Provided that every dealing with the debt or other actionable claim by the debtor or other person from or against whom the transfer or would, but for such instrument of transfer as aforesaid, have been entitled to recover or enforce such debt or other actionable claim, shall (save where the debtor or other person is a party to the transfer or has received express notice thereof as hereinafter provided) be valid as against such transfer.
(2) The transference of an actionable claim may, upon the execution of such instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name without obtaining the transfers consent to such suit or proceedings and without making him a party thereto.
Exception.-Nothing in this section applies to the transfer of a marine or fire policy of insurance 3*[or affects the provisions of section 38 of the Insurance Act, 1938 (4 of 1938)].
(i) A owes money to B,who transfers the debt to C. B then demands the debt from A, who, not having received notice of the transfer, as prescribed in section 131, pays B. The payment is valid, and C cannot sue A for the debt.
(ii) A effects a policy on his own life with an Insurance Company and assigns it to a Bank for securing the payment of an existing or future debt. If A dies, the Bank is entitled to receive the amount of the policy and to sue on it without the concurrence of As executor, subject to the proviso in sub-section (1) of section 130 and to the provisions of section 132.
130 A 4 *[Repealed.]
[Transfer of policy of marine insurance.] Rep. by the Marine Insurance Act, 1963 (11 of 1963), s. 92 (w.e.f. 1-8-1963).
1 Ins. by Act 20 of 1929, s. 62.
4 Ins. by Act 6 of 1944, s. 2.
Every notice of transfer of an actionable claim shall be in writing, signed by the transfer or or his agent duly authorized in this behalf, or, in case the transfer or refuses to sign, by the transference or his agent, and shall state the name and address of the transference.
The transference of an actionable claim shall take it subject to all the liabilities and equities to which the transfer or was subject in respect thereof at the date of the transfer.
(i) A transfers to C a debt due to him by B, a being then indebted to B. C sues B for the debt due by B to A. In such suit B is entitled to set off the debt due by A to him; although C was unaware of it at the date of such transfer.
(ii) A executed a bond in favour of B under circumstances entitling the former to have it delivered up and cancelled. B assigns the bond to C for value and without notice of such circumstances. C
cannot enforce the bond against A.
Where the transfer or of a debt warrants the solvency of the debtor, the warranty, in the absence of a contract to the contrary, applies only to his solvency at the time of the transfer, and is limited, where the transfer is made for consideration, to the amount or value of such consideration.
Where a debt is transferred for the purpose of securing an existing or future debt, the debt so transferred, if received by the transfer or or recovered by the transference, is applicable, first, in payment of the costs of such recovery: secondly, in or towards satisfaction of the amount for the time being secured by the transfer; and the residue, if any, belongs to the transfer or or other person entitled to receive the same.
[Assignment of rights under policy of marine insurance.]
Rep. by the Marine Insurance Act, 1963 (11 of 1963), s. 92 (w.e.f. 1-8-1963).
No Judge, legal practitioner or officer connected with any Court of
Justice shall buy or traffic in, or stipulate for, or agree to receive any share of, or interest in, any actionable claim, and no Court of
Justice shall enforce, at his instance, or at the instance of any person claiming by or through him, any actionable claim so dealt with by him as aforesaid.
Nothing in the foregoing sections of this Chapter applies to stocks, shares or debentures, or to instruments which are for the time being, by law or custom, negotiable, or to any mercantile document of title to goods.
Explanation.-The expression "mercantile document of title to goods" includes a bill of lading, dock-warrant, ware housekeepers certificate, railway receipt, warrant or order for the delivery of goods, and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented.
|Year and chapter||Subject||Extent of repeal|
|27 Hen. VIII, c. 10.||Uses||The whole.|
|13 Eliz., c. 5.||Fraudulent conveyances||The whole.|
|27 Eliz., c. 4||Fraudulent conveyances||The whole.|
|4 Wm. and Mary,c. 16||Clandestine mortgages||The whole.|
(b) ACTS OF THE GOVERNOR GENERAL IN COUNCIL
|Number and year||Subject||Extent of repeal|
|IX of 1842||Lease and release||The whole.|
|XXXI of 1854||Modes of conveying land||Section 17.|
|XI of1855||Mesne profits and improvement||Section 1; in the ments. title, the words "to mesne profits and", and in the preamble "to limit the liability for mesne profits and".|
|XXVII of 1866. ||Indian Trustee Act||Section 31.|
|IV of 1872.||Punjab Laws Act||So far as it relates to Bengal Regulations I of 1798 and XVII of 1806.|
|XX of 1875.||Central Provinces Laws So far as it Act.||relates to Bengal Regulations I of 1798 and XVII of 1806.|
|XVIII of 1876.||Oudh Laws Act||So far as it relates to bengal RegulationXVII of 1806.|
|I of 1877||Specific Relief||In sections 35 and 36, the words "in writing".|
|Number of Year||Subject||Extent of repeal|
|Bengal Regulation I of 1798||Conditional Sales||The whole Regulation|
|Bengal Regulation XVII of 1806||Redemption||The whole Regulation|
|Bombay Regulation V of 1827||Acknowledgement of debts; interest; mortgages in possession||Section 15|