Rents receivable can be assigned as an actionable claim under Transfer of Property Act: SC
Oct 27, 2023
Last Updated on October 27, 2023 by News Desk
It was held by the Supreme Court that the rents which are receivable by a borrower can be assigned to a lender as an actionable claim as per the Transfer of Property Act.
Justice S. Ravindra Bhat and Justice Dipankar Datta observed that as per section 3 of the TPA, actionable claims can be defined as
- Claim towards an unsecured debt
- Beneficial interest in the movable property
The issue in the case at hand was whether the documents that were executed by the IL&FS to HDFC Bank Ltd. form an assignment and would fall under the purview of the asset freezing order of the NCLAT.
It was held in affirmation that the rents payable, stand transferred to the HDFC Bank.
Written By:- Shianjany Pradhan (@SHIANJANYPRADHAN)
