this presentation gives a very basic idea about all the aspects of the rule against perpetuity.

1. APPLICATION AND RELEVANCE OF
RULE AGAINST PERPETUITY
SUBMITTED BY:
Prof. Amira Singh

2. INTRODUCTION OF RULE AGAINST
PERPETUITY
• Rule against perpetuity has been dealt under section 14 of Transfer of Property
Act, 1882. Perpetuity simply means “indefinite Period”, so this rule is against a
transfer which makes a property inalienable for an indefinite period.
• How Perpetuity May Arise?
Perpetuity may arise in two ways –
1. by taking away from transferee his power of alienation (such a condition has
been made void under S.10 of the Act)
2. by creating future remote interest (which has been prohibited under S.14 of
the TP Act)
• Rule against perpetuity is the rule against such creation of future remote
interest or we can say is arule against remoteness of vesting(interest).
Remoteness here means “The state of being unlikely to occur”.

3. OBJECT OF SECTION 14 OF TRANSFER
OF PROPERT ACT, 1882
• It is important to ensure free and active circulation of property both for trade
and commerce as well as for the betterment of the property. There are people
who want to retain their property in their own families from generations to
generations. This will be a loss to the society because it will be deprived of any
benefit arising out of that property. Free and frequent circulation is important
and the policy of the law is to prevent the creation of such perpetuity.
• Thus, the object of section 14 is to see that the property is not tied- up and to
prevent creation of perpetuity.
• What Does The Law Say?
The rule against perpetuity as dealt under section 14 makes such a transfer (of
property) inoperable where condition is laid down for vesting of interest after
the life of the last preceding interest holder/s and beyond the minority of the
ultimate beneficiary

4. ESSENTIALS OF SECTION 14

5. EXCEPTIONS OF SECTION 14
• Transfer for public benefit - Where property is transferred for the benefit of
the people in general, then it is not void under this rule. E.g. for the
advancement of knowledge, religion, health, commerce or anything beneficial
to mankind.
• Covenants of Redemption - This rule does not offend the covenants of
redemption in mortgage.
• Personal Agreements - Agreements that do not create any interest in the
property are not affected by this rule. This rule applies only to transfers where
there is a transfer of interest.
• Pre-emption - In this there is an option of purchasing a land and there’s no
question of any kind of interest in the property, so this rule does not apply.
· Perpetual Lease - It is not applicable to the contracts of perpetual renewal of
leases.
• Mortgages - because there is no creation of future interest.

6. CONCLUSION
• Therefore S.14 provides a rule against perpetuity i.e. a rule against
remoteness of vesting, in absence of which the society shall definitely
suffer a loss because of the stagnation of the properties.
• It would cause great hardship in the easy enforcement of law which
shall be detrimental to trade, commerce, intercourse and may also
result into the destruction of the property itself.
• So this rule against perpetuity ensures free and active circulation of
property both for the betterment of the property as well as for the
betterment of the society at large.

7. THANKYOU