Introduction

• Apportionment means distribution in proper shares or division of a common fund between several claimants.
• Section 36 and 37 of the Transfer of Property, 1882 (TPA) deals with apportionment.

Kinds of Apportionment

Apportionment is of two kinds:

• Apportionment by time (Section 36)
• Apportionment by estate (Section 37)

Apportionment by Time

• Section 36 deals with the apportionment of periodical payments on determination of interest of person entitled it states that—

In the absence of a contract or local usage to the contrary, all rents annuities, pensions, dividends and other periodical payments in the nature of income shall, upon the transfer of the interest of the person entitled to receive such payments, be deemed, as between the transferor and the transferee, to accrue due from day to day, and to be apportionable accordingly, but to be payable on the days appointed for the payment thereof.

• The section clearly lays down that all periodical income shall be accrued and apportioned on a day-to-day basis.
• This section is applicable to inter vivos transfers (transfer between living persons) and does not apply to transfers by operation of law.
• This rule can be excluded by a local usage or a contract to the country.
• Illustration -
  • Consider ‘A’ lets his property to ‘C’ for Rs.1000/- per month. ’C’ pays the rent amount at the end of each month. ’A’ sold his property to ‘B’ on 15th January. On 31st January C will pay Rs. 500/- to ‘A’ and Rs. 500/- to ‘B’.
  • Such apportionment is only done in the absence of any contract to the contrary.

Apportionment by Estate

• Section 37 deals with the apportionment of benefit of obligation on severance. It states that -

When, in consequence of a transfer, property is divided and held in several shares, and thereupon the benefit of any obligation relating to the property as a whole passes from one to several owners of the property, the corresponding duty shall, in the absence of a contract, to the contrary amongst the owners, be performed in favor of each of such owners in proportion to the value of his share in the property, provided that the duty can be severed and that the severance does not substantially increase the burden of the obligation; but if the duty cannot be severed, or if the severance would substantially increase the burden of the obligation the duty shall be performed for the benefit of such one of the several owners as they shall jointly designate for that purpose.

Provided that no person on whom the burden of the obligation lies shall be answerable for failure to discharge it in the manner provided by this section, unless and until he has had reasonable notice of the severance.

Nothing in this section applies to leases for agricultural purposes unless and until the State Government by notification in the Official Gazette so directs.

• Illustration -
  • A sell to B, C and D a house situated in a village and leased to E at an annual rent of Rs. 30 and delivery of one fat sheep, B having provided half the purchase-money and C and D one quarter each. E, having notice of this, must pay Rs. 15 to B, Rs. 7.50 to C, and Rs. 7.50 to D, and must deliver the sheep according to the Joint direction of B, C and D.
  • In the same case, each house in the village being bound to provide ten days’ labor each year on a duke to prevent inundation. E had agreed as a term of his lease to perform this work for A. B, C and D severally require E to perform the ten days’ work due on account of the house of each. E is not bound to do more than ten days’ work in all, according to such directions as B, C and D may join in giving.