A PROJECT REPORT

ON
ACTIONABLE CLAIM AND ITS LEGAL INCIDENTS

BA-LLB 6th SEMESTER

Session - 2016-2021

Submitted to Submitted by:

ASSN PROFF KUNAL KUMAR
MS.RITIKA REG NO.46016210010
DECLARATION

I , Kunal Kumar student of SRM University ,Haryana ;hereby declare that the project work
entitled is a record of an original work “ACTIONABLE CLAIM AND ITS LEGAL
INCIDENTS” submitted to the Law Department is a record of an original work done by me under
guidance of Ms.Ritika

I further declare that the work reported is this project has not been submitted and will not be
submitted, either in part or in full. This project work is my own work. The matter embodied in this
project report has not been submitted to any other University or Institution for the award of degree.
This project has not been presented in this manner earlier. This information is purely of my academic
intrest.

Kunal Kumar
B.A.LL.B (6TH SEMESTER)

Certificate
This is to certify that Kunal Kumar of B.A.LL.B of SRM University has successfully carried out
investigatory project “ACTIONABLE CLAIM AND ITS LEGAL INCIDNETS” under the
supervision of Ms. Ritika Pawar
All the works related to the project is done by the candidate herself. The approach towards the
subject has been sincere.
The original research work was carried out by her under my supervision. On the basis of the
declaration made by her, I recommend this project report for evaluation.

Ms. Ritika
ASSISTANT PROFF.

ACKNOWLEDGMENT
It feels great pleasure in submitting this project to Ms.Ritika, Professor (Department of
Law), without whose guidance this project would not have been completed successfully.
Last but not the least, I would like to express my heartfelt gratitude towards my friends,
who guided me and helped me at every possible step.
Words put on paper are mere ink marks, but when they have a purpose there exist a thought
behind them. I too have a purpose to express my gratitude towards my teacher without her
guidance the project would not have been possible.
Secondly I would also like to thank my parents and friends who helped me a lot in finalizing this
project within the limited time frame.

KUNAL KUMAR
B.A.LL.B (6th semester)

Contents
ABSTRACT
OBJECTIVE OF RESEARCH
RESEARCH METHODOLOGY
INTRODUCTION TO ACTIONABLE CLAIM
ACTIONABLE CLAIM
CONDITIONS OF ACTIONABLE CLAIM
Types of Debts
In what context are terms Pledge, Hypothecation and Mortgage Used:
Pledge, Hypothecation and Mortgage Under Indian Law
Difference Between Pledge, Hypothecation and Mortgage at a Glance
Transfer of Actionable Claim
DEFINITION OF ACTIONABLE CLAIM:
DEFINITION OF GOODS:
JUDICIAL PRONOUNCEMENTS
CONCLUSION

RESEARCH METHODOLOGY
“DESCRIPTIVE” Method of Research” has been relied upon for conducting the research given
the availability of resources and time. The researcher has relied mainly upon secondary sources,

including books available in Library, Databases, Journals, Articles and case laws.

INTRODUCTION TO ACTIONABLE CLAIM

The term actionable claim is that every kind of claim in a movable property which would be
enforced through the courts. But such a wide meaning created confusion.
For example, under this meaning all debts whether secured or unsecured were actionable
claims whereas a debt secured by mortgage of immovable property is, strictly speaking, an
‘interest in land’.

Similarly, under this meaning any claim of money whether the amount was fixed amount or
uncertain, was an actionable claim. Because of such confusions there used to be conflicting
decisions and the law was neither clear nor uniform.

Actionable claim is a claim to any debt, other than a debt secured by mortgage of immovable
property or by hypothecation or pledge of moveable property, or to any beneficial interest in
moveable property not in possession either actual or constructive, of the claimant, which the
civil courts recognize as affording grounds of relief whether such debt or beneficial interest be
existent, accruing or conditional or contingent.

