Persons Competent to Transfer
Introduction
Not every person can transfer property under law. Section 7 of the Transfer of Property Act, 1882 lays down who is legally capable of making a valid transfer.
The rule ensures that only persons with legal capacity and authority can transfer property rights.
Meaning / Definition
A person is competent to transfer property if:
- He is competent to contract (legally capable to enter into a contract), and
- He is entitled to transfer the property or is authorised to do so.
Competency to Contract
A person must:
- Be of sound mind (not insane or mentally incapable)
- Have attained majority (18 years of age)
- Not be disqualified by any law
Modes or Types
Persons Entitled to Transfer
Owner of the Property
- A person who owns the property can transfer it.
Authorised Person (Non-owner)
- A person who is not the owner can transfer property if he has legal authority.
Types of authority:
- Personal authority (given directly by owner)
- Agency (acting on behalf of another person)
- Authority by law or statute (legal provision)
- Court permission (order of court)
Persons Not Competent to Transfer
- Minors (below 18 years)
- Persons of unsound mind
- Persons disqualified by law
- Persons without authority over the property
Important Case Law
-
B.C. Mondal v. Indurekha Devi (AIR 1973 SC 782)
- Held that an agent managing property cannot sell it unless expressly authorised.
- Authority to manage does not include authority to transfer.
-
Amutham Kudumban v. Sarnam Kudumban (AIR 1991 SC 1256)
- Sale by a guardian of a minor without court permission is invalid.
- Such a person is not competent to transfer.
Distinction / Comparison
| Basis | Competent Person | Not Competent Person |
|---|---|---|
| Legal Capacity | Can contract | Cannot contract |
| Authority | Has ownership or legal authority | No ownership or authority |
| Validity of Transfer | Valid transfer | Transfer can be set aside |
| Example | Owner, authorised agent | Minor, unauthorised agent |
Practical Example
- A person sells his own land. This is a valid transfer.
- An agent sells property without authority. The transfer is invalid.
- A guardian sells minor’s property without court approval. The sale can be cancelled.
- A minor attempts to sell property. The transfer is not valid.
Summary
- Section 7 defines persons competent to transfer property.
- A person must be competent to contract (major, sound mind, not disqualified).
- The person must either be the owner or have legal authority.
- Authority can arise from agency, law, or court permission.
- Transfers by unauthorised persons are invalid.
- Courts can set aside transfers made without proper authority.