Property
Property
(vi)The
lessee must accept the transfer; and
(vi)In certain cases a lease must be made through a registered deed.
Generally speaking, alease is always with respect to
Therightinvolved in a lease is also called 'tenancy'. immovable
However, property [Link]
in jurisprudential land.a
much wider meaning and
ease'has a may also include tenancy in land, bailment of
property, all
novable encumbrances relating to incorporeal property etc. In this
omprehensive sense, every right that can be
possessed, can be made the subject of a
ease. Thus, there can be a lease of copyright, patent, right of way etc. In
ver, lease ordinar1ly reters to transter of possession by the owner (lessor)practice,
to the
for certain considerationwhich may be premium or rent.
Servitude.A servitude is that form of encumbrance which consists in a right
ihe limited use of the place of land without the possessionof it; for example, a right of
iay, aright to passage of light or water across the adjoining land, right of fishing etc. A
avitude, therefore, is a right to the limited usé of a piece of lánd without ownérship or
pSsession thereof. There is no transfer of possession in case of a servitude and this
istinguishes it from a lease. If a person seçures exclusive possession of a piece of land
without getting its ownership, he acquires a lease of that land but if he only acquires a
ght to use that piece of land without getting its ownership or possession, he acquires a
servitude on that land. Ordinarily, sevitudes exist with respect to land alone.
Servitudes are of two kinds-Private or Public. A private servitude is vested in a
eterminate individual as in case of a right of way, of light or support vested in the owner
a piece of land over and adjoining piece of land. Apublic servitude, on the other hand,
Svested in the public at large or some lass of indeterminate individuais such as the
pablic right of navigation or fishing. public right of way over land in private ownership or
ght of inhabitants of a village to use certain piece of land for recreation, cremation etc.
Salmond has further classified servitudes as () appurtenant or (ii) in gross.
AServitude appurtenant (it is also called as praedial servitude) is one which is not
Merely an encumbrance of one piece of land but is also accessory to another piece of
of a
end. It is a right of using one piece of land for the benefit of another; as in the case
is called the
ght of support for a building. The land which is burdened with such servitude
Servient tenement and the land which has the benetit of it is called the dominent tennant.
The sonitde runs with each of the tenements into the hands of successive owners and
cCupiers. 18
A servitude is
said to be in gross when it is not so attached and accessory to any
for whose benefit it exists; for example a public right of way or
dominant tenement
or dprivate right of fishing or mining etc.
Navigation;
3. Security.-A Security is an encumbrance vested in a creditor over the property
his debtor for the purpose of securing the recovery of the debt. In other words, it may
Ve said to be a right to retain possession of a chattel until the debt is paid. Security on
movable property is Calleda mogage and on movable property it is called a'pledge'
18. According to Salmond, an easement,inthe strictest sense, means a particular kind of servitude,
nar a and appurtenant servitude which is not a right to take any profit from the servient
308 JURISPRUDENCE AND LEGAL THEORY
is to
According to Salmond, a security is an encumbrance the purpose of which though nos
ensure or facilitate the fulfilment or enjoyment of some other right (usuallyto distinguish
necessarily a debt) vested in the same person. It will not be out of place
security from a surety. In case of security, a particular res is charged with the debt, butin
obligation to pay the debt oe
the case of surety, the person giving surety is under an
another if the latter fails to pay the debt himself.
Securities over property are of two kinds
()Mortgage; and (i) lien.
(i) Mortgage.-Where immovable property is secured to another for consideration
the transaction is called a mortgage. It is called 'pledge' if the property is movable.
Amortgage is the transter of interest in specific immovable property for the purpose
of securing -
the payment of money advanced by way of loan.
(b) an existing or a future debt, or
(c) the performance of an agreement which may give rise to pecuniany liability. |9
The transteror is called a 'mortgagor, and the transferee a 'mortgagee. The
instrument by which the transfer is effected is called a mortgage-deed. There are six
kinds of mortgages. They are--(1) simple mortgage, (2) mortgage by conditional sale, (3)
usufructuary mortgage, (4) English mortgage, (5) equitable mortgage (also known as
mortgage by deposit of title deeds), and (6) anomalous mortgage. These mortgages are
explained in Section 58 (b) to (g) of the Transfer of Property Act, 1882.
(ii) Lien.A lien is the right to hold property of another person as a security for the
performance of an obligation. In other words, lien is a right of one man to retain that which
is in his possession belonging to other until certain demands in respect of the person i
possession are satisfied. Thus a finder of a goods has a right to retain the goods against
the owner till he receives frÍm the owner, the compensation for trouble and expenses
incurred by him, and also specific reward which the cwner may have offered for the retum
of such goods. The finder is said to have a lien upon the goods so found. Lien is right to
retain possession of goods and does not include right of ownership or sale.
