

Section 130. TPA, Transfer of actionable claim.

  • Section 130A. TPA, Transfer of policy of marine insurance.
  • Section 131. TPA, Notice to be in writing, signed.
  • Section 132. TPA, Liability of transferee of actionable claim.
  • Section 133. TPA, Warranty of solvency of debtor.
  • Section 134. TPA, Mortgaged debt.
  • Section 135. TPA, Assignment of rights under policy of insurance against fire.
  • Section 135A. TPA, Assignments of Rights under Policy of Marine Insurance
  • Section 136. TPA, Incapacity of officers connected with Courts of Justice.
  • Section 137. TPA, Saving of negotiable instruments, etc.
  • Central Acts and Rules
  • Property Laws
  • Transfer of Property Act, 1882
  • Chapter 8 TPA, Transfers Of Actionable Claims

(1) The transfer of an actionable claim  1 [whether with or without consideration] shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent,  2 [***] shall be complete and effectual upon the execution of such instruments, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not:

Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.

(2) The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor’s consent to such suit or proceeding and without making him a party thereto.

Exception .—Nothing in this section applies to the transfer of a marine or fire policy of insurance  3 [or affects the provisions of section 38 of the Insurance Act, 1938 (4 of 1938)].

Illustrations

(i) A owes money to B, who transfers the debt to C. B then demands the debt from A, who, not having received notice of the transfer, as prescribed in section 131, pays B. The payment is valid, and C cannot sue A for the debt.

(ii) A effects a policy on his own life with an Insurance Company and assigns it to a Bank for securing the payment of an existing or future debt. If A dies, the Bank is entitled to receive the amount of the policy and to sue on it without the concurrence of A’s executor, subject to the proviso in sub-section (1) of section 130 and to provisions of section 132.

———————-

1. Ins. by Act 20 of 1929, sec. 62.

2. The words and figures “and notwithstanding anything contained in section 123” ins. by Act 38 of 1925, sec. 2 and omitted by Act 20 of 1929, sec. 62.

3. Added by Act 4 of 1938, sec. 121 (w.e.f. 1-7-1939).

Join latestlaws whatsapp group

Related judgement on Section 130. TPA, Transfer of actionable claim.

start up India

LawBhoomi Logo

Actionable Claim

  • Subject-wise Law Notes Transfer of Property Act
  • March 4, 2020

transfer of actionable claim 130

Actionable claim means a debt or a claim on which action can be started in a Court of law for comfort or relief. The actionable claim is defined under section 3 of the Transfer of Property Act, 1882.

Introduction 

Actionable claim means a debt or a claim on which action can be started in a Court of law for comfort or relief. The civil Courts recognized as giving the grounds for relief whether such claims are conditional, accruing and other. The actionable claim is defined under section 3 of the Transfer of Property Act, 1882. In general terms, an actionable claim is a debt or claim for which the person can take an action and also approach the Court for recovery his debt or claim.

Tangible or touchable movables such as chairs or bikes and many have physical existence and can be possessed. Some movable property is an actionable claim. It is also a claim for unsecured debt and any beneficial interest in the moveable property and the property is not in any kind of possession.

Like example- X is a person who needs a loan or money from Y. Then X takes loan 50,000/- from Y. And Y does not take any security. It means X takes loan 50,000/- from Y without any security. So the debt or claim given by Y is an actionable claim. And if the X failure on his part or not repay the money then Y can approach the Court.

According to section 3 of the Transfer of Property Act, the actionable claim is a claim to any debt which is not secured by a mortgage, pledge, and hypothecation. The mortgage of immovable property does not come under section 3 of Transfer of Property Actand also the pledge OR hypothecation of moveable property is not an actionable claim. An actionable claim is transferable under the Transfer of Property Act. The transfer of actionable claim is given under chapter eight of the Transfer of Property Act. Chapter eight of the Transfer of Property Actis the last chapter of the Transfer of Property Act and it covers section 130 to 137.

Important Provisions dealing with Actionable Claim under Transfer of Property Act

Under Section 130 of the Transfer of Property Act, the mode of transfer of actionable claim is described. According to Section 130,

· The transfer can be done by only a written instrument;

· And signed by the transferor or his legal agent; and

· The transfer will be complete.

Exceptions of the Sec 130- Sec 130 does not apply on the transfer of marine and insurance of fire policy.

In the case of S imon Thomas vs. State Bank of Travancore [1], in this case, there should be an intention to transfer the debt represented by the written receipts.

Under Section 132 of the Transfer of Property Act , defines the liability of the transferee of actionable claim. The liabilities and equities of the transferor are transferred to the transferee.

Some examples of actionable claim, these following claims are the actionable claim-:

1. Claim for arrear rent.

2. Claim for rent to fall due in future.

3. A choice offered to repurchase the property once again.

4. Book debts or claims

5. The right to claims maintenance.

6. Claim the benefit of the contract.

7. Deposit receipt.

The following claims are not the actionable claim-:

1. A claim which is decreed.

2. “Right to sue”, it is a right but it is not an actionable claim.

3. The claim for the main profits.

In the case of the Jugalkishore Saraf Vs Raw Cotton Co. Ltd [2]., the Supreme Court held that a judgment debt or decree is not an actionable claim for action is necessary.

In the leading case Lachmi Koeri Vs the State of Bihar [3], the Court has been pointed out the transfer of arrears of rent is a type of a transfer of actionable claim. And the transfer of arrears of rent could be transferred in accordance with the provisions of the Transfer of Property Act.

In the case of Rekhath Koeri [4], where the Court said that the transfer of arrears of rent is really a transfer of actionable claim and it could be transferred in accordance with the rules and regulations of Transfer of Property Act.

Section 133 of the Transfer of Property Act described the warranty of solvency of the debtor. In this section when a claim is transferred the transferee may run the chance or risk of losing the debt, in this case, the debtor is insolvent. So as a precautionary measure, the transferee should be assured that the debtor is solvent.

Section 134 of the Transfer of Property Act is deals with the mortgaged debt. And section 135 of the Transfer of Property Act deals with the assignment of rights under the policy of insurance against fire. Section 136 deals with the incapacity of officers connected with the Court of justice. The person who includes in section 136 are:-

· Legal practitioner;

· Judges of the Court; and

· The legal or officer who concerned with the justice of the Court.

And the last Section 137 describes the saving of negotiable instruments and etc.

In the case, State of Kerala and Ors. Vs. Mini Shamsudin and Ors[5]., the Court said that actionable claims are ‘goods’ and movable property but it is not for the purpose of the sales tax acts.

The term ‘Actionable Claim’ is that every type of debt in a movable property which would be enforced by the Court. Under this meaning any kind claim of money whether the amount was fixed or the amount was also uncertain, it’s an actionable claim. Sometimes, these were made confusions and there also used to be conflict decisions; and the law was not uniform or not clear. In the Transfer of Property Act, the law should be amended to provide the rights and liabilities of both the parties in transactions.

[1] Simon Thomas vs. State Bank of Travencore, (1976) KLT 554. [2] Jugalkishore Saraf vs Raw Cotton Co. Ltd, AIR1955 Bom 77,(1954) 56 BOMLR 905, ILR 1954 Bom 1004. [3] Lachmi koeri vs State of Bihar, AIR 1960, pat 62, 1960 crilj 271. [4] Rekhath Koeri, AIR 1923 pat. 165. [5] State of Kerala and ors. Vs. Mini Shamsudin and ors, (2009) insc 1 (2 jan 2009).

