Section 45: Joint transfer for consideration

Transfer of Property Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1882

Legal Commentary & Landmark Judgments: Section 45

Section 45 governs joint transfers for consideration, establishing the statutory presumption that co-purchasers acquire shares in proportion to the consideration paid by each from separate funds, or equal shares if from common funds.

  • Proportionate Share Presumption: Where immoveable property is transferred for consideration to two or more persons in common, they are, in the absence of evidence to the contrary, entitled to interests in the property identical with the proportions of the funds to which they were respectively entitled.
  • Common Fund Presumption: If the consideration was paid out of a common fund, they are entitled to equal interests in the property.
  • Rebuttable Evidence: Presumption is subject to contract or clear recitals in the conveyance specifying distinct percentage ownerships.
Key Landmark Precedents:
  • Anar Devi v. Parmeshwari Devi, (2006) 8 SCC 656: The Supreme Court held that under Section 45, where two co-purchasers buy property without specifying shares, the court determines ownership based on the actual financial contribution made by each.
  • Badri Narain Prasad Choudhary v. Kundan Kumar Choudhary, (2006) 9 SCC 327: Reaffirmed that in the absence of contribution proof, Section 45 presumes equal ownership among joint transferees.
Courtroom Practice & Strategic Litigation Guidance:

In joint purchase deeds (e.g., spouses, business partners), always specify the exact percentage share of each co-purchaser (e.g., 60% and 40%) in the recitals to displace the default Section 45 contribution presumption.