Section 133 of the Transfer of
Property Act
Section
133 of the Transfer of Property Act stipulates that, when determining the
warranty obligations of the transferor, the financial condition or solvency of
the debtor at the time of transfer must be evaluated. This provision is crucial
because it ensures that the transferor guarantees the soundness of the debt
only to the extent of the debtor’s ability to repay at the time of the
transaction. In cases where the transfer is made for a consideration, meaning a
sum of money or its equivalent is exchanged, the transferor’s warranty is
limited to the amount or value of such consideration. Therefore, the transferor
is only responsible for ensuring that the debtor can repay the debt to the
extent of the money received or promised in the transaction, thus protecting
both parties’ interests in the transfer of debt.
Deed of Assignment of Business Debts
THIS DEED OF ASSIGNMENT is executed on this _______ day of ____________, between [Assignor's
Name], son of [Assignor's Father’s Name], residing at [Assignor's
Address], hereinafter referred to as "the Assignor," which
expression shall, unless repugnant to the context or meaning thereof, include
his heirs, successors, executors, administrators, and legal representatives, of
the one part, and [Assignee's Name], son of [Assignee's Father's
Name], residing at [Assignee's Address], hereinafter referred to as
"the Assignee," which expression shall, unless repugnant to the
context or meaning thereof, include his heirs, successors, executors,
administrators, and legal representatives, of the other part.
WHEREAS
the Assignor has, for a considerable time, been engaged in the business of [Business
Name], during the course of which various individuals and entities, whose
names, addresses, and occupations are detailed in the attached Schedule, have
incurred lawful debts to the Assignor for the amounts stated opposite their
respective names;
AND WHEREAS the Assignor has agreed to sell, transfer, and assign the
said business debts absolutely to the Assignee, in consideration of a sum of
Rs. ____________ (Rupees ____________), and the terms and conditions of such
sale have been mutually agreed upon between the Assignor and the Assignee;
NOW, THIS DEED OF ASSIGNMENT WITNESSES that in consideration of the sum of
Rs. ____________ (Rupees ____________), the receipt of which is hereby
acknowledged by the Assignor, the Assignor, as the beneficial owner, does
hereby irrevocably and absolutely transfer, sell, and assign unto and in favor
of the Assignee, all the debts and sums of money due and payable to the
Assignor by the persons listed in the attached Schedule, along with all rights,
title, and interest therein, to have and to hold the same for the absolute use
and benefit of the Assignee.
The
Assignee shall henceforth be entitled to demand, collect, and receive the said
debts from the respective debtors, and the Assignor grants the Assignee full
authority, power, and liberty to enforce payment, by legal proceedings or
otherwise, of the debts specified in the Schedule.
The
Assignor further covenants with the Assignee that all the debts assigned by
this deed are lawfully due to him and that all the persons by whom such debts
are payable are alive and capable of discharging the debts. The Assignor also
warrants that no arrangements, compromises, or adjustments have been made by
him with any of the debtors concerning the payment of such debts, except as may
be expressly mentioned in this Deed.
Moreover,
the Assignor agrees that he shall, at any time and from time to time hereafter,
upon reasonable request and at the cost of the Assignee, execute and do all
such further acts, deeds, documents, and things as may be necessary or proper
to more effectively transfer, assure, or convey the said debts or any part
thereof to the Assignee, or for realizing or facilitating the realization of
the said debts in favor of the Assignee.
Schedule
(as referred to above)
This
Schedule contains the names, addresses, occupations of the debtors, and the
sums owed by them to the Assignor.
IN WITNESS WHEREOF, the Assignor and the Assignee have hereunto set their
respective hands and signatures on the day, month, and year first mentioned
above at [Location].
Signature of Assignor:
Name: [Assignor’s Full Name]
Signature of Assignee:
Name: [Assignee’s Full Name]
Witnesses:
1.
Name:___________________
Address: ___________________
2.
Name:___________________
Address: __________________