For more articles on Transfer of Property Act, Click Here .

For law notes, Click Here.

Author Details: Megha Chandravanshi (Geeta Institute of Law, Panipat)

Editor Details: Aayush Akhar (National Law University, Odisha)

You might like

Indian Evidence Act

Difference Between Burden of Proof and Onus of Proof

case brief

Henderson v Henderson

Family Law

Difference Between Talaq-ul-Biddat and Talaq-ul-Sunnat

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Name  *

Email  *

Add Comment  *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Post Comment

Upgrad jan

Transfer of Actionable Claims

  • FCS Deepak P. Singh
  • | Corporate Law - Articles
  • Download PDF
  • 16 Aug 2020
  • 83,187 Views

Actionable Claim:  is a claim to any debt, other than secured by mortgage of immovable property or pledge or hypothecation of some movable property, or to any beneficial interest in movable property, not in possession either actual or constructive of the claimant.

Section 3 of Transfer of Property Act, 1882 defines ;  “actional claim means a claim to any debt , other than a debt secured by mortgage of immovable property or by the hypothecation or pledge of movable property , or to any beneficial interest in movable property not in the possession, either actual or constructive , of the claimant, which the civil courts recognises as affording grounds for relief, whether such debt or beneficial interest be existent, accruing ,conditional or contingent.”

Lets’ analyse above definition;

Actionable Claims means a claim to –

  • Any debt, other than a debt secured –
  • By a mortgage of immovable property, or
  • By hypothecation or pledge of movable property, or  
  • Any beneficial interest in the movable property- not in possession (either actual or constructive) of the claimant;  
  • which the civil courts recognise as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.

NOTE: it means that Actional Claim relates only to unsecured debt and beneficial interest of a claimant in movable property not in his possession.

The Transfer of Property (Amendment) Act, 1990 defines;

An Actionable Claim comprises of –

  • a claim to unsecured debt or;
  • a claim to any beneficial interest in movable property not in actual or constructive possession of the claimant.

Debt:   we know there are two types of movable property; Tangible and Intangible, in tangible property, we can feel it and have its possession such as car, residence, jewellery, furniture’s etc. This type of properties has physical existence. In case of Intangible Properties, there are rights or obligations, which we enjoy. The existence of intangible movable can be known only when the person having such right claims it by an action in the court of law.  

The “Debt” includes a sum of money due by one person to another and which includes not only the amount payable at the time but also the sum of money which is not immediately due but might become payable after sometime. A sum of money which become payable in future due to present obligations will be considered as a Debt.  

A Debt may be Secured or Unsecured. Where a debtor gives security of any immovable or movable property to secure payment of debt, called Secured Debt and other the other hand where no security has given for payment of debt, called unsecured debt.  

An Unsecured Debt is treated as Actionable Claim.

1. Where a debt is already due and become payable is called “Existing Debt”

2. on the other hand, where a debt or sum of money is due at present but payable on a future date, it is “Accruing Debt”;

  • Where the claim for a sum of money exists but the payment depends upon the fulfilment of any condition, the debt is known as “Conditional Debt”.

CLAIMS WHICH ARE HELD TO BE ACTIONABLE CLAIM; following claims are included under the category of Actionable Claims;

1. A Claims for arrears of rent;

2. A share in partnership;

  • A Claim for money due under any insurance policy;

1. A claim for rent to fall due in future accruing debt;

2. A Claim for the return of earnest money;

3. A Claim for unpaid dower of a Muslim Woman;

  • A right to get back the purchase-money when sale is set aside;
  • A benefit of an executory contract for the purpose of goods is a beneficial interest in the movable property;

1. A right to proceeds of a business.

CLAIMS WHICH ARE NOT TREATED AS ACTIONABLE CLAIM;

1. A Decree is not an Actionable Claim;

2. A Right to get damages under the law of torts or for breach of contract;

  • A Claim to mesne profit is not an actionable claim but it is a mere right to sue;

1. A Copyright;

2. A Debt secured by mortgage of immovable property or hypothecation of movable property.

TRANSFER OF ACTIONABLE CLAIM:  Section 130 of Transfer of Property Act, 1882 provides that

(1) The transfer of an actionable claim (whether with or without consideration )shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, shall be complete and effectual upon the execution of such instruments, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not:

Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.  

(2) The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor’s consent to such suit or proceeding and without making him a party thereto.

  Note —Nothing in this section applies to the transfer of a marine or fire policy of insurance

or affects the provisions of section 38 of the Insurance Act, 1938 (4 of 1938)].  

LET’S ANALYZE PROVISIONS OF SECTION 130;  

It provides that the transfer of both types of actionable claims, i.e. with or without consideration are affected by execution of an instrument in writing. The instrument must be signed by the transferor or his duly authorised agent;  

It must be affected by instrument in writing signed by the transferor or his duly authorised agent. It is not necessary that the assignment should be made by a separate document. Only an endorsement on the back of the document containing actionable claim is sufficient for the purpose;  

Transfer of actionable claim takes effect only after execution and signing of the instrument. After execution, all the rights and remedies of the transferor vest in the assignee. The Assignee(transferee) becomes entitled to recover the claims and sue in his own name. The assignee also become liable for all the liabilities and equities to which the transferor was subject at time of the transfer.

  Assignment of Insurance Policy: The insured has assigned his policies to a bank. He then made a claim as a complaint under the Consumer Protection Act against the insurance company. In this case it was held that the Bank has right to claim amount from insurance company on the basis of decree passed by consumer court. The Bank need not to get permission from the insured.

  Subrogation of claim under insurance : A consignor has filed a suit against the carrier of cargo for loss of stock due to negligence and heavy rain. The insurance company after accessing claim amount has paid to the consignor and filed a recovery suit against the carrier on the basis of letter of subrogation and power of attorney received from the insured(consignor) in its own name. The court held that the suit of recovery of loss should be in the name of consignor name, not in the name of the insurance company on the basis of Power of Attorney;

  Notice of Assignment: A notice of assignment to the debtor is not compulsory to perfect the title of the assignee(transferee) but until the debtor receives notice of the assignment to a third person, his dealings with original creditor shall be protected. Thus, it is necessary for an assignee to give notice to the debtor as soon as possible;

Exception: the provisions of Section 130 are not applicable to the transfer of a marine or fire insurance policy or affect the provisions of Section 38 of the Insurance Act, 1938.

Indu Kakkar Vs. Harayana State Industrial Development Corporation Ltd., AIR 1999 SC 296C (1999): The Supreme Court held that the transferee cannot compel the corporation allotting the land to treat him as an allottee. In this case a plot was allotted to the allottee for the establishment of an industrial unit within a specified time-period by the Industrial Development Corporation. The original allottee has transferred the plot without the consent of the corporation. The Supreme Court held that the corporation could not ne compelled to treat him as an original allottee. He has no locus standi to challenge the order of resumption passed by the corporation.

