Published on: November 16, 2023 at 01:20 IST
Court: Supreme Court of India
Citation: IL&FS Ltd. V. HDFC Bank Ltd. (2023)
Honourable Supreme Court of India has held that Section 3 of the Transfer of Property Act, 1882 defines actionable claim means claim to an unsecured debt (other than a debt secured by mortgage of immovable property, hypothecation or pledge and beneficial interest in a movable property. It is held that they are recognised as enforceable in the eyes of law. It is held that “Actionable Claim” can be transferred only by execution of an instrument in writing signed by the transferor or his duly authorised agent. An actionable claim would include a right to recover insurance money or a partner’s right to sue for an account of a dissolved partnership or the right to claim the benefit of a contract not coupled with any liability.
47. The earlier discussion in this judgment, about the true nature of the transaction in this case led this court to hold that it is an assignment and not a pledge. The reference to pledge, in some places in the documents, did not undermine the fact that the rents payable to and receivable by the lender (IL&FS) stood absolutely assigned to HDFC. The provisions of the TPA and the discussion of the various authorities support the conclusion that there can be a transfer of debts, which are defined as actionable claims. In the present case, the rents payable by IL&FS tenants, lessees and licensees are debts, which stood transferred to the creditor, i.e. HDFC Bank. Therefore, the NCLAT’s conclusions are unexceptionable; the challenge to its correctness, therefore fails.
Drafted By Abhijit Mishra
