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shall be in existence at the expiration of that period, and to whom,, Section 14 of the Transfer of Property Act deals with 'the, 2. RULE AGAINST PERPETUITY, [Section 14], Rule against perpetuity'. It is an extended provision of Section 13, Meaning: The word 'Perpetuity' means, “tying up propenty, for an indefinite period or for ever". 'Perpetual enjoyment' means,, "enjoyment forever". Section 14 of the T.P.Act corresponds to, Section 114 of the Indian Succession Act, 1925, which runs as, follows:, No transfer of property can operate to create an interest which, is to take effect after the lifetime of one or more persons living a", the date of such transfer, and the minority of some person wil, if he attains full age, the interest created is to belong., Scanned by Scanner Go
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creation of future conditional interest in property., Transfer for Benefit of Unborn Person, 59, Section 114 Indian Succession Act: "No bequest is valid, whereby the vesting of the thing bequeathed may be delayed beyond, the lifetime of one or more persons living at the expiratioin of that, period, and to whom, if he attains full age, the thing bequeathed is, to belong.", Jarman defines perpetuity as "a perpetuity in the primary, sense of the word is a disposition, which makes property inalienable, for an indefinite period"., Principle: There are some persons, who wish to retain their, properties in their own family from generations to generations, perpetually. But it is the policy of the law to prevent the creation of, perpetuities. Property cannot be tied up longer than for a life in, being and beyond minority. This rule/principle is called the Rule, against perpetuity'., The policy of law has been to prevent property from being, tied up forever. The rule against perpetuity has been founded on, the general policy that liberty of alienation shall not be exercised to, its own destruction and all contrivances which tend to create, perpetuity or place property forever out of the reach of the exercise, of the power of alienation shall be void., Perpetuity may arise in two ways:, (1) by taking away from the owner of property the power of, alienation thereof; and, (2) by creating future remote interest in the property., The former case is covered by Section 10 of this Act and the, latter is covered by this section., The object of the rule against perpetuity is to restrain the, ngredients: To attract Section 14, the following conditions, are to be satisfied., Scanned by Scanner Go
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Stated in another way, the rule amounts to saying that, except, (ii) Transfer should be to create an interest in favour of an, 60, Lectures on Transfer of Property Act, (i) There should be a transfer of property., unborn person., (iii) Interest so created must take effect after the lifetime es, one or more persons living at the date of such transfer, and during the minority of the unborn person., (iv) The unborn person should be in existence at the expiration, of the interest of the living persons., Perpetuity period: Perpetuity period is one in which one, cannot postpone the vesting of property in transferee beyond certain, limit. It is the period of which vesting of interest may lawfully be, postponed. Under this rule, the maximum period during which, the, owner of the property can control its flow is prescribed., Analysis of the Rule:, (1) The vesting cannot be postponed beyond the lifetime of, any one or more persons living at the date of the transfer. For, example, if an estate is given to a living person, A for life, then to a, living person, B for life and then to the unborn son of B. Here the, son of B must be in existence on or before the date of the expiry of, the life estate in favour of B., between the termination of the preceding interest of a living person, existence at the date of the transfer., would not be violative of the rule against perpetuity., Scanned by Scanner Go
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Transfer for Benefit of Unborn Person, 61, The extent of perpetuity period:, The perpetuity period, that is to say, the maximum period, during which the property may be rendered inalienable, is the life, of any person who is, or of the survivor of any number of persons, who are alive at the moment when the deed which creates the, interest begins to operate, plus a period of 18 years from the time, when such designated person dies. For example, the owner of a, property may transfer it to a living person, A, for life, and after his, death to B, a living person, for life, and on or before B's death to, his unborn son when he attains the age of 18. Suppose A remains, alive for 10 years; B for 15 years and the unborn son comes into, existence just before the death of B. As the unborn son would not, get the property until he attains the age of l18, it follows that the, property would remain tied up for 33 years., Extent of perpetuity period : Position in India:, Life or any number of lives in being + period of gestation +, minority period of the unborn beneficiary., E.g.: Assume that A, B, C are the life estate holders who, enjoyed the property. In that A enjoyed for 15 years, then B, enjoyed for 20 years and C enjoyed for 10 years and died then the, unborn person came into existence. Now perpetuity period is:, А В С, М.Р., 15 + 20 + 10 + 18 63 years., In this case if the vesting of an absolute interest to an unborn, person is more than 63 years, that is void on the basis of the 'rule, against perpetuity'., E.g.: A, B, C are the life estate holders who enjoyed the, property. In that A enjoyed 15 years, then B enjoyed 20 years and, C also enjoyed 10 years at the end of which the unborn person, conceived and came into existence 150 days after the death of C., Now the perpetuity period is, Scanned by Scanner Go
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of transfer for the benefit of the public i.e. advancement of religion,, Lectures on Transfer of Property Act, 62, A +B+ C + P.G + M.P., 15 + 20 +10 + 150 days + 18 years, Here the perpetuity period is 63 years and 150 days, vesting of property is more than 63 years and 150 days. It is void, English Law:, Life or lives in being + period of gestation + minority period., If we apply this rule to the above example, the perpetuity, period is:, 15 + 20 + 10 + 21, 66 years, 15 + 20 + 10 + 280 days + 21, 66-280, %3D, Difference between English Law and Indian Law, English Law, Indian Law, 1. Minority period is 21 years., It is 18 years., 1., 2. Period of gestation is a, 2. It should be actual period., gross period., 3. Property need not be given, It, absolutely., 3., should, be, given, absolutely to unborn person., 4. The unborn person must, 4., come into existence within, Не, existence before the death, must, come, into, 21 years of the death of last, of the last life estate holder., life estate holder., Exceptions to the rule against perpetuity: The rule against, perpetuity allows the following exceptions., (i) Public Charitable Trust: The rule does not apply 1n cau, knowledge, commerce, health and safety., Scanned by Scanner Go