ACTIONABLE CLAIM

As Per Section 3 of the Transfer of Property Act, 1882

Actionable Claim1 is a claim to any debt, other than a debt secured by mortgage of immovable
property or by hypothecation or pledge of moveable property, or to any beneficial interest in
moveable property not in possession either actual or constructive, of the claimant, which the
civil courts recognize2 as affording grounds of relief whether such debt or beneficial interest
be existent, accruing or conditional or contingent”.

“A person is said to have notice”3 of a fact when he actually knows that fact, or when, but for
willful abstention from an enquiry or search which he ought to have made, or gross
negligence, he would have known it.

Explanation I: Where any transaction relating to immovable property is required by law to be

and has been effected by a registered instrument, any person acquiring such property or any
part of, or share or interest in, such property shall be deemed to have notice of such
instrument as from the date of registration or, where the property is not all situated in one sub-
district, or where the registered instrument has been registered under sub-section (2) of
section 30 of the Indian Registration Act, 1908 (16 of 1908), from the earliest date on which
any memorandum of such registered instrument has been filed by any Sub-Registrar within
whose sub-district any part of
the property which is being acquired, or of the property wherein a share or interest is being
acquired, is situated:

1 http://www.lawzonline.com/ legalencyclopedia/a/Actionable-Claim.html
2 Subharao’s G.C.V. “Transfer of Propert Act” 15th Edition 2006.
3 http://dolr.nic.in/Acts & Rules %5C Transfer of Property Act (1882).html

the property which is being acquired, or of the property wherein a share or interest is being
acquired, is situated:
PROVIDED that-
(1) The instrument has been registered and its registration completed in the manner
prescribed by the Indian Registration Act, 1908 (16 of 1908), and the rules made there under,

(2) The instrument of memorandum has been duly entered or filed, as the case may be, in
books kept under section 51 of that Act, and

(3) The particulars regarding the transaction to which the instrument relates have been
4
correctly entered in the indexes kept under section 55 of that Act.
Explanation II: Any person acquiring any immovable property or any share or interest in any
such property shall be deemed to have notice of the title, if any, of any person who is for the
time being in actual possession thereof.

Explanation III: A person shall be deemed to have had notice of any fact if his agent acquires
notice thereof whilst acting on his behalf in the course of business to which that fact is
material:

PROVIDED that, if the agent fraudulently conceals the fact, the principal shall not be charged
with notice thereof as against any person who was a party to or otherwise cognizant of the
fraud.

Actionable claim means a claim to any debt other than a debt secured under a mortgage or
hypothecation or pledge on any immovable or moveable property5 , possession of which is
given to person or institution which gave the loan.

An Actionable Claim is a plain unsecured debt which can be claimed by a person against
another person and which can be enforced in civil courts according to law. Right to benefit of
a contract falls within the definition of Actionable Claim. An Actionable Claim is transferable
and inheritable and it is deemed to be a property in the hands of the person who has the claim.

Actionable claim,6 a claim to a debt, whether existent, accruing, contingent or conditional

(the latter two types being future debt), are capable of being transferred in present. It is
recommended that this position be clarified by virtue of an amendment to the Transfer of
Property Act.

Simply stated7 , an actionable claim means a claim to any unsecured debt or a claim to any
beneficial interest in movable property, not in the possession of the claimant. The debt or
beneficial interest may exist, accruing, conditional or contingent.
4
Section 55 Rights and Liabilities of Buyer an d Seller of “Transfer of Property Act”
1 http://www.hindu.com/pp/2006/05/20/stories/2006052001250300.ht m viewed on
2 http://www.rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=166
3 http://www.xomba.com/gift_and_actionable_claim.

For example, A borrows Rs. 5000/- from B at 12% per annum interest on 1st April, 2006 and
promises to pay back the amount with interest on 1st July, 2006. Till 1st July, 2006, the debt
is an accruing debt and is an actionable claim. It may be noted that a person can have a
actionable claim, even without consideration. Further such person’s claim will not be affected
by claim of a subsequent transferee with consideration.
CONDITIONS OF ACTIONABLE CLAIM
Two conditions of actionable claim is that—
8
1. Unsecured Money Debt: A debt is an obligation to pay a liquidated or definite sum of
money. Such debt may me: (1) existent, (2) conditional, (3) contingent. If it is now
due and owing it is existent. If it is a present debt but payable in the future it is
accruing. A
debt which will be due only if a condition be fulfilled or if a certain specified
thing
happens is a conditional debt9 . Contingent debts are debt which are payable on a
certain contingency, e.g., an amount due under a policy of insurance.