Section 131 of The Transfer of Property Act, 1882 deals with Notice in case of assignment of Actionable Claim:  provides that every notice of transfer of actionable claim must be in writing and signed by the transferor or his duly authorised agent in this behalf. Where transferor refuses to sign, then the notice must be signed by the transferee or his agent. The notice must be in express terms of notice and name and address of the transferee must be written clearly on the notice. Notice must be unconditional.

Sadasook Ramprotap Vs. Hoar Miller & Co.    it was held that there is no time limit within which the notice must be given. Notice given within one year was held to be reasonable.

Section 132 of the Transfer of Property Act, 1882 deals with Liability of Transferee of Actionable Claim; the transferee of an actionable claim shall take it subject to all the liabilities and equities and to which the transferor was subject in respect thereof at the date of the transfer.

Let’s consider Mr. X transfers to Mr. Y a debt due to him by Mr. Z, Mr. X being then indebted to Mr. Y. Mr. Z sues Mr. Y for the debt due by Mr. Y to Mr. X. In this case Mr. Y is entitled to set off the debt due by Mr. X to Mr. Z, although Mr. Y was unaware of it at the date of transfer.

Note: – The principal of this section is that the assignee can get no better title than the assignor. If nothing is due to the assignor the assignee gets nothing .

Section 133 of the Transfer of Property Act, 1882 provides that: Where the transferor of a debt warrants the solvency of the debtor, the warranty, in the absence of a contract to the contrary, applies only to his solvency at the time of the transfer, and is limited, where the transfer is made for consideration, to the amount or value of such consideration.  

A warranty of solvency is not implied. Warranty is sometimes given by the transferor as a precautionary measure that the debtor is solvent so that the transferee becomes assured that he may not lose his claim. The warranty of solvency of debtor is limited only for the time of transfer or time of the assignment. Where the transfer is for consideration, such warranty extends only to the amount of such consideration.  

Section 134 of Transfer of Property Act, 1882 provides that; where a debt is transferred for the purpose of securing an existing or future debt, the debt so transferred, if received by the transferor or recovered by the transferee, is applicable;

  • First, in payment of the costs of such recovery;
  • Secondly, in or towards satisfaction of the amount for the time being secured by the transfer; and
  • Residue if any, belongs to the transferor or other person entitled to receive the same.

Section 135[ inserted by 1944 amendment act]  of the Act, 1882 Assignment of rights under policy of insurance against fire. —Every assignee by endorsement or other writing, of a policy of insurance against fire, in whom the property in the subject insured shall be absolutely vested at the date of the assignment, shall have transferred and vested in him all rights of suit as if the contract contained in the policy has been made with himself.

Section 135 provides that any assignee of a policy of insurance against fire, in whom the property in the subject insured shall be absolutely vested at the date of the assignment shall have transferred and vested him all rights of suit as if the contract contained in the policy has been made with him.

Note:  Section 130 of the Act, 1882 exempts the assignments of marine or fire policies of insurance from its operation because mere assignment of such policy does not entitle the assignee to the ownership of the subject matter of policy.

SECTION 137 of the Transfer of Property Act, 1882:  the provisions of Sections 130 to 136 of the Transfer of Property Act, 1882 dealing with transfer of actionable claim do not apply to stocks, shares or debentures , or to instruments whish are for the time being , by law or custom, negotiable ,or to any mercantile document of title to goods.

Mercantile Document of Tile of Goods; includes a bill of landing, dock-warrant, warehouse-keeprs’ certificate, railway receipt, warrant or order for the delivery of goods, and any other document used in ordinary course of business as a proof of the possession or control of goods, or authorising or purporting to authorise ,either by endorsement or by delivery, the purpose of the document to transfer or receive goods thereby represented.

Conclusion: Negotiable Instruments are governed by the provisions of Negotiable Instrument Act, 1881, such instruments are assigned or transferred by endorsement and delivery or mere delivery. However, a negotiable instrument may also transfer like and actionable claim. The assignee under the Transfer of Property Act, 1882 will acquire no more than the right, title and interest of the assignor but under transfer in Negotiable Instrument Act, 1881 the endorsee will have all rights and advantages of a holder of instrument in due course.

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, author assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws and take appropriate advice of consultants. The user of the information agrees that the information is not professional advice and is subject to change without notice. Author assume no responsibility for the consequences of the use of such information.

transfer of actionable claim 130

My Published Posts

Join taxguru’s network for latest updates on income tax, gst, company law, corporate laws and other related subjects., join us on whatsapp.

taxguru on whatsapp

Join us on Telegram

taxguru on telegram

Download our App

More under corporate law.

  • « Previous Article
  • Next Article »

Leave a Comment

Your email address will not be published. Required fields are marked *

Post Comment

Notice: It seems you have Javascript disabled in your Browser. In order to submit a comment to this post, please write this code along with your comment: 5049876e487dd0ce6d169c0e721bd56c

Latest Posts

  • Learn GST Filings with CA Sachin Jain’s Exclusive Live Course!
  • Crime Victim Not Liable for Investigating Officer’s Procedural Errors: Kerala HC
  • Interest on Loans to invest in Subsidiary Company Shares is Deductible: Bombay HC
  • Income Tax Assessing Authority Can Issue Multiple Notices: Kerala HC
  • CESTAT Chennai Upholds Suguna Poultry Farm’s Import Duty Refund
  • Disputed Clubbing of Turnover Not Adjudicable in Writ Petition: Kerala HC
  • Patna HC Upholds Settlement Commission Order: Rule 9 Report Validated
  • ITAT Quashes Penalty for Vague Notice Lacking Specific Grounds
  • Madras HC direct Appellate Authority to consider Belated GST Appeal Due to Illness on Merits
  • Lack of Trustee Signature on Balance Sheet Not Grounds to Dispute Fund Genuineness
  • Kerala HC Dismisses Writ Petition on Unexplained Cash Deposit

Popular Posts

  • Managing Director and Whole Time Director in a Private Limited Company
  • Bank of Baroda invites EOI for Concurrent Auditors Appointment
  • ICAI Guidance Note on Audit of Banks (2024 Edition)
  • Assessment of Trusts for A.Y 2022-2023, A.Y 2023-2024 and A.Y 2024-2025
  • ICAI Empanelment of Observers for May/June 2024 Exams

Featured Posts

  • NFRA Imposes Monetary Penalty & Two-Year Debarment from Auditing for CA
  • Live webinar – Solution to Serious Tax Problems – Hindi
  • Income-tax (Amendment) Rules 2024 – Changes in ITR-2, ITR-3 & ITR-5 Schedule CG
  • Dec 2023 Result Analysis: Institute of Cost Accountants – Intermediate & Final Exams
  • CS Professional & Executive Programme Exam Results on 25th February, 2024

Join our newsletter to stay updated on Taxation and Corporate Law.

Search Posts by Date

Transfer of Property Act

Home / transfer of property act, actionable claim,  05-jan-2024.

  • Transfer of Property Act, 1882 (TOPA)

Introduction

Actionable Claim is a species of property which is capable of ownership and transfer. Sections 3, 130, 131 and 132 of the Transfer of Property Act, 1882 (TPA) contain provisions in relation to Actionable claim.

Section 3 of TPA

  • Section 3 of TPA defines actionable claim.
  • It means a claim to any debt, other than a debt secured by mortgage of immoveable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in the possession, either actual or constructive , of the claimant, which the Civil Courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.

