A PROJECT

ON
INVENTIONS

[Submitted as a partial fulfillment of the requirements of Law of Property for B.A. LL.B
(HONS) 5 Year Integrated Course]
Session: 2019-2020

Submitted On: 11th September, 2019

Submitted By: Submitted To:

Ms. Priyanshee Dr. Abhishek Kumar Tiwari
Roll no- 70 Faculty
Class: VII Semester (B)

University Five Year Law College

University of Rajasthan, Jaipur
 Declaration

I, Priyanshee, hereby declare that this project titled “Inventions” is based on the original
research work carried out by me under the guidance and supervision of Dr. Abhishek Kumar
Tiwari.

The interpretations put forth are based on my reading and understanding of the original
texts. The books, articles and websites etc. which have been relied upon by me have been duly
acknowledged at the respective places in the text.

For the present project which I am submitting to the university, no degree or diploma has
been conferred on me before, either in this or in any other university.

Date: 11th September, 2019 Priyanshee

Roll No. 70

Semester VII-B

ii
 Acknowledgment

I have written this project, “Inventions” under the supervision of Dr. Abhishek Kumar Tiwari,
Faculty, University Five Year Law College, University of Rajasthan, Jaipur. His valuable
suggestions herein have not only helped me immensely in making this work but also in
developing an analytical approach this work.

I found no words to express my sense of gratitude for Dr. Sanjula Thanvi and Deputy Directors
Mr. Manoj Meena and Dr. Abhishek Kumar Tiwari for constant encouragement at every step.

I am extremely grateful to librarian and library staff of the college for the support and
cooperation extended by them from time to time.

Priyanshee

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 Table of Contents

Page

Declaration of Originality …………………………………………………….. ii

Acknowledgements …………………………………………………………….. iii

List of Abbreviations …………………………………………………………….. iv

Table of Cases ……………………………………………………………… v

Abstract …………………………………………………………………… 1

Introduction …………………………………………………………………… 2

Research Methodology

1. Statement of Problem …………………………………………… 4

2. Objectives …………………………………………………………… 4
3. Hypothesis……...…………………………………………………… 4
4. Research Question …………………………………………………. 4
5. Mode of Citation …………………………………………………… 4
6. Scheme & Outline of Project ……………………………………….. 4

CHAPTER – 1

1.1 The concept of Sale ………………………………………………… 6

1.2 Contract for Sale ……………………………………………………. 7
1.3 Price………………………………………………………………… 7
1.4 Difference between sale and contract of sale……………………….. 7

CHAPTER – 2

Legal Incidents of Sale

2.1 Rights and Liabilities of Seller and buyer…………………………………… 8
2.2 Fraudulent Transfer…………………………………………………………… 10

2.3 Transfer of Actionable Claim………………………………………………… 10

CHAPTER - 3

Conclusion …………………………………………………………… 12

Bibliography …………………………………………………………… 13
 List of Abbreviations

AIR : All India Reporter

All : Allahabad

AP : Andra Pradesh

ed. : edition

e.g. : example

etc. : et cetera

ILJ : International Law Journal

i.e. : that is

SC : Supreme Court

iv
 Table of Cases

Dolai Maliko v. Krushna Chandra Patnaik, AIR 1967 SC 49 (66) …………………………10

Gavadayanuna v. Suryanarayana, AIR 1978 AP 1…………………………………………...7
Ram Das v. Debut, AIR 1930 All 610 ………………………………………………………10

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 ABSTRACT

Patent Right varies from country to country. In India the law which govern patent right is
“Indian Patent Act, 1970”. Indian Patent Act, 1970 grants exclusive right to the inventor for his
invention for limited period of time. Generally 20 years time has been granted to the patent
holder but in case of inventions relation to manufacturing of food or drugs or medicine it is for
seven years from the date of patent.

The project work begins with a brief discussion of what is meant by Invention under
Indian Patent Act 1970, defined under section 2(1)(j) “invention” means a new product or
process involving an inventive step and capable of industrial application. The term “industrial
application” refers to capable of industrial application in relation to an invention means that the
invention is capable of being made or used in an industry 1. One of the pre-requisite of invention
is that it should be new i.e. the invention proposed to be patented has not been in the public
domain or that it does not form part of the state of the art. Under the Patent Act, both processes
and products are entitled to qualify as inventions if they are new, involve an invention step and
are capable of industrial application.

As per Indian Patent Law, one patent application shall relate to a single invention.
However, if more than one invention are to be claimed in single application, it is necessary to
establish that the inventions so claimed have unity and they form a single inventive concept. The
golden rule is that the claim or claims of a complete specification shall relate to a single
invention, i.e. the concept of unity of invention shall be there.

