Report No. 110
17.10. Recommendation made in Report on Transfer of Property Act.-
The section corresponds to section 14 of the Transfer of Property Act. The Law Commission has, in its Report on that Act, recommended1 certain changes in section 14. Similar amendments should be made in section 114, Succession Act also, which is in pari materia with section 14.
The matter was put in that Report in the form of propositions as follows:-
"(1) Proposition 1
In applying section 14 to an interest in property limited to take effect at or after the termination of one or more life interest of persons in being when the period mentioned in section 14, commences to run or on or after the termination of lives of persons in being when such period commences to run, the validity of the interest shall be determined on the basis of the facts existing at the termination of such one or more life estates or lives.
Explanation-For the purposes of this proposition, an interest which must terminate not later than the death of one or more persons is a life interest, even though it may terminate at an earlier time2-3
(2) Proposition 2
If an interest in property would be void under section 14 because it is contingent upon any person attaining or failing to attain an age in excess of majority, the contingency shall be reduced to the age of majority, as regards all persons subject to the same age contingency.
(3) Proposition 3
Propositions 1 and 2 shall not be constructed as invalidating or modifying the term of any limitation which would have been valid under section 14 apart from those propositions.4
(Note: Propositions 1 and 2 are intended to validate certain gifts that would be invalid by reason of certain hardships arising from the present law. lf, however, a gift is valid under the present law, then propositions 1 and 2 are not called into operation).
(4) Proposition 4
Propositions 1 to 3 shall apply to:-
(a) transfers taking effect on or after the date on which those propositions become operative.
(b) appointments made after that date in exercise of a power of appointment, including appointments made by an instrument under a power created before that date.5
By way of explanation of paragraph (b) it may be stated that when a power has been created before the amended law becomes operative, and the appointment is made after that date, the new law is intended to apply to the interest created by the exercise of that power".
1. Law Commission of India, 70th Report (Transfer of Property Act), paras. 22.50 to 22.65.
2. 70th Report, para. 22.56.
3. For significance of the Explanation, see 70th Report, para. 22.57.
4. 70th Report, para. 22.64.
5. 70th Report, para. 22.65.