Professional Documents
Culture Documents
Submitted by,
Rishabh singh,
Roll no-201290
Sec-B
Sem-3rd
1
CERTIFICATE
I, MrRISHABH with Reg.No201290 Of IIIrd Semester has
prepared the project on Analysis of rule of election
In partial fulfilment of his/her semester course in the subject Transfer of
property
during the academic year 2013-14 under my supervision and guidance.
Signature of faculty
ACKNOWLEDEGEMENT
I, Rishabh would like to take this opportunity to thank Dr Laxmi Priya (transfer of property
faculty) for helping and guiding me in completing my project.
I would also like to thank our Vice-Chancellor, Prof .R.G.B. Bhagvath Kumar and our
Registrar, Prof.P.Sudhakar, for giving me this opportunity to do a detailed study on the rule of
election.
Lastly I would like to thank my friends for their efficient help and co-operation in helping me
complete my project work
INDEX
3
DOCTRINE OF ELECTION
MODES OF ELECTIONCONDITIONS FOR APPLICATION OF DOCTRINE OF ELECTION
METHOD OF ELECTION
RULE MAY BE EXCLUDED BY THE EXPRESS TERMS IN THE
TRANSFER
RULES OF ELECTION
PERSON TAKING UNDER TWO CAPACITIES
PRESUMPTION OF ELECTION FROM TWO YEARS ENJOYMENT
IMPOSSIBILITY OF RESTORING STATUS QUO
ELECTION BY A PERSON UNDER A DISABILITY
TRANSFERORS DISABILITY AND ELECTION
ELECTION UNDER POWER OF APPOINTMENT
RATIFICATION IS NOT ELECTION
DIFFERENCE BETWEEN THE ENGLISH LAW AND SEC 35,
TRANSFER OF PROPERTY ACT
CONCLUSION
BIBLIOGRAPHY
RULE OF ELECTION The rule of election says that when a person professes to
transfer property which he has no right to transfer, and as a part of the same transaction
confers any benefit on the owner of the property, such owner must elect either to confirm
such transfer or to dissent from it :and in the latter case he shall relinquish the benefit so
conferred, and the benefit so relinquished shall revert to the transferor or his representative as
if it had not been disposed of, subject nevertheless, where the transfer is gratuitous, and the
transferor has, before the election, died or otherwise become incapable of making a fresh
transfer, and in all cases where the transfer is for consideration, to the charge of making good
to the disappointed transferee the amount or value of the property attempted to be transferred
to him.1
The Doctrine Of Election is based on Equitable Principle under which a person may not be
allowed to approve that part of an instrument which is beneficial to him and disapprove its
that part which goes against him. No one can approbate and reprobate at the same time which
means where a person takes some benefit under a deed or instrument, he must also bear its
burden. This Equity is applied to every species of instrument whether deed or will and to
every kind of property movable or immovable.
Sec 35 of the Act makes following provisions in respect of the rule of electioni) Where a person professes to transfer a property which may or may not be his own.
ii) In lieu of the transfer, the transferor obtains certain benefits upon the owner of the
property.
iii) The two things i.e. transfer of property and conferring of the benefit from part of the same
instrument.
Then, the owner of property is bound to elect either to take the benefit and transfer his
property or to retain his property and give up the benefit.
Benefit conferred on the owner of property1 A.I.R commentaries , the transfer of property,manohar and chitaley
5
The transferor must confer any benefit on the owner of property. The word owner in this
section has a very wide meaning. It includes a person having vested interest as well as
contingent interest and also a person who has even reversionary or remote interest in the
property. It is the owner of the property who is put to election of the property. Therefore, he
must be given some benefit in compensation for his ownership of the property.
Part of the same transactionThe rule of election takes place only when the transfer and the benefit form part of the
same transaction. Here same transaction is meant that the transfer of property is to be made
evidently only in lieu of the benefit. Thus where the benefit and transfer are
interdependent and inseparable, they form part of the same transaction.
