ES शाश्वतत्ता के विरूद्ध नियम की व्याख्या कीजिए तथा इसके अपवादों का भी उल्लेख कीजिए।

Rule Against Perpetuity: Meaning, Application, and Exceptions

1. Meaning of Rule Against Perpetuity

The Rule Against Perpetuity is a legal principle that prevents property from being tied up indefinitely for future generations. It restricts the creation of future interests in property that delay absolute ownership for an unreasonable period.

In India, this rule is codified under Section 14 of the Transfer of Property Act, 1882, which states:

"No transfer of property can create an interest that takes effect after the lifetime of one or more living persons at the time of transfer, plus a further period of eighteen years."

Objective of the Rule

• To ensure free circulation and transferability of property.
• To prevent property from being tied up indefinitely in favor of unborn persons.
• To avoid hindrance to economic development by keeping property from being commercially useful.

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2. Essentials of the Rule Against Perpetuity

For a transfer to violate the rule, it must involve:

1. A vested or contingent interest in favor of an unborn person.
2. A delay in ownership beyond a reasonable period (lifetime of existing persons plus 18 years).
3. A situation where the absolute right of enjoyment is postponed indefinitely.

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3. Exceptions to the Rule Against Perpetuity

Certain transfers are exempted from this rule, meaning they are valid even if they extend beyond the prescribed period. The main exceptions include:

(i) Transfer for the Benefit of the Public (Charitable or Religious Purpose)

• If property is transferred for a charitable or religious purpose, the rule does not apply.
• Example: A trust created for the education of underprivileged children can continue indefinitely.

(ii) Covenants Related to Land

• Agreements imposing conditions restricting the use of land for a longer period are allowed.
• Example: A covenant preventing the construction of commercial buildings in a residential area.

(iii) Personal Agreements (Contracts and Pre-Emptive Rights)

• If a contract creates a right of first refusal (pre-emption right) for an indefinite period, it is enforceable.
• Example: A contract giving a tenant the first right to purchase a property whenever the landlord decides to sell it.

(iv) Perpetual Lease

• A lease for an indefinite period is valid, provided it does not create an interest in the property beyond permitted limits.
• Example: A lease agreement stating that the tenant can renew the lease indefinitely.

(v) Hindu Joint Family Property

• The rule does not apply to Hindu joint family property where property is passed down through generations via survivorship.

(vi) Government Grants

• Property granted by the government is not subject to this rule.
• Example: The government can grant land for perpetual public use.

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4. Judicial Interpretation of the Rule

• In Stanley v. Leigh (1732), it was held that property cannot remain inalienable forever.
• In Girjesh Dutt v. Datadin (1934), the Privy Council ruled that a bequest in favor of an unborn person without a prior life interest to a living person violates the rule.

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5. Conclusion

The Rule Against Perpetuity ensures that property is not locked indefinitely and remains available for commerce and economic activity. However, public welfare transfers, contracts, and government grants are exempted from this restriction.