CS EXECUTIVE SOLVED PAPER GCL GENERAL AND ... - cs notes

CS EXECUTIVE SOLVED PAPER
GCL
Section 11 of the Act also embodies a rule which is based on the principle that restraint on the
enjoyment of the property is invalid. The section lays down that where land is transferred by one to
another, the transferor should not impose conditions as to how and in what manner the transferee
should enjoy the property. As for instance, A sells his house to B and adds a condition that B only
should reside in that house, the condition is invalid. This is subject to the exception that, if a person
transfers a plot of land keeping another plot for himself, he can impose certain conditions which
may interfere with the right of enjoyment of the transferee.
(ii)Please Refer 2008 - Dec [4] (vi) on page no. 123
Sale – As per Section 54 of the Transfer of Property Act, a sale is a transfer of property
to another for consideration that is paid or promised, or partly paid and partly promised.
The essentials of a sale are as under –
(a) The seller must be a person competent to transfer. The buyer must be any person
who is not disqualified to be the transferee under Section 6(h)(3).
(b) The subject matter should be capable of being defined as transferable property.
(c) There is a transfer of ownership.
(d) It must be an exchange for a price paid or promised or part paid and part promised.
(e) There must be present a money consideration. Any other valuable consideration but
money makes it an exchange or barter but not a sale.
Contract for sale
A contract for the sale of immoveable property will be specifically enforced by a court
unless special reasons to the contrary are shown. For example, if in a contract, A agreed
to sell to B a plot X, this is a contract of sale, and specific performance of the contract
can be ordered by the court.
2010 - Dec [5] (c) Abhay’s agricultural land was purchased by the government for the purpose
of construction of a factory but no duty was paid for this transfer by the government. Abhay
wanted to take back his land on the ground that the government has not paid the duty and,
therefore, no sale deed was executed. Will Abhay succeed Give reasons.(4 marks)
Answer :Section 3 of the Indian Stamp Act, 1899 dealing with instruments chargeable with duty
provides
certain exceptions stating that no duty shall be chargeable in respect of any instrument executed
by or on behalf of or in favour of the Government, in cases where, but for this the Government
would be liable to pay the duty chargeable in respect of such instrument.
In this case, Abhay's agricultural land was purchased by the government for the purpose of
construction of a factory but no duty was paid for this transfer by the government. Abhay wanted
to take back his land on the ground that the government has not paid the duty and, therefore, no
sale deed was executed. As per the provisions of the section it appears that the government is not
liable to pay duty. Therefore the instrument falls under the exception and it is not void. Abhay
cannot take back his land on this ground.
2010 - Dec [8] (a) Ajoy voluntarily makes a gift of his immovable property to Bijoy. Bijoy
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