Daily Legal Writing: Actionable Claim

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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 or to any beneficial interest in movable property not in the possession, either actual or constructive, of the claimant, which the Civil Courts recognize as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.

Transfer of actionable claim—how effected.—

The Transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorized agent and shall be complete and effectual upon the execution of such instrument.

Transfer of actionable claim—effect.—

All the rights and remedies of the transferor, whether by way of damages or -otherwise shall vest in the transferee, whether such notice of the transfer referred to in Section 131 sub-section (1) be given or not. Provided that every dealing with the debtor other actionable claim by the debtor or other person from or against whom the transferor would, but for such instrument of transfer, have been entitled to recover or enforce such debt or other actionable claim, shall, (save where the debtor or other person is a party to the transfer, or has received express notice thereof), be valid as against such transfer.

Right of transferee of actionable claim.—

The transferee of an actionable claim may upon the execution of the instrument of transfer as aforesaid, sue or institute proceedings for the same in his own name, without obtaining the consent of the transferor to such suit or proceeding and without making him a party thereto.

Nothing in Section 130 of the Transfer of Property Act is applicable, to the transfer of marine or fire policy of insurance or affects the provisions of Sect n 38 of the Insurance Act, 1938 (vide exception to Section 130 of the transfer of Property Act).