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Section 130 - Transfer of actionable claim : Transfer of Property Act, 1882

 

 

What is Transfer of actionable claim? Section 130 of Transfer of Property Act, 1882

Section 130 of Transfer of Property Act 1882 : "Transfer of actionable claim"

130. (1) The transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent, shall be complete and effectual upon the execution of such instrument, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not:

Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.

(2) The transferee of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transferor's consent to such suit or proceedings, and without making him a party thereto.

Exception.-Nothing in this section applies to the transfer of a marine or fire policy of insurance or affects the provisions of section 38 of the Insurance Act, 1938 (4 of 1938).

 

Illustrations
(i) A owes money to B, who transfers the debt to C. B then demands the debt from A, who, not having received notice of the transfer, as prescribed in section 131, pays B. The payment is valid, and C cannot sue A for the debt.

(ii) A effects a policy on his own life with an Insurance Company and assigns it to a Bank for securing the payment of an existing or future debt. If A dies, the Bank is entitled to receive the amount of the policy and to sue on it without the concurrence of A's executor, subject to the proviso in sub-section(1) of section 130 and to the provisions of section 132.

 

TRANSFER OF PROPERTY ACT 1882

Section 126 - When gift may be suspended or revoked

Section 127 - Onerous gifts

Section 128 - Universal donee

Section 129 - Saving of donations mortis causa and Muhammadan law

CHAPTER VIII
TRANSFERS OF ACTIONABLE CLAIMS

Section 130 - Transfer of actionable claim

 

 

Section 130A - Transfer of policy of marine insurance (Repealed)

Section 131 - Notice to be in writing, signed

Section 132 - Liability of transferee of actionable claim

Section 133 - Warranty of solvency of debtor

Section 134 - Mortgaged debt

Section 135 - Assignment of rights under policy of insurance against fire

 

 

Section 135A - Assignment of rights under policy of marine insurance (Repealed)

Section 136 - Incapacity of officers connected with Courts of Justice

Section 137 - Saving of negotiable instruments, etc

 

 

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