Section 10 TPA : Condition restraining alienation II Section 10 of Transfer of Property Act II

Section 10 TPA : Condition restraining alienation II Section 10 of Transfer of Property Act II #tpa1882

Oral Transfer of Property (Sec. 9)
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Operation of Transfer (Sec. 8)
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Person Competent to Transfer (Sec.7)
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This video covers the topics -

Restrain on Alienation (Sec. 10)
Where property is transferred subject to the condition or a limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or the limitation is void, except in the case of lease where the condition is for the benefit of the lessor or those claiming under him:
Provided that property may be transferred to or for the benefit of a women (not being a Hindu, Muhammadan or Buddhist), so that she shall not have power during her marriage to transfer or charge the same or her beneficial interest therein.

Exceptions to the restraints
Lease
A lease is a transfer of property wherein the lessee only has the right of enjoyment of the property, while the ownership right is still with the lessor. Conditions imposing restrictions are valid in the case of a lease, where the condition is for the benefit of the lessor or those claiming under him.

Married Woman
When the property is to be transferred to a married woman, who is not a Hindu, Mohammedan or Buddhist, then the condition restricting alienation can be valid

GENERAL EXPLANATION
 Whenever any person who is the owner of any property and is competent to transfer the property, may transfer such property either with or without condition. Such conditions act as limitations or restrictions on the rights of the transferee.
Illustration – A transfer his property to B with a condition that he will not transfer it to a outsider person as its a religious property and A’s emotions are attached with it. Condition is valid.

However any condition which absolutely restrain transferee to dispose the property further will remain void.
Illustration – If A transfer his property to B with a condition that he must not transfer his property to anyone while A is alive. Condition will be void.

The Transfer of Property Act is based on the principle that there can be a free transfer of property and has been specifically made with regard to free transfer. If conditions restraining transfer are imposed, then the free transfer would be restricted and there would be no use for the Transfer of Property Act.
             This is commonly known as the ‘rule against alienability
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Case Laws Discussed in the video -

In Rosher v. Rosher (1884) ,
A made a gift of a house to B, and gave a condition that if B decides to sell the house during the lifetime of A’s wife, she should have the option of purchasing it for Rs 10000, while the market value of the house was set at Rs 10,00,000. This condition was held to be an absolute restraint and was declared void. 

In Kannamal v. Rajeshwari,
a life estate was to be created in favour of ‘M’, but the transferor gave an absolute restriction along with the property transfer to M, whilst divesting himself of all his interests in the property. This restraint was held to be void as there was an absolute transfer. 

In Mohd Raza v. Abbas BandiBibi
a condition imposing restriction for a particular time or transfer to a specific person has been held to be void

In Raja JagatRanvir v. Bagriden,
a condition in the lease that the lessee shall not sublet or assign was held to be valid.
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Adv. Rahul Chauhan.