Anju HarbanshStudent, Fourth Year, Hidayatullah National Law University, Raipur, Chhattisgarh INTRODUCTIONThe term actionable claim is that every kind of claim in a movable property which would be enforced through the courts. But such a wide meaning created confusion. For example, under this meaning all debts whether secured or unsecured were actionable claims whereas a debt secured by mortgage of immovable property is, strictly speaking, an ‘interest in land’. Similarly, under this meaning any claim of money whether the amount was fixed amount or uncertain, was an actionable claim. Because of such confusions there used to be conflicting decisions and the law was neither clear nor uniform. Actionable claim is a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in possession either actual or constructive, of the claimant, which the civil courts recognize as affording grounds of relief whether such debt or beneficial interest be existent, accruing or conditional or contingent. ACTIONABLE CLAIM As Per Section 3 of the Transfer of Property Act, 1882 Actionable Claim1 is a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in possession either actual or constructive, of the claimant, which the civil courts recognize2 as affording grounds of relief whether such debt or beneficial interest be existent, accruing or conditional or contingent”. “A person is said to have notice”3 of a fact when he actually knows that fact, or when, but for willful abstention from an enquiry or search which he ought to have made, or gross negligence, he would have known it. Explanation I: Where any transaction relating to immovable property is required by law to be and has been effected by a registered instrument, any person acquiring such property or any part of, or share or interest in, such property shall be deemed to have notice of such instrument as from the date of INTERNATIONAL JOURNAL OF BUSINESS POLICY AND ECONOMICS Vol. 4, No. 2, (2011): 409-415 410 Anju Harbansh registration or, where the property is not all situated in one sub-district, or where the registered instrument has been registered under sub-section (2) of section 30 of the Indian Registration Act, 1908 (16 of 1908), from the earliest date on which any memorandum of such registered instrument has been filed by any Sub-Registrar within whose sub-district any part of the property which is being acquired, or of the property wherein a share or interest is being acquired, is situated: PROVIDED that-(1) The instrument has been registered and its registration completed in the manner prescribed by the Indian Registration Act, 1908 (16 of 1908), and the rules made there under,(2) The instrument of memorandum has been duly entered or filed, as the case may be, in books kept under section 51 of that Act, and(3) The particulars regarding the transaction to which the instrument relates have been correctly entered in the indexes kept under section 554 of that Act. Explanation II: Any person acquiring any immovable property or any share or interest in any such property shall be deemed to have notice of the title, if any, of any person who is for the time being in actual possession thereof. Explanation III: A person shall be deemed to have had notice of any fact if his agent acquires notice thereof whilst acting on his behalf in the course of business to which that fact is material: PROVIDED that, if the agent fraudulently conceals the fact, the principal shall not be charged with notice thereof as against any person who was a party to or otherwise cognizant of the fraud. Actionable claim means a claim to any debt other than a debt secured under a mortgage or hypothecation or pledge on any immovable or moveable property, possession of which is given to person or institution which gave the loan. An Actionable Claim is a plain unsecured debt which can be claimed by a person against another person and which can be enforced in civil courts according to law. Right to benefit of a contract falls within the definition of Actionable Claim. An Actionable Claim is transferable and inheritable and it is deemed to be a property in the hands of the person who has the claim. Actionable claim,6 a claim to a debt, whether existent, accruing, contingent or conditional (the latter two types being future debt), are capable of being transferred in present. It is recommended that this position be clarified by virtue of an amendment to the Transfer of Property Act. Simply stated7, an actionable claim means a claim to any unsecured debt or a claim to any beneficial interest in movable property, not in the possession of the claimant. The debt or beneficial interest may exist, accruing, conditional or contingent. For example, A borrows Rs. 5000/- from B at 12% per annum interest on 1st April, 2006 and promises to pay back the amount with interest on 1st July, 2006. Till 1st July, 2006, the debt is an accruing debt and is an actionable claim. Actionable Claim 411 It may be noted that a person can have a actionable claim, even without consideration. Further such person’s claim will not be affected by claim of a subsequent transferee with consideration. CONDITIONS OF ACTIONABLE CLAIMTwo conditions of actionable claim is that— (1)Unsecured Money Debt: A debt is an obligation8 to pay a liquidated or definite sum of money. Such debt may me: (1) existent, (2) conditional, (3) contingent. If it is now due and owing it is existent. If it is a present debt but payable in the future it is accruing. A debt which will be due only if a condition be fulfilled or if a certain specified thing happens is a conditional debt9. Contingent debts are debt which are payable on a certain contingency, e.g., an