Movable and Immovable Property | Civil Law for Judiciary Exams PDF Download

Property: Movable and Immovable Property

• Property is a broad concept encompassing all rights of an individual except for personal rights that define their societal standing.
• The interpretation of property, as asserted in the case of Raichand v. Dattarya, is dynamic and evolving.
• To ensure clarity in decisions related to property, it is first categorized into movable and immovable properties, each governed by specific laws.

Distinguishing Movable and Immovable Property

• Movable Property: Refers to assets that can be physically moved or transferred from one place to another. Examples include vehicles, jewelry, and furniture.
• Immovable Property: Denotes assets that cannot be moved and are fixed to a specific location. Real estate properties like land and buildings fall under this category.
• The Transfer of Property Act is crucial in regulating the transfer and ownership of properties, both movable and immovable.

Definition of Movable Property

• Section 3 (36) of the General Clauses Act defines movable property as:
• Movable property refers to property of all types, excluding immovable property.
• Section 2 (9) of the Registration Act, 1908 explicates property as:
• Moveable property encompasses standing timber, growing crops, grass, fruits, and other property types, except immovable property.
• Crops, such as vegetables and fruits, are movable since they need to be harvested for use. Grass, serving as fodder, is also movable property.
• Timber, vital for construction, becomes movable only after being separated from the land. Trees bearing fruits are immovable property when rooted in the ground.
• Section 22 of IPC elucidates property as:
• Moveable property includes tangible property of all kinds, except land and items permanently affixed to the earth. Items attached to the land can become movable by detachment.
• Transfer of Property Act does not define movable property explicitly, as it primarily governs the transfer of immovable property through various means like sale, mortgage, lease, gifts, or actionable claims.

Definition of Immovable Property

• Section 3 of the Transfer of Property Act lays out the definition of "Immovable Property," which excludes standing timber, growing crops, or grass. This definition encompasses anything that cannot be moved.
• According to Section 3(26) of the General Clauses Act 1897, "immovable property" includes land, benefits arising from land, and things attached to or permanently fixed to the earth.
• Additionally, Section 2(6) of The Registration Act, 1908 defines "Immovable Property" as land, buildings, hereditary allowances, rights to ways, lights, ferries, fisheries, or any benefits arising from land, along with things attached to or permanently fixed to the earth. This definition specifically excludes standing timber, growing crops, and grass.

Summarizing the Definitions

• Land is considered immovable property.
• Advantages originating from the land are also classified as immovable property.
• Objects connected to the earth fall under the category of immovable property.
• Items embedded in the earth are deemed immovable property.
• Objects attached to what is embedded in the earth are included in immovable property.
• Things firmly established in the earth are recognized as immovable property, except for standing timber, growing crops, and grass.

Additional Considerations

• It is commonly understood that items both on the surface of the earth and deep within the earth, such as minerals, are also classified as immovable in nature.

Important Case Laws dealing with Movable and Immovable Property

The distinction between movable and immovable property is not always clear-cut, leading to various legal interpretations.

• Smt. Shantabai v. State of Bombay: The court ruled that the right to enter land, cut wood, and extract resources for a specific period constitutes an interest arising from land, thus categorizing it as immovable property.
• Anand Bahera v. Province of Orissa: It was determined that profits derived directly from the land are considered movable property. For example, the right to fish in a lake and graze cattle on land are deemed immovable property due to their direct connection to the land.
• Idea of Annexation: This concept plays a crucial role in distinguishing between movable and immovable property. If an item is affixed to the land in a way that removing it would cause damage, it is considered immovable property. Intent and permanence of attachment are key factors.
• Bamdev v. Manorma: Equipment, even if fixed in the ground, may still be classified as movable property if it is intended for temporary use and enjoyment rather than as a permanent fixture of the land.
• Duncans Industries Ltd. v. State of UP: The intention of the owner regarding the permanence of equipment fixation determines whether it is movable or immovable property. In this case, the equipment was considered immovable due to its long-term installation and integration with the land.
• Judicially Recognized Properties: Certain properties have been judicially recognized as either movable or immovable, such as the right to collect rent, hereditary offices, buildings, and interests in immovable property.
• Classification and Importance: The distinction between movable and immovable property holds significant legal weight, impacting ownership rights, transactions, and individual status.