What is Actionable Claim in Transfer of Property Act?

An "actionable claim meaning" is defined as a claim to any debt, other than a debt secured by mortgage of immovable property or by pledge of movable property, or to any beneficial interest in movable property not in the possession, either actual or constructive, of the claimant.

The Civil Courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.

• An actionable claim can be a claim to any debt, meaning a sum of money owed by one person to another. 

• It can also be a claim to any beneficial interest in movable property not in the possession of the claimant.

• It does not include a claim to a debt secured by the mortgage of immovable property or pledge of movable property. 

• It does not include a claim to beneficial interest in movable property in the possession (either actual or constructive) of the claimant.

• The Civil Courts must recognize the claim as affording grounds for relief. This means that the courts should acknowledge the claim as a valid basis for seeking legal remedies.

• The actionable claim can be existent, accruing, conditional, or contingent. This implies that it can arise from existing debts, debts that are in the process of accruing, or those that are subject to certain conditions or contingencies.

An actionable claim is transferable, subject to certain conditions and restrictions. It can be assigned or transferred from one person to another. It is the

actionable claim meaning

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The meaning of what is Actionable Claim in Transfer of Property Act is simple. An Actionable Claim is a claim to any debt other than a debt secured by mortgaging an immovable property. On such debts, action can be taken in a Court of law for comfort or relief. I recently learned about this topic so let me share what I know about it here.

“Actionable Claim” is defined under Section 3 of the Transfer of Property Act. It was included in Section 3 by the Amending Act of 2 of 1990. Not all debts will, however, be considered actionable claims. 

As per Section 3 of the Transfer of Property Act, an Actionable Claim is a claim to any debt that is not secured by 

• Mortgaging an immovable property

• To any beneficial interest in movable property that is not in the actual or constructive possession of the claimant

• A debt that the civil courts recognise as affording grounds for relief, whether such debt or beneficial interest be existent, accruing confidentially or contingently,

Here are some of the debts that are considered actionable claims.  -

• Claim for failure to pay rent on time

• Claim for money due under an insurance policy

• The right to get back the money when the sale is put on hold

• The right of a partner to take a step against the other or sue for an account of the dissolved partnership firm

• The right to claim benefits under an agreement for the purchase of goods and more

If you feel you too have such a debt to claim, seek a legal expert’s advice to understand the concept of Actionable Claim under Transfer of Property Act more precisely. 

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We had rented our property to a tenant for 3 years but for a long time but recently he had not been paying the rent on time. While discussing this with my neighbour, I came to learn about the actionable claim in property law. So let me speak about this concept in simple words here.

"Actionable claim refers to a claim or a debt for which one is permitted to take action. This claim is stated under Section 3 of the Transfer of Property Act. As per this act, a person can even approach the court for the recovery of his/her debt or claim. Here are some of the important provisions coming under this act that will help you know what is actionable claim in Transfer of Property Act more precisely-

• The transfer can be done only with a written document 

• The document must be signed by the transferee or his/her legal agent

• The transfer must be complete.

Some of the actionable claims example are-

• Claim for arrear rent

• Choice offered to repurchase the property once again

• Claim for rent to fall due in the future

• Book debts or claims

• Rights to claim maintenance

• Deposit receipt

• Claim the benefit as mentioned in the contract 

In short, actionable claims are those types of debts on moveable property that would have been enforced by the court. This is all I know about actionable claim in property law.

The form of transfer and the type of property being transferred must be determined to ascertain whether or not the Transfer of Property Act, 1882, would be applicable to a specific transaction. The act deals with actionable claim under transfer of property act 1882 as one of its intangible aspects.

What is actionable claim in transfer of property act?

Section 3 of the Transfer of Property Act, defines an actionable claim. An actionable claim is an intangible movable property, and Chapter VIII of the Transfer of Property Act deals with its transfer.

• Claim to an unsecured debt:

In the context of actionable claims, "debt" refers to any obligation to pay a specific sum of money and does not just refer to loans.

Actionable claims only include claims for unsecured debt. As a result, an unsecured debt must meet the following criteria:

1. A monetary obligation

2. Not covered by security

• Beneficial interest in a movable property

A person is considered to have a beneficial interest in movable property when they are granted the right to possess it. However, he/she has an actionable claim to that property, if it is not in his possession.

Both of these claims are acknowledged as providing relief by the courts of law. Other claims that are actionable in legal courts and that provide relief include secured debts and tort claims like defamation and nuisance. However, those do not fall under the definition of an actionable claim. Only the two types of claims mentioned above are considered actionable claims.

• Claim for arrear rent.

• Claim for rent to fall due in the future.

• A choice offered to repurchase the property once again.

• Book debts or claims

• The right to claims maintenance.

• Claim the benefit of the contract.

• Deposit receipt.

• A claim which is decreed.

• “Right to sue”, is a right but it is not an actionable claim.

• The claim for the main profits.

The field of property law is growing every day, and the idea of actionable claim under transfer of property act is crucial when discussing debt and property. The Transfer of Property Act covers each of these ideas in great detail.

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