assignment of rent received by a debtor to a creditor as an "actionable claim"

Infrastructure Leasing and Financial Services Ltd.  v Hdfc Bank Ltd.  & Anr.  ,  19.10.2023

 SUPREME COURT

 ,  Supreme Court clarifies the legal stand on assignment of rent received by a debtor to a creditor as an "actionable claim" under the Transfer of Property Act, 1882........ The Court said

 "As per the Transfer of Property Act, 1882 (TPA) the rent received by the borrower can be assigned as an actionable claim to the lender."

 Under section 3 of the TPA, actionable claim means –

 O (a) Claiming any unsecured debt other than a debt secured by immovable property, mortgage, or mortgage of pledge

 O (b) Beneficial interest in movable property.

 o Both of these have been recognized as enforceable.

 o Section 130 of the TPA provides the manner in which actionable claims can be transferred.

 (actionable claim) Actionable claims include:

 Maintenance allowance payable at a future date
 right to carry on a business
 Right of a partner to sue for the account of a dissolved partnership
 Annuities payable under Waqf deed
 The price to be paid by the buyer of real estate before the execution of the transfer.
 The right to recover the money was left in the hands of the defendant
 Amount payable under insurance policy
 Right to recover the amount purchased on sale if the amount due under the letter of credit is set aside
 rent arrears
 future rent
 A secret loan or lottery buyer's interest in prize money