Report No. 66

8.11. Transfer of actionable claims.-

In India, the general subject of the transfer of an actionable claim is governe1 by section 130 of the Transfer of Property Act, 1882. However, the Exception to that section provides, inter alia, that "Nothing in this section affects the provisions of section 38 of the Insurance Act, 1938." Hence the assignment of the benefit of an insurance policy, is governed now by the Insurance Act.2 The second illustration to section 130 of the Transfer of Property Act shows that, but for the provisions of the Insurance Act section 130 of the Transfer of Property Act would have governed assignments of life policies also. At common law, a chose in action was not assignable. But, in equity, it was assignable, subject to certain requirements of notice. As Rankin J. observed,3 the legislature has, in section 130 of the Transfer of Property Act, composed a new scheme, which has some of the features of both the systems.

1. For section 130, see para. 8.13, infra.

2. Sudasook v. Heart Miller, AIR 1923 Cal 719 (722) (Rankin, J.).

3. Sudasook v. Hoare Miller, AIR 1923 Cal 719 (722) (Rankin, J).