Types of Debts
Existent Debt: Where a debt or sum of money10 has already become due and is payable
(enforceable) at present, the debt is existent. For example, claim of arrears of maintenance
allowance or the claim of arrears of salary is existent debt because a definition sum of money
has already become due in the past and now it is payable.

Accruing debt: Where a debt or sum of money is at present due but it is payable not now but
on a future date, the debt is accruing. Accruing debt is due at present but becomes payable
only on a future date. For example if A promises to pay Rs. 100 to B as maintance allowance
on fifth of every month, the claim for salary to fall due in the next month is an accruing debt
and such an actionable claim

Conditional or Contingent debt: Where the claim for a sum of money exists but the payment
depends upon the fulfillment of any condition, the debt is condition. If A promises to give Rs.
1000 to B provided he marries within one year, than B’s claim for Rs. 1000 is conditional
because it is subject to a condition to be fulfilled by him in future.

Similarly, where the claim of money is subject to some uncertain future event which may or
may not happen, the claim is contingent, For example, Where A promises to give Rs. 1000 to
B provided B’s first child is a son, the claim of B for Rs. 1000 is contingent claim (debt).

1 Sukla S. N., “The Transfer of Property Act”, 26th Edition 2007

2 Sukla S. N., “The Transfer of Property Act”, 26th Edition 2007
3 Sinha R. K., “The Transfer of Property Act”, 9th Edition 2006.
11
Debts secured by a mortgage of immovable property or by a pledge of movable property are
excluded from the definition of actionable claim. Actionable claim therefore under the section
means a claim to unsecured debt. A claim for damages, i.e. for an unascertained sum of
money or a claim for mesne profits does not come within the definition of actionable claim.

Illustrations

(1) A owes Rs. 1000 to B. B’s claim is an actionable claim.

(2) A borrows Rs. 1000 from B and mortgages his house to him. The mortgage debt is not
actionable claim.

(3) A contracted to buy goods from B. On the due date, a fails to take delivery and B sells the
goods in the open market at a loss Rs. 10000. B has a right to claim the damages from A but
this claim is not an actionable claim.

1. Claim to Beneficial Interest not in Possession of the Claimant

Right of a person to take the possession of a movable property from the possession of the
another, is the actionable claim of that person provided claimant has beneficial interest(i.e.
right of possession) in that property. Following condition are necessary for an actionable
claim:

(a) The claim is in some movable property.

(b) The movable property is in possession of another person.

(c) The beneficial inters or the right of the possession of the claimant is recognized by the court

A person can claim possession of a movable property of which he has right to possess but it
is not in his possession. If a property is already in his actual or constructive possession there is
no question of claiming its possession, Therefore, if a movable property is proved to be in
actual or constructive possession of the claimant, there is no actionable claim. Moreover, the
claimant must also have right of possession i. e. the law recognizes that he has beneficial
interest in that movable property. If he has no legal right of possession, the claim is not
actionable claim.

Beneficial interest of movable property: A claim12 to any beneficial interest in movable property,
not in possession of the claimant, is included in the present definition. Thus, a right to claim the
benefit of a contract for the purchase of goods is a beneficia l interest in movable property.

Illustration
1. A agrees to sell to B bales of cotton deliverable on a future day. B has a beneficial interest
in the goods and it is an actionable claim.

1 Sinha R. K., “The Transfer of Property Act”, 9th Edition 2006.

2 Sinha R. K., “The Transfer of Property Act”, 9th Edition 2006.

1. A has sold fifty bags of wheat to B. The bags of wheat are in the godown of A. B’s right to
take possession of the bags of wheat from the godown of A is his (B’s) Actionable claim.

