Law: Transfer of Property Act (IV of 1882)

Section: S. 130

Law: Contract, Act, 1872

Section: S. 62

Transfer of Property Act (IV of 1882), S. 130-Book transfer of actionable claim, in territory where provisions of section 130 not in force-Assignment, held, valid-Can form basis for suit-Transferor not made party to suit but appearing as witness and admitting transfer-Suit not bad for non-joinder: [A I R 1941 Lah. 337 considered.   Seetharama Ayyar and another v. Narayanaswami Pillai and another A I R 1919 Mad. 1076 ref.   Firm Ram Kishen-Mohan Lal v. Firm Gurdial Mal-Sagar Mal A I R 1941 Lah. 337 considered.   Contract Act (IX of 1872), S. 62---"Novation" of contract --What constitutes "novation."   Both under the provisions of section 62 of the Contract Act, 1872 and Common Law, novation of contract is brought about by introduction of new business or in the alternative between .he same parties by introduction of new terms in the contract. In such cases what is necessary is that the new contract should not be consistent with the original debtor's liability in any form on the terms of the old contract. The right against the debtor on the original contract must be extinguished and there must be present substitution of another contract for the original contract. In a suit brought for recovery of a debt, the evidence led by A, showed that Z, owed a debt to a firm H. A fresh agreement was entered into by a document whereby Z acknowledge that a sum of Rs. 10,000 was due from him to the firm H, which formed the consideration of the agreement entered into between him and A:   Held, that under the new agreement the liability of Z under the original contract was completely extinguished and there was a fresh contract substituting the old contract by introducing new business and it was in the nature of novation of contract within the meaning of section 62 of the Contract Act, 1872.   Document-Attestation - Whether attesting witness was present at time of execution of document-Witness professing full knowledge of contents-Circumstance in favour of witness being so present --- Witnesses signature in different ink - No ground for disbelieving him.   Pandurang Krishnaji v. Markandaya Tukaram and others AIR 1922 P C…