Owners duty to electIf a property is professed to be transferred and in the same transaction some benefit is given
to the owner of property, then such owner is under a duty to elect. By his election he may
either accept the instrument with all its contents or reject it altogether. He has no option to
accept only the beneficial part of instrument. Where he elects to accept the instrument, he is
entitled to get the benefit, but he is bound to transfer his property. If he elects to reject the
instrument he cannot claim benefit, but he may retain his property.
Requisition to electThis is a special procedure for expediting election. After the expiry of one year, if owner of
property does not elect, i.e. neither confirms nor dissents from the transfer, the transferee may
6
require him to make such election. And if he does not elect, within a reasonable time after
such requisition he is deemed to have elected in favour of the transfer.
Suspension of electionWhere at the time of transfer, the elector is legally disabled; the election is postponed until
such disability ceases or until the election is made on behalf by a competent authority, e.g. his guardian. Legal disability may be minority or lunacy of the elector. Thus, his duty to elect
is suspended during his minority or lunacy unless the election is made by his legal guardian.
Election against transferThe owner of property whose duty is to make election has freedom to elect either for the
transfer or against it. Where he elects against it i.e. dissents from the professed transfer, he
forfeits his claim to the benefit conferred on him.
However, he can claim any other benefit which is given to him independently of the transfer
under the same instrument. As an instance, where a person is given two benefits x and y
under an instrument but only x has been given in lieu of property, then, if he elects against the
transfer he forfeits only benefit x. But he is entitled to claim benefit y.
The Doctrine of Election is based on the rule in Cooper vs. Cooper.
COOPER V COOPER
X gave a certain property to trustees on trust to sell it after his widows death and to hold the
sale proceeds in trust for his children in such form as his widow shall appoint before a certain
fixed period. The widow executed a deed before the expiration of the fixed period directing
the proceeds to be divided equally among the three sons A, B and C. later she made a will by
which she gave the property to A, the eldest son; and a legacy of her own property to the
other two sons, B and C and to the sons of B. B predeceased the testatrix. The appointment
under the will was inoperative, inter alia, as the will took effect long after the date fixed for
the appointment. A brought the action to compel C and the sons of B to elect between their
claims under the deed of appointment and under the will. It was held that since the testatrix
was not the owner of the property, her attempt to dispose of it by her will when she has no
longer a disposing power over it raised a case of election against the persons who, taking
under her will, had an interest in that property. Lord Hatherley explained the principle
underlying the doctrine of election thus:
there is a n obligation on him who takes a benefit under a will or other instrument to give
full effect to that instrument under which he takes a benefit; and if it be found that that
instrument purports to deal with something which it was beyond the power of the donor or
settlor to dispose of, but to which effect can be given by the concurrence of him who receives
a benefit under the same instrument, the law will impose on him who takes the benefit the
obligation of carrying the instrument into full and complete force and effect.
If a person transfers some property which he has no right to transfer, and the same
transaction confers any benefit on the owner of the property, such owner must elect either to
confirm such transfer or reject it. If he rejects the transfer, he shall relinquish the benefit
conferred upon him and the property will revert back to himself or his representative as if it
had not been disposed of.
The transfer and benefit should be gratuitous without money. If the transferor has died or has
become incapable of making a fresh transfer before such election, then the subsequent
election by owner of the property is void. The Doctrine of Election only applies when the two
donations are part of the same transaction.
METHOD OF ELECTION:
Election must be divided into two categories:
1. Direct Election or
2. Indirect Election.
1. Direct Election:
There is no prescribed form. A letter, telegram, oral words of transferor or any other sign by
the person which conveys the intention of the transferor is enough.
2. Indirect Election:
There are three types of Indirect Election.
