Section 10 and Section 11|| Condition Restraining Alienation||Transfer of Property Act, 1882

Section 10
Absolute Restraint
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.
Kannamal v. Rajeshwari (2004) A life estate was to be created in favor of M (son in law), 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.
Mohd. Raza v. Abbas Bandibibi (1932) A condition imposing restriction for a particular time or transfer to a specific person has been held to be void. There was a transfer as per family settlement to a widow restraining a condition that she could transfer only to family members not anyone else.
Partial Restraint
Mata Prasad v. Nageshwar Sahai (1927) There was a dispute regarding succession rights between nephew and widow. A compromise was formed that the widow had possession of the property while the title for the same was given to the nephew with the condition that he was restricted from alienating the property during the widow’s lifetime. It was held that the compromise and the condition were valid.
Zoroastrian Cooperative Housing Society Ltd. V. District Registrar Cooperative Societies (2005)
The Supreme Court held that when a person accepts the membership of a cooperative society by submitting himself to its by laws and places on himself a qualified restriction on his right to transfer property by stipulating that same would be transferred with prior consent of society to a person qualified to be a member of the society it could not be held to be an absolute restraint on alienation offending section 10 of Transfer of Property Act.
Section 11
Manjusha Devi v. Sunil Chandra (1972) A condition in the lease for the benefit of lessor in the context that there will not be further sublet or assign was held to be valid.

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