2. A has fifty bags of wheat in his godown. A has not sold these bags to B or the contract of
sale is not valid. B has not beneficial interest in those bags of wheat. Claim of B, if made by
him, is not his actionable claim.
In what context are terms Pledge, Hypothecation and Mortgage Used:
These terms are used for creating a charge on the assets which is given by the borrower to the
lender as a security for any loan. Thus, one of these terms will be normally used whenever an
individual or a business firm avails any loan and the bank keeps some assets as a security, so
that it will be able to sell the same in case that individual or the firm defaults in repayments.

MEANING

Pledge, Hypothecation, and Mortgage

1) Pledge is used when the lender (pledgee) takes actual possession of assets (i.e.
certificate, goods). Such securities or goods are movable securities. In this case the
pledgee retains the possession of the goods until the pledger (i.e. borrower) repays the
entire debt amount. In case there is default by the borrower, the pledgee has a right to sell
the goods in his possession and adjust its proceeds towards the amount due (i.e. principal
and the interest amount). Some examples examples of pledge are Gold /Jewellery Loans,
Advance against goods,/stock, Advances against National Saving Certificates etc.
2) Hypothecation is used for creating charge against the security of movable assets, but
here the possession of the security remains with the borrower itself. Thus, in case of
default by the borrower, the lender (i.e. to whom the goods / security has been
hypothecated) will have to first take possession of the security and then sell the same.
The best example of this type of arrangement are Car Loans. In this case Car / Vehicle
remains with the borrower but the same is hypothecated to the bank / financer. In case
the borrower, defaults, banks take possession of the vehicle after giving notice and
then sell the same and credit the proceeds to the loan account. Other examples of
these hypothecation are loans against stock and debtors. [Sometimes, borrowers cheat
the banker by partly selling goods hypothecated to bank and not keeping the desired
amount of stock of goods. In such cases, if bank feels that borrower is trying to cheat,
then it can convert hypothecation to pledge i.e. it takes over possession of the goods
and keeps the same under lock and key of the bank]
3) Mortgage : is used for creating charge against immovable property which includes
land, buildings or anything that is attached to the earth or permanently fastened to
anything attached to the earth (However, it does not include growing crops or grass
as they can be

easily detached from the earth). The best example when mortage is created is when
someone takes a Housing Loan / Home Loan. In this case house is mortgaged in
favour of the bank / financer but remains in possession of the borrower, which he
uses for himself or even may give on rent.

Pledge, Hypothecation and Mortgage Under Indian Law

Pledge : Section 172 of the Indian Contract Act defines pledge as "The bailment of goods as
a security for the payment of a debt or performance of a promise" The bailor in this case is
called a Pawnor and the bailee is called Pawnee

To create a valid pledge in the eyes of Law, the three important points needs to be noted :

(a) Delivery of Possession : As in bailment, in pledge too delivery of possession is required.

For exmaple, in Revenue Authority vs Sundarsanam Pictures, AIR 1968, it was held NOT to
be pledge because the film producer borrowed a sum of money from a financier and agreed to
deliver the final prints of the film when ready. Thus, there was no delivery of the goods at the
time of agreement;

(b) Delivery is in return of a loan or promise to perform something. Therefore, if your

friend gives you his Motor-cycle to go to college, it is not pledge but can be called simple
bailment;

(a) It should be in pursuance of a contract : The delivery must be done under a contract (oral
or written). However, it is not necessary that delivery and loan take place at the same time.
Delivery can be made even after the loan is received.

Hypothecation: was not defined under Indian Law for long time and was used more on the
basis of practice. However, now under the Secruitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, hypothecation is defined as "a charge in or
upon any movable property, existing or future, created by a borrower in favour of a secured
creditor without delivery of possession of the movable property to such creditor, as a security
for financial assistance, and includes floating charge and crystallization into fixed charge on
movable property".

Mortgage : is defined in Section 58 of the "Transfer of Property Act 1882". It is the transfer
of an interest in specific immovable property for the purpose of securing payment of money
advanced by way of loan.

