Transfer of Property Act Section 119 — Right of party deprived of thing received in exchange

CHAPTER VI OF EXCHANGES

General

Summary

If someone involved in a property exchange loses the property they received, or any part of it, because the other person did not actually have valid ownership, then that other person is responsible for the loss. The person who lost out can choose to be compensated for the loss, or, if the property they gave up is still with the other person, they can ask for it back. This applies unless the terms of the exchange clearly said something different.

Official Text

If any party to an exchange or any person claiming through or under such party is by reason of any defect in the title of the other party deprived of the thing or any part of the thing received by him in exchange, then, unless a contrary intention appears from the terms of the exchange, such other party is liable to him or any person claiming through or under him for loss caused thereby, or at the option of the person so deprived, for the return of the thing transferred, if still in the possession of such other party or his legal representative or a transferee from him without consideration.]