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Section 23: Transfer contingent on happening of specified uncertain event

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882
Section 22 All 137 Sections of Transfer of Property Act Section 24

Legal Commentary & Landmark Judgments: Section 23

Section 23 provides that where a transfer creates an interest to take effect on the happening of a specified uncertain event, and no time is limited for the occurrence of that event, the interest fails unless such event happens before, or at the same time as, the determination of the prior interest.

  • Contingent Ulterior Interest: Where an interest is created to take effect on the happening of a specified uncertain event without a specified deadline.
  • Timing Requirement: The interest fails unless the uncertain event happens before, or at the same time as, the determination of the prior interest.
  • Prevention of Abeyance: Prevents the freehold or property title from remaining in perpetual legal limbo or suspension.
Key Landmark Precedents:
  • Raja Bajrang Bahadur Singh v. Thakurain Bakhtraj Kuer, AIR 1953 SC 7: The Supreme Court explained that property law abhorrs abeyance of seisin; Section 23 ensures that if the contingency does not happen before the prior interest ends, the gift fails.
  • Ram Newaz v. Nankoo, AIR 1926 All 283: Affirmed that the uncertain event must synchronize with or precede the death of the life estate holder.
Courtroom Practice & Strategic Litigation Guidance:

Always attach a definite time limit or life in being benchmark to contingent clauses to prevent failure of the gift under Section 23.

Section 22 All 137 Sections of Transfer of Property Act Section 24