Improvements Made by Bona Fide Title Holders Under Defective Titles
Improvements Made by Bona Fide Title Holders Under Defective Titles
Improvements Made by Bona Fide Title Holders Under Defective Titles
Improvements
Improvements by defective title holders does not mean ordinary changes to an
old property or other operational changes. Improvements mean changes that
enhance the value of the property and add to its value as a marketable subject.
Thus, improvements are not ascertained merely on the basis of the money
spent by the person making the improvements to the property.
The value of the improvements made by the person has to be ascertained at
the time of eviction, though the amount spent on the improvements is not
decisive of the market value of the property at which it is to be sold.
Illustrations
X is the legal guardian of Y, a minor. X alienated Y’s property in favour of Z and
Z considering himself the absolute owner made improvements to the property.
Y on attaining majority demanded Z’s eviction. Z can avail the protection under
this doctrine and can demand either compensation from the real owner or an
interest in the property.
A bought a house on a court auction and renovated the entire house, adding
on to its market value. He was later given an eviction notice and denied
compensation on the ground that he knew the possibilities. A in this situation
cannot be denied compensation.
A land had been empty and barren since 10years, X without any authorization
built a colony over it. The government demanded eviction on the ground that X
had trespassed. X cannot avail the benefit of this doctrine under such
circumstances.
X rented his property to Y for a subsequent amount per month. He later on
mortgaged it to Z, Y not knowing the same continued to pay the rent to X. X
cannot be asked to pay the rent again to Z as he acted in good faith and is
protected under this doctrine.
Conclusion
The improvements made by bona fide title holders in a defective title is an
essential remedy available to the transferee who in good faith has made
improvements to the property. Law in order to provide justice to the grieved
title holder provides protection under this doctrine as already explained above.
Thus, section 51 is yet another equitable doctrine under the Transfer of
Property Act,1882.