Thursday, July 2, 2015

These are India's top 20 residential locations




Owning a house in a swanky, upscale neighbourhood is the dream of every individual. A property in one of the country's prime locations is likely to cost a fortune, but a sought-after address is the surest sign of success and famedom. Property consultant JLL India has come out with a list of India's "top 20" residential neighbourhoods.

Here's the list of 20 coveted neighbourhoods as listed out by JLL:

1. Palm Beach Road, Navi Mumbai: 
JLL says this is the only area in Navi Mumbai where high-rises offer a sea view. Current property prices here range between Rs.14,000 per square foot and 18,500 per square foot.

2. Worli, Mumbai:
The upmarket neighbourhood now holds premium positioning with steadily appreciating property prices. (Estimated prices Rs.35,000 - Rs.60,000 per square foot)

3. Bandra, Mumbai:
Bandra has a high level of shopping, education, healthcare and recreation facilities, which makes it a preferred destination for prime property seekers. Estimated luxury home prices - Rs.30,000/sq. ft. - 55,000/square foot depending on the exact location and type of project)

4. Lower Parel, Mumbai:
Lower Parel is contributing most to Mumbai's changing skyline and good connectivity with other parts of Mumbai and improved infrastructure add value to one's investment here. (Estimated prices - Rs.25,000 - 40,000 per square foot)

5. Vashi, Navi Mumbai:
Well connected with the key business districts of the city, Mumbai and Pune, Vashi ranks high on social and civic infrastructure. (Estimated prices - Rs.11,000 per square foot - Rs 17,000 per square foot)

6. Lutyens' Delhi:
Lutyens' Delhi - which includes Aurangzeb Road, Mansingh Road, Prithviraj Road and Shahjahan Road, and neighbouring areas - has long been among the most preferred locations for the country's rich and powerful. Owning a house here means announcing to the world that one has arrived in India's power circle. (Estimated prices - Not given)

7. Greater Kailash, Delhi:
The upmarket residential neighbourhood in South Delhi is home to some of the most affluent families in Delhi. (Estimated prices - Rs.17,000-Rs 22,000/square foot)

8. DLF City Phase-5, Gurgaon:
DLF City Phase-5 offers close proximity to the domestic and international airports and good social infrastructure, rapidly developing physical infrastructure, making it a highly desirable property destination. (Estimated prices- Not given)

9. Golf Course Road, Gurgaon:
The area around Golf Course Road offers a mix of residential and commercial establishments. (Estimated prices of residential condos - Rs.13,000-Rs 19,000/square foot)

10. Boat Club Road, Chennai:
A calm locality situated away from the city, Boat Club Road homes carry an exclusive affluence tag. (Estimated price Rs.27,000/square foot)

11. Poes Garden, Chennai:
Home to many top notch business tycoons and politicians, Poes Garden is surrounded by lush green trees and considered to be one of the cleanest patches of the city. The area also has actor Rajinikanth's residence to its credit. (Estimated price range - Rs.33,000-35,000/square foot)

12. Sadashivanagar, Bengaluru:
This is one of the traditional luxury destinations in Bengalure. Estimated prices for under construction property here are around Rs 30,000/square foot - the highest residential presales capital value recorded in the city's history.

13. Indiranagar, Bengaluru:
Indiranagar is well-connected with other parts of the city via Namma Metro, Purple Line and the BMTC bus line. (Estimated prices - Rs.12,000-18,000/square foot)

14. Koregaon Park, Pune:
The upmarket area offers top notch high-end luxurious apartments and bungalows. (Estimated residential property prices - Rs.13000-Rs 16000/square foot, depending on exact location and building type)

15. Kalyani Nagar, Pune:
Kalyani Nagar benefits from proximity to the airport and the railway station, making it an ideal destination for IT/ITeS companies. (Estimated residential property prices - Rs.9000-13000/square foot)

16. Boat Club Road, Pune:
Situated along the Mutha River, Boat Club Road offers close proximity to the airport, railway station and the city's primary business districts such as Dhole Patil Road and Bund Garden Road. (Average prices - Rs.13,500 - Rs.15,500/square foot)

17. Banjara Hills, Hyderabad:
The profile of buyers here is largely skewed towards the senior management of corporates, software professionals, doctors, advocates, chartered accountants and businessmen. (Estimated prices - Rs.7,500-14,000/square foot)

18. Jubilee Hills, Hyderabad:
Home to business tycoons, industrialists, film personalities and other high net worth individuals, Jubilee Hills is one of the most expensive commercial and residential locations in India. (Estimated prime land prices around Rs.200,000/square yard)

19. Alipore, Kolkata:
Many reputed business families such as the Singhanias, the Jalans, the Goenkas and the Mittals share this pin code. (Estimated prices - Rs.15,000-Rs 22,000/square feet)

20. Ballygunge, Kolkata:
Convenience, quality lifestyle and connectivity are the main factors that make Ballygunge one of the best living areas in the southern Kolkata. (Estimated prices - Rs.10,000-Rs 12,500/square foot).

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Wednesday, July 1, 2015

Real estate developers turning to housing for senior citizens



NEW DELHI | KOLKATA | MUMBAI | BENGALURU: Real estate developers in the country are increasingly turning to a mostly untapped segment where demand is on the rise - senior homes - even as there's a slowdown in the overall housing market.

