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Section 131: Notice to be in writing, signed

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882
Section 130 All 137 Sections of Transfer of Property Act Section 132

Legal Commentary & Landmark Judgments: Section 131

Section 131 mandates that every notice of transfer of an actionable claim shall be in writing, signed by the transferor or his agent, or by the transferee if the transferor refuses to sign.

  • Written & Signed Notice: Every notice of transfer of an actionable claim shall be in writing, signed by the transferor or his agent duly authorized in this behalf.
  • Transferee Signing Option: Or, in case the transferor refuses to sign, by the transferee or his agent.
  • Essential Particulars: Must state the name and address of the transferee and the particulars of the debt assigned.
  • Condition for Debtor Payment: Debtor is bound to pay the transferee only after receiving formal Section 131 notice.
Key Landmark Precedents:
  • Union of India v. Sri Sarada Mills Ltd., (1972) 2 SCC 877: The Supreme Court held that notice under Section 131 is an essential statutory step to perfect the assignee's title against the debtor; payments made prior to notice are protected.
  • Asset Reconstruction Co. (India) Ltd. v. S.P. Velayutham, (2022) 8 SCC 210: Affirmed the mandatory requirement of written notice of assignment in commercial debt enforcement.
Courtroom Practice & Strategic Litigation Guidance:

Immediately upon taking assignment of a debt or actionable claim under Section 130, serve a formal Section 131 written notice on the debtor attaching a certified copy of the assignment deed.

Section 130 All 137 Sections of Transfer of Property Act Section 132