Illustrations

  • A borrows Rs. 1000 from B and mortgages his house to him. The mortgage debt is not an actionable claim.
  • C owes Rs. 1000 to D. D’s claim is an actionable claim.

Instances of Actionable Claim

  • Unsecured Debt
  • Maintenance allowance payable in future
  • A claim for return of earnest money
  • Fixed deposit in bank
  • Hire-purchase agreement
  • Arrears of Rent

Section 130 of TPA

  • This section deals with the transfer of actionable claims . It states that -

(1) The transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorized agent, shall be complete and effectual upon the execution of such instrument, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not.

Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim , shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.

(2) The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor's consent to such suit or proceedings and without making him a party thereto.

Section 131 of TPA

  • This section states that every notice of transfer of an actionable claim shall be in writing, signed by the transferor or his agen t duly authorized in this behalf, or, in case the transferor refuses to sign, by the transferee or his agent, and shall state the name and address of the transferee.

Section 132 of TPA

  • This section deals with the liability of transferee of actionable claim. It states that the transferee of an actionable claim shall take it subject to all the liabilities and equities to which the transferor was subject in respect thereof at the date of the transfer.
  • In the case of Doriaswami Mudaliar v. D. Aiyangar (1925), Madras High Court held that even though Section 130 of TPA does not prescribe any language or wording of transfer from the language used, the intention must be clearly discernible.

Actionable Claim

Unsecured money debts:.

  • When in a security of an immovable property, the debt is secured by a mortgage.
  • When the security is some movable property and that property is pledge and hypothecation.

Actionable claims include:

  • A maintainer allowance payable at a future date
  • A right to the proceed of a business
  • A partners right to sue for an account of a dissolved partnership
  • Annuities payable under deed of wakf
  • The price payable by a purchaser of immovable property before the execution of the conveyance
  • The right to recover the money left in the hands of vendee
  • An amount due under a policy of insurance
  • An amount due under letter of credit
  • Right to recover back the purchase money on the sale of being set aside
  • Arrears of rent
  • Future rents
  • A decretal debt or
  • Interest of purchaser of the lottery in the prize money

Non actionable claims

  • A judgement debt or decree
  • A claim to compensation for a canal constructed by the government on a part of mining site before the transfer of the mining lease and
  • A claim to mesne profits as they are unliquidated damages

Actionable Claim can be transferred under Section 130 of Transfer of Property Act, 1882

  • The transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorized agent, shall be complete and effectual upon the execution of such instruments, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not: Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.  
  • The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor's consent to such suit or proceedings and without making him a party thereto.
  • A owes money to B, who transfers the debt to C. B then demands the debt from A, who, not having received notice of the transfer, as prescribed section 131, pays B. The payment is valid, and C cannot sue A for the debt.  
  • A effects a policy on his own life with an Insurance Company and assigns it to a Bank for securing the payment of an existing or future debt. If A dies, the Bank is entitled to receive the amount of the policy and to sue on it without the concurrence of A's executor, subject to the proviso in sub-section (1) of section 130 and to the provisions of section 132.

General Principle

The transfer of an actionable claim whether with or without consideration shall be effected only:.

  • by the execution of an instrument in writing;
  • signed by the transferor or his duly authorised agent;
  • it shall be complete and effectual upon the execution of such instrument, and thereupon;
  • all the rights and remedies of the transferor, whether by way of damages or otherwise
  • shall vest in the transferee;
  • irrespective of whether such notice of the transfer be given or not.

Following are valid transfers:

  • An actionable claim includes future debts, and therefore there can be a valid assignment of future book debts;
  • Transfer of a right to a sum of money;
  • Transfer of the right to participate in the draw to be held in a lottery;
  • Assignment of dividends of a share in a company;
  • A gift of actionable claim valued at rupees three lakhs;
  • The right, to demand the re-conveyance of property;
  • The interest of a buyer of goods in a contract for forward delivery;
  • The benefit of a contract giving an option to purchase land may be assignable;
  • If the contract has been broken, a difference due on cross contracts in which delivery is not to be given or taken, is a debt or actionable claim and is assignable;
  • An engagement to pay out of a specific fund can be conferred in favour of a creditor by way of an irrevocable power of attorney and constitutes an equitable assignment.
  • A decree is not an actionable claim, and therefore, there cannot be transfer of part of the decree;
  • There cannot be an assignment of the promissory note, though there can be an assignment of debt;
  • Transfer of a collateral security does not transfer the loan; mortgage debt is not an actionable claim, and an unregistered assignment of a mortgage debt might be treated as an assignment of the debt dissociated from the security;

Law Article in India

Please drop your comments, you may like.

Emerging Jurisprudence Decriminalizes Medical Negligence

Emerging Jurisprudence Decr...

Antemortem Drowning and Post Mortem Drowning: Differences

Antemortem Drowning and Pos...

Challenges Confronting Airlines Industry

Challenges Confronting Airl...

French Constitution: Key Features, Strengths, Weaknesses and Its Influence on Indian Constitution

French Constitution: Key Fe...

The Role Of Police In Investigating A Crime

The Role Of Police In Inves...

Adam Smith's Limited Support for Public Works: A Contemporary View from India

Adam Smith's Limited Suppor...

Legal question & answers, lawyers in india - search by city.

Copyright Filing

Law Articles

How to file for mutual divorce in delhi.

Titile

How To File For Mutual Divorce In Delhi Mutual Consent Divorce is the Simplest Way to Obtain a D...

Increased Age For Girls Marriage

Titile

It is hoped that the Prohibition of Child Marriage (Amendment) Bill, 2021, which intends to inc...

Facade of Social Media

Titile

One may very easily get absorbed in the lives of others as one scrolls through a Facebook news ...

Section 482 CrPc - Quashing Of FIR: Guid...

Titile

The Inherent power under Section 482 in The Code Of Criminal Procedure, 1973 (37th Chapter of t...

The Uniform Civil Code (UCC) in India: A...

Titile

The Uniform Civil Code (UCC) is a concept that proposes the unification of personal laws across...

Role Of Artificial Intelligence In Legal...

Titile

Artificial intelligence (AI) is revolutionizing various sectors of the economy, and the legal i...

Lawyers Registration

File caveat In Supreme Court Instantly

Previously known as Law portal

Law column

Actionable claim under Transfer of Property Act

Actionable claim under Transfer of Property Act

Table of Contents

DEFINITION OF ACTIONABLE CLAIM

According to Section 3 of the Transfer of Property Act, 1882  actionable claim means :

Unsecured money debt

A debt may be secured or unsecured. Where the creditor takes security from the debtor for repayment of his money, the debt is secured debt. If debtor gives the security of his immovable property, the debt is secured by way of mortgage. Where security is some movable property, it is pledge or hypothecation. On the other hand, if there is no security of any movable or immovable property, the debt is unsecured. According to Section 3 only unsecured debt is an actionable claim. Debt secured by way of mortgage, pledge or hypothecation is not an actionable claim. ‘Debt’ in this Section does not mean only ‘loan’. Any obligation to pay a certain or definite sum of money may be called a ‘debt’. For example, claim of ‘arrears of rent’ is an actionable claim. ‘Debt’ may be existent, accruing or conditional:  

  • Existent Debt – Where a debt or sum of money has already become due and is payable at present, the debt is existent.
  • Accruing Debt – Where a debt or sum of money is at present due but it is payable not now but on a future date, the debt is accruing. Accruing debt is due at present but becomes payable only on a future date. It was held in Poothekka v. Annamalai [1] that a claim for salary to fall due in the next month is an accruing debt and as such an actionable claim
  • Conditional or Contingent Debt. – Where the claim for a sum of money exists but the payment depends upon the fulfillment of any condition, the debt is conditional. Where the claim of money is subject to some uncertain future event which may or may not happen, the claim is contingent.

