Friday 24 July 2020

Whether term in compromise decree restraining alienation of property transferred by it is valid?

 The decision refers to a similar case in Khiali Ram v. Raghunath Prasad (1906) 3 A.L.J. 621, in which Knox, J., held that a term of the compromise embodied in a decree that the party to whom the house was conveyed under it was not at liberty to transfer it without the consent of the other party to that compromise was void as being a restraint upon alienation and that the house could be transferred in spite of that condition. Thus the restraint imposed on the plaintiff and defendants 3 to 6 that if they want to effect a sale etc. they could do so only jointly, but not individually, in respect of their respective shares, is clearly an absolute restraint, which is void under Section 10 of the Transfer of Property Act.

Decided On: 21.11.1969

 P.L.N. Paramasivam Vs.  P.K. Ramaswami Gounder and Ors.

Hon'ble Judges/Coram:
R. Sadasivam, J.

Citations: (1970) 1 MLJ 592

Read full judgment here: Click here
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