RULE AGAINST PERPETUITY
This rule is discussed in section 14 of Transfer of Property
Act. As per this rule, no property can be stuck of indefinite period of time
because it is detrimental to that property. Reason behind this section is that the property must reach it absolute beneficiary
it must not circulate for indefinite period (means indefinite life estate). It is
the rule which prohibits the transfer of property for indefinite time.
It restricts several life estates or life interest
which leads to unlimited period of time.
If I explain in reference to section 13, there cannot
be unlimited prior transfers and when the absolute beneficiary takes birth the
interest would transfer to him and after attaining the age of majority he even can dispose of
the property.
In simple words, after attaining the majority interest
will absolutely transfer to him.
Objective behind this rule
i.
The main objective is the property should
not be stuck for longer period. It should go to its absolute owner.
ii.
The maximum period of inalienability is
till the attainment of majority of the absolute beneficiary. The transfer
cannot stipulate a period over this, if he does so then the transfer to an
unborn will be void.
For example, suppose O, an owner of property wants to
give his property to his grandson “UB” who is
not born yet so he created life estate in “A”(son of O) and stated in the deed that UB will get
his property when he will be of 25 years old.
O
=> A (life estate) => UB (when
he attains 25 years of age)
Here this transfer
is void because the clause that says the UB will get his property when he
attains 25 yrs. of age is unlawful, it must 18 years age, before and after that
age the transfer would be void.