Claim to beneficial interest not in possession of the claimant

Right of a person to take the possession of a movable property from the possession of another, is the actionable claim of that person provided that the claimant has beneficial interest, that is, the right of possession in that property. Following requirements are necessary for consulting an actionable claim –

  • The claim is to some movable property.
  • The movable property is in possession of another person.
  • The beneficial interest or the right of possession of the claimant is recognized by the Court.

A person can claim possession of a movable property of which he has right to possess but it is not in his possession. Moreover, the claimant must also have right of possession, if he has no legal right of possession, the claim is not actionable claim.

INSTANCES OF ACTIONABLE CLAIMS

Some of the claims recognized as actionable claims are:

  • Claim for arrears of rent.
  • Claim for money due under insurance policy.
  • Claim for return of earnest money.
  • Right to get back the purchase-money when the sale is set aside.
  • Right of a partner to sue for an account of the dissolved partnership firm.
  • Muslim woman’s claim for her unpaid dower/
  • Right to claim benefit under a contract for the purchase of goods.
  • Right to get the proceeds of a business.

In Sunrise Associates vs. Govt. of NCT of Delhi & Ors [2] , the Supreme Court held that the lottery ticket has no value in itself as it is mere piece of paper. Its value lies in fact that it represents chance or right to conditional benefit of winning prize of greater value than consideration paid for transfer of that chance. It is nothing more than token or evidence of this right. Three ingredients in the sale of lottery tickets, namely, (i) prize; (ii) chance; and (iii) consideration. The bench held that the sale of lottery tickets is an actionable claim.

TRANSFER OF ACTIONABLE CLAIMS

Section 130 makes it clear that actionable claims are transferable properties. Any kind of transfer, that is, sale, gift, exchange or mortgage of an actionable claim is possible.

MODE AND EFFECT OF ASSIGNMENT

According to Section 130, transfer of actionable claims, whether with or without consideration, must be made by an instrument in writing. The instrument must be either signed by the transferor or by his duly authorized agent. There cannot be oral assignment of any actionable claim. However, registration of the same is not necessary to effect the transfer. It is also not compulsory that there is a separate deed for transfer. If there is an endorsement transferring the right under a promissory note, the actionable claim is deemed to be transferred and the transferee is in position to recover money due under the promissory note without obtaining a decree on the debt itself.

Transfer of actionable claims takes effect after execution of the instrument. The execution is complete when the transferor puts his signature or thumb impression. After execution, all the rights and remedies of the transferor passes on to the transferee. The assignee himself becomes entitled to recover the claims and sue in his own name. As the assignee becomes ‘owner’ of all the rights and liabilities of the actionable claim transferred to him, he is subject to also the liabilities present.

NOTICE OF ASSIGNMENT

According to Section 131, notice is not necessary to perfect the title of the assignee of a debt. However, until the debtor receives notice of the assignment in accordance with law, his dealings with the original creditor will be protected. Accordingly, notice is necessary to protect the interest of the assignee. In the absence of notice, the transferee shall lose his claim which is paid to the transferor. This Section provides following two requirements for a valid notice:

  • The notice must be in writing and state the name and address of the transferee.
  • It must also be signed by the transferor or his duly authorized agent or, where transferor refuses to sign, it must be signed by the transferee or his agent.

LIABILITY OF TRANSFEREE OF ACTIONABLE CLAIM

According to Section 132, after execution of the instrument assigning actionable claim, all the rights and liabilities in respect of the claim will pass on from transferor to the transferee. The liabilities and equities, to which the transferor was subject to at the date of transfer, become the liabilities and equities of the transferee. Transferor can get no better title than the transferor. The assignee is bound by the liabilities of the assignor being transferred even if the assignee had no notice of such liabilities.

WARRANTY OF SOLVENCY OF DEBTOR

When a debt is transferred the transferee may run the risk of losing the claim in such circumstances when the debtor is an insolvent. As a precautionary measure, the transferee should assure the transferor that debtor is solvent. Section 133 provides that when the transferor of a debt gives warranty as to solvency of the debtor, in the absence of any contract to contrary, the warranty applies to his solvency only at the date of transfer. When the transfer is for consideration, any such warranty extends only to the amount or value of such consideration. However, this rule is applicable only where the transferor actually gives such warranty. It is open to the parties to contract any contrary stipulation.

MORTGAGED DEBT

Actionable claim is a property and transfer of this property by way of mortgage is possible. Actionable claim is unsecured money debt. This debt may be secured by another debt (actionable claim). So, where a debt is transferred for securing another existing or, future debt it is considered to be a transfer of an actionable claim by way of mortgage. Section 134 provides the following rules under which the money realized out of such debt is to be appropriated:

  • The debt received by the transferor or recovered by transferee is to be applied in payment of the cost of such recovery.
  • It is to be applied towards satisfaction of the amount secured by the transfer.
  • If any residue remains after the above mentioned payments, the remainder is to be given to the transferor.

ASSIGNMENT OF RIGHTS UNDER POLICY OF INSURANCE AGAINST FIRE

The general rules for assignment of actionable claims are unsuitable to the assignment of rights under the insurance policies of fire or marine. This is because of the fact that such rights cannot be assigned without transfer of the property insured. Mere transfer of such policy cannot entitle the assignee to get ownership of the property insured.

INCAPACITY OF OFFICERS CONNECTED WITH COURTS OF JUSTICE

Section 136 states that the persons specified in the Section cannot be assignees of actionable claims. Both the transferor and transferee must be competent persons and the property must also be transferable within the meaning of Section 6 of this Act. This Section specifies the persons who are legally disqualified to a be a transferee for the transfer of actionable claims. According to this section no Judge, legal practitioner or officer connected with any Court of Justice shall buy or traffic in or, stipulate for or agree to receive any share or interest in any actionable claim. It further provides that no Court of Justice shall enforce at his instance or at the instance of any person claiming by or through him, any actionable claim, so dealt with by him. The object of such prohibition is to ensure the impartiality of judiciary. In Kerakoose v. Serle [3] , the privy Council has stated the following: “It is of great importance that no officer of a Court of Justice should be even exposed to the suspicion that in the discharge of his official duties his conduct may be influenced by any personal consideration.

However, the above mentioned persons cannot buy or deal with another person’s actionable claim privately, but they can sell their own actionable claims.

SAVING OF NEGOTIABLE INSTRUMENTS, ETC.

The expression “mercantile document of title to goods” includes railway receipt, warrant or order for the delivery of goods, and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorizing or declaring to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods hereby represented.

