4. A transfers property to B, C, D and E all alive on the date of transfer successively, and then the eldest son of E attained 21 years. Decide the validity of the transfer.

1. Facts of the Case

A transfers property to B, C, D, and E, all of whom were alive at the date of transfer. The transfer includes a condition that the property will pass successively, and the eldest son of E is to receive the property upon attaining 21 years of age.

2. Issues in the Case

1. Whether the successive transfer of property to B, C, D, and E is valid under Indian Law.
2. Whether the contingent interest given to the eldest son of E on attaining 21 years is legally enforceable.
3. Whether the transfer violates the Rule Against Perpetuity under Indian property law.

3. Legal Principles Covered

1. Rule Against Perpetuity (Section 14 of the Transfer of Property Act, 1882) – A transfer creating a contingent interest must vest within a life in being plus 21 years. In this case, the eldest son of E attaining 21 years falls under this rule.
2. Successive Transfer Validity – Transfers to multiple individuals alive at the time of transfer are valid if the interest is clearly defined and does not violate any statutory restriction.
3. Contingent Interest – The interest of the eldest son of E is contingent upon attaining 21 years. As per Indian law, such contingent interests are valid if they comply with the rule against perpetuity.
4. Doctrine of Vested and Contingent Interest – B, C, D, and E have vested interests, while the eldest son of E holds a contingent interest that becomes vested when he attains 21 years.

4. Possible Judgement

The transfer is valid. The successive transfer to B, C, D, and E is enforceable, and the contingent interest given to the eldest son of E on attaining 21 years is valid under the Rule Against Perpetuity. Indian courts would uphold the transfer, ensuring that vested interests of the immediate transferees (B, C, D, E) are protected, while the contingent interest of E’s son becomes enforceable upon fulfillment of the age condition.

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