Principle of Apportionment

Introduction

When property is transferred, questions arise about how income and obligations related to that property should be divided. The law provides rules to ensure fair distribution between parties. Sections 36 and 37 deal with this concept.

Meaning / Definition

Apportionment means division of a common fund or benefit among different persons. Under the Transfer of Property Act, it refers to dividing income or obligations related to property between transferor (seller) and transferee (buyer), or among co-owners.

Modes or Types

Apportionment by Time

This applies to income such as rent, pension, or dividends which arise periodically.

• Income is treated as accruing (growing) day by day
• It is divided between transferor and transferee based on time
• Payment is made on the fixed due date, but divided proportionately

Key Points

• Applies only between transferor and transferee
• Does not directly affect tenants
• If income arises daily → transferee gets income from date of transfer
• If income is periodic → it is divided proportionately

Apportionment by Estate

This applies when property is divided among multiple owners.

• Benefits and obligations are divided according to each person’s share
• Each owner gets benefits and bears duties proportionate to their share

Conditions for Application

• The person liable must have notice (knowledge) of division
• The obligation must be capable of division
• Division should not increase the burden

Tenant’s Liability

• If tenant is informed → must pay each owner separately
• If not informed → tenant is liable only once (single payment)

Distinction / Comparison

Apportionment by Time vs Apportionment by Estate

• Apportionment by time → division based on time (before and after transfer)
• Apportionment by estate → division based on ownership share

Practical Example

A sells a rented house to B, C, and D. The rent is ₹30 per year.

If B owns half share, and C and D own one-fourth each:

• B gets ₹15
• C gets ₹7.50
• D gets ₹7.50

If the tenant must perform 10 days of work per year:

• He is required to do only 10 days total
• Not 10 days for each owner

Summary

• Apportionment means division of income or obligation
• Section 36 deals with apportionment by time
• Section 37 deals with apportionment by estate
• Income is divided on a day-to-day basis
• Obligations are divided according to share in property
• Tenant must follow notice given by owners
• Total burden on tenant cannot be increased