Under Section 137 documents which are in the nature of negotiable instruments are exempt from the operation of the provisions of this Chapter. Negotiable instruments are regulated by the Negotiable Instruments Act. Normally, negotiable instruments are assigned by endorsement and delivery of possession or, if payable to bearer, by delivery alone. So, the assignment of stocks, shares or debentures or instruments which are for the time being, by law or custom, negotiable, or any mercantile document of title to goods, has been exempted from the operation of this Chapter. ‘Mercantile document of title to goods’ have been enumerated in the Explanation to this section. Their transfer is governed by the law or custom of the merchants. A Railway Receipt is a document of title to goods. In Commissioner of Income Tax v. Bhopal Textiles Ltd [4] ., the Supreme Court held that when it is handed over to the consignee on payment, the property in the goods is transferred.

A negotiable instrument may be transferred also like any actionable claim under this Act. Section 137, while giving an additional privilege to mercantile documents, does not restrict the transfer of negotiable instruments otherwise than by way of an endorsement.

[1] AIR 1926 Mad. 1173

[2] 2006 (5) SCC 603

[3] (1846) 3 MIA 329

[4] AIR 1961 SC 426

Dr. R.K.Sinha, The Transfer of Property Act (Central Law Agency, Allahabad, 20 th edn., 2019).

  • S. Rama Rao, Transfer of Property Act (MSR Law Books)

G.C. Venkatasubharao, The Transfer of Property Act, 1882 (C.Subbiah Chetty & Co., Chennai, 16 th edn., 2019).

Author: Aditi Shanmugam, Chettinad School of Law, 2nd year/ Student

You may also like

Leave a comment cancel reply.

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Notify me of new posts by email.

clatalogue Logo

Home / clat pg / Actionable Claim and Transfer of Actionable Claim under Transfer of Property Act

Actionable claim and transfer of actionable claim under transfer of property act.

Khushi Malviya | Jan 02, 2024 | 7 min read

Vercel Logo

Introduction

The code of contract with respect to the law of property was completed with the enactment of the Transfer of Property Act in the year 1882  (‘ToPA’) . It codified the laws pertaining to the transfer of property. However, TOPA does not cover all kinds of properties and their transfer.

An actionable claim represents a legal right that can be the subject of a lawsuit, and the transfer of actionable claims involves the assignment of these rights from one party to another. This post deals with actionable claim and their transferability under the Transfer of Property Act.

Actionable Claim under Transfer of Property Act

The term “Actionable Claim” is a legal concept that is defined under Section 3 of the Transfer of the Property Act . According to said provision, an actionable claim means a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in movable property not in the possession, either actual or constructive, of the claimant, which the civil courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing confidential or contingent.

Thus, as per the aforesaid provision, an actionable claim is a claim to:

i) any unsecured debt, or

ii) any beneficial interest in a movable property that is not in the claimant’s possession, either actual or constructive.

Apart from aforesaid types of claims, there are other kinds of claims as well that are actionable in nature and can afford relief. However, several kinds of claims are not actionable claims as per the definition enumerated under the TOPA, and therefore, they cannot be transferred.

For instance, in Jugal Kishore Saraf v. Raw Cotton Limited , the Apex Court found that since the action is necessary in case of a decree or a judgment debt, it cannot be termed as an actionable claim.

In the case of Moti Lal v. Radhey Law , the Apex Court held that the right of claiming damages, whether it arises out of contract or un-liquidated damages arising out of tortuous liability, cannot be regarded as an actionable claim. This is undoubtedly an obligation but does not amount to unsecured debt. It is attributable to the uncertain sum of money involved.

Furthermore, it is also not a part of an original transaction, which is a must for a claim to become actionable. However, it includes the principal money and the interest charged thereupon for them being a specific nature of the debt. On the other hand, damages are of an uncertain nature and, therefore, not an actionable claim.

Similarly, in Jai Narayan v. Kishun Dutta , the Court found that mesne profit cannot be regarded as an actionable claim as it is un-liquidated in nature. Further, it is neither a claim to a beneficial interest in movable property. Thus, it is a “ mere right to sue “.

Moreover, rights under trademark, patent and copyright are also not termed as actionable claims. This is due to the fact that they already vest in the individual who possesses them. They are the individual’s intellectual property, and hence, another person cannot be permitted to claim under them. They are governable under their respective legislation and cannot be transferred as actionable claims.

Transfer of Actionable Claim 

Since an actionable claim is not considered “property” under the TOPA, it cannot be transferred in the same way that property can be transferred. Sections 130 to 137 of Chapter VIII of the TOPA deal with the transfer of actionable claims. This Chapter provides general principles that must be borne in mind while transferring actionable claims. The provisions are analysed hereinunder. 

Section 130 of Transfer of Property Act

This section states that an actionable claim can be transferred:

i) with or without consideration

ii) by way of an instrument in writing duly signed by the transferor or his agent duly authorised in this respect .

Thus, oral transfer of actionable claims is not permitted. However, its registration is not necessary, and no separate instrument of transfer is to be effected.

Section 131 of Transfer of Property Act

The notice is not necessary to ensure perfection of the transferee’s title of actionable claim. However, the dealings of the debtor with the creditor are protected until the former receives the notice of such an assignment in observance of the conditions enumerate under Section 131 of the TOPA. It states that:

i) The notice of transfer of the actionable claim has to be made in writing.

ii) It must be signed by the transferor or his agent authorised on his behalf.

iii) However, if the transferor refuses to sign it, then, in that case, it must be signed by the transferee of actionable claim or his duly authorised agent.

The Hon’ble Apex Court has clarified in Sadasook Ramprotap v. Hoar Miller & Co . that Section 131 of TOPA does not prescribe any time limit for the service of notice. It must be within a reasonable period of time and unconditional.

Section 132 of Transfer of Property Act

The principle behind this section is that the transferee gets no better title than the transferor. Thus, the transferee takes all the equities and also the liabilities of the transferor to which the latter was subject at the time of such assignment.

Section 133 of Transfer of Property Act

This provision deals with the warranty of solvency of debtor. In the case of assignment of a debt, the transferee runs the risk of losing the claim when the debtor becomes insolvent. Therefore, as a precaution, the transferor of the actionable claim warrants the solvency of the debtor at the date of assignment. But this is subject to contract to the contrary. Further, it is limited only to the amount or value of the consideration for which it is transferred.

Section 134 of Transfer of Property Act

Since an actionable claim is a property, its transfer by way of a mortgage is possible. When one debt is transferred to cover an other debt, whether existent debt or future debt, it is referred to as a transfer of actionable claim by way of a mortgage. This section provides the below-mentioned preposition under which the amount so realised could be appropriated:

i) the debt received by the transferor or recovered by the transferee is to be applied in payment of the cost of such recovery.

ii) it is to be applied towards satisfaction of the amount secured by the transfer.

iii) if any residue remains after the above-mentioned payments, the remainder is to be given to the transferor.

Section 135 of Transfer of Property Act

This provision was inserted by the Amendment Act of 1944. It states that the asignee of fire insurance policy in whom the property of the subject matter of policy is absolutely vested at the date of assignment, it would have the effect of transferring and vesting in him all the rights to sue just as if the insurance policy was entered into by him.

