Vested and Contingent interest II Difference between Contingent and vested Interest II Sec.19 & 21 

Vested and Contingent interest II Difference between Contingent and vested Interest II Sec.19 & 21 in Transfer of Property Act
This Video covers the topic -
Vested Interest (Sec. 19)
Vested interest is defined under Section 19 of the TPA, 1882.
"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.
Characteristics of Vested interest
1. The vested interest does not depend upon an uncertain event.
2. It creates an immediate or present right, though the right to the enjoyment of property can be delayed.
Contingent Interest (Sec. 21)
Section 21 states that "Where, on a transfer of property, an interest therein is created in favour of a person to take effect only on the happening of a specified uncertain event, or if a specified uncertain event shall not happen, such person thereby acquires a contingent interest in the property. Such interest becomes a vested interest, in the former case, on the happening of the event, in the latter, when the happening of the event becomes impossible"
Characteristics of contingent interest
1. The condition should be uncertain on the meeting of such condition; the contingent interest will become Vested interest.
2. If the transferee dies before receiving interest in the property, the contingent interest will be missed and the transferor will remain the owner of the property.
3. The contingent interest can be transferred i.e. it is a transferable right. However, if the contingent interest is heritable or not depends on the contingent event and nature of the transaction.
Exception :when a person who has a chance of becoming the owner of a specific property and before the uncertain event takes place, if such a person receives any income arising from such a property, this interest in the property is not a contingent interest.
Difference between Vested & Contingent Interest
Vested Interest
Sec. 19 of TPA defines vested int.
Certain condition must take place.
The right of ownership is created in favour of transferee, as soon as the interest is vested
Transferable and heritable rights
Contingent Interest
Sec. 20 of TPA defines it.
An uncertain condition which may or may not happen
There is a mere chance of having the ownership right
Transferable right but the heritable interest depends upon nature
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Case laws discussed in video
Sunder Bibi v. Rajendra The court held that A would hold the property till his death and subsequently after his death the property would pass to B. The interest acquired by B in the said property is a vested interest. B would acquire vested interest.
Usha Subbarao v. BN Vishveswaraiah
In this case, S.C. observes that: Interest is a vested interest when there is immediate right of present enjoyment or a present right for future enjoyment. An interest is contingent one when the right of enjoyment is dependent upon some condition that may or may not happen.
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