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Section 20: When unborn person acquires vested interest on transfer for his benefit

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 1882
Section 19 All 137 Sections of Transfer of Property Act Section 21

Legal Commentary & Landmark Judgments: Section 20

Section 20 establishes when an unborn person acquires a vested interest upon a transfer for their benefit, confirming that vesting occurs immediately upon birth unless a contrary intention appears.

  • Immediate Vesting Upon Birth: Where, on a transfer of property, an interest therein is created for the benefit of a person not then living, he acquires upon his birth a vested interest, although he may not be entitled to the enjoyment thereof immediately on his birth.
  • Subject to Prior Life Estate: The unborn person takes a vested transmissible interest the instant they are born alive, even though physical possession is deferred until the death of the prior life estate holder.
  • Heritability of Interest: If the child is born alive and dies within hours, the vested interest passes to the child's legal heirs, not back to the settlor.
Key Landmark Precedents:
  • Raja Bajrang Bahadur Singh v. Thakurain Bakhtraj Kuer, AIR 1953 SC 7: The Supreme Court affirmed that under Section 20, an unborn child acquires a vested property right upon live birth, which is descendible to legal heirs.
  • F.M. Devaru Ganapati Bhat v. Prabhakar Ganapati Bhat, (2004) 2 SCC 504: The Supreme Court held that a gift in favor of an unborn person through a life estate vests immediately on birth, and cannot be revoked thereafter by the donor.
Courtroom Practice & Strategic Litigation Guidance:

When drafting deeds benefiting future children, remember that under Section 20, the interest vests automatically on birth; if you intend vesting only at age 18, an express contrary intention must be drafted into the deed.

Section 19 All 137 Sections of Transfer of Property Act Section 21