Section 136 of Transfer of Property Act

The persons mentioned under this section are not legally qualified to make transfers of actionable claims. The object behind this disqualification of “ Judges, legal practitioners and officers connected with Courts of Justice ” is to ensure that the judiciary remains impartial. 

Section 137 of Transfer of Property Act

Furthermore, this Chapter is not applicable to negotiable instruments and other instruments mentioned thereunder. This is because they are governed by other laws and statutes.

After studying every relevant provision of the TOPA it can indeed be concluded that actionable claims as defined under Section 3 of the TOPA are transferable in nature. It is a movable property of intangible nature that could be assigned as per the provisions and rules mentioned in Chapter VIII of the TOPA. Thus, one must be evident as to the nature of the property, the process of transfer of the actionable claim and the law laid down under various judgements of the Indian courts to effectuate a valid transfer of actionable claim.

For more such notes on Transfer of Property Act, click here!

Subscribe to our newsletter and get daily news & updates directly to your inbox!

Please provide a valid email address.

Join our WhatsApp Group

transfer of actionable claim 130

Join our Telegram Group

transfer of actionable claim 130

FIR Online, download legal format. IPC, CPC, CrPC, IP, NI, CP Act

  • ONLINE FILING
  • COMPANIES ACT
  • LEGAL FORMATS

Section 130 - Transfer of actionable claim : Transfer of Property Act, 1882

What is Transfer of actionable claim? Section 130 of Transfer of Property Act, 1882

Section 130 of Transfer of Property Act 1882 : "Transfer of actionable claim"

130. (1) The transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, shall be complete and effectual upon the execution of such instrument, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not:

Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.

(2) The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor's consent to such suit or proceedings, and without making him a party thereto.

Exception.-Nothing in this section applies to the transfer of a marine or fire policy of insurance or affects the provisions of section 38 of the Insurance Act, 1938 (4 of 1938).

Illustrations (i) A owes money to B, who transfers the debt to C. B then demands the debt from A, who, not having received notice of the transfer, as prescribed in section 131, pays B. The payment is valid, and C cannot sue A for the debt.

TRANSFER OF PROPERTY ACT 1882

Section 126 - When gift may be suspended or revoked

Section 127 - Onerous gifts

Section 128 - Universal donee

Section 129 - Saving of donations mortis causa and Muhammadan law

CHAPTER VIII TRANSFERS OF ACTIONABLE CLAIMS

Section 130 - Transfer of actionable claim

Section 130A - Transfer of policy of marine insurance (Repealed)

Section 131 - Notice to be in writing, signed

Section 132 - Liability of transferee of actionable claim

Section 133 - Warranty of solvency of debtor

Section 134 - Mortgaged debt

Section 135 - Assignment of rights under policy of insurance against fire

Section 135A - Assignment of rights under policy of marine insurance (Repealed)

Section 136 - Incapacity of officers connected with Courts of Justice

Section 137 - Saving of negotiable instruments, etc

University program shut down amid class action investigating veterans' medical data distributed without consent

News ticker, bushfire warning.

Emergency warnings are active for fires burning in Victoria, north of Ballarat. Keep up to date with ABC Emergency

A close-up of an Australian Army patch and an Australian flag patch on an ADF officer's uniform.

A University of South Australia program has been shut down and a class action is being considered amid claims by advocates that sensitive information about veterans was disclosed without their consent.

The Medicines Advice and Therapeutics Education Services (MATES) program has been cancelled amid revelations that the program was using identifiable data.

The program, led by the Department of Veterans' Affairs (DVA) and has been running since 2005, involved the use of veteran's healthcare card billing data provided by the department to conduct medical research.

Last week, the department's ethics committee revoked its approval of the program.

Photograph of David Peterson wearing medals and smiling, with black background

Returned and Services League (RSL) South Australia president Dave Petersen said the impact on veterans has been profound.

"I know of veterans today who will not go to the doctor, because they do not want their medical information to be sent to the University of South Australia," Mr Petersen said.

"I have veterans who are reporting to me great distress that their privacy has been breached."

Advocates have welcomed the closure of the program.

Former state Veteran Affairs minister Martin Hamilton-Smith said while the program had saved lives, permission should have been sought from those affected.

"There's always good outcomes, but there's always unintended consequences," Mr Hamilton-Smith said.

"And apart from privacy aspects to this, now this data's been collected … is it going to be retained? Is it going to be destroyed? We just don't know."

In a statement, a UniSA spokesperson said the university was working to return the data to the department.

"UniSA is committed to advancing the recognition of veterans' health and wellbeing needs," the spokesperson said.

"When UniSA became aware of questions raised with DVA about consent for the data it provides to the university, the university requested the suspension of the transmission of that data.

"UniSA is in the process of returning that data securely to DVA, as requested by the DVA Human Ethics Committee prior to the minister's announcement of the program's closure."

Potential class action

A legal firm that specialises in compensation, Gordon Legal, said in a statement that the program "involved the mass disclosure of over two decades of identifiable data".

"Gordon Legal... will investigate a potential class action against the Department of Veterans' Affairs for breach of confidence arising from the unauthorised disclosure of the medical information, personal information and contact details of up to 300,000 service men, women and their families," the statement said.

The law firm said it had filed a representative complaint with the Information Commissioner "on behalf of all those affected by the disclosures".

The shadow of an Australian veteran with an Australian flag in the background

"Recently, the DVA conceded that it misled the Information Commissioner about the extent of the disclosed information in an earlier investigation of the MATES Program," the statement said.

Lawyer Seb O'Meara, who is leading the law firm's investigation into the issue, said the firm would consider  "avenues for compensation".

"This matter highlights the crucial need for government bodies to be held accountable for protecting Australians' sensitive information," the lawyer said.

"Our investigation will look at legal options to protect the privacy of veterans and their families and attempt to rectify these injustices."

Data transfer stopped six months ago: department

In a statement, the department said it stopped transferring data to UniSA last August to enable a "thorough examination of the existing arrangements".

"DVA takes its obligations under the Privacy Act extremely seriously," the statement said.

The department said it was important to note that "there has not been any unauthorised access of veteran data".

"The data has not been made available publicly or for nefarious purposes," the department said.

"DVA only ever provided client data for the purposes of MATES to a trusted organisation, the University of South Australia under strict data security and access policies."

The department said it provided the data to UniSA "in accordance with the ethics approvals in place at the time".

"This was done via a secure and carefully controlled channel. UniSA stored the data in a secure facility. Billing data was automatically de-identified before being accessed by researchers for the thematic review under the MATES program."

The department said the data did not include doctor's notes.

"Identifying data was only used to communicate with the veteran themselves, as well as their doctor, in the event that the analysis of the de-identified data revealed risks to the veteran's health," the department said.

"The letters that went to veterans and their doctors provided invaluable insights that supported those veterans receiving the most appropriate treatment possible."

The department said an external review was conducted last year into the administration of the opt-out procedures.

"The review concluded all other such requests received by DVA to opt out of MATES had been properly implemented," the department said.

It said any future program would be subject to new approval by its ethics committee.

