IN THE HIGH COURT OF MADRAS
Venkatasubba Rao, J.
Susai Lazar Villavaraya
Versus
M. Ramaswami Naidu and Ors.
Decided On : 20.04.1933
Transfer of Rights - Property Rights - The court held that the transfer of property rights and the right to past profits was valid, as the transferee acquired more than a mere right to sue. The assignment in favor of the plaintiff does not contravene any principle of law and must be recognized.
Fact of the Case:
Some co-owners transferred their rights in certain properties and the right to past profits to the plaintiff. Defendant 1 resisted the claim to the profits, arguing that a mere right to sue cannot be transferred under Section 6(e), T.P. Act.
Finding of the Court:
The court found that the transfer of property rights and the right to past profits was valid, as the transferee acquired more than a mere right to sue. The assignment in favor of the plaintiff does not contravene any principle of law and must be recognized.
Issues: The issues involved the validity of the transfer of property rights and the right to past profits, and whether the transfer contravened any principle of law.
Ratio Decidendi: The court interpreted the law to hold that the right to profits against a co-sharer in possession is not a right to mesne profits, but a right to obtain and call for an account, which can be transferred.
Final Decision: The second appeal was allowed with costs, and the judgment of the trial Court was restored.
Venkatasubba Rao, J.
1. Some of the co-owners transferred their rights in certain properties in favour of the plaintiff. They also purported to transfer their right to the past profits. Defendant 1 resists the claim to the profits on the ground that under Section 6(e), T.P. Act, a mere right to sue cannot be transferred. In the first place, was what was transferred a mere right to sue? The word "mere" in the section is not without significance and in my opinion implies that the transferee has acquired no interest other than a bare right to sue. But in this case not only was the right to the profits assigned, but the property itself was transferred. Secondly, defendant 1s contention is that the transfer was of mesne profits and is therefore invalid. It is unnecessary to inquire whether mesne profits can be assigned or not. The expression "mesne profits" connotes that the defendant is in wrongful possession: vide Section 2(12) Civil P.C., but it is well settled that the receipt of profits by a cosharer in not wrongful; sea Yerukola v. Yerukola AIR 1922 Mad 150. The right to the profits against a cosharer in possession, is not in law a right to mesne profits, but is a right to obtain and call for an account, and such a right, it has been repeatedly held, can be transferred: see Ramiah v. Rukmani Ammal (1913) 18 IC 138 and Annamalai Chettiar v. Muthukaruppan Chettiar AIR 1981 PC 9. In this view the assignment in favour of the plaintiff does not contravene any principle of law and must be recognized. In the result the second appeal is allowed with costs here and in the Court below and the judgment of the trial Court is restored.
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