WHAT MAY BE TRANSFERRED? -UNDER THE TRANSFER OF PROPERTY ACT, 1882

Abstract

Adam Smith, one of the classical economists rightly points out the rudimentary nature of property rights. Smith’s vision of property rights fits today’s idea of capitalism. It is where one tries to increase their ‘stock of capital’ keeping in mind the implications of the said stock. Mr. David E.R. Gay, in his article2 address the three important questions pertaining property rights. The questions revolve around the aspects of: the identification of the existing structure of property rights, its social consequences, and the evolution of such rights.3 The Transfer of Property Act, 1882 has been designed to align the said social arrangements bestowed upon its subjects. This essay will deal with Smith’s theory of property rights and its drawbacks. It will analyze the Section 6 of the Transfer of Property Act, 1882 and comment on its implications. It will also explain the purpose of the said section with reference to different judicial pronouncements. It will thereby analyze the existing structure of the act with reference to Section 6. Property rights, according to Smith, is closely related to the ‘theory of value’.4 When a person puts in a said amount of labor into a piece of land or an object, it becomes his property. The amount of labor is directly proportional to the value of the given property. This showcases the evolution of private property in today’s age.