They are:1. Acceptance of benefit without knowledge of duty to elect
2. Enjoyment for two years and
3. Status quo cannot be restored.
2. Enjoyment for two years: [Section 188(1) of the Indian Succession Act]
If a person who has to elect knows that he is under a duty to elect, he must express his
dissent, if he retains the property for some time and not interested to elect in favour of the
proposal. If he keeps the property for two years, without expressing that he is not in favour of
the election, then it is presumed that the person so retaining the property is doing so with
knowledge and acceptance of the document.
3. Status quo cannot be restored:
In the case of property which is exhaustible by consumption or use, if he once starts
consuming the property, election in his favour is presumed. No period of consumption is
necessary for this presumption.
intention may be expressed in clear terms, or if it is implied in the terms of deed, it must be so
plain by demonstration and by implication that it should appear utterly improbable that the
transferor could mean anything otherwise the use of general words will raise no case of
election and particularly so, where the transferor has a partial interest in the property
transferred, as the general words apply equally to his own interest and do not imply an
intention to dispose of any other property than his own. But where the transferor is a coowner and transfers whole of the property specifically conferring some benefit upon the co
owner the necessary intention is clear from the deed the co- owner is put to election.
It is not necessary that the transferor should intend to put the party to election. Such an
intention presumes the knowledge of the equitable doctrine of election on the part of the
transferor which is usually absent. The intention which the court requires to give property
which the transferor has no right to give and to give benefit to the person who is the owner of
the property. Once these two intentions are clear from the deed, the court draws the
conclusion that there should be an election.
The onus of providing that there is such an intention rests on those who contend for a case of
election. But where the intention is clear on the face of the deed to pass the whole property
and thus to raise a case of election, the burden of proving that the transferor meant to transfer
only what was left with him and not more, lies on those who oppose election. The intention
of the transferor must, however, appear on the face of the deed.no extrinsic evidence, dehors
the deed is admissible to show that the transferor had an intention to pass what was not his
and thus to raise a question of election.
interest in the property by him after the time will be of no avail, because the equities of the
parties to election must be determined according to the state of circumstances existing when
the duty to elect arises.
on any other person. Thus, where there are several persons interested as co- owners in the
property disposed of by the transferor and all of them receive benefit under the transfer, every
one of them has a separate right of election
ELECTION
AGAINST
TRANSFER
DOES
NOT
RENDER
CANCELLATION NECESSARY
The fact that the owner of the property transferred elects to dissent from it does not render it
necessary that the document of transfer should be cancelled.
If the done accepts the benefit given to him by the transferor, such act on his part constitutes
an election by him. It is therefore, essential that the acceptance of the benefit should have
been made with full knowledge of his duty to elect and of all matters connected with such
benefit. If the benefit is accepted without such knowledge, the election may be revoked by
the representative of the electing party.2Similarly if the election is made either expressly or
impliedly under a misconception or mistake or mistake of fact it is not binding and can be
evoked by the elector himself.3
from the day it is conveyed to him and says nothing to explain the conduct otherwise, the law
leaves everybody to presume that the person so retaining the property for such duration is
doing so under belief that it is his own and he accepts the document as originally proposed.
disability of the transferor but the general inability which precludes everyone from disposing
of what does not belong to him. A transfers, therefore by a person who is under a legal
disability cannot give rise to a case of election.
But the doctrine of election is no bar to its being enforced where alienation is void, the
principle being that exercise of a choice by a person of his own freewill to do a thing or
another, binds him to the choice voluntarily made and is no bar on the equitable doctrine that
he who accepts the benefit under an instrument by his own choice must accept the whole and
renounce anything inconsistent with it.
principal, may elect either to ratify or to disown them. The doctrine of ratification however,
however, rests on the same principle that a man cannot both affirm and disaffirm the same
transaction. Thus, when a widow who had a life estate for maintenance granted a permanent
lease, the reversioner could elect either to ratify it or to set aside, and it was held that he was
not bound by lease when he accepted rent for three years in ignorance of the circumstance
under which the lease was granted or the terms on which it was held.
