AAP Tax Law
Transfer of Property Act, 1882 | Chapter I

Section 2 of the Transfer of Property Act, 1882: Repeal of Acts and Saving of Rights

Section 2 identifies the enactments repealed by the Transfer of Property Act, 1882, while protecting certain other laws, lawful contractual incidents, pre-existing rights and liabilities, court-directed transfers and rules of Muhammadan law.

Text of Section 2: Repeal of Acts and Savings

2. Repeal of Acts. Saving of certain enactments, incidents, rights, liabilities, etc.

In the territories to which this Act extends for the time being the enactments specified in the Schedule hereto annexed shall be repealed to the extent therein mentioned. But nothing herein contained shall be deemed to affect—

(a) the provisions of any enactment not hereby expressly repealed;

(b) any terms or incidents of any contract or constitution of property which are consistent with the provisions of this Act, and are allowed by the law for the time being in force;

(c) any right or liability arising out of a legal relation constituted before this Act comes into force, or any relief in respect of any such right or liability; or

(d) save as provided by section 57 and Chapter IV of this Act, any transfer by operation of law or by, or in execution of, a decree or order of a Court of competent jurisdiction;

and nothing in the second Chapter of this Act shall be deemed to affect any rule of Muhammadan law.

Meaning and scope of Section 2

The provision combines a limited repeal with express savings. Repeal means that earlier enactments listed in the Schedule cease to operate only to the extent specified there, and only where the Act extends. A saving provision prevents the new Act from disturbing particular laws, rights, arrangements or legal consequences that the legislature intends to preserve.

Clause (a): Other enactments remain unaffected

Any enactment not expressly repealed by the Act remains unaffected by Section 2. The clause does not itself displace other applicable laws governing property transactions.

Clause (b): Lawful contractual terms and property incidents

Existing contractual terms or incidents attached to property are preserved only if they are consistent with the Transfer of Property Act and permitted by the law in force. An agreement contrary to a mandatory statutory rule does not become enforceable merely because of this saving.

Clause (c): Earlier rights, liabilities and remedies

Rights and liabilities arising from a legal relationship formed before the Act came into force, including relief relating to those rights or liabilities, are protected. This clause addresses historical legal relationships; it is not a general exemption for every later property transaction.

Clause (d): Operation of law and court orders

Transfers arising automatically by law, or made by or in execution of a decree or order of a competent court, are generally outside the Act's interference under this clause. The saving is expressly subject to Section 57 and Chapter IV of the Act.

Saving of Muhammadan law

The concluding words preserve rules of Muhammadan law from the operation of Chapter II (transfers of property by act of parties). This is a specific statutory saving, not an exemption from the entire Act or other applicable enactments.

Section 57 concerns a court's power, in specified circumstances, to provide for encumbrances and facilitate sale of immovable property free from them. Chapter IV addresses mortgages of immovable property and charges. Chapter II deals with transfers of property by act of parties, including the meaning of transfer under Section 5 and property capable of transfer under Section 6.

Practical legal effect

When considering a property dispute, Section 2 calls for identifying the applicable enactment, the time when the legal relationship arose, the consistency of any contractual provision with the Act, and whether the transfer arises by agreement, operation of law or a court order. State amendments and other special statutes may also require consideration.

Official statutory source

Refer to the Transfer of Property Act, 1882 (India Code, official text) for the Act, its Schedule and the provisions mentioned above.