Section 10, 11 and 12 of Transfer of Property Act, 1882 deals the concept of conditions that restrict the transfer and enjoyment of property. It explores the implications of such conditions in the context of property law, considering their validity and exceptions.

Condition restraining alienation
Section 10 of the Transfer of property lays down that where a property is transferred subject to the condition or a limitation putting an absolute restrain to transfer of property then such condition should be void. The important factor in this section is that the condition is void but the transfer is valid.

For example:
X transfers a property to Z, with a condition that Z can not sell the property. Here z becomes the owner of the property and he is taking the property as if no conditions were imposed and he is free to transfer the property to any person.

This section laid down two exceptions as enumerated below:

1. Lease
2. Married Females

Lease
In lease there is a transfer of possession but here the lessor can impose an absolute restraint upon lessee from making any transfer. Lessor can put an limitation that lessee can not sub let or transfer his possession to any other person. This is an exception to section 10 with the purpose to protect the interest of the landlord.

Married Female
This is the second exception of section 10 of the Transfer of Property Act. Sometimes certain properties are transferred to a married female to give a sense of security and respect that she had some property in her name but she is not allowed to transfer the property to some other person. On surface it looks like a disadvantage to a female but it is for her benefit.

The restraint to transfer the property is there to protect her from the pressure of relatives to transfer it to some other person. Sometimes to prevent abuse, the law takes back the right itself. Hence there would be no right and there will be no abuse.

Section 10 of the transfer of property act uses the word that the female should be other than Hindu, Muslim and Buddhist. This would again give us a meaning that the women belonging to this religion would not be covered but such interpretation is not correct as their personal laws already put same restrictions during her marriage as provided under section 10 of Transfer of Property Act

Section 10 bards absolute restraint on transfer of property but partial restraint are allowed. Partial restraint means that certain conditions while transfer of property is allowed and certain conditions are not allowed.

In the case of Mohd. Raza v. Abbas Bibi [[i] ] , it was held that restraint not to transfer the property outside the family, is only a partial restraint and hence allowed.

In the case of Zoroastrian Cooperative Housing Society v. District Registrar Cooperative Society [[ii]], it was held the restrain that the flat would not be sold to non-Parsis is a partial restraint and it is allowed.

Condition restraining enjoyment

Section 11 of Transfer of Property Act, laid down that if there is transfer of an absolute interest then no condition can be imposed as to how the interest would be utilized. In simple word, if an absolute transfer is made then transferor have no right to dictate as to how to use or enjoy the property.

Example- If B transfers a land to A with a condition that he would only be sowing rice and nothing else. Section 11 of Transfer of Property Act would not allow such condition and A is free to sow anything which he wants.

But in section 11 of Transfer of Property Act lays down an exception. If in transfer a part of property is transferred then restriction as to enjoyment can be imposed if it is for the benefit or enjoyment of other part of the same property.

Example:
If a house has been sold with four independent floors each belonging to different individual. In such a case restriction can be imposed upon the owner of the respective floors so that they don't create an obstacle to access the use of easement foe enjoying their own floors.

Condition making interest determinable on insolvency or attempted alienation

Section 12 of Transfer of Property Act mention about transfer imposing certain condition. The condition under section 12 are insolvency and attempted alienation.

Insolvency

Insolvency means that the person has greater liabilities than asset. Section 12 laid down that if there is a condition that if the transferee becomes insolvent the property will revert back then such condition would be void. The basic objective of this section is to protect the creditor as a person would be more in need of a property when he becomes insolvent

Attempted Alienation

If a condition is that the person interest would come to an end if he attempts to sell the property then such condition is void.

Conclusions
Section 10 of the Transfer of Property Act establishes that conditions restraining the alienation of property are considered void. This means that a transfer of property cannot be subject to an absolute restraint on its transferability. However, certain exceptions exist for lease agreements and transfers to married females, which serve specific purposes related to the interests of landlords and the protection of women.

Furthermore, Section 11 of the Act clarifies that when an absolute interest is transferred, no condition can be imposed on how the property should be utilized or enjoyed. Additionally, Section 12 addresses conditions related to insolvency and attempted alienation, aiming to safeguard the interests of creditors. These provisions collectively ensure a fair and balanced approach to property transfers, protecting the rights of both transferors and transferees.

End-Notes:

1. AIR 1932 PC 158
2. AIR 2005 SC 2306