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living person.
Vesting of interest in favour of ultimate beneficiary may be postponed only up to the life
or lives of living person pus minority of ultimate beneficiary, but not beyond that.
TENTATIVE CHAPTERISATION
Definition/Meaning of Perpetuity
Perpetuity literally means eternity, infinite, or forever. The term is not explained anywhere with
reference to specific number of years, it is understood under Section 14 of Transfer of Property
Act as equivalent to the life time of one or more living persons plus the minority of unborn
person, who would take the absolute interest in the property.
Object
The true object of the rule against perpetuity is to restrain the creation of future conditional
interest in property. To protect this situation section 14 of the Transfer of Property Act has
embodied the rule against perpetuity.
Rule against Perpetuity
The rule against the perpetuity simply means that all devices shall be void which tends to create
a perpetuity or place property, forever, out of the reach of exercise of the power of alienation. So
long as transferees are living persons, any number of successive estates can be created.
Exceptions
Rule against perpetuity does not apply to certain thing such as personal agreement, a covenant of
pre-emption, charge, mortgages, gifts to charities such as transfer for the benefit of public, for
the advancement of religion, knowledge, health, commerce, safety, or any other object beneficial
to the mankind.
Situation under Hindu and Muslim Law
Section 14 of Transfer of Property Act or this rule against perpetuity is made applicable on Hindu
after 1929, but this provision is not applicable to Muslim Law but a gift to remote and unborn
generations was held void although exception has been made in case of wakfs.
CASE LAWS
Ram Newaz v. Nankoo1
The plaintiff sold his entire share in a village reserving two bighas of land for himself. There was
condition that the sale remains in his possession for life and after his death in the possession of
his descendants. With this deed he had created a life estate in favour of himself and his son and
also their unborn descendants. Court held, that sale of two bigas of land was void.
Veerattalingam v. Ramesh2
A executed a will giving the possession of her properties to her sons without any power of
alienation, and after that a life interest was created in favour of her sons sons, who were alive at
time of executing the bequest testament further provided that after the death of such grandsons,
the property was to vest in great grandsons. Held this bequest was not hit by section 14 of
Transfer of Property Act because both grandson and great grand sons were living on date the
bequest was created.
A trust wakf-alal-aulad was created by a Muslim. Settlor executed trust by selling properties for
benefit of family, children or descendants from generation to generation, and thereafter for
maintenance of holy shrine. Held that it is valid creation of trust and not hit by rule against
perpetuity.
BIBLIOGRAPHY
BOOKS
WEB SOURCES
www.scconline
www.manupatra.com