Vested interest is a present right or title to realty, but with possession delayed to some uncertain time in the future. It is a fixed interest in tangible or intangible property, although the right of possession, use and enjoyment may be postponed until some future date or until the happening of some specified event. It refers to a legal claim or right to the present or future enjoyment of some property or activity. In brief, it refers to a legal claim or right to the present or future enjoyment of some property or activity.
Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to take effect, or in terms specifying that it is to take effect forthwith or on the happening of an event which must happen, such interest is vested, unless a contrary intention appears from the terms of the transfer.
A vested interest is not defeated by the death of the transferee before he obtains possession.
Explanation.—An intention that an interest shall not be vested, is not to be inferred merely from a provision whereby the enjoyment thereof is postponed, or whereby a prior interest in the same property is given or reserved to some other person, or whereby income arising from the property is directed to be accumulated until the time of enjoyment arrives, or from a provision that if a particular event shall happen the interest shall pass to another person. ….. [S.19 of the Transfer of Property Act, 1882]
An interest is said to be vested when it is not subject to any condition precedent. A person takes a vested interest in property when he acquires the pro¬prietary right in it, but the right of enjoyment is de¬ferred till a future event happens which is certain to happen. An interest may be a vested one, though its enjoyment may be postponed. ….. [Jalil Ahmed vs. Province of East Pakistan (1967) 19 DLR 106]