  • X (formerly Twitter)
  • Federal Government
  • Health Policy
  • Medical Ethics
  • Research Projects

IMAGES

  1. Transfer of actionable claim Section 130 -137 Transfer of Property Act

    transfer of actionable claim 130

  2. Transfer of Actionable Claims || Section 130

    transfer of actionable claim 130

  3. Actionable Claim (Sec 130-137 Transfer of property act) with case laws

    transfer of actionable claim 130

  4. THE TRANSFER OF PROPERTY ACT, 1882 SECTION 130-137

    transfer of actionable claim 130

  5. Transfer of Property Act 1882 (Section 130 -137)

    transfer of actionable claim 130

  6. Lecture-15 Actionable Claim Section

    transfer of actionable claim 130

VIDEO

  1. DTC

  2. How to Transfer Data/mb Gp to gp, Gp to Gp mb Transfer, Grameenphone Mb transfer. transfer data gp

  3. Efficiency Booster

  4. claiming

  5. Mastering The Diamond: Hitting, Pitching & Fielding Techniques at Strike One Baseball @S1baseball

  6. Actionable claim Transfer of property act 1882

COMMENTS

  1. Transfers Of Actionable Claims (Section 130 to Section 132 of the

    According to Section 130 (1) of the Transfer of Property Act, the transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorized agent, shall be complete and effectual upon the execution of such instruments, and thereupon al...

  2. Actionable claim and transfer of actionable claim ...

    April 12, 2021 Introduction: Actionable claim The transfer of property act is generally based on immovable property, but some of its provisions can also be laid on movable property. Actionable claim in general terms signifies a claim or a debt for which you can take an action.

  3. Transfer of Actionable Claims || Section 130

    Transfer of Actionable Claims || Section 130 - Section 137 || Transfer of Property Act 1882 Archna Sukhija 79.2K subscribers Subscribe Subscribed Like Share 43K views 3 years ago...

  4. Transfer of Actionable Claim

    Exceptions to Section 130 Transfer of Property Act, 1882 Actionable claim is defined in Section 3 of the Transfer of Property Act, 1882 which was included by the Amending Act II of 1990. It is an intangible movable property, and its transfer is discussed in Chapter VIII of the Act. It has been laid down in the following words:

  5. Section 130 in The Transfer Of Property Act, 1882

    (1) The transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, shall be complete and effectual upon the execution of such instruments, and thereupon all the rights and remedies of the transferor, whether by wa...

  6. Section 130 of Transfer of Property Act, 1882: Transfer of actionable claim

    (1) The transfer of an actionable claim 2[whether with or without consideration] shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, 3[***] shall be complete and effectual upon the execution of such instrument, and thereupon all the rights and remedies of the transferor, whet...

  7. Section 130 of the Transfer of Property Act, 1882

    — (1) The transfer of an actionable claim 1 [whether with or without consideration] shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, 2 [***] shall be complete and effectual upon the execution of such instruments, and thereupon all the rights and remedies of the transferor,...

  8. Section 130 TPA

    Section 130 TPA By: WL Staff In: TPA (Transfer of Property Act), 1882 CHAPTER VIII - OF TRANSFER OF ACTIONABLE CLAIMS 130. Transfer of actionable claim.

  9. Section 130. Transfer of Property Act, Transfer of actionable claim

    Section 130. Transfer of Property Act, Transfer of actionable claim. Home Bare Act Central Acts and Rules Property Laws Transfer of Property Act, 1882 Chapter 8 TPA, Transfers Of Actionable Claims Section 130. TPA, Transfer of actionable claim. Section 130. TPA, Transfer of actionable claim. Next

  10. Section 130 of Transfer of Property Act

    Section 130 Transfer of Property Act Description. (1) The transfer of an actionable claim [whether with or without consideration] shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, and shall be complete and effectual upon the execution of such instrument, and thereupon all ...

  11. Actionable Claim

    Under Section 130 of the Transfer of Property Act, the mode of transfer of actionable claim is described. According to Section 130, · The transfer can be done by only a written instrument; · And signed by the transferor or his legal agent; and · The transfer will be complete.

  12. Transfer of Actionable Claims

    Section 3 of Transfer of Property Act, 1882 defines ; "actional claim means a claim to any debt , other than a debt secured by mortgage of immovable property or by the hypothecation or pledge of movable property , or to any beneficial interest in movable property not in the possession, either actual or constructive , of the claimant, which the c...

  13. TRANSFER OF ACTIONABLE CLAIMS

    Section 3 of Transfer of Property Act, 1882 defines ; " actionable claim means a claim to any debt , other than a debt secured by mortgage of immovable property or by the hypothecation or pledge of movable property , or to any beneficial interest in movable property not in the possession, either actual or constructive , of the claimant, which th...

  14. Actionable Claim

    Introduction. Actionable Claim is a species of property which is capable of ownership and transfer. Sections 3, 130, 131 and 132 of the Transfer of Property Act, 1882 (TPA) contain provisions in relation to Actionable claim.. Section 3 of TPA

  15. PDF Scrutinizing the Concept of Actionable Claim and Its ...

    Transfer of actionable claim is defined under section-130 of the Transfer of Property Act, 1882. Section-130 explains about the legal framework required for the transfer of property. It determines about the procedure for the transaction of transfer of actionable claim to be made effective and competent. According to section-130 any type of ...

  16. Actionable Claim

    Actionable Claim | Section 130 to 137 | Transfer of Property Act | study for Judicial Services Study for Judicial Services 49.5K subscribers Subscribe Subscribed 1K Share 15K views 3...

  17. ACTIONABLE CLAIM UNDER TRANSFER OF PROPERTY ACT

    Under Section 130 of the Transfer of Property Act, the mode of transfer of actionable claim is described. According to Section 130 [1], (a) The transfer can be done by only a...

  18. Actionable Claim

    Actionable Claim can be transferred under Section 130 of Transfer of Property Act, 1882

  19. Actionable claim under Transfer of Property Act

    According to Section 3 of the Transfer of Property Act, 1882 actionable claim means : Unsecured money debt A debt may be secured or unsecured. Where the creditor takes security from the debtor for repayment of his money, the debt is secured debt. If debtor gives the security of his immovable property, the debt is secured by way of mortgage.

  20. Actionable Claim- What it is and What does the Law say about it?

    Actionable claim is defined in Section 3 of the Transfer of Property Act, which was included in the Act by the Amending Act II of 1990. Actionable claim is an intangible movable property, and its transfer is dealt with in Chapter VIII of the Act. According to Section 3 of the Act, actionable claim means: Claim to an unsecured debt

  21. Actionable claim Sec 130, 131 , 132 , 136 || Transfer of Property Act

    In the Transfer of Property Act (TPA), an actionable claim refers to a claim that can be enforced through legal action. Specifically, Section 3 of the TPA defines an actionable...

  22. Actionable Claim under Transfer of Property Act

    i) any unsecured debt, or ii) any beneficial interest in a movable property that is not in the claimant's possession, either actual or constructive. Apart from aforesaid types of claims, there are other kinds of claims as well that are actionable in nature and can afford relief.

  23. 130 TP Act 1882

    Section 130 of Transfer of Property Act 1882 : "Transfer of actionable claim". 130. (1) The transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, shall be complete and effectual upon the execution of such ...

  24. University program shut down amid class action investigating veterans

    Data transfer stopped six months ago: department. In a statement, the department said it stopped transferring data to UniSA last August to enable a "thorough examination of the existing arrangements".