Question:
A, aged 80 years, executes a registered deed transferring a parcel of land to a trust with the conditions that, “The property shall be used forever for maintaining a public library and reading room for the residents of Village X. However, if at any time the property ceases to be used for this purpose, it shall revert to my heirs. Further, the income from the property shall accumulate for 50 years before being used for expansion of the library.” Which of the following statements is most accurate in law?
A, aged 80 years, executes a registered deed transferring a parcel of land to a trust with the conditions that, “The property shall be used forever for maintaining a public library and reading room for the residents of Village X. However, if at any time the property ceases to be used for this purpose, it shall revert to my heirs. Further, the income from the property shall accumulate for 50 years before being used for expansion of the library.” Which of the following statements is most accurate in law?
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"Public Charity" = Perpetuity is allowed! But "Accumulation" (Section 17) has strict limits (usually 18 years). You cannot hoard income forever even for a charity!
Updated On: Jun 8, 2026
- The transfer is valid as it falls within the exception for public benefit, but the accumulation clause is void to the extent it exceeds statutory limits.
- The transfer is valid in entirety, including the accumulation clause, because transfers for public purposes are fully exempt from all perpetuity-related restrictions.
- The transfer is void because it violates the rule against perpetuity and the condition of accumulation beyond permissible limits.
- The entire transfer is void because the reversionary clause creates uncertainty and violates public policy.
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The Correct Option is A
Solution and Explanation
Step 1: Understanding the Concept:
This problem involves the Transfer of Property Act (TPA), 1882, specifically the Rule against Perpetuity (Section 14) and the Rule against Accumulation (Section 17).
Step 2: Detailed Explanation:
- Public Purpose Exception: Under Section 18 of the TPA, the Rule against Perpetuity does not apply to a transfer of property for the benefit of the public (e.g., a library). Thus, the transfer is valid.
- Rule against Accumulation: Section 17 provides that where the terms of a transfer direct that the income from the property shall be accumulated, such direction is valid only for a limited period (usually 18 years from the date of transfer). Any accumulation beyond this period is void. A 50-year accumulation clause exceeds this limit and is therefore void.
Step 3: Final Answer:
The transfer for the library is valid, but the 50-year accumulation is excessive and partially void. Option (A) is correct.
This problem involves the Transfer of Property Act (TPA), 1882, specifically the Rule against Perpetuity (Section 14) and the Rule against Accumulation (Section 17).
Step 2: Detailed Explanation:
- Public Purpose Exception: Under Section 18 of the TPA, the Rule against Perpetuity does not apply to a transfer of property for the benefit of the public (e.g., a library). Thus, the transfer is valid.
- Rule against Accumulation: Section 17 provides that where the terms of a transfer direct that the income from the property shall be accumulated, such direction is valid only for a limited period (usually 18 years from the date of transfer). Any accumulation beyond this period is void. A 50-year accumulation clause exceeds this limit and is therefore void.
Step 3: Final Answer:
The transfer for the library is valid, but the 50-year accumulation is excessive and partially void. Option (A) is correct.
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