Transfer of Actionable Claim

Beneficial interest in movable property is intangible movable property. Therefore, actionable
claim is regarded as property. Some instance of actionable claim:

13
(1) The right to claim benefit of the contract for the purchase of goods .
14
(2) A claim to money under an insurance policy .
15
(3) A share in partnership.
16
(4) A claim for arrears of rent .
17
(5) A claim for return of earnest money .
18
(6) Right to get back the purchase-money when the sale is set aside.
19
(7) Muslim women claim for her unpaid dower.
 20
(8) Right to get the proceeds of a business.

Instances of claims which are not actionable claim:

(1) A debt is an actionable claim, but a debt which has passed into a decree is not an
21
actionable claim.
22
(2) The right to recover damages for breach of contract.
23
(3) A claim to mesne profits.
24
(4) A copyright.

(5) Where a decree provides for a future decree, this future decree is also not actionable claim.25

1 Zaffar Mehar Ali v. Budge-Budge Jute Mills, (1907), 34, Cal. 289.
2 Varjivan Das v. Magan Lal, A. I. R., (1937), Bom. 382
3 Bharat Prasad v. Pras Sibgh Jute Mills, (1907), 34, Cal. 289.
4 Daya Debi v. Chapla Debi, A.I.R. (1960), Cal. 378.
5 Lalchand v. Hussainio, (1927), 97, I.C. 257.
6 Chinnappareddi v. Venkataramanappa, A.I.R. (1942), Mad. 209
7 Amir Hasan Khan v. Muhammad Nazir Hussain, A.I.R. (1932), All. 345.
8 Alkash Ali v. Nath Bank, A.I.R. (1951), Assam 56
9 Gvindarajulu v. Ranga Rao, A.I.R. (1921), Mad. 113.
10 Moti Lal v. Radhey Lal, (1933), ALL, 642.
11 Jai Narayan v. Kishun Dutta, A.I.R. (1924), Pat. 551.
12 Savitri Devi v. Dwarka Prasad, (1939), A.L.J. 71
13 Jugalkishor Saraf v. Raw Collon Co. Ltd. A.I.R. (1955), S.C. 376.
DEFINITION OF ACTIONABLE CLAIM:
Section 3 of Transfer of Property 1882 defines “Actionable claim”. As per Mulla’s T.P. Act
an actionable claim is a claim to any unsecured debt. Such a debt should be other than a debt
secured by mortgage of immovable property or by hypothecation or pledge of movable
property (because these are not transfers of claim but of the property itself) or a claim to any
beneficial interest in movable property not in the possession, either actual or constructive, of
the claimant. The claim should be such as Civil Court would recognise as affording grounds
for relief, whether such debt or beneficial interest be existent, accruing, conditional or
contingent; Such transfer of an actionable claim shall be effected only by execution of an
instrument is writing by the assignor to the assignee. [Section 130 of Transfer of Property
1882].

DEFINITION OF GOODS:
 Definition of goods under Sale of Goods Act 1930 - “Goods” means every kind of
movable property other than actionable claims and money; and includes stock and
shares, growing crops, grass, and things attached to or forming part of the land which
are agreed to be severed before sale or under the contract of sale. [section 2(7)].

 Definition of goods under Central Sales Tax Act 1956- “Goods” includes all materials,
articles, commodities and all other kinds of movable property, but does not include
newspapers, actionable claims, stocks, shares and securities. [section 2 (d)]

ISSUE I & II: DETERMINATION WHETHER ACTIONABLE CLAIM OR GOODS

WITH THE HELP OF RELEVANT CASE LAWS

 H. Anraj v. State of Tamil Nadu (1986) 1 SCC 414

Issue: Whether sales tax can be levied by a State Legislature on the sale of the Lottery Tickets
in the concerned State?

The Supreme Court held that the lottery tickets, to the extent they comprise an
entitlement to participate in a draw, are "goods" as they constitute a dealer's (in lottery
tickets) stock in trade which is capable of being bought and sold in the market (and
that there is a transfer of property in goods in every sale of the same). Lottery tickets
are goods and not actionable claims. Both were held to be beneficial interests in
moveable property, the former in present, and the latter in future, depending on the
contingency.