1
Section 2(1)(ac) of Patent Act,1970.

1
 INTRODUCTION
The intellectual property (IP) can be described as novel or previously undescribed tangible
output of any intangible intellectual activity. IP typically has an owner, can be bought, sold or
licensed and must be adequately protected for exploitation. IP can include (patentable)
inventions, industrial processes, software, data, written work, designs, images etc.

Intellectual Property is like any tangible property like land, house, vehicle etc. that has
commercial value. Only that IP is created through human intellect. Therefore, IP can be bought
and sold just like conventional property e.g. a house or a car. Example: If a chemical entity has
been invented by a scientist and institute/company wants to make drug for a specific treatment,
the institute/company pays money to the scientist to get the rights of IP provided that IP
(chemical entity) is adequately protected as IPR. In other words, the chemical entity becomes an
"Intellectual Property" for the scientist. Similarly, if a biotechnologist has developed a new
process for making an enzyme, which has commercial value for a company, it would buy the
rights to use the IP from the inventor. Since, IPRs can be bought and sold just like property, we
use the terms "Intellectual Property".

Patent rights are essentially territorial in nature and are granted only for a country (or countries),
where it has been applied for and granted. There is nothing like a global patent or a world patent.
For obtaining patent rights in several countries, the applicant has to file patent application in each
of the country of interest for grant of a patent separately. This would entail payment of official
fees and all associated expenses, like the attorney fees, essential for obtaining patent in each
country. For the grant of patent in India, certain essential conditions stipulated under the Patents
Act have to be satisfied. An application for a patent should be made at the Patent Office. Any
person, whether an Indian or a foreigner, whether an individual, company or the government,
may apply for a patent and provided that such person is the ‘true and first inventor’ of the
invention or his assignee or the legal representative of a person entitled to apply under Patents
Act.2 Such an application can be made either separately or jointly by the aforementioned persons.
The application should disclose the best method of performing the invention known to the
applicant for which he is entitled to claim protection. 3 The application should also define the

2
Patents Act 1970, s.6
3
Ibid, s 10(4)(b).

2
scope of the invention in the claim 4. The invention, as disclosed in the application, should satisfy
the three prerequisites- the invention must be new, should involve an inventive step, and must be
capable of industrial application.5 Additionally, the invention should not be an invention
excluded under section 3 and 4 of the patents Act.

Every patent application shall be made for a single invention, and should be made in the
prescribed form and filed before the Patent Office as per the procedure laid down by the Patents
Act and the rules made under it. An international application made under the Patent Cooperation
Treaty (PCT) designating India shall be deemed as an application made under the Patents Act
with the priority date accruing from the date of the international filing accorded under the PCT6.

4
Ibid, s 10(4)(c).
5
Ibid, s 2(1)(j).
6
Patents Act 1970, s.7(1A) and 53.

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 RESEARCH METHODOLOGY

The research has been carried out by using doctrinal method and reliance has been placed only
upon secondary sources of data for the preparation of this project.

1. Statement of Problem
There is a problem of understanding of the Sale and it`s legal incidents under Property
law.
2. Objectives

Through this project work, the researcher aims to comprise together and understand the
concept of Sale and the provisions regarding its legal incidents and to explore the effect
of these incidents on the parties of the Sale, i.e., buyer and seller and to analyze rights
and liabilities of seller & buyer through case. The research is limited to the property
matters covered under Transfer of Property Act, 1882 and Sale of Goods Act, 1930.

3. Hypothesis
The Sale is the transaction between two or more parties in which the one party receives
the goods in exchange for a consideration to the other party. The process of Sale is
generally executed by entering into a contract by the parties to the Sale. Besides the
conditions mentioned in the contract, there are several conditions which are provided
under the provisions of law. The Sale has various legal incidents such as rights and
liabilities of seller. The most important right of seller is to get the consideration from the
buyer for the sale of the questioned property.
4. Research Questions
What is the concept of Sale in Transfer of Property Act, 1882?
What are the various incidents of Sale and its application in various case laws?
5. Modes of Citation
The researcher has used Indian Law Institute (ILI) mode of citation throughout the
project.
6. Scheme & Outline of Project
This research project is prepared on Sale and its Legal Incidents. For simple and
systematized understanding of the project work, it is divided in different chapters.

