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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]
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