Section 13- Estoppel — Stop or denial of his own earlier statement.
Section – 13 (1) (a) and Section 43 of Transfer of Property Act,1882 are inter- related sections.
Section 43 of Transfer of Property Act, 1882– Doctrine of Feeding an Estoppel.
Section 13– Based on the Protecting of Rights to Vendee/Lessee.
As vendor/lessor are avoiding the Contract.
The Object of Section 43 of Transfer Of Property Act,1882 Is —
- To protect the innocent purchaser;
- Not to allow the vendor.
EXAMPLE: ‘X’,’Y’,’Z’ invested and purchased a property and made a contract with a clause that ‘X’ has a Right to Sell the property and the remaining two ‘Y’ and ‘Z’ have to sign it with consent. Subsequently, ‘A’ entered into contract with ‘X’ for that property for 25 lakhs, but after entering into contract with ‘A’ the prices went high. The same property was valued to 25 crores. ‘X’ subsequently started avoiding the contract and takes plea that ‘Y’ and ‘Z’ are objecting to give consent. ‘A’ filed suit on ‘X’ for Breach of Contract and produced the document where the contract of ‘X’,’Y’ and ‘Z’ was made within themselves.
REPRESENTATION IS OF TWO TYPES:-
- Innocent representation or Mis-representation – Section. 6-A;
- Wilfull representation or fraud Section 43.
Doctrine of Feeding Grant By Estoppel–
Feeding – making good; Grant- Promise.
It means– Making good promise by making the Application of Estoppel.
- The transferor must make a Representation. Such representation must relate to facts.
- It should be made by the transferor to deceive the transferee.
- The transfer must be for consideration.
- The transferor must acquire an interest on such property.
- The transferee should believe his representation must have been made by the transferor to deceive the transferee.
- The contract must be existing or subsisting.
SECTION.43- Nothing in this section shall effect the transferee who has taken away the property without mere knowledge of prior agreement. Such person or transferee is known as Bonafide Purchaser.