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  The Introduction part of the project starts with the brief of background of the
project and the terms sale, buyer and seller under property law and other
legislations.
 The first chapter contains the brief introduction of the concept of Sale
specifically under Transfer of Property Act then; it explains Contract of sale and
essentials of Sale and differentiates between Sale and Contract of Sale.
 Then, the second chapter proceeds with the legal incidents of Sale under the
Transfer of Property Act, 1882.
 At last, the third concludes the whole project work as understood by the
researcher and checks the outcomes with the hypothesis presumed by the
researcher.

CHAPTER 1
INVENTIONS ITS MEANING AND NATURE

1.1 DEFINITION OF INVENTIONS

 According to S.2(1)(j) of Indian Patent Act :

“Invention” means a new product or process involving an inventive step and capable
of industrial application.
 According to Oxford Dictionary :
“A thing or an idea that has been invented”.

2.2 NATURE OF INVENTIONS

(A) Historical Background

There exists a vital distinction between the definition of ‘invention’ before and after the Patents
(Amendment) Act 2002. Under the Indian Patents and Designs Act 1911, the term ‘invention’
was understood as ‘any manner of new manufacture’, and included ‘an improvement and an
alleged invention.’ The above Act also defined the term ‘manufacture’ to include ‘any art,

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process or manner of producing, preparing or making an article, and also any article, and also
any article prepared or produced by manufacture.’7 Thus, the 1911 Act protected not only
process of manufacture, but also a manufactured product. The courts too have interpreted the
word ‘manufacture’ in a dual sense to comprehend both a process and a product. 8 The definition
of invention in the 1911 Act was very similar to the definition then prevailing in the
Commonwealth.9

This simple definition was later expanded by the 1970 Act. Section 2(1)(j), in its original form,
required that for an invention to be patentable it must pertain to ‘a new and useful’ manner of
manufacture. As per the definition of invention, as it stood then, to determine whether a
patentable invention was made, three conditions had to be looked into.

1. Whether there is a proper subject matter of the patent.

2. Whether there is novelty.
3. Whether the invention involves utility.

Express mention of the terms ‘useful’ and ‘manner of manufacture’ does not figure anymore in
the new definition. However, the principles enumerated in the judicial interpreting the phrase
‘manner of new manufacture’ under the earlier definition of invention have now been
incorporated into the definition of an invention under the 1970 Act.10 The Patents (amendment)
Act 2002 introduced the current definition as it stands at present.

(B) Inventions: Judicial Pronouncement

A ‘new invention’ refers to an invention or technology which has not been anticipated by
publication in any document or used in the country or elsewhere in the world before the date of
filing of patent application with the complete specification. In other words, the subject matter has
not fallen in public domain or that it does not form part of the state of the art.11

‘Invention’ includes both products and processes. In the case of a product patent, the article or
apparatus itself, which is the end product, qualifies for a patent protection. In the case of process
7
Indian Patents and Designs Act 1911, s 2(10).
8
National Research Development Corpn v. Commr of Patents (1960) ALR 114
9
For the definition of invention that existed in UK, New Zealand and Australia, see The Wellcome Foundation
Limited (Hitching’s)Application(1980) RPC305, pp311-312.
10
Section 2(1)(j) as amended by the Patents (Amendment) Act 2002.
11
Patents Act 1970, s2(1)(l).

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patent, the patent protection is limited to a particular process through which the end product is
attained.12 Section 5 introduced the process patent and product patent distinction in providing
that no patent shall be granted in respect of claims for substances intended for use as food or as
medicine or as drug, but claims for the methods or processes of manufacture of these substance
shall be patentable. With the omission of section 5, such distinction is of limited relevance.13

The term invention means ‘to find out something or discover something not found or discovered
by any one before’. An invention is understood based on how the three of its subjective
constituents, i.e, novelty, invention step, and industrial application are understood. The subject
matter should involve an invention over what is old. 14 Anything that is in the knowledge of the
public or is disclosed to the public cannot be regarded as an invention under the Act. An
invention need not be a complicated advancement in technology .Even a simple invention, so
long as it is novel or new, would be an invention.15 An improvement can also be an invention.

(C) Requirements of an Invention

Any product or process could qualify for a patent if the following four requirements are met:

1. The invention must be new (Novelty);

2. The invention must involve an inventive step (inventive step or non-obviousness);
3. It should be capable of industrial or commercial application(industrial application or
utility);
4. It should not come under the inventions which are not patentable mentioned in section 3
and 4 of the Act (inventions not patentable).

