Introduction
The person who has the property has the right to enjoy the property in whatever way he likes and if there is any condition which prohibits him from enjoying the property then such conditions are void under section 11 of the Transfer of Property Act. Section 11 of the Transfer of Property Act, 1882 (hereinafter referred to as "TPA"), plays a crucial role in the law of property in India. It deals with the principle of repugnancy, which prevents any transferor from imposing conditions that are inconsistent with the nature of the interest being transferred. Essentially, this section protects the transferee's rights by ensuring that the property is transferred without unreasonable or contradictory conditions attached to it. If there are certain direction that are given to the transferee to use the land in particular way, then the transferee is not bound by such condition as if such condition was never there and he can enjoy the property as he wants.
Essentials of Section 11
A) The restriction must be imposed at the time of transfer of the property
One of the essentials of section 11 of TPA is that the condition which provides certain directions specifying the manner in which the property is to be used must be made at the time of transfer of the property. If there are certain charge or any restrictions which the property already has, and the transferee has the knowledge of such charge then in such cases the condition provided will be valid and the property will go to the transferee along with the charge already created. Section 11 talks about the terms of the transfer of the property.
For example, 'X' transfers the property to 'Y' and does not provide any restriction in the terms of the transfer of property but there is a charge in the property in favour of 'Z' who is the mother of the transferor that she will receive 10% rent from the property and 'Y' is also aware of the same. In such case, the restriction mentioned in valid because the restriction is not provided in the terms of the deed but there is already an existing charge or restriction on the property. Another example could be of Dawar amount due to the Muslim wife, then in such case also because it is charge on property and it will go along the property.
B) Transfer of Absolute Interest in the Property
Another condition for the application of section 11 is that there must be a transfer of absolute interest in the property, and it does not cover the instances that create the partial interest. It does not apply for instance, to a lease which is a transfer of a limited interest, and the lessee is bound by the conditions and covenants expressed or implied in the lease restricting his mode of enjoyment.
For example, A assigns a life interest in a farm to B for her maintenance. The deed contains a direction that B shall not cut down the trees. The direction is valid because there is no absolute interest which is created in the favour of the transferee and therefore the restriction is valid, and section 11 will not apply. Another example could be If there is a transfer of the property for the lease with a direction that the lessee will only use it for agricultural purpose, then such directions are valid, and the transferee is bound by such direction.
A person along with the ownership gets the right to enjoy the property in such manner as he thinks fit. Once the sale is complete and the ownership is transferred then the person can take the benefit of section 11, and he can use the property as if no condition is attached to the transfer of the property.
C) Directions with regard to the enjoyment of the property in a particular manner
Another condition for the application of section 11 of TPA is that in the transfer of property, the condition which is provided is with respect to the manner in which the property is to be used. This makes a distinction in relation to section 10 of the TPA which specifically deals with the case where the condition provided is with respect to the alienation of the property by the transferee.
Exception to Section 11 of TPA.
Along with the essential of section 11, there are certain exceptions to the above-said rule. It provides that where any such direction has been made in respect of one piece of the property for the purpose of securing the beneficial enjoyment of another piece of such property, then in such cases the transferor has the right to enforce the directions provided with the transfer or to claim any remedy for the breach of such direction. Example two plot owned by A and B, of X can put restriction on A or B not the build the property at such height that there is no sunlight or blockage to the land of B. If B is sold the plot to C, then will the C also bound by such condition. It will come under section 14 of the TPA restrictive covenant attached to the property then it will go with the property.
Case Law
Indu Kakkar v Haryana State Industrial Development Corporation Ltd AIR 1999 SC 296
In this case, the state of Haryana IDC allotted industrial units to the various undertakings on the condition that they are required to complete the construction within the stipulated time frame, and in case if they fail to do so, then their interest in the property shall be ceased. When some of the industrial undertakings failed to complete the construction within the stipulated time frame, the state of Haryana IDC started taking back the units from them. They claimed that it would amount to be a violation of section 11 of TPA, but the court held that the plot of land which was transferred to them only by deed of conveyance therefore it does not create any ownership right in the property therefore section 11 of TPA is not applicable in the present case.
Conclusion
Section 11 of the Transfer of Property Act, 1882, is a critical provision that upholds the sanctity of property transfers by nullifying any conditions that are inconsistent with the absolute nature of the interest transferred. This ensures that the transferee enjoys full ownership rights without interference from the transferor, thus fostering clarity and fairness in property transactions.