A owes money to B, who transfers the debt to C. A is not a party to the transfer. When B demands…
Under the proviso to section 130(1) of the Transfer of Property Act, 1882, a debtor’s dealings with the original creditor remain valid against the transferee when the debtor…
Choose your answer
A owes money to B, who transfers the debt to C. A is not a party to the transfer. When B demands payment, A pays B without having received express notice of the transfer under section 131 of the Transfer of Property Act, 1882. Can C recover the debt from A?
Answer and explanation
Correct answer B
Under the proviso to section 130(1) of the Transfer of Property Act, 1882, a debtor’s dealings with the original creditor remain valid against the transferee when the debtor was not a party to the transfer and received no express notice under section 131. A’s payment to B is therefore valid against C, as illustration (i) confirms. C cannot recover that debt from A.
Option feedback
Option A
Incorrect. Under the Proviso to Section 130(1) and Illustration (i) to Section 130 TPA, where the debtor A pays the original creditor B without notice of the assignment to C, the payment is valid against C and C cannot sue A for the debt.
Option B
Correct. The proviso to section 130(1) protects A’s payment to B. C therefore cannot recover the same debt from A.
Option C
Incorrect. The payment is valid against C under the proviso to section 130(1), so C cannot recover the same debt from A.
Option D
Incorrect. Because the payment is valid and C cannot sue A for the debt under Illustration (i) to Section 130 TPA, this option is incorrect.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
Assam Judicial Services
-
CLAT PG
Subject revision for a passage-based exam
-
CUET PG Law (LL.M.)
Subject revision
-
AILET PG
Subject revision
-
Bihar Judicial Services
Subject revision
-
Uttarakhand Judicial Services
Subject revision