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Section 31: Condition that transfer shall cease to have effect in case specified uncertain event happens or does not happen

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 1882
Section 30 All 137 Sections of Transfer of Property Act Section 32

Legal Commentary & Landmark Judgments: Section 31

Section 31 allows a transfer of property with a condition that an interest therein shall cease to have effect in case a specified uncertain event shall happen, or not happen.

  • Defeasance Clause: Subject to the provisions of Section 12, on a transfer of property an interest therein may be created with the condition superadded that it shall cease to have effect in case a specified uncertain event happens or does not happen.
  • Conditional Determination: Operates as a valid defeasance clause terminating an estate upon the happening of a lawful future contingency.
  • Limitation by Public Policy: The event must not be impossible, illegal, or contrary to public policy under Section 32.
Key Landmark Precedents:
  • Bhavani Amma Kanakadevi v. C.S.I. Dakshina Kerala Maha Idavaka, (2008) 3 SCC 73: The Supreme Court affirmed that a condition superadded under Section 31 is valid provided it does not violate public policy or Section 10 absolute restraint on alienation.
  • K. Balakrishnan v. K. Kamalam, (2004) 1 SCC 581: Reaffirmed that lawful conditional determination clauses are enforceable under property law.
Courtroom Practice & Strategic Litigation Guidance:

Clauses providing that land granted for a hospital will revert if the premises cease to be used as a hospital are valid defeasance conditions under Section 31.

Section 30 All 137 Sections of Transfer of Property Act Section 32