Vol. 12 · pages 331–335
Unpublished writings; Ancient Indian Commerce; Notes on Laws; Waiting for a Visa; and more
This text was extracted automatically from the official PDF of Dr. Babasaheb Ambedkar: Writings and Speeches, so it may contain small errors. Always check the original page before quoting.
PDF page 331 (printed page 310)
310 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
(5) Incumbrance—
(i) Incumbrance means—a claim, lien, or liability attached to
the property.
(ii) The seller’s duty is to discharge all incumbrances. It is
immaterial that the buyer was aware of the incumbrances when
he contracted to buy.
(iii) The sale is not subject to incumbrances, unless there is an
express provision to that effect.
(iv) If the incumbrance is a common charge on the property
sold and other properties of the seller, the buyer may insist on its
being discharged out of the other property.
(6) This liability imposed upon the seller is collateral to
the contract and may be enforced even after conveyance.
Seller’s Liabilities
II. AFTER CONVEYANCE
1. Section 55(1)(b) —To give possession
1. It is the duty of the seller to give possession after
conveyance and not to leave the buyer to get possession for
himself.
2. This liability may be enforced by a suit for Specific
Performance.
3. Time for giving possession—
(i) The Section docs not say when the seller should give
possession.
(ii) Reference to Section 55 (4) (a) shows that possession be
given when ownership passes to the buyer. This would be at the
time of the execution of the sale-deed— 6 Lah. 308.
(iii) The seller cannot refuse possession because price has not
been paid unless there was intention to the contrary.
(iv) The buyer’s right to possession and the seller’s right to
unpaid price may be enforced in the same suit.
4. Nature of Possession—
(i) Possession docs not mean actual occupation.
(ii) Physical possession in the case of tangible and symbolical
possession in the case of intangible property is enough.
(iii) Symbolical possession is enough in the case of property
which is in the possession of tenants or mortgagees.
PDF page 332 (printed page 311)
311LAW OF SPECIFIC RELIEF
2. Section 55 (2)—To assure that the interest subsists.
1. There are two views as to whether this liability of the
seller is one which arises before conveyance or after conveyance.
(i) Calcutta view. This clause contemplates a completed contract
and corresponds to covenant for title in an English conveyance.
57 Cal. 1189.
(ii) Madras view. This clause contemplates cases, where the
transaction has not progressed beyond the stage of contract. 40 Mad.
338(350):
38 Mad. 1171.
(iii) Lahore view. Follows Madras.
6 Lah. 308.
(iv) Bombay view. It pertains to liability after conveyance
18 Bom. S. R. 292: 52 Bom. 883: 31 Bom. LR. 658.
(a) The provisions of Section 55 (1) enable the buyer before
completion, to ascertain if the title offered is free from reasonable
doubt. Once he has accepted the conveyance and the sale is
completed, he has no remedy on the contract except for fraud.
(b) The covenant for title implied by Section 55 (2) gives the
buyer a further remedy in case of defects discovered after conveyance.
(v) Another view which probably is the correct view.
(a) In the matter of Title, the liability of the seller is twofold.
(i) He must pass to the buyer a title free from reasonable
doubt.
(ii) He must pass to the buyer a title which he professes to
pass and nothing less. He must make good his representation.
Under (i) he must prove that he has acquired his title in any one
of the recognized ways: such as prescription, possession, inheritance,
purchase, etc.
Under (ii) if he professes to transfer a full proprietory interest,
then interest transferred must be full proprietory interest and not
merely occupancy interest: Sale of free from incumbrances land which
is subject to incumbrance : Sale of non-transferable land as transferable.
(b) Section 55 (1) relates to liability for a title free from reasonable
doubt: Section 55 (2) relates to liability for passing title which he
professed to pass.
2. Section 55 (2) relates to misrepresentation or misdescription
as to title. A distinction must be made between misdescription
of title and misdescription of property.
(i) Misdescription of title is a breach of the covenant for title under
Section 55 (2) and gives right to damages.
PDF page 333 (printed page 312)
312 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
(ii) Covenant for title does, not extend to misdescription of
property i.e. as to the extent of the land sold.
(iii) A covenant for title is not a covenant that the land purported
to be conveyed is of the extent stated in the sale-deed. It is merely
a contract with the purchaser of the validity of the sellers’ title.
Consequently if the purchaser finds a deficiency in area his, suit
must be based not on the covenant for title, but for part failure
of consideration.
3. Express covenant for title. Every conveyancer has an
implied covenant for title. But parties may enter into an
express covenant relating to title. The points to be noted in
regard to an express covenant are:
(a) If overrides and does away with the effect of all implied
covenants.
(b) Although an express covenant alone can govern the rights
of the parties, yet an implied covenant cannot be got rid of except
by clear and unambiguous expression.
4. Who can claim the benefit of the covenant: The benefit of
a covenant for title can be enjoyed not only by the purchaser
and his representatives, but also subsequent alienees, who
claim under the purchaser, can enforce it as against the seller.
5. Under this clause the vendor is presumed to guarantee
his title absolutely to the property. If he wishes to contact
himself out of the covenant he must do so expressly or by
necessary implication.
6. The implied covenant for title has nothing to do with
the question, whether the buyer has or has not notice of the
defect of title and the buyer’s knowledge of the defect does not
deprive him of the right to sue for damages and can claim a
return of the purchase-money if he is dispossessed by reason
of a defect in title.
7. Covenant for title—what does it include. The covenants
for title implied in an English conveyance, include.—
(i) Right to convey,
(ii) Right to quiet enjoyment,
(iii) Right to hold free from incumbrances,
(iv) Right to further assurance.
PDF page 334 (printed page 313)
313LAW OF SPECIFIC RELIEF
Under the covenant for further assurance, the seller is
bound to do such further acts for perfecting the buyer’s title
as the latter may reasonably require. Thus, if a seller has,
after the sale perfected an imperfect title by the purchase
of an outstanding interest, he can under this covenant, be
compelled to convey it to the buyer.
(2) The English covenants are more extensive as they
include the covenant for quiet enjoyment, for freedom from
incumbrances and for further assurance. Under Indian Law
they are not included.
8. Covenant for title is a covenant for a title free from
reasonable doubt. It has been held by the Privy Council that
an absolute warranty of title cannot be insisted upon by the
purchaser. 9 I. A. 700 (713).
9. The implied covenant for title does not apply in the
case of a trustee :
(i) A trustee is only deemed to covenant that he has done no
act whereby the property is incumbered, or that whereby he is
hindered from transferring.
(ii) If a trustee conveys without disclosing his fiduciary character,
he could no doubt be required to convey “as beneficial owner” so
as to become subject to the usual covenants for title.
10. The implied covenant for title does not apply in the
case of a guardian selling on behalf of the minor.
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PDF page 335
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