Liens may be of different kinds. They are :
1. Possessory lien.-A possessory lien consists in the right to retain possession of
chattels or other property of the debtor. Examples are pledges of chattels and the liens ot
inn-keepers and vendors of goods.
2. Agent's lien,-n absence of any contract to the contrary, an agent is entitled to
retain go0ds, papers and other property, whether movable or immovable, of the principal
received by him, until the amount due to himself for commission, disbursements ana
services in respect of the same has been paid or accounted for to him. This is provided
Section 221 of the Indian Contract Act.
3. Unpaid Vendor's lien.20-The unpaid seller of goods who is in possession of then
is entitied to retain possession of them until the payment or tender of the price.
4. Powers of [Link] creditor has the power of destroying some adverse right
vested in the debtor e.g. landlord's right of re-entry on his land.
fund
5. Charges.-The creditor has aright to receive payment out of some speciftic
partiesand
out of the proceeds of specific property. Acharge may be created by act
19. Section 58 (a) of the Transfer of Property Act, 1882.
20. Section 55 (4) (b) of TP. Act.
ontráct
diWayS necessary in case ofa lien.
4. Trust.-A trust is an encumbrance in which the
ownership of property is limited
deal with it for the benefit of some third person. In other words, a trust is an obligation
atnexed to the ownership of property. It arises out of a confidence reposed in and
ocepted by the owner. According to Salmond, a trust is ordinarily created for the benefit
ens o tunborn persons, infants, minors, lunatics and persons who suffer from some legal
led to dsability.2 Itis also created for the perfection of some disputed property or safeguarding
the common interest of several persons. The law relating to trusts is contained in the
nopandian Trusts Act, 1882. Thus, in case of a trust although the property is legally vested in
S and the trustee, he keeps it for the benefit of the beneficiary.
ided in
As regards the importance of trusts, Paton comments that it has proved useful in
of them many ways. Firstly, it has been used by associations as a means whereby their property
is used for the desired purpose. Secondly, it has facilitated endowments and gifts for
charitable and religious purposes by vesting the property in trustees for purposes as
se rigt desired by the settler. Thirdly, the trust has a great social importance in helping
settlement of family property by protecting the interests of young persons and married
fund women.22
ific tuno
es andt
jus terti, that is, he cannot plead that the thing does not belong to the possessory ownr
either.25 In other words, a possessory owner's possession shall be protected against al
maintenance of peace and
except the true owner. This rule is justified on the ground of
order and to prevent misuse of force. he
effect of lapse of time in e
2. Prescription.-Prescription may be defined as the
vestitive fact.
creation and extinction of legal rights. It is the operation of time as a A
extinctive. The creaton
two aspects, namely positive or acquisitive and negative or prescription whereas
acquisitive
right by the lapse of time is called the positive or prescription. The
extinction of a right by the lapse of time is called extinctive or negative an uninterrupted
owner for
person who is in continuous long possession adverse to its his
ownership
the owner loses years
period of twelve years, acquires ownership of theland and debt after three her
for a
after the lapse of this period. Again, extinction of a right to sue negative prescription.
from the time at which it first became payable is an example of
uri
23. In Re Bell, (1886) 34 Ch.D. 262.
24. Fitzgerald, P.J. : Salmond On Jurisprudence, (12th ed.) p. 434.
25. Armory v. Delomirie, (1722) 1 Str. 504.
PROPERTY 311
The
basis of prescription is to be found in the presumption of coincidence of
SSeSs/onandownership. The fact that athing is possessed is de facto evidence that it
jure and thefact that it is not possessed raises, a presumption that it is not
Thus want of possessionnis evidence of title. Want of pOssession for along time is
ned
moence
of wantt of title, and as the time passes the evidence in favour to title also fades
and presumption against it grows stronger26
Negative prescription is common to law of property and obligations. According to
omond, negative or extinctive prescription is of two kinds, namely. (1) perfect, and (2)
ofect. Perfect negative prescription results into destruction of príncipal right itself
The
areas imperfect prescription destroys only an accessory right of action.
alnuction of ownership of land by adversary possession for uninterrupted twelve years
recovery of
an illustration of perfect negative prescription. The extinction of the right of
due, is an example of
ht after the expiry of three years from the date it first became
creditor's right to sue for
noerfect negative prescription because it destroys the
itself.
