Correct option is A
Section 137 of the Transfer of Property Act, 1882 deals with the exclusion of certain instruments from the application of Chapter VIII of the Act, which relates to the transfer of actionable claims. Section 137 specifically excludes instruments such as stocks, shares, and debentures from the application of the chapter. This means that the rules regarding the transfer of actionable claims do not apply to these financial instruments.
Information Booster:
·
Stocks, Shares, and Debentures: These financial instruments are considered movable property and are governed by separate legislation, such as the Companies Act, rather than the Transfer of Property Act. The exclusion under Section 137 ensures that the transfer of these financial instruments is regulated by the appropriate laws and not by the provisions related to the transfer of actionable claims under the Transfer of Property Act.
Additional Knowledge:
1.
Actionable Claims: Under the Transfer of Property Act, an actionable claim refers to a claim to any debt or other monetary benefit that can be recovered by a suit or legal action. Chapter VIII of the Act deals with the transfer of such claims.
2.
Exclusion under Section 137: By excluding stocks, shares, and debentures from the application of Chapter VIII, Section 137 ensures that these instruments are not treated as actionable claims. Instead, their transfer is subject to other specific laws and regulations.
3.
Relevance of Exclusion: The exclusion helps maintain the integrity and applicability of the laws governing financial instruments. For example, the transfer of shares is typically governed by the Companies Act and related rules, which have specific provisions for the registration, transfer, and ownership of shares.
4.
Financial Instruments:
·
Stocks and Shares: Represent ownership in a company and provide the shareholder with a claim on part of the company's assets and earnings.
·
Debentures: Are a type of debt instrument that companies issue to borrow money. Holders of debentures are creditors of the company and do not have ownership rights.
