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Section 15 and 16 of Transfer of Property Act | Notes of Section 15 and 16 TPA

SECTION 15 - BARE ACT
[s 15] Transfer to class some of whom come under sections 13 and 14.-If,on a transfer of property, an interest therein is created for the benefit of a class of persons with regard to some of whom such interest fails by reason of any of the rules contained in sections 13 and 14, such interest fails in regard to those persons only and not in regard to the whole class.

SECTION 15 TPA - GENERAL EXPLANATION
This section lays down that if in a transfer of property, an interest is created for the benefit of some class of persons, but due to applicability of either section 13 (transfer to an unborn person) or section 14 (rule against perpetuity) this interest becomes unavailable to some persons of that class, then, in such a case, the transfer will be invalid only for those persons and not for others. The transfer will remain valid for other persons of the class.

Illustration - A makes a transfer of his property to B (His son) for life and then to B's Unborn children with a condition that a female child was to get only a life interest. B dies leaving three sons and one daughter. The interest of the daughter fails by reason of the rules contain in section 13 but it does not fail in regard to the whole class, that is, other three sons will take.

Prior to the amendment Act 1929 the old section provide that when an interest was created in favour of a class of persons and it failed with regard to some of the persons on account of perpetuity such interest failed as regards to whole class.
The old section embodied the English rule in Leake v Robinson (1817)

Later the rule was criticised by various high courts and it was held that it did not apply to Hindus. In view of this criticism, the new amendment section lays down that the transfer will not fail with regard to whole class but only with regard to those who cannot take. (Raja Bajrang Bahadur Singh v.Thakurain Bakhatraj Kaur) A.I.R (1953).


SECTION 16 - BARE ACT
Section 16. Transfer to take effect on failure of prior interest.-Where,by reason of any of the rules contained in sections 13 and 14, an interest created for the benefit of a person or of a class of persons fails in regard to such person or the whole of such class, any interest created in the same transaction and intended to take effect after or upon failure of such prior interest also fails

SECTION 16 TPA - GENERAL EXPLANATION
According to section 16, if, due to violation of the rules specified in sections 13 and 14, a specific transfer fails and any transfer that is intended to take effect after or upon failure of such transfer also fails.

llustration - A transfers property to B for life and then to B's sons on their attaining the age of 25 years. The deed further provides, that if B dies without any son, the property would vest absolutely in C. B and C were living on the date of the execution of the transfer, but B had no child on the same day.
Here, the transfer for the benefit of B's unborn children was void as it violated the rule against perpetuity. Thus the transfer in favour of C that was intended to take effect upon failure of this prior transfer, that is void would also fail and cannot take effect. (Property will revert back to A after B's Death)
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