The first three requirements, also known as positive requirements, are contained in section
2(1)(j) of the Act. It provides that the invention must be ‘new’, ‘involve an inventive step’
and ‘capable of industrial application’. The fourth requirement is an negative requirement
which is contained in s.3 and s.4. A patent will be granted for an invention only if it satisfies
the first three requirements, and does not come under the fourth requirement. As stated

12
Raj Prakash v Mangat Ram Choudhary AIR 1978 Del I.
13
Section 5 was omitted by the Patents (Amendment) Act 2005 with retrospective effect from 1 January 2005
14
Bishwanath Prasad Radhey Shyam v Hindustan Mental Industries AIR 1982 SC 1444, p 1448.
15
Raj Prakash v Mangat Ram Choudhary AIR 1978 Del 1 (DB).

7
above, the exceptions in s.3 and s.4 have to be applied first before determining whether the
conditions for patentability in s.2(1)(j) are satisfied.

8
 Conveyance- The section 54 provides for two modes of Transfer of Property- by
delivery of possession and registration of sale deed.
1.1 Contract for Sale

A contract for the sale of immovable property is a contract that a sale of such property shall take
place on terms settled between the parties. It does not, of itself, create any interest in or charge
on such property. The rest of the Act except Section 129 applies to Mohammedans also. By
"tangible property" is meant lands, buildings, etc., which immediately or through the medium of
tenants may be the subject of possession which can be delivered by the vendor to the purchaser.

1.3 Price

The transfer must be for money (price), for if it is in return of anything else, it would be
exchange. It would be exchange even if there was part payment of money and the rest in
something else.16 There is a difference between a transfer of property as dower and a transfer in
lieu of dower already due. In the former case there is no transfer for any price; but in the latter
case, property is exchanged for a price. Therefore, an oral sale by a Muslim husband to his wife
in consideration of the discharge of the dower debt due to her would be a "sale" and hence
invalid for want of a registered document.

1.4 Difference between Sale and contract of sale

1. A Sale of an immovable property is the transfer of ownership whereas the contract for sale is
merely an agreement for the sale of property in future on terms agreed between the parties.

2. A Sale conveys a legal title to the purchaser because absolute interest of the vendor passes to
the vendee. A contract of sale does not convey legal title to the purchaser.

3. A Sale creates a right in rem where is a contract of sale creates a right in personam where only
the promise can compel the seller to execute the promised conveyance.

16
Gavadayanuna v. Suryanarayana, AIR 1978 AP 1

9
 CHAPTER 2

Legal Incidents of Sale

When the Sale is completed, all the rights of the transferor, i.e., the seller get transferred to the
transferee, i.e., buyer. The buyer become the full owner of the property and gets all the incidental
rights of the ownership. The Seller, on the other, is left with no other right to the property except
to get the consideration of the property from the buyer. The legal incidents of sale are discussed
as following:-

2.1. Rights and Liabilities of Seller and buyer

2.1.1 Rights of Seller

Before the Sale

The seller is entitled to the rents and profits of the property till the ownership of it passes to the
buyer.17

After the completion of Sale

Where the ownership of the property has passed to the buyer before payment of the whole of the
purchase-money, the seller is entitled to18-

(i) to a charge upon the property in the hands of the buyer

(ii) any transferee without consideration, or
(iii) any transferee with notice of the non-payment,
(iv) for the amount of the purchase-money, or any part thereof remaining unpaid, and
(v) for interest on such amount or part from the date on which possession has been
delivered
2.1.2 Liabilities (Duties) of Seller

Before the Sale19

17
Section 55(4)(a) of the Transfer of Property Act, 1882
18
Section 55(4)(b) of the Transfer of Property Act, 1882
19
Section 55(1) of the Transfer of Property Act, 1882

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 (i) Seller`s duty of Disclosure
(ii) To produce Title-deeds
(iii) To answer questions as to Title
(iv) To execute a Proper Conveyance
(v) To take care of Property and Title-deeds
(vi)To pay outgoings
After the completion of Sale20

(i) To give possession

(ii) Implied Covenant for Title
(iii) To deliver Title-deeds on receipt of Price
2.1.3 Rights of Buyer

Before the Sale

The buyer is entitled to a charge on the property unless he has improperly declined to accept
delivery of the property, as against the seller and all persons claiming under him, to the extent of
the sellers interest in the property for the amount of any purchase-money properly paid by the
buyer in anticipation of the delivery and for interest on such amount.

After the completion of Sale

Where the ownership of the property has passed to the buyer, the buyer is entitled to the benefit
of any improvement in the property or increase in the value of property and to the rent and profit.

