Section 11- Transfer of property Act II Section 11- Restriction repugnant to interest created

Section 11- Transfer of property Act II Section 11- Restriction repugnant to interest created #sec11tpa

Oral Transfer of Property (Sec. 9)
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Operation of Transfer (Sec. 8)
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Person Competent to Transfer (Sec.7)
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Condition Restraining Alienation (Section 10)
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This Video covers the topics

Bare Act Defination
Where, on a transfer of property, an interest therein
is created absolutely in favour of any person, but the terms of the transfer direct that such interest shall be applied or enjoyed by him in a particular manner, he shall be entitled to receive and dispose of such interest as if there were no such direction.
Where any such direction has been made in respect of one piece of immoveable property for the purpose of securing the beneficial enjoyment of another piece of such property, nothing in this section shall be deemed to affect any right which the transferor may have to enforce such direction or any remedy which he may have in respect of a breach thereof.

Illustration 1: A person cannot sell his property with condition that he can grow only those crops as directed by the transferor. Such a condition is void.

Illustration 2:, A has two properties: X and Y. A sells them to B with the condition that a portion of X, adjoined to Y, shall be kept open for the benefit of Y . This condition will be valid.

Positive and negative conditions –
Positive conditions:  When the transferee is bound to fulfill such conditions even if it restrains his enjoyment of the property.
 For example, A transfers land to B, on the condition that he shall maintain  the drain by carrying necessary repairs from time to time. This condition is positive.
Negative conditions:  When the transferee is not bound to fulfill such a condition.
 For example, A transfers land to B, on the condition that he shall leave open a four feet wide space on the land, and would not build anything on it.
-----------------------------------------------------------------------------------------------------------------------Case Laws discussed in the Video

In Manjusha Devi v. Sunil Chandra, AIR 1972
, the parties entered into a sale for a piece of land. In the sale deed, it was mentioned that the buyer could only use the land for setting up a factory for jute textile manufacturing. It was held that this condition was invalid as the absolute interests in the land had been transferred to the buyer and he could use it as he pleased

In Indu Kakkar v. Haryana Industrial Development Corporation
, an agreement between industrial corporations and industrial units with a condition that industrial units shall be established within the specified time failing which their interest shall cease. The Supreme Court held that condition to be valid causing no restrain on the mode of enjoyment of property, and therefore, the agreement was held to be valid.
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