Builders such as Tata Housing,  Paranjape Schemes, Adani Realty, Silverglades and Brigade have started setting up specially designed homes targeted at well-to-do seniors who have enough money and might want to live independently after retirement. And, unlike old-age homes of the past, most these senior home projects are part of larger projects and townships. 

"Today, builders realise that this could be a differentiating factor in their projects and could attract an entirely new market, which has been untapped so far," said Arun Gupta, chief executive officer at Age Ventures India, a private, non-profit trust that works with builders to design and manage senior homes. The growth opportunity is big - in 2012, India had 100 million senior citizens and the number is expected to double by 2030. 

"India currently contributes less than 1 per cent of the global senior living industry," said Manish Kumar, managing director for strategic consulting at property consultancy JLL India, highlighting the huge demand and supply gap of the sector - and its growth potential. According to JLL India, there are around 30-35 senior living projects in the country. So, what are the facilities senior home projects offer? 

Usually, one or two bedroom units; most of these homes have wider doors and bigger bathrooms for wheelchair access. Other finer details builders keep in mind include positioning grab rails at strategic places and ensuring that switch points are at wheelchair height rather than at the bottom. The apartment complexes come with facilities such as physio rooms, doctor-oncall, nurses and a common dining room if someone doesn't want to cook. 

Gupta of Age Ventures said a lot of people in the 54-72 age bracket have been buying these senior homes because they want to live independently.He said Age Ventures has tie-ups with hospitals to provide medical care to seniors living in the homes it manages. 

The firm has, for example, tied up with Columbia Asia Hospital in Ahmedabad where it is working with Adani Realty for a senior home project. Similarly , it has tie-ups with Artemis in Gurgaon for a Silverglades project and NH Hospitals in Bengaluru for a Brigade project. Adani Realty is building a senior home project within its township project Shantigram in Ahmedabad. 

"Till now there were no service providers catering to this segment. Most facilities for seniors were run by charitable trusts and were mostly for the lower income category ," says Dipesh Roy, vice president, marketing, at Adani Realty .

Paranjape Schemes has so far developed six such projects - five in Pune and one in Bengaluru - under its brand specifically for senior living, Athashri. Company chairman Shrikant Paranjape said it will start three more projects in the country this financial year and is also reviewing three projects in San Jose, USA, to finalise one to target senior Indians living there.

Om Ahuja, CEO, residential, at Bengaluru-based Brigade Group, said many friends are coming in groups to buy assisted living homes primarily keeping in mind their retirement. "People who are in their early and mid-40s are planning for future and are investing in retirement or assisted living homes as the children will eventually settle down abroad post study," he said. 

Tara Singh Vachani, CEO at Antara Senior Living, which has a project coming up in Dehradun, said, "Priority for Antara is to create vibrant residential communities." 



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Tuesday, June 30, 2015

Expats can easily find a house these days

Expats can easily find a house these days



BENGALURU: Quite a few landlords in the city are now looking only for expat tenants -higher rents and less chances of legal hassles being the major attractions. Domlur, Koramangala, Indira Nagar, Ashok Nagar, Whitefield and Sarjapur road are the hotspots of these expat-exclusive houses.

 Landlords cite "bad experiences with Indian tenants" to avoid them, and claim that expats keep their houses cleaner than Indian tenants. Rajalakshmi Gopal (name changed) gives her fully-furnished 2BHK in Domlur Layout only to expat tenants, even if they are single male or female. She says she has had native tenants previously who damaged the property , leading her to this decision.

 A majority of these landlords put a condition that the current tenant finds another expat for them before leaving, so that they get the full deposit back. In a city where foreigners often come to stay for work, education or internships, that is not too hard. However, expats rue that they often end up paying higher rent than Indians do.

 Quijano Flores, a US citizen of Filipino origin, who has been in the city for over a year, said that being an expat has cost him. "I pay 25,000 for a 2BHK in Malleswaram. It is hugely over the accepted rate in the area," he told ET.

 Students come to Bengaluru for short-term internships but have to deposit ten months' rent with the landlord. The age-old comfort of leasing property to companies has also contributed to this trend. For the expats who come to Bengaluru as employees of multinational companies, these companies allot a budget and through brokers, the expats find the houses themselves and rent it on company lease.

 "The trend has been growing for the past three years. About 15% of landlords prefer company leases since it ensures that the landlord gets the house back in good shape and on time without any legal hassles of overstay," Danish Farook, director, Silverline Realty, told ET.

 Multinational companies are willing to rent bungalows and houses in gated communities for rent ranging between 1 lakh and 4 lakh for their higher officials, says Preeti Roongta, director, Lexigent Services, which caters to the real estate needs of expats. In a city where single-men and single-women tenants are still frowned upon, expat tenants are given more freedom than the average native tenant in terms of cooking non-veg food, having guests of opposite gender and having pets.

 There is an obvious bias towards white-skinned expats. "Some landlords even give a 10% discount in rent to get westerners. And most have a hostile attitude towards the black community.  Even those from West Asia are accepted as they are relatively rich.
Expats from developed countries have an advantage -they can't be pushed around. Even those who set curfew for Indian female tenants are relaxed when it comes to expats," Feroze Abdullah, CEO of Feroze's Estates & Properties, told ET. 

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Monday, June 1, 2015

HOLDING OF PROPERTY - BY PARTNERSHIP FIRM

Holding