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Section 136: Incapacity of officers connected with Courts of Justice

Transfer of Property Act • Official Statutory Text & Practice Guide

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Act 1882
Section 135 All 137 Sections of Transfer of Property Act Section 137

Legal Commentary & Landmark Judgments: Section 136

Section 136 establishes a strict statutory incapacity barring judges, legal practitioners, and officers connected with any court of justice from buying or trafficking in actionable claims.

  • Absolute Statutory Incapacity: No judge, legal practitioner, or officer connected with any court of justice shall buy or traffic in, or stipulate for, or agree to receive any share of, or interest in, any actionable claim.
  • No Court Enforceability: No court of justice shall enforce, at his instance, or at the instance of any person claiming by or through him, any actionable claim so dealt with by him.
  • Public Policy & Judicial Ethics: Protects administration of justice from champerty, maintenance, and commercial exploitation by judicial and legal officers.
Key Landmark Precedents:
  • Bar Council of Maharashtra v. M.V. Dabholkar, (1976) 2 SCC 291: The Supreme Court underscored that Section 136 enforces strict professional ethics, barring advocates from buying litigious claims or taking contingency fees in client property.
  • Asset Reconstruction Co. (India) Ltd. v. S.P. Velayutham, (2022) 8 SCC 210: Affirmed that any assignment of an actionable claim in favor of an advocate or court officer is void ab initio under Section 136.
Courtroom Practice & Strategic Litigation Guidance:

Lawyers are strictly barred from purchasing actionable claims or taking assignments of client decrees in lieu of legal fees; such transactions are void under Section 136 and invite professional misconduct proceedings.

Section 135 All 137 Sections of Transfer of Property Act Section 137