RCOVery of the debt but not the debt
general principle
It is significant to note that the law of prescription is based on the
dormant27
tat law helps the viligant and not the
acquired by agreement which is
3. Agreement.-Property may also be expression by two or more persons
entorceable by law. Paton defines agreement as an the legal relations between
Cominunicated to each other, of acommon intention to affect elements, namely
essential
them. It,therefore, follows that an agreement has four
or more parties to an agreement;
1. It being a bilateral act, there should be two
2. Mutual consent of the parties;
3. It should be communicated; and
affect the legal relationship.
4. There should be common inention to
proprietary right in rem, agreement is of two kinds, namely, () Assignment, and
As a
j Grant.
from one owner to another e.g.
An assignment transfers the existing rights the assignee.
to
ssignment of a subsisting lease-hold from assignor
Under a grant, newrights are created by way of encumbrance upon the existing rights
lease of land is the creation of agreement between grantor
the grantor e.g. grant of a
and grantee.
and require the
Anfeerment is either formal or informal, Formal agreements are writtenbefore
completed they are
formality of registration and attestation of the deed to be Roman
effective. nformal agreements are verbal and do not require any formality. The
law, however, required that an alienation duringlife time of the person should not only be
between the parties but there should also be delivery of possession.28
by an agreement that alienation was conceived to consist of the essential
Ihis, in other words, meant
lant of transfer of possession. In English law, until the year 1845 coveyance of land
Was not oossible without the delivery of possession and no need of conveyance could be
effective without delivery of possession. But in actual practice, the rule was evaded for
Centuries by taking advantage of fictitious delivery of possession under the Statute of
312 JURISPRUDENCE AND LEGAL THEORY
Uses. The Statute2 of the year 1845, however, modified this rule and now
the
of land could be legally transferred without the possession of it.
As rightly pointed out by Salmond, it is an important principle of law ownershi
of agreement
that the title cf an assignee or a grantee cannot be better than that of
his
grantee. The general rule is that no one can transfer a better title than
possesses. This is expressed in the latin maxim nemo plus juris ad
asSIgnor
what he
alium himsel
o
trustee exceptitoransnstere
potest, quam ipse haberet. This rule is, however, subject to following two
() case of trust,
In a legal ownership
the with is the and
the
ownership is that of the beneficiary. Thus there exist two separate
Ownershion pequis duetableto
separation of legal from equitable ownership. The trustee holds the property
the beneficiary, and not for himself, and, therefore, the obligation of this behalis a
trusteeship an
encumbrance upon trustee's title. If the trust property is sold to a bona fide
value and without notice, he shall acquire a better (unencumbered) title to the purchaser
purchased. In simple words, if the third person (bona fide purchaser) purchasespropert
the y so
property for value and without the knowledge of the existence of the trust, he
acquire better title than the trustee according to the equitable doctrine of shalle
value without notice.31 for purchase
(1) The second excuption to the general rule that no one can transfer a beter the et
than what he himself possesses is where the possession of a thing is in one man and h.
ownership of it is in another. In such cases the possessor is allowed to pass a good ile
to one who deals with him in good faith believing him to be the true owner. The mos
striking example of this is the case of negotiable instruments, a possessor of a bank-note
may have no title to it; for he might have found it or stolen it; but he gives a good tile d
any one who takes it from him for value and in good faith. Likewise, merchantile agents, in rar
possession of goods of their principals, can transfer the ownership of them whether they te
are authorised to sell them or not 32
The acquisition of property by living persons is possible through possession,s
prescription and agreement whereas property can be acquired by inheritance by the heis
and successors of the deceased. Thus inheritance is also one of the modes of acquisilion
of property.
4. [Link] respect of the death of their owners all rights are divisible into
two classes, namely}inheritable and (2) uninheritable.
Aright is inheritable if it survives its owner and it is uninheritable if it dies with him.
Proprietary rights are inheritable and most personal rights are uninheritable. But there are
certain exceptions to this general rule. For example, the right of action servives the deau
case of a lease
of both parties as a general rule. Proprietary rights may be uninheritable in
for life of the lessee only or in case of joint-ownership.
The rights which a dead man leaves behind him vest in his representative
This liabilityis,
Successors. But he has also to bear the liability of the deceased. deceased.
however, limited to the amount of property which hehas acquired from the
inheritanceis some sort of legal and fictitious continuation of the personality of the
buried in the grave along with his dead-body or thrown into the sea,36 that his estate or
land shal lie waste atter his death, Such a testamentary disposition shall be wholly void.
ln conclusion, it may be stated that the concept of property has a special
signiticance in jurisprudence because the determination of proprietary rights such as
ownership, title ete. is solely based on property. The concepts of 'ownership' and
'possession' have also originated trom the conception of property. Again, rights and
duties are also closely related to property. It is for this reason that the law relating to
property has been developed as an independent breach of law in jurisprudence. The
estate or property for which there is no heir or successor, shall vest in the State, 37