Doctrine of Election - Property Law.pptx
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Doctrine of Election - Property Law.pptx
- 2. Agenda 1 2 3 4 5 6 7 8 9 Principle Understanding Article 35 Essential Conditions Rules for making election Exceptions Komal Kumar v. State of Haryana (2021) (IRAC Method) Yashoda Devi v. Gopal Ram (2020) (IRAC Method) Conclusion
- 3. Principles The underlying principle of doctrine of election is that benefit and burden must co-exist. A person while accepting a benefit of a deed cannot reject or go against the burden expressed in the same Election means choosing between two inconsistent or alternative rights. Under any instrument if two rights are conferred on a person in a manner one right is in lieu of the other, he is bound to elect the proposal on whole or reject on whole. In other words, he can elect only one of them The doctrine is based on law of equity The doctrine of election is explained in section 35 of the TPA The Doctrine is universal and is applicable to Hindus, Muslims as well as Christians
- 4. Understanding B Owner A Transfer or C Transfer ee Property (10000) Benefit (15000) Property No direct relationship • Let’s say the cost of B’s property is Rs. 10000 • A says B, if you agree to sell your property to C, I will give you Rs. 15000 • Doctrine of election starts here, when the real owner i.e., B now must give effect to this transaction. He must elect • To either accept the offer i.e., to agree to sell his property to C and receive the benefit given by A of Rs. 15000 OR • Reject the whole of it i.e., reject to transfer the property to Cand refuse to accept benefit A person utilizing the benefits of an instrument also must carry the burden attached. This doctrine contains the principle that the exercise of a choice by a person left to himself of his own free will to do one thing or another binds him to the choice which he ahs voluntarily made and is founded on the equitable doctrine that he who accepts benefit under an instrument or transaction of his choice must adopt the whole of it or renounce everything inconsistent with it. Thus, it is a general rule that a person can not approbate and reprobate
- 5. • Article 35 of the Transfer of Property Act, 1882 (TPA) in India outlines the doctrine of election. This doctrine is a principle of equity that requires a person to choose (elect) between two inconsistent or alternative rights or claims. The essence of the doctrine of election under the TPA is that a person cannot accept and reject the same instrument. Definition: 1. The doctrine of election means that if a person derives a benefit under a document, he must also bear the burden imposed by the same document. He cannot accept the benefits without accepting the burdens. Application: 1. When a property is transferred, and the same transfer imposes some obligation or burden on the beneficiary, the beneficiary must choose to accept either the whole transfer (both benefit and burden) or reject the whole transfer. Importance: 1. Ensures Fairness: 1. The doctrine ensures that beneficiaries cannot selectively accept favourable parts of a transaction while rejecting unfavourable parts. 2. Protects Interests: 1. It protects the interests of all parties involved by ensuring that burdens imposed by a transfer are met if the benefits are accepted. 3. Promotes Consistency: 1. It promotes consistency and reliability in transactions involving the transfer of property. Article 35
- 6. Essential Conditions The transfer should dispose of the property in which he has no right to transfer The transfer must confer a benefit to the real owner of the property Both the benefits conferred, and transfer made must be part of the same transaction or document The owner is now given a choice of election either to accept the benefit and allow the transfer or reject both
- 7. Rules for making election 1. Knowledge of Election: • The beneficiary must be fully informed about the situation that necessitates the election. This includes understanding the nature of the property transfer and the conflicting rights or benefits involved. 2. Intention to Elect: • The election must be made with a clear and definite intention. The beneficiary's actions or declarations should indicate their choice unequivocally. 3. Express or Implied Election: • Express Election: The beneficiary explicitly states their choice in clear terms, either orally or in writing. • Implied Election: The beneficiary's conduct or actions suggest a choice. For example, accepting benefits or exercising rights under the transfer may imply acceptance. 4. Time Frame for Election: • The beneficiary should make the election within a reasonable period. If a specific time frame is provided by law or the instrument, it must be adhered to. Delay in making an election might lead to an assumption of acceptance or rejection based on the circumstances. 5. Equitable Considerations: • The court may consider equitable principles to ensure fairness. If the beneficiary acted under a mistaken belief or without full knowledge, the election may be reconsidered. 6. Consistency: • Once an election is made, it is generally binding and cannot be revoked or changed. The beneficiary must adhere to their chosen course of action consistently. 7. Impact of Election: • Acceptance: If the beneficiary accepts the benefit under the instrument, they must also accept the corresponding burdens or obligations.
- 8. Consequences • Section may carry either of two results: • In case, proposal is accepted- the property of A goes to B and property of B goes to C. • In case, proposal is rejected- no transfer will take place, B will be called refractory donee and C will be known as disappointed donee.
- 9. Exceptions Additional or extra benefits given: Any extra benefit need not to be returned even if proposal is rejected by refractory donee. These can be retained by him. Acceptance of benefit excluding extra benefit means ‘yes’ to the proposal. Two years enjoyment of the property of Transferor implies ‘yes’ to the proposal. Status quo or say being restoration of the property to transferor has become impossible- will be taken as ‘yes’ to the proposal.
- 10. Komal Kumar v. State of Haryana (2021) (IRAC Method) Issue •Whether the beneficiary can elect to accept a benefit under a will while rejecting the burdens imposed by the same will Rule •Under Section 35 of the Transfer of Property Act, a person who accepts a benefit under a legal instrument must also accept the corresponding burdens imposed by the same instrument Application •In this case, the court examined whether the petitioner, who accepted a property under a will, could refuse to pay a sum of money to another beneficiary as stipulated in the will. The petitioner argued that the condition was onerous and unjust Conclusion •The court held that the petitioner could not accept the property without fulfilling the condition imposed by the will. The doctrine of election required the petitioner to either accept both the benefit and the burden or reject both
- 11. Yashoda Devi v. Gopal Ram (2020) (IRAC Method) Issue • Whether a beneficiary can challenge a will after accepting benefits under it, based on newly discovered evidence Rule •The doctrine of election under Section 35 of the Transfer of Property Act requires a beneficiary to accept the entirety of a will, including both its benefits and burdens, unless there is a mistake or lack of knowledge Application •The court considered whether Yashoda Devi, who had accepted property under a will, could challenge the validity of the will based on newly discovered evidence suggesting fraud. She argued that she had accepted the will's benefits without full knowledge of the fraudulent circumstances Conclusion •The court held that Yashoda Devi could challenge the will despite having accepted its benefits, as the newly discovered evidence of fraud negated the informed and voluntary nature of her initial election. Equity principles allowed for reconsideration to prevent injustice
- 12. Conclusion • Section 35 of the Transfer of Property Act, 1882 explains the concept of Doctrine of election. It states that when a party transfers a property over which he doesn’t hold any right of transfer and entailed in that transaction is the benefit conferred upon the original owner of the property, such title holder must elect his opinion to either validate such transfer of property or reject it; upon rejection the benefit shall. Be relinquished back to the transferor . If it is gratuitous like gift, pay the property value and even the election before the transferor died , his repetitive pay whole or exact value. In case transferer or his representative fails to pay or give the property, he claimed against transferor party, not against the real owner • There are certain rules for making the election. However, there are certain exceptions to the rule. This provides a clear understanding of the conditions necessary for the election by the original owner to take place.
- 13. Thank You!