VidhiSangh

Transfer of Property Act, 1882

Section 12: Condition making interest determinable on insolvency or attempted alienation

Chapter II — Of Transfers of Property by Act of Parties

12. Where property is transferred subject to a condition or limitation making any interest therein, reserved or given to or for the benefit of any person, to cease on his becoming insolvent or endeavouring to transfer or dispose of the same, such cond ition or limitation is void.

Nothing in this section applies to a condition in a lease for the benefit of the lessor or those claiming under him.

Source: official text of the Transfer of Property Act, 1882.