Vested interest
Section 19 of the Transfer of Property Act, 1882 deals with vested interest. Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to take effect, or in terms specifying that it is to take effect forthwith or on the happening of an event which must happen, such interest is vested, unless a contrary inten The Act came into force on 01 Jul 1882.
Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to take effect, or in terms specifying that it is to take effect forthwith or on the happening of an event which must happen, such interest is vested, unless a contrary intention appears from the terms of the transfer.
A vested interest is not defeated by the death of the transferee before he obtains possession.
Explanation.-- An intention that an interest shall not be vested is not to be inferred merely from a provision whereby the enjoyment thereof is postponed, or whereby a prior interest in the same property is given or reserved to some other person, or whereby income arising from the property is directed to be accumulated until the time of enjoyment arrives, or from a provision that if a particular event shall happen the interest shall pass to another person.
Section 19, The Transfer of Property Act, 1882 (Act 4 of 1882).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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P. K. Mohanram vs B. N. Ananthachary
Court's Decision & Legal Precedent
A document creating immediate rights in favor of beneficiaries in praesenti, coupled with an explicit prohibition against revocation by the settlor, constitutes a settlement deed and not a will, even if the enjoyment of the property is postponed until after the settlor's death. The substance and intention of the document, as gathered from a comprehensive view of all its terms, is determinative of its character, not its nomenclature or form. An interest created in a settlement deed is vested, not contingent, when the beneficiary acquires a present right to future enjoyment, and such vested interest is not defeated by postponement of enjoyment or by the death of the beneficiary before obtaining possession.
On this section: Court applied this section to determine that an interest can be vested even if enjoyment is postponed, provided there is an immediate right of present enjoyment or a present right for future enjoyment. The court held that the beneficiaries acquired vested interests in praesenti under the settlement deed.
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P. K. Mohanram vs B. N. Ananthachary
Court's Decision & Legal Precedent
Where a document, styled as a settlement deed and describing itself as such, transfers property to beneficiaries with unequivocal language indicating immediate vesting of rights in praesenti ('From this day onwards...'), and contains an express and irrevocable prohibition against the settlor's right to cancel or alter the terms ('I shall have no right whatever to cancel this settlement deed for any reason whatsoever or to alter these terms'), such document creates vested interests in the beneficiaries despite postponement of absolute enjoyment until after the settlor's death. The postponement of enjoyment does not render the interests contingent under Section 21 of the Transfer of Property Act, 1882, but rather indicates the settlor retained a life interest while irrevocably transferring the remainder. The nature of the instrument is determined by examining the substance of the document as a whole, not its form or nomenclature, and courts must apply a presumption in favour of vested interests unless the intention to the contrary is definite and clear. Such a settlement deed cannot be revoked or altered by subsequent instruments (revocation deed or will) because the irrevocable language demonstrates the settlor divested themselves of all right to revoke, making the transfer effective in law immediately upon execution.
On this section: Court analysed that a vested interest is created where property is transferred with an immediate right of present enjoyment or present right for future enjoyment, regardless of postponement of actual possession or enjoyment. The absence of contingency and presence of irrevocable language establish a vested interest in praesenti.
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Kokilambal vs N. Raman
Court's Decision & Legal Precedent
A settlement deed which provides that the settlor shall enjoy the usufructs (rental income) of the property during her lifetime and that the property shall vest absolutely in the settee only after the settlor's death, creates a contingent interest in the settee, not a vested interest. The settlor retains ownership during her lifetime and has the right to revoke the settlement after the death of the settee. The determination of whether an interest is vested or contingent must be based on a comprehensive reading of all the terms of the settlement deed to ascertain the true intention of the settlor. The nomenclature of the document and the presence of a clause restricting alienation are not conclusive; the recitals and the overall structure of the deed must be examined.
On this section: Applied to determine the principles governing vested and contingent interests in property transfers. Section 19 deals with vested interests and Section 21 deals with contingent interests. The Court used these sections as the framework for analyzing whether the settlement created vested or contingent interest.
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Usha Subbarao vs B. E. Vishveswariah
Court's Decision & Legal Precedent
Where a testator makes a bequest of property to his sons with postponement of enjoyment and partition but directs that the income from the properties be applied for the benefit of the sons and their mother, and the sons are under an obligation to maintain their mother, the bequest constitutes a vested interest in the sons on the testator's death, not a contingent interest. The vesting of the interest is not defeated by the postponement of enjoyment or partition, and the interest passes to the legal representatives of a son who dies before the time of enjoyment. The presumption in favor of early vesting of testamentary gifts applies, and the court should not infer an intention to create a contingent interest unless such intention is definite and clear from the terms of the Will.
On this section: Defines vested interest as an interest created in favor of a person without specifying the time when it is to take effect, or specifying that it is to take effect forthwith or on the happening of an event which must happen. Applied to determine that the bequest in the Will created a vested interest in the sons despite postponement of enjoyment.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… On the testator's death the legacy to B becomes vested in interest in B. xxx xxx xxx xxx" 51. It is also apposite that we notice Section 19 of the Transfer of Property Act, 1882 (hereinafter referred to as 'the TP Act', for short). Section 19 deals with vested interest. It reads as follows: > "19. Vested interest.—Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to …
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… On the testator's death the legacy to B becomes vested in interest in B. xxx xxx xxx xxx" 51. It is also apposite that we notice Section 19 of the Transfer of Property Act, 1882 (hereinafter referred to as 'the TP Act', for short). Section 19 deals with vested interest. It reads as follows: > "19. Vested interest.—Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is …
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… On the testator's death the legacy to B becomes vested in interest in B. xxx xxx xxx xxx" 51. It is also apposite that we notice Section 19 of the Transfer of Property Act, 1882 (hereinafter referred to as 'the TP Act', for short). Section 19 deals with vested interest. It reads as follows: > "19. Vested interest.—Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is …
Questions about Section 19
What have the courts held on Section 19 of the Transfer of Property Act?
P. K. Mohanram vs B. N. Ananthachary (15 Mar 2010) is the leading judgment on this section among those set out below: Court applied this section to determine that an interest can be vested even if enjoyment is postponed, provided there is an immediate right of present enjoyment or a present right for future enjoyment. The court held that the beneficiaries acquired vested interests in praesenti under the settlement deed. Another 3 judgments on this section are set out below, all of them from the Supreme Court. They run from 1996 to 2010.
How do I find court cases under Section 19 of the Transfer of Property Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: TP Act 19, section 19 TP Act, section 19 of the Transfer of Property Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 4 reported judgments on this section are set out on this page, beginning with P. K. Mohanram vs B. N. Ananthachary (15 Mar 2010).
When did Section 19 of the Transfer of Property Act come into force?
Section 19 of the Transfer of Property Act, cited as TP Act 19, came into force on 01 Jul 1882, having been enacted on 17 Feb 1882. It is in force as at the date shown on this page.
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Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.