Section 50 - Rent Bona Fide Paid to Holder under Defective Title
Section 50 of the Transfer of Property Act, 1882 protects a person who, in good faith, pays rent or delivers profits of immovable property to someone from whom the person in good faith holds that property, even if that recipient is later found not to have been entitled to receive them.
Section 50 - Full statutory text
50. No person shall be chargeable with any rents or profits of any immovable property, which he has in good faith paid or delivered to any person of whom he in good faith held such property, notwithstanding it may afterwards appear that the person to whom such payment or delivery was made had no right to receive such rents or profits.
Illustration
A lets a field to B at a rent of Rs. 50, and then transfers the field to C. B, having no notice of the transfer, in good faith pays the rent to A. B is not chargeable with the rent so paid.
Meaning of rent paid in good faith under a defective title
Rent is the amount payable for the use or enjoyment of property under a tenancy or similar arrangement. Profits refer to proceeds or benefits derived from the property that are due to the person entitled to receive them. A defective title means that the recipient's apparent entitlement is subsequently found to be legally insufficient. Good faith is central to Section 50: both the holding of the property from the recipient and the payment or delivery must have been in good faith.
Conditions for protection under Section 50
- The payment concerns rents or profits of immovable property.
- The payer held the property in good faith from the person receiving payment.
- The rent was paid, or the profits delivered, in good faith.
- It later emerges that the recipient was not legally entitled to receive the rent or profits.
Where these requirements are satisfied, the payer cannot be charged again for the same rent or profits merely because the recipient's title or entitlement proved defective. Section 50 does not excuse unpaid future rent, payments made dishonestly, or payments made despite circumstances that negate good faith.
How the statutory illustration works
A lets agricultural land to B for Rs. 50 rent and later transfers the land to C. Without notice of the transfer, B pays A in good faith. Although C has become entitled to the property, Section 50 protects B from being made liable again for the same Rs. 50 already paid in good faith. Once B learns of the transfer, later payments must be assessed in light of that knowledge and the parties' legal rights.
Notice, ownership changes and evidence
Notice of a sale, assignment, succession or other change in entitlement may affect whether payment to a former landlord can genuinely be regarded as made in good faith. A tenant or other payer should retain rent receipts, bank records, lease documents and relevant notices. If rival claimants demand rent, the precise facts and applicable tenancy law matter. Section 50 protects qualifying past payments; it does not determine title between competing claimants.
Related provisions of the Transfer of Property Act
Section 48 addresses priority of rights created by successive transfers. Section 49 concerns insurance money after a transfer. Section 51 deals with improvements made by bona fide holders under defective titles. Section 54 defines a sale. Section 55 addresses certain rights and liabilities of buyers and sellers. For leases, Sections 105 and 109 may also be relevant, particularly where a lessor transfers the leased property.
Frequently asked questions
Can the new owner demand the same rent twice?
Section 50 generally prevents a second charge for rent already paid in good faith to the person from whom the payer in good faith held the property, even if that recipient later proves not to have been entitled to it.
Does the rule protect payment made after notice of a transfer?
Not automatically. Notice and surrounding circumstances are relevant to whether the payment was genuinely made in good faith.
Does Section 50 decide who owns the property?
No. It addresses liability for specified payments of rent or profits; title and future entitlement may require separate determination.
Official source
Refer to the India Code official legislation portal for the Transfer of Property Act, 1882 and relevant amendments. Also see the Transfer of Property Act overview. Any applicable state amendments and local tenancy legislation should be checked for the property concerned.