Tommy has two properties, Property-M and Property-N. He sells his Property-N to John and puts a condition that John should not construct more than one storey on Property-N so that Property-M, which he retains, shall have

Yes, the condition imposed by Tommy is 'valid' under the Transfer of Property Act, 1882. As per Section 11 of the Transfer of Property Act, 1882, where an immovable property is transferred by one to another, the transferor should not impose conditions as to how and in what manner the transferee should enjoy the property. But the above provision is subject to an exception i.e. if the condition which is imposed by transferor is for the benefit of another piece of immovable property which he retains then such a condition is valid. For Example: A has properties X and Y. He sells property Y to B and puts a condition that B should not construct on property Y more than one storey so that A's property X which he retains should have good light and free air. Such a condition is valid. Thus, it is clear that the condition imposed by Tommy is for the benefit of another property which he retains. Such a condition is valid under the Transfer of Property Act, 1882.