352 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
- Exception :
This rule does not apply where there is an intention on the part of the person who paid the consideration to benefit the transferee.
- Proof of intention.
(iii) T RANSFER FOR AN I LLEGAL P URPOSE .
Section 84.
Ordinarily when a transfer is for an unlawful purpose the Court will neither enforce the transaction in favour of the transferee nor will it assist the transferor to recover the estate if he has parted with it.
But the rule does not apply under all circumstances. The rule does apply under certain circumstances.
What are the circumstances in which the rule does not apply ?
The circumstances in which the rule does not apply are—
(i) If the porpose is not carried into excecution.
(ii) If the transferor is not as guilty as the transferee.
(iii) If the effect of permitting the transferee to retain the property might be to defeat the provisions of any law.
- In these cases the Court will help the transferor and impose upon the transferee an obligation to hold the property for the benefit of the transferor.
(iv) B EQUEST UPON TRUST FOR AN ILLEGAL PURPOSE .
Section 85.
The position in law with regard to transfers for an illegal purpose is on a par with trust for an illegal purpose.
That is, a Court will neither enforce the trust in favour of the parties intended to be benefited nor will it assist the settlor to recover the estate if he has parted with it.
9 Bom. S.R.542.
- Section 85 recognizes a trust although the purpose is unlawful. This is in contrast with the general principle enunciated in section
4 of the Trust Act and therefore requires some explanation.
- The general principles governing the rights of the parties to an unlawful trust and the exceptions to those principles may formulate as follows:—