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Section 37: Apportionment of benefit of obligation on severance

Transfer of Property Act • Official Statutory Text & Practice Guide

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Competent Court / Tribunal
Act 1882
Section 36 All 137 Sections of Transfer of Property Act Section 38

Legal Commentary & Landmark Judgments: Section 37

Section 37 governs the apportionment of the benefit of an obligation on severance of property, protecting the obligor from increased burdens and requiring reasonable notice.

  • Severance of Property: When, in consequence of a transfer, property is divided and held in several shares, and thereupon the benefit of any obligation relating to the property as a whole passes from one to several owners of the property.
  • Apportionment of Obligation: The obligation shall be performed in favor of each of the several owners in proportion to the value of his share in the property.
  • Obligor Protection: The obligation cannot be severed to increase the burden on the obligor, and the obligor is not bound to apportion until reasonable notice of severance is given.
Key Landmark Precedents:
  • Mohar Singh v. Devi Charan, (1988) 3 SCC 63: The Supreme Court held that on severance of property by co-owners, the tenant's lease obligation is apportioned under Section 37; a co-owner purchasing a defined portion can evict the tenant from that portion without violating the indivisibility of tenancy.
  • Sk. Sattar Sk. Mohd. Choudhari v. Gundappa Amabadas Bukate, (1996) 6 SCC 373: Affirmed that apportionment under Section 37 binds the tenant upon notice of partition.
Courtroom Practice & Strategic Litigation Guidance:

When acquiring a partitioned portion of a leased building, serve a formal Section 37 Notice of Severance upon the tenant specifying your exact proportionate share of monthly rent.

Section 36 All 137 Sections of Transfer of Property Act Section 38