Report No. 57

4.11. Section 84, Trusts Act-Transfer for unlawful purpose.-

Where any transfer of property is intended to effect an unlawful purpose, and the unlawful purpose is not carried out, the transfer can (subject to certain qualifications) be disregarded. This principle, which forms the basis of a specific provision1 (as to illegality) in the Trusts Act, is also relevant to the subject of benami transactions entered into for an illegal object. (Under a provision of the Transfer of Property Act,2 as transfer for an unlawful object is void).

1. Section 84, Trusts Act. (See para. 4.15, infra.)

2. Section 6(h)(2), Transfer of Property Act.