Meaning of actionable claim

Actionable claim under Transfer of Property Act, 1882: best analysis literally means such a claim for which action is maintainable. Under the section 3 of Transfer of property Act, 1882 the expression ‘Actionable claim’ has been defined to include 2 things: first, the claim for unsecured money debt and secondly, the claim for beneficial interest in movable property not in possession of the claimant.

Things included in actionable claim:

(i) Claim for unsecured money debt: Debt refers to an obligation to pay a certain sum of money. Debt may be either secured or unsecured. Unsecured debt means the debt which has not been secured by keeping some property from which the amount of money may be recovered in case of non repayment by the debtor.

Secured debt may be either by keeping immovable property as security which is called mortgage (covered u/s 58 to 104 of Transfer of property Act, 1882) or by way of security of movable property called hypothecation or pledge (covered under sections of Indian Contract Act , 1872).

Only claim for an unsecured money debt amounts to an actionable claim under section 3 of Transfer of Property Act , 1882.

Kinds of Debt: Debt may be: 1) Existing debt; 2) Accruing debt; 3) Conditional debt: 4) Contingent debt

1. Existing debt: It means the debt which has become due and payable. For example, the claim for salary which was payable on 30th April becomes an existing debt ( which is due and payable) on and after the date till it is paid.
2. Accrued debt: It means the debt which has not yet become payable but will become payable on a future date and is still accruing (getting accumulated). For example, A claim for salary which is payable on 30th of April will amount to accruing debt on any time during the month say on 15th April.
3. Conditional debt: If some claim for sum of money arises subject to fulfilment of a condition then it is called conditional debt. For example, A promises to pay B ₹1 Lac if B goes abroad to study.
4. Contingent debt: Contingent means an event which is uncertain so the claim of money based on happening or non-happening of a particular uncertain event is a contingent debt. For example, A promises to pay B ₹1 Lac if a daughter is born to her as first child.

(ii) Claim to beneficial interest in movable property not in possession if claimant: Following are the main essentials:

1. The claim must be about some movable property.
2. The movable property must be in possession of another person.
3. Their must be beneficial interest (Right to possession) of claimant.

Such absence of possession of claimant must be both actually and constructively (For example, having keys of a car is constructive possession of such car).

Illustration:

A sold 10 bags of rice to B. The bags are still in A’s godown. B has a right to claim beneficial interest (Right to possession) over such movable property not in possession of claimant (B).

Bare Act Provision of Definition of Actionable Claim under Section 3 of Transfer of Property Act 1882

“‘Actionable claim’ means a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of movable property not in actual or constructive of the claimant which the civil courts recognize as affording ground for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.”

Exceptions Of actionable claim:

1. Right to getting damages under Indian Contract Act 1872 or Law of Tort.
2. Right to get debt money by way of judgement, such decree is not actionable claim
3. Right to claim mesne profits (under Section 2(12)) of Civil Procedure Code is not actionable claim. Mesne profits under Section 2(12) of Civil Procedure Code 1908 means those profits which the person in wrongful possession of such property actually received or might have with ordinary diligence received therefrom, together with interest on such profits but shall not include profits due to improvements made by such person in the wrongful possession.

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