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Section 42: Transfer by person having authority to revoke former transfer

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882
Section 41 All 137 Sections of Transfer of Property Act Section 43

Legal Commentary & Landmark Judgments: Section 42

Section 42 provides that where a person transfers property reserving power to revoke the transfer, and subsequently transfers the property for consideration to another person, such transfer operates in favor of each transferee as a revocation of the former transfer to the extent of the power.

  • Revocable Transfer Setting: Where a person transfers property, reserving power to revoke the transfer.
  • Subsequent Transfer for Value: And subsequently transfers the property for consideration to another person.
  • Implied Revocation: Such transfer operates in favor of such transferee as an implied revocation of the former transfer to the extent of the power.
  • Subject to Consideration: Operates exclusively in favor of transferees for consideration.
Key Landmark Precedents:
  • Bhavani Amma Kanakadevi v. C.S.I. Dakshina Kerala Maha Idavaka, (2008) 3 SCC 73: The Supreme Court noted that where a power of revocation is reserved lawfully, a subsequent sale operates as an automatic revocation under Section 42.
  • K. Balakrishnan v. K. Kamalam, (2004) 1 SCC 581: Affirmed that unconditional gifts cannot be revoked; Section 42 applies strictly where power of revocation was expressly reserved.
Courtroom Practice & Strategic Litigation Guidance:

If a donor reserved an express revocation power in a deed of settlement, an outright sale deed executed by the donor for value operates as an automatic legal revocation under Section 42.

Section 41 All 137 Sections of Transfer of Property Act Section 43