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Section 16: Transfer to take effect on failure of prior interest

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882
Section 15 All 137 Sections of Transfer of Property Act Section 17

Legal Commentary & Landmark Judgments: Section 16

Section 16 dictates that where an interest fails by reason of any of the rules in Sections 13 and 14, any interest created in the same transaction and intended to take effect after or upon failure of such prior interest also fails.

  • Ulterior Disposition Failure: Where, by reason of any of the rules contained in Sections 13 and 14, an interest created for the benefit of a person or of a class of persons fails in regard to such person or to the whole of such class.
  • Dependent Ulterior Interest: Any interest created in the same transaction and intended to take effect after or upon failure of such prior interest also fails.
  • Doctrine of Dependent Failure: Prevents remote remaindermen from taking property when the intermediate life estate or class disposition is struck down as void for perpetuity.
Key Landmark Precedents:
  • Raja Bajrang Bahadur Singh v. Thakurain Bakhtraj Kuer, AIR 1953 SC 7: The Supreme Court explained that under Section 16, if the prior gift is void for violating the rule against perpetuities, the subsequent gift dependent upon it collapses automatically.
  • Ram Newaz v. Nankoo, AIR 1926 All 283: Affirmed that an ulterior gift cannot accelerate if the prior gift failed specifically under Section 13 or 14.
Courtroom Practice & Strategic Litigation Guidance:

Never draft an ulterior remainder dependent upon an unborn person's life estate; if the prior disposition is void under Section 13, the ulterior remainder is completely destroyed under Section 16.

Section 15 All 137 Sections of Transfer of Property Act Section 17