Contingent interest under a settlement is transferable property and not a mere possibility or bare right to sue.

A contingent interest created under a family settlement was treated as transferable property rather than a mere possibility or bare right to sue. The settlement gave the children a vested interest in the income and a contingent interest in the corpus until the future event occurred, and that contingent interest was recognised as a distinct proprietary interest capable of assignment. Because it was not within the exclusion for a mere chance of succession or a personal claim, its transfer did not offend Section 6 of the Transfer of Property Act, 1882. The stated defence accordingly failed.

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Issues: Whether the contingent interest created under the settlement was transferable or was hit by Section 6 of the Transfer of Property Act, 1882 as a mere possibility or a mere right to sue.

Analysis: The settlement gave the children a vested interest in the income and a contingent interest in the corpus until the relevant future event. A contingent interest of that kind was a well-recognised form of property and was materially different from the chance of succession, a mere possibility, or a bare right to sue. It was therefore capable of assignment.

Conclusion: The interest was transferable and did not offend Section 6 of the Transfer of Property Act, 1882; the defence failed.

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