 Vikas Sales Corporation v Commissioner of Commercial Taxes AIR 1996 SC 2082

Issue: Whether transfer of import license (REP) by the holder to another person constitute
sales of goods?

S.C examined if it does, it is eligible to sales tax, otherwise not. The features of REP licence
include an innate value and freely transferable. These features make it a marketable
commodity. Thus it held that it was a highly attractive and sought after instrument/means for
importing goods. Infact, those licenses were being traded freely in the market and for that
reason alone those were goods. Also, when they have a value of their own unrelated to the
goods which can be imported there under, it is idle to contend that they are in the nature of
actionable claims.

 Sunrise Associates vs. Govt. of NCT of Delhi & Ors 2006 (5) SCC 603

Issue: Whether decision in Anraj case that lottery tickets are goods for purposes of levying
sales tax was correct?
S.C. held that the lottery ticket has no value in itself as it is mere piece of paper. Its value lies
in fact that it represents chance or right to conditional benefit of winning prize of greater
value than consideration paid for transfer of that chance. It is nothing more than token or
evidence of this right. Three ingredients in the sale of lottery tickets, namely, (i) prize; (ii)
chance; and (iii) consideration. So, when one purchases a lottery ticket, he purchases for a
prize, which is by chance and the consideration is the price of the ticket. The distinction
drawn in H. Anraj case between the chance to win and the right to participate in the draw was
held to be unwarranted and specious. Even if taken as a separate right, it would still be
considered to be an actionable claim. A Constitutional Bench of the S.C. overturned the
decision in the H Anraj case, holding that the sale of lottery tickets is, at best, an actionable
claim.

 Yasha Overseas v. Commissioner of Sales Tax (2008)

Issue: Whether the decision in Vikas case can be said to be impliedly overruled by the
Constitution Bench decision in Sunrise? If no, whether Vikas case is still a good law and
apply to cases of DEPB?

S.C. held that It was indeed true that the Constitution Bench in Sunrise Associates’ case
(supra) did not approve the decision in Vikas Sales Corpn.’s case (supra) insofar as it gave
their free transferability as an additional reason to hold that REP licences were not actionable
claims but ‘goods’ properly so called. But there this question did not come for reference and
hence no decision was given on this issue. Decision in Vikas sales still holds good and is
applicable to DEPB as well.

 State of Kerala and Ors. v. Mini Shamsudin and Ors. (2009)

Issue: Whether decision in Sunrise case is correct?

H.C. upheld the decision of Sunrise case. It held that actionable claims are `goods' and
movable property but not for the purpose of the Sales Tax Acts. Consequently, an actionable
claim is

movable property and ‘goods’ in the wider sense of the term but a sale of an actionable claim
would not be subject to the sales tax law.

What is significance of actionable claim and what are the legal attributes thereof insofar
as the law in India is concerned?

As the expression "Actionable Claim" itself denotes, it is a claim on which action lies for
certain reliefs in the law courts. It excludes, the claims which have been already adjudicated
or decreed so that no further action can be based thereon and also the claims, through
actionable are secured by mortgage or pledge or hypothecation. This exclusion is reflected in
the definition of "Actionable Claim" contained in Section3 of Transfer of Property Act.

LEGAL INCIDENTS
Sadasook Ramprotap v Hoare Miller & Corporation26 in this case contains a very special
scheme which has some of the features of both the English common law, and of equity. Thus,
in equity, debts were assignable, and also contingents interest and future property when the
assignable was for valuable consideration.

Chowne v Bayliss Corporation Bank 27 in the case the procedure adopted for reducing them
into possession. Legal chose, in action were those enforceable by action at law, such as
promissory notes, bills of exchange or policies of insurance. Re Bainbridge, Ex parte
Fletcher28 in this case editable closes in action, sometime called chose in equity, were
enforced by action in equity, e.g. a beneficial interest in a partnership.

Hammond v Stewar29 in this case remedy of the assignee was imperfect at law, he had to sue
in the name of the assignor on giving him and indemnity against costs. In equity he could sue
in his own name, but there had to be consideration for the assignment, and the assignee could
not sue the debtor in equity, but had to sue in law in the name of the assignor, unless the
assignor had refused to allow the assignee to sue in his name.

