Property lawTPABombay High Court

Official Assignee, Bombay v Shroff

AIR 1932 Bombay 28119321 min read
The case in brief30-second read
Facts
Shroff held a seat (membership card) on the Bombay Stock Exchange. On Shroff's insolvency, the Official Assignee claimed the seat as part of the insolvent estate. Shroff argued the seat was a personal privilege, not property.
Issue
Whether the right to occupy a seat on the Bombay Stock Exchange constitutes "property" capable of being vested in the Official Assignee on insolvency.
Held
The right to a seat on the Stock Exchange is property. It has pecuniary value, can be transferred (subject to exchange rules), and can devolve on death. It is therefore capable of vesting in the Official Assignee as part of the insolvent's estate.
Principle
Property includes every type of interest capable of being owned, including intangible rights such as a seat on the stock exchange
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Facts

  • Shroff held a seat (membership card) on the Bombay Stock Exchange
  • On Shroff's insolvency, the Official Assignee claimed the seat as part of the insolvent estate
  • Shroff argued the seat was a personal privilege, not property

Issue

  1. Whether the right to occupy a seat on the Bombay Stock Exchange constitutes "property" capable of being vested in the Official Assignee on insolvency.

Held

  • The right to a seat on the Stock Exchange is property. It has pecuniary value, can be transferred (subject to exchange rules), and can devolve on death. It is therefore capable of vesting in the Official Assignee as part of the insolvent's estate.

Ratio decidendi

"Property" in its widest sense includes every type of interest which a person can hold or enjoy, whether tangible or intangible, corporeal or incorporeal. A right that has economic value and is capable of alienation or devolution is property within the meaning of law.

Exam use

How to use it in an answer

Use to illustrate the broad definition of "property" (S.3(26), General Clauses Act) and how intangible rights qualify as property. Key line: "Any right with pecuniary value capable of transfer or inheritance is property."

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Citation

Official Assignee, Bombay v. Shroff AIR 1932 Bombay 281

Reported: Avatar Singh, Law of Transfer of Property. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.