What do you...by the doctrine of 'feeding the grant by estoppel'.....Refer to Statutory Provisions.

Question: What do you understand by the doctrine of 'feeding the grant by estoppel'? What is the impact of the doctrine on purchaser's rights against vendor's imperfect title? Refer to Statutory Provisions. [HJS 1998]

Find the answer to the mains question of Property Law only on Legal Bites. [What do you understand by the doctrine of 'feeding the grant by estoppel'?.....]

Answer

The Doctrine of Feeding the Grant by Estoppel is a principle under property law which operates to protect a transferee or purchaser when a person, though having no title or an imperfect title, purports to transfer immovable property. If the transferor later acquires a valid title, the benefit of such title automatically accrues to the transferee, based on principles of equity and estoppel.

This doctrine is statutorily embodied in Section 43 of the Transfer of Property Act, 1882, which provides:

“Where a person fraudulently or erroneously represents that he is authorised to transfer certain immovable property and professes to transfer such property for consideration, such transfer shall, at the option of the transferee, operate on any interest which the transferor may acquire in such property at any time during which the contract of transfer subsists.”

Thus, Section 43 provides a statutory right to the transferee to claim the benefit of the transfer once the transferor acquires ownership, provided:

• The transfer was for consideration;
• The transferor fraudulently or erroneously represented ownership;
• The transferee acted in good faith relying on such representation;
• The contract has not been rescinded by the transferee.

Impact on Purchaser’s Rights

1. Protects Bona Fide Purchasers: The doctrine protects a transferee who acted in good faith and paid consideration, by allowing them to perfect their title without a fresh conveyance, once the vendor actually acquires ownership.
2. Creates an Equitable Estoppel: The transferor is estopped from denying the transferee's title once he gains ownership. The law feeds the original defective grant with the title the vendor later obtains.
3. Purchaser’s Option: The transferee can choose to enforce the benefit of the doctrine or rescind the transaction if he no longer wants to proceed due to delay or other reasons.

In Jumma Masjid, Mercara v. Kodimaniandra Deviah & Ors. (AIR 1962 SC 847), the Supreme Court held that when a person, having no title to a property, purports to transfer it and subsequently acquires a valid title, he cannot resile from the earlier transfer. The doctrine of feeding the grant by estoppel would apply, and the benefit of the acquired title would automatically pass to the transferee. This is based on the equitable principle that a person who has led another to believe in the existence of a particular state of affairs cannot later go back on it to the detriment of the other. At the same time, the transferee retains the option to rescind the transaction if the title is not perfected within a reasonable time or if circumstances otherwise justify it.

In Swaminatha v. Lakshmanan (AIR 1931 Mad 175), it was held that Section 43 applies even where the initial transfer was invalid, provided the transferor subsequently acquires the title.

Limitations of the Doctrine

• It does not apply to voluntary (gift) transfers—only to transfers for consideration.
• It is subject to the rights of bona fide third parties without notice of the earlier defective transfer.
• The transferee must not rescind the contract before the title is acquired.

The Doctrine of Feeding the Grant by Estoppel, codified in Section 43 of the Transfer of Property Act, 1882, is a valuable legal tool that prevents injustice to a bona fide transferee. It ensures that when a transferor without title later acquires it, the benefit of that title is transferred to the original transferee, thereby curing defects in the title and promoting certainty and fairness in property transactions.