Madras High Court
RAMAMURTI
Palanivelu - Appellant
Versus
Ouseph Mathai - Respondent
Decided On : 09/20/1972
TRANSFER OF PROPERTY ACT - SURRENDER BY LIFE TENANT - SECTION 5, 53 - SURRENDER BY LIFE TENANT IN FAVOUR OF REMAINDERMEN IS NOT A 'TRANSFER' WITHIN THE MEANING OF THE TRANSFER OF PROPERTY ACT.
Fact of the Case:
A life tenant executed a surrender deed in favor of the remaindermen, accelerating their rights to the property. A decree holder, who had obtained a decree against the life tenant, sought to attach the property on the ground that the surrender was fraudulent and intended to defeat his claim.
Finding of the Court:
The court held that the surrender by the life tenant was not a 'transfer' within the meaning of Section 5 of the Transfer of Property Act, and therefore, it could not be attacked under Section 53 of the Act.
Issues: Whether the surrender by the life tenant amounted to a 'transfer' within the meaning of Section 5 of the Transfer of Property Act.
Ratio Decidendi: The court relied on the definition of 'transfer of property' in Section 5 of the Transfer of Property Act, which requires a conveyance of property from one living person to another. The court held that a surrender by a life tenant does not involve a conveyance of property, but rather an effacement or extinguishment of the life tenant's rights, resulting in the acceleration of the rights of the remaindermen. The court also referred to case law holding that surrender is not a mode of transfer under the Transfer of Property Act.
Final Decision: The court allowed the appeal and decreed the plaintiffs' suit, holding that the surrender by the life tenant was not a 'transfer' within the meaning of Section 53 of the Transfer of Property Act.
2. The matter has got to be decided under the provisions of Section 53. Transfer of Property Act, read with Section 5 of the same Act. Section 5 defines 'transfer of property' in these terms:-
"In the following sections 'transfer of property' means an act by which a living person conveys property in present or in future, to one or more other living persons, or to himself or to him self and one or more other living persons; and 'to transfer property' is to perform such act. In this section, 'living person' includes a company or association or body of individuals whether incorporated or not, but nothing con tained herein shall affect any law for the time being in force relating to transfer of property to or by compa nies, association or bodies of individuals."
In order to attack a transaction under Section 53, there must first be a transfer and that transfer must suffer under the infirmities mentioned in the said section. The question is: If a person who is a life-tenant under a settlement deed walks out of the picture and accelerates the rights of the remaindermen, whether that would amount to a 'transfer' within the meaning of the Transfer of Property Act. Sections 5 and 53?"
3. Cases have uniformly taken the view that a document of release, a document of relinquishment and document of surrender would not amount to a 'transfer' within the meaning of Section 5. The important idea involved in a transfer is that under the transfer a person who got title or right conveys that right or title to the transferee, which right the transferee acquires only in pursuance of the transfer. In the case of a surrender by life tenant in favour of the remaindermen, there is no transfer of property from the life tenant and there is merely an effacement or extinguishment of the rights of the life-tenant, with the re sult the rights of the remaindermen get accelerated. The rights of the re maindermen are derived only under the document executed by the full owner and when a surrender deed is executed, the full rights accrue to the remainder men only in pursuance of the title derived under the settlement and the remaindermen do not derive any title from or through the life-tenant who makes the
surrender. In other words there is merely a self-effacement on the part of the surrenderer life-tenant, who goes out of the picture.
4. Reference may be made to the Bench decision in Makhanlal Laha v. Nagendranath Adhikari ILR 60 Cal 379 : (AIR 1933 Cal 467) in which the Bench has pointed out that the word 'transfer' has been used in a technical sense and under the Transfer of Property Act, transfers are sale, mortgage, lease, exchange and gift, and that there is nothing in the Act to indicate that 'surrender' is a mode of transfer. It is observed-
"The term 'surrender' distinguished from transfer is very well known in
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