Write a short note on Actionable Claims.

Question: Write a short note on Actionable Claims.[MPJS 2006]

Find the answer to the mains question of Property Law only on Legal Bites.  [Write a short note on Actionable Claims.]

Answer

Actionable claim means a debt or a claim on which action can be started in a Court of law for comfort or relief. The civil Courts recognized as giving the grounds for relief whether such claims are conditional, accruing or other. The actionable claim is defined under section 3 of the Transfer of Property Act, 1882. In general terms, an actionable claim is a debt or claim for which the person can take action and also approach the Court for recovery of his debt or claim.

According to section 3 of the Transfer of Property Act, the actionable claim is a claim to any debt which is not secured by a mortgage, pledge, and hypothecation. The mortgage of immovable property does not come under Section 3 of the Transfer of Property Act and the pledge or hypothecation of movable property is not an actionable claim. An actionable claim is transferable under the Transfer of Property Act.

Certain features and traits must be present for a claim to be actionable. These consist of the:- 

Existence of a Debt or Obligation: When there is a debt or obligation due by one party to another, a claim becomes actionable. This can apply to debts, unpaid invoices, contracts, and other claims of a similar nature.

Legal Action Required: The assertion must be capable of being upheld in court. To recover the debt or acquire the movable property, the party with the actionable claim has the right to file a lawsuit.

Transferability: Claims that are actionable can be passed from one party to another. The Transfer of Property Act offers methods for transferring these claims, such as endorsement, negotiation, and assignment.