DISTINGUISH BETWEEN MOVABLE AND IMMOVABLE PROPERTY.

 

DISTINGUISH BETWEEN MOVABLE AND IMMOVABLE PROPERTY.

 Movable property

1. The movable property can be easily transported from one place to have without changing its shape capacity quantity or quality  
2. Example vehicle books utensils Timber etc
3.  Mango trees if cut unsold for Timber purpose to be movable property
4.  contract for cutting the bamboos and collection of beedi leaves for one year comes under  movable property
5.  The movable property need not be registered under the Indian  Registration Act 1908 it is purely optional
6.  The  moveable properties liable to sales tax and Central sales tax subject to certain restrictions and conditions
7.  Mere delivery with intention to transfer the movement property  complete the transfer

 

 Immovable property

 

1. Cannot easily transported from one place to another if transported  it will lose its original shape capacity quantity or quality
2.  Examples-  lands plots houses flats Apartments agricultural lands trees attached to the ground 
3. Mango trees if sold for nourishment and for fruits they are deemed as immovable property
4. Cutting the bamboos for a number of us under a contract comes under immobile property
5.  Whenever the immovable properties transferred it must compulsory be registered under the Indian  Registration Act 1908 subject to its value if it  exceeds rupees hundred.
6.  the immovable property  is not liable to sales tax but stamp duty is to be paid under the Indian stamp act 1899 and registration fees is to be paid under the Indian registration act 1908
7.  Mere delivery does not sufficient for a valid transfer. The property must be registered in the name of the transferee.

 

 Marshall vs Green

 

 The real test for the judgement whether tree is movable property or immovable property is to be considered the purpose in which it is intended to be dealt with at the time of the transfer. If the intention was to cut the tree and removed within a reasonable time, then it will be treated as moveable property.

 

 If the intention is that it should grow and yield fruits or shade, it is immovable property, because it has true draw nourishment from the land.

 Martial versus green is the leading case in this regard

 

 Facts – in this, there Was a sale of trees to cut and take away immediately from the land. it dispute arose between the transferee and  transferor  for the payment of tax, and whether the same of trees covers the immovable property or movable property.

 

 Judgement – the House of Lords held that sale was relating to movable property only. Here the intention of parties was to cut the trees and to take them away. There was no intention of nourishment of the trees. Hence it would not cover the immovable property. Therefore it need not register under the registration act