Section 132 - Liability of transferee of actionable claim : Transfer of Property Act, 1882
What is the Liability of transferee of actionable claim? Section 132 of Transfer of Property Act, 1882
Section 132 of Transfer of Property Act 1882 : "Liability of
transferee of actionable claim"
132. The transferee of an actionable claim shall
take it subject to all the liabilities and equities
to which the transferor was subject in respect
thereof at the date of the transfer.
(i) A transfers to C a debt due to him by B, A being them
indebted to B. C sues B for the debt due by B to A. In such suit
B is entitled to set off the debt due by A to him; although C
was unaware of it at the date of such transfer.
(ii) A executed a bond in favour of B under circumstances
entitling the former to have it delivered up and cancelled. B
assigns the bond to C for value and without notice of such
circumstances. C cannot enforce the bond against A.