Loknarayan Sethia v state Bank of jaipur30 in this case the Supreme Court was called upon to
decide whether an irrevocable power of attorney in favor of a creditor to execute a decree on
behalf of the debtor - decree-holder constituted an equitable assignment. The court held that it
did, as it was an engagement to pay out of a specific fund, viz the decrial amount.

Bharat Nidhi Ltd v Takhatma31 in this case held that an irrevocable power of attorney
authorizing the creditor-Bank to receive moneys due or that may become due to the borrows,
coupled with a bill endorsed in favor of the bank for collection, constitution an equitable
assignment.

Anraj vs Government of Tamil Nadu32 was overruled prospectively with effect from the date
of the judgment (see ‘A draw without a chance to win is meaningless,’ in Business Line, May
6). A three-judge Bench had agreed with the decision in the Anraj case, when deciding the
Vikas Sales Corpn case. There, it was held that REP licenses/Exim scrips are not actionable
claims and, therefore, sale of such licence/scrip was not liable to sales tax. The Constitution
Bench has now overruled the Anraj case and held that a sale of a lottery ticket amounts to the
transfer of an actionable claim.

1 1923, (27), Cal WN, 733

2 1862, (31), Beav, 351
3 1878, (8), Ch D 218.
4 1838, (9), Sim 327, p. 332.
5 1969, (1), SCR 122
6 1969, (1), SCR 595.
7 1986, (61), STC, 165 SC.
The court, however, clarified that the order of reference in Sunrise vs NCT, Delhi was limited
to the question whether lottery tickets are ‘goods’ and that the court had not been called upon
to answer the question whether REP licenses (or the DEPB which has replaced the REP
licenses) are ‘goods’ and having regard to the limited nature of the reference, the court did not
decide the issue. Even while clarifying as above, the Bench held that the assumption in the
Vikas Sales case that actionable claims are not transferable for value and that that was the
difference between ‘actionable claims’ and those other goods which are covered by the
definition of ‘goods’ in the Sale of Goods Act, 1930 and the sales tax law was fallacious and
the conclusion insofar as it was based on this erroneous perception was held equally wrong.
The apex court has, however, clarified in its judgment that the Anraj case is overruled only
prospectively with effect from April 28, 2006. However, nothing has been specifically
mentioned about the pending cases, levies already made but not collected.

CONCLUSION
Actionable claim is a claim to any debt, other than a debt secured by mortgage of immovable
property or by hypothecation or pledge of moveable property, or to any beneficial interest in
moveable property not in possession either actual or constructive, of the claimant, which the
civil courts recognize as affording grounds of relief whether such debt or beneficial interest be
existent, accruing or conditional or contingent. Actionable claim is a claim to any debt, other
han a debt secured by mortgage of immovable property or by hypothecation or pledge of
moveable property, or to any beneficial interest in moveable property not in possession either
actual or constructive, of the claimant, which the civil courts recognize as affording grounds
of relief whether such debt or beneficial interest be existent, accruing or conditional or
contingent. So the actionable claim is a very important for the transfer of property act. Debts
secured by mortgage etc. are excluded from the definition of “Actionable Claim” because
such debts are not the claims to property but the property itself.

BIBLIOGRAPHY AND
WEBLIOGRAPHY

1) Sinha R. K., “The Transfer of Property Act”, 9th Edition 2006.

2) Sukla S. N., “The Transfer of Property Act”, 26th Edition 2007
3) Subharao’s G.C.V. “Transfer of Propert Act” 15th Edition 2006.
4) http://www.lawzonline.com/legalencyclopedia/a/Actionable-Claim.html
5) http://www.hindu.com/pp/2006/05/20/stories/2006052001250300.htm
6) http://www.rbi.org.in/scripts/PublicationReportDetails.aspx
7) P.N. MISRA 9TH EDITION Rights and Liabilities of Buyer and Seller of “Transfer of
Property Act”