Sections 27-30 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Many family transfers say "to A, but if that fails, to B". The second gift is called an ulterior disposition. Sections 27 to 30 of the Transfer of Property Act, 1882 say when it takes effect, how strictly a condition on it must be met, and what happens to the first gift if the second is invalid. This article reads them as per the text of the Act consulted, with the Act's own illustrations retold.
Section 27: if a prior disposition fails, the ulterior disposition takes effect on that failure, even if the failure did not occur in the manner the transferor contemplated, unless the intention was that it should take effect only if the prior disposition failed in a particular manner. Section 28: an interest may be created to pass to another if a specified uncertain event happens or does not happen, subject to sections 10, 12, 21, 22, 23, 24, 25 and 27. Section 29: such an ulterior disposition cannot take effect unless the condition is strictly fulfilled. Section 30: if the ulterior disposition is not valid, the prior disposition is not affected.
Section 27: the second gift takes over when the first fails
Section 27 deals with a transaction in which an interest is created in favour of one person and, by the same transaction, an ulterior disposition of the same interest is made in favour of another. If the prior disposition fails, the ulterior disposition takes effect, "although the failure may not have occurred in the manner contemplated by the transferor."
The second paragraph adds the limit: "where the intention of the parties to the transaction is that the ulterior disposition shall take effect only in the event of the prior disposition failing in a particular manner, the ulterior disposition shall not take effect unless the prior disposition fails in that manner."
So the default is wide: any failure of the first gift lets the second gift operate. The exception is narrow: only where the intention is to limit the second gift to one kind of failure.
The Act's illustrations, retold
- (a) A transfers Rs. 500 to B on condition that B shall execute a certain lease within three months after A's death, and if B neglects to do so, to C. B dies in A's lifetime. The disposition in favour of C takes effect. B's death was not the failure A had in mind, but the prior disposition failed all the same.
- (b) A transfers property to his wife, but, if she should die in his lifetime, transfers to B what he had transferred to her. A and his wife perish together, in circumstances which make it impossible to prove that she died before him. The disposition in favour of B does not take effect. The intended manner of failure was her dying first, and that cannot be shown.
Present-day example. Arvind Menon gives a house to his friend Sachin, "and if Sachin does not occupy it within a year, to Tanya". Sachin dies in the first month. Sachin's gift failed in a different way from non-occupation, but section 27 says Tanya's gift takes effect unless Arvind meant it only for the case of non-occupation. A document that makes the intention clear avoids argument; agreement drafting support before signing is a sensible step.
Section 28: ulterior transfer on a specified event
Section 28 says: on a transfer of property an interest may be created to accrue to any person with the condition superadded that, in case a specified uncertain event shall happen such interest shall pass to another person, or that in case a specified uncertain event shall not happen such interest shall pass to another person. In each case the dispositions are subject to the rules contained in sections 10, 12, 21, 22, 23, 24, 25 and 27.
This section is the enabling provision. It says what the transferor may do, and it points to the earlier rules that limit it. Our articles on sections 10 to 12, section 21, sections 22 to 24 and sections 25 and 26 cover those limits.
Section 29: strict fulfilment
Section 29 reads: "An ulterior disposition of the kind contemplated by the last preceding section cannot, take effect unless the condition is strictly fulfilled."
Compare section 26, where a condition precedent is deemed fulfilled if substantially complied with. Section 29 is stricter: for an ulterior disposition on a condition, the standard is strict fulfilment.
| Section | Kind of condition | Standard |
|---|---|---|
| 26 | Condition to be fulfilled before a person takes an interest | Substantial compliance is enough |
| 29 | Condition on which an ulterior disposition depends | The condition must be strictly fulfilled |
The Act's illustration, retold
A transfers Rs. 500 to B, to be paid to him on his attaining his majority or marrying, with a proviso that if B dies as a minor or marries without C's consent, the Rs. 500 shall go to D. B marries when only 17 years of age, without C's consent. The transfer to D takes effect. The event named in the proviso, marriage without C's consent, happened exactly, so the condition was strictly fulfilled.
Present-day example. Kiran Patel transfers a flat to his daughter Ishita, with a proviso that if she sells it within five years, it passes to her cousin Dev. Ishita lets the flat on rent for those five years but does not sell. The event "sells within five years" did not happen. Section 29 says the ulterior disposition cannot take effect unless the condition is strictly fulfilled, so Dev does not take.
Section 30: invalid second gift, first gift stands
Section 30 reads: "If the ulterior disposition is not valid, the prior disposition is not affected by it."
The Act's illustration, retold
A transfers a farm to B for her life, and, if she does not desert her husband, to C. B is entitled to the farm during her life as if no condition had been inserted. The ulterior disposition depended on a condition that is not valid (compare section 25), so it fails, and B's prior life interest stands without it.
Present-day example. Lalita Naidu gives a shop to her son Mohan for life and then to Naveen if Naveen commits a fraud on a creditor. The second gift is on a fraudulent condition and fails under section 25. Mohan keeps his life interest as if the condition had not been written.
A short drafting checklist
- Say how the first gift may fail. If the second gift is meant for one kind of failure only, say so, because section 27 otherwise treats any failure as enough.
- Make the condition exact. Section 29 asks for strict fulfilment.
- Check the second gift against the earlier sections. Section 28 makes it subject to sections 10, 12, 21 to 25 and 27.
- Do not make the first gift depend on the second. Section 30 protects the first gift if the second is invalid.
- Use clear dates and names, so it is easy to prove whether the event happened.
The next group of sections, on conditions that end an interest, is covered in our article on sections 31 to 34.
Need help drafting a gift with a back-up beneficiary?
Back-up gifts are only as good as the words that create them. If you are preparing a deed that gives property to one person with an alternative to another, we can help through agreement drafting.
Key takeaways
- Section 27: the ulterior disposition takes effect on failure of the prior disposition, even if the failure is not in the manner contemplated, unless the intention was to limit it to a particular manner.
- Section 28 allows an interest to pass to another on a specified event happening or not happening, subject to sections 10, 12, 21 to 25 and 27.
- Section 29: the condition on an ulterior disposition must be strictly fulfilled.
- Section 30: if the ulterior disposition is not valid, the prior disposition is not affected.
- Strict fulfilment (section 29) is a higher standard than the substantial compliance of section 26.
- Later amendments and State changes should be checked.
Read next
- Sections 25 and 26: conditional transfer and fulfilment of condition precedent
- Sections 31 to 34: conditions that end an interest and time for performance
- Sections 22 to 24: transfers to a class on uncertain events and to survivors
- Introduction to the Transfer of Property Act, 1882
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.