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Section 36: Apportionment of periodical payments determination of interest of person entitled

Transfer of Property Act • Official Statutory Text & Practice Guide

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Act 1882
Section 35 All 137 Sections of Transfer of Property Act Section 37

Legal Commentary & Landmark Judgments: Section 36

Section 36 codifies the rule of apportionment by time, providing that all rents, annuities, pensions, dividends, and other periodical payments in the nature of income shall be deemed to accrue from day to day and be apportionable in respect of time.

  • Apportionment by Time: In the absence of a contract or local usage to the contrary, all rents, annuities, pensions, dividends, and other periodical payments in the nature of income shall, upon the transfer of the interest of the person entitled to receive such payments, be deemed to accrue from day to day.
  • Apportionable by Time: Apportionable in respect of time accordingly, but be payable on the days appointed for the payment thereof.
  • Protection to Transferor and Transferee: Transferor takes income accrued up to the date of transfer; transferee takes income accruing from the date of transfer onwards.
Key Landmark Precedents:
  • E.D. Sassoon & Co. Ltd. v. Commissioner of Income Tax, (1955) 1 SCR 313: The Supreme Court analyzed Section 36 in depth, holding that while rent accrues de die in diem under Section 36, it becomes legally payable and recoverable only on the appointed contractual gale day.
  • R.V. Bhupal Prasad v. State of A.P., (1995) 5 SCC 698: Affirmed that Section 36 governs the apportionment of commercial rental receivables between buyers and sellers.
Courtroom Practice & Strategic Litigation Guidance:

In drafting commercial sale deeds, include an explicit rental apportionment statement calculating exact rent accrued up to the closing date to avoid disputes under Section 36.

Section 35 All 137 Sections of Transfer of Property Act Section 37