Rajan made a gift of a house to his son, Ravi, with the condition that if Ravi decides to sell the house during the lifetime of Rajan's wife, she should have the option to purchase it for ₹10,000, even though the market

Validity of Transfer under Transfer of Property Act, 1882 (TPA): Section 10 of the Transfer of Property Act, 1882, deals with conditions restraining alienation. It states that where property is transferred subject to a condition or limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or limitation is void. The transfer itself remains valid. Absolute vs. Partial Restraint: Absolute Restraint: A condition that completely takes away the transferee's power to dispose of the property is an absolute restraint and is void. Partial Restraint: A condition that partially restrains alienation (e.g., restricting alienation for a certain period, to a particular person, or for a specific purpose) is generally valid. Scenario 1: Condition to sell to Rajan's wife for ₹10,000 (market value ₹10,00,000) Rajan gifts a house to Ravi with the condition that if Ravi sells it during Rajan's wife's lifetime, she has the option to buy it for ₹10,000, while the market value is ₹10,00,000. This condition, though seemingly partial (only to Rajan's wife), effectively acts as an absolute restraint on alienation. By forcing Ravi to sell at a nominal price (₹10,000 against ₹10,00,000), it deprives him of the economic value of the property and his right to freely dispose of it. Such a condition makes it practically impossible for Ravi to sell the property to anyone else at a fair market price. Conclusion for Scenario 1: This condition is an absolute restraint on alienation and is therefore void under Section 10 of the TPA. The transfer of the house to Ravi is valid, but the condition itself is invalid, meaning Ravi can sell the house to anyone at market value, irrespective of the condition. Scenario 2: Condition not to alienate the property outside the family If Rajan imposed a condition that Ravi will not alienate the property outside the family. This is a partial restraint, as it does not completely prohibit alienation but restricts it to a specific class of persons (family members). Ravi still has the power to sell the property, albeit within the family. Conclusion for Scenario 2: This condition would be considered a partial restraint and would generally be valid under Section 10 of the TPA. When are absolute restraints valid? While absolute restraints are generally void, there are a few exceptions: Lease: In the case of a lease, the lessor can impose a condition that the lessee shall not sublet the property or sell his leasehold interest. Such conditions are valid. Married Woman (not Hindu, Buddhist, or Muslim): A condition to the effect that a married woman (who is not a Hindu, Buddhist, or Muslim) shall not have the power during her marriage to transfer the property is valid.