Transfer of Property Act Section 100 — Charges

Summary

If one person's property is used as security for money owed to another person, and the arrangement does not qualify as a mortgage, the person owed money holds a "charge" on that property. The rules that apply to a simple mortgage generally also apply to such a charge. This section does not cover a trustee's charge on trust property for their proper expenses, and a charge cannot be enforced against someone who bought the property for value without knowing about the charge.

Official Text

Where immoveable property of one person is by act of parties or operation of law made security for the payment of money to another, and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property; and all the provisions hereinbefore contained 4[which apply to a simple mortgage shall, so far as may be, apply to such charge]. Nothing in this section applies to the charge of a trustee on the trust property for expenses properly incurred in the execution of his trust, 5[and, save as otherwise expressly provided by any law for the time being in force, no charge shall be enforced against any property in the hands of a person to whom such property has been transferred for consideration and without notice of the charge]. 6[

Related Judgments

• T. VIJENDRADAS AND ANR. vs M. SUBRAMANIAN AND ORS — Supreme Court of India (2007)
• DATTATRAYA SHANKER MOTE & ORS. vs ANAND CHINTAMAN DATAR & ORS — Supreme Court of India (1974)
• K. C. NINAN vs KERALA STATE ELECTRICITY BOARD & ORS — Supreme Court of India (2023)
• CENTRAL BANK OF INDIA vs STATE OF KERALA AND ORS — Supreme Court of India (2009)