Movable and Immovable Property

Property includes all rights of a person except their personal rights, which determine their status in society. Property can be classified into movable and immovable types, and the Transfer of Property Act deals with these classifications.

Property: Movable and Immovable

Property has a broad scope, and therefore, it lacks a comprehensive definition. In Raichand v. Dattarya, the court clearly stated that property includes all rights of a person except their personal rights, which establish their societal status.

The meaning of property is not fixed; it varies depending on the purpose, the nature of the act, and evolving laws. To ensure that decisions, proposals, and recommendations related to property are appropriately handled, property is first categorized into movable and immovable types, and then actions are taken according to the relevant laws.

Difference Between Movable and Immovable Property

Movable Property

According to Section 3(36) of the General Clauses Act, movable property is defined as:

Section 2(9) of the Registration Act, 1908 further defines it as:

Thus, crops growing in the field, including vegetables and fruits, are considered movable property because they can only be used once they are harvested. Similarly, grass, generally used as fodder for cattle, is also regarded as movable property.

Timber, which is used in building houses, is considered movable property because it must be cut from the land before it can be used. Conversely, fruit-bearing trees are useful only when rooted in the ground, making them immovable property.

Section 22 of the IPC defines movable property as:

The Transfer of Property Act does not define movable property because it primarily deals with the transfer of immovable property through sale, mortgage, lease, gifts, or actionable claims.

Definition of Immovable Property

Section 3 of the Transfer of Property Act defines immovable property by excluding standing timber, growing crops, and grass. In contrast, movable property includes these items.

Section 3(26) of the General Clauses Act, 1897 defines immovable property as including land, benefits arising out of land, and things attached to the earth or permanently fastened to anything attached to the earth.

Similarly, Section 2(6) of the Registration Act, 1908 defines immovable property as land, buildings, hereditary allowances, rights to ways, lights, ferries, fisheries, or any other benefits arising out of land, and things attached to the earth or permanently fastened to anything attached to the earth, but not standing timber, growing crops, or grass.

Important Case Laws on Movable and Immovable Property

The definitions of movable and immovable property can be open to interpretation, leading to various legal disputes. "Profit à prendre" refers to the right to take something from another person's land. This right involves entering another's property to extract benefits, such as resources.

Key Cases:

Smt. Shantabai v. State of Bombay: The court ruled that the right to enter land and cut and carry away wood for 12 years is a benefit arising from land and thus constitutes immovable property.

Anand Behera v. State of Orissa: The court held that the profit arising from land is immovable property. For example, the right to walk on land and draw fish from a lake is considered immovable property because it benefits the land.

The Concept of Annexation

Annexation becomes critical in determining whether a property is movable or immovable. If something rests on the land by its weight, it is movable. However, if it cannot be removed without causing significant damage, it is considered immovable.

For example, staying on a boat is considered movable property, but using nails and bolts in construction is immovable because they are intended for long-term use and would cause damage if removed.

In Bamdev v. Manorma, the court ruled that equipment does not become immovable just because it is embedded in the earth. The equipment was embedded for its use, not for the land itself.

In Duncans Industries Ltd. v. State of UP, the intention behind fixing equipment was examined. The court decided that whether a property is movable or immovable depends on whether the owner intended the equipment to be permanent or temporary.

Judicially Recognized Immovable Properties

• Right to collect rent from immovable property
• Hereditary office
• Right to ferry
• Right of fishery
• Equity of redemption
• Factories and buildings

Judicially Recognized Movable Properties

• Government promissory notes
• Royalties
• Right of worship
• Decree of sale of mortgaged property
• Standing timber, grass, and growing crops

As perspectives evolve, the classification of movable and immovable property may change. The distinction between these types of property remains crucial, as property—whether personal or proprietary, tangible or intangible—defines a person's status in society.