DIFFERENCE BETWEEN THE ENGLISH LAW AND SEC 35, TRANSFER OF
PROPERTY ACT
1. Election to affirm the instrument: no difference: the difference between the English
law and the doctrine of election embodied in the Transfer of Property and Indian
Succession Acts may be noted. When the true owner of the property elects to affirm
the instrument and to take under it, there is no difficulty. He retains the benefits
conferred upon him by the instrument and conveys his own property to the person to
whom it was given by that instrument. On this point there is no difference between the
English Law and the Indian.
2. Election against the instrument: when the done dissents from the instrument and
chooses to retain his own property contrary to the dispositions therein, there is a
significant difference between the English and the Indian doctrines in working out the
rights of the parties.
HOW THE QUESTION OF ELECTION ARISES: The question that arises when the
election is against the instrument is whether the refractory done should take nothing at all
under the instrument wholly forfeiting his rights thereunder or should be allowed to take the
benefit under the instrument on condition that he gives compensation to the disappointed
done, to the extent of the value of the property ineffectually attempted to be transferred to the
latter. This question assumes importance when the property of the refractory done which the
transferor sought to give the disappointed donee is not as valuable as the benefits conferred
on its owner under the instrument.
CONCLUSION
18
The general principle of election is wider than the doctrine embodied in Section 35 of the
Transfer of Property Act. The section in terms seems to apply only when the transferor
disposed of anothers property and confers on that other some benefit out of his own property.
The general principle of election is wider than this. It applies also to a case where a person
deals with his own property but owing to a personal disability, his disposition is not effectual.
The disposition may be ineffectual because of some disabilities such as infancy or coverture.
Such a disposition may be part of a transaction which cannot be set aside in toto and under
which some benefit is conferred upon the person whose disposition is ineffectual owing to his
personal incapacity. In such a case when the disability ceases an occasion for election arises
and if the benefits are sought to be received under the transaction, it will have to be
confirmed in toto. The doctrine does not apply if the benefits conferred are subject to a
restraint on anticipation. In Re, Vardons trusts 5, a marriage settlement settled a fund for the
separate use of the wife for life with restraint on anticipation and contained a covenant by the
wife to settle her future property. The covenant of the wife was invalid as she was an infant. It
was held that the wife could not be compelled to elect between her after-acquired property
and her interest under the settled fund but was entitled to retain both. This was because the
restraint on anticipation was indicative of an intention that she should not be put to her
election.
The doctrine of election was applied to Hindus even prior to the enactment of the act in 1882
and thereafter until the act was amended in 1929 whereby the provisions of the second
chapter which includes Section 35 were made applicable to Hindus. In Mangaldas v
Ranchordas, D, a Hindu widow, died leaving a Will in respect of property which she had
inherited from her husband. She bequeathed rs. 2000 at a legacy to the plaintiff and K were
the heirs of her husband. The plaintiff sued for the legacy under the will as well as half of the
immovable property as heir. It was held that the plaintiff must be put to his election either to
take the one or the other.
Although this section does not apply to Mohammedans, the doctrine of election was applied
by the Privy Council in the case of Sadik Husain v Hashim Ali.
BIBLIOGRAPHY
5 (1885)31 ch.276; Smith vs. Lucas (1881)18 Ch.D.531
19
DR G.P. Tripathi, The Transfer of Property Act, 16th edition, Central Law
Publications, 2009.
G.C.V.Subba Raos, Law Of Transfer Of Property,5th Edition, vol 2,ALT
Publications, 2010
Manohar and Chitaley,The Transfer of Property Act, 6th edition, vol. 2,
ALL INDIA REPORTER PVT.LTD.
WEBLIOGRAPHY
www.indiankanoon.com
www.wikipedia.com
www.Lawyerssubscribeindia.com
www.dolr.nic.in
20