2.1.4 Liabilities (Duties) of Buyer

Before the Sale21

(i) To disclose facts materially increasing value of property

(ii) To pay the Price

After the completion of Sale

20
Section 55(1)(f) of the Transfer of Property Act, 1882
21
Section 55(5) of the Transfer of Property Act, 1882

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 (i) To bear loss to the property
(ii) To pay outgoings

2.2. Fraudulent Transfer

In the business of Sale, when any transfer of immovable property is made with the intent to
defeat or delay the creditors of the transferor, it shall be voidable at the option of any creditor so
defeated or delayed.22The essential requirements of this section are-

(i) There must be a transfer of immovable property- it does not cover nominal, sham or
simulated transfers of property because in such cases there is no intention to transfer
the property and no right is conveyed in the property.23
(ii) The transfer must have been made with the intent to defeat or delay the creditors of
the transferor- it includes all those who are creditors at the date of the transfer as well
as those who become creditors subsequent to the date of fraudulent transfer.24
(iii) The transfer shall be voidable at the option of any creditor so defeated or delayed- the
creditor so defeated must exercise his option to avoid the transaction.

However, the rights of a transferee in good faith and for consideration and any law for the
time being in force relating to insolvency shall not be affected by this section.

2.3 Transfer of Actionable Claim

Actionable claim means a claim to any debt, other than a debt secured by mortgage of
immovable property or by hypothecation or pledge of movable property, or to any beneficial
interest in movable property not in the possession, either actual or constructive, of the claimant,
which the Civil Courts recognize as affording grounds for relief, whether such debt or beneficial
interest be existent, accruing, conditional or contingent.25

Irrespective of the consideration, the transfer of an actionable claim shall be affected only by the
execution of an instrument in writing signed by the transferor or his duly authorized agent. 26 It
22
Section 53 of the Transfer of Property Act, 1882
23
Dolai Maliko v. Krushna Chandra Patnaik, AIR 1967 SC 49 (66)
24
Ram Das v. Debut, AIR 1930 All 610
25
Section 3 of the Transfer of Property Act, 1882
26
S.N. Shukla, Transfer of Property Act, Allahabad Law Agency Law Publishers, Faridabad, Haryana (28th ed.
Reprint 2013)

12
shall be complete and effectual upon the execution of such instruments, and thereupon all the
rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the
transferee, whether such notice of the transfer as is hereinafter provided by given or not.27

27
Section 103 of the Transfer of Property Act, 1882

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 CHAPTER 3

Conclusion

The Transfer of Property Act is an act to provide various rules regulating the Transfer of
Property. The act deals with both movable and immovable property but mainly focusing on the
transfer of immovable property.

In the project work, the concept of sale is discussed with reference to its legal incidents.
Sale is a general course of business of transfer of some property or goods by one person to
another. The transferor is known as the seller or vendor whereas the transferee is known as the
buyer or for the vendee. The contract of sale differentiates from Sale. Sale is an immediate
transfer of ownership whereas the contract for sale is an agreement between the parties for the
sale of property or goods in the future on some agreed terms and conditions. Time is the essence
in contract for sale.

The main legal incident of Sale is that the ownership of the property or goods gets
transferred from the seller to the buyer completely. The buyer now gets all the rights to use,
dispose of, destroy, or to alienate the property or goods. Thus, he can further sale, mortgage,
lease or gift that property to some another person. The Act also recognizes certain rights and
liabilities of the seller and the buyer before and after the completion of Sale. In the Transfer of
Property, the transfer of actionable claim can also take place in which the buyer becomes
responsible for such actionable claim. In certain cases, the transferor transfers the property
fraudulently in order to delay or defraud the creditor. Such act is illegal and voidable at the
option of the creditor who is delayed or defrauded.

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 Bibliography

 Bhargava, M. L., Digest on Transfer of Property, Kamla Publishers, New Delhi (1991-
2015)

 Dr. Singh, A., Textbook on Transfer of Property Act, Universal Law Publishing Company
(3rd ed. 2012)

 Sinha, R. K., Transfer of Property Act, Central Law Agency, Allahabad (2018)

 Shukla, S.N., Transfer of Property Act, Allahabad Law Agency Law Publishers,
Faridabad, Haryana (28th ed. Reprint 2013)

Other web resources-

 The Transfer of Property Act, 1882 available at:

https://indiacode.nic.in/handle/123456789/2338?
view_type=browse&sam_handle=123456789/1362

 The Sale of Goods Act, 1882 available at:

https://indiacode.nic.in/handle/123456789/2390?
view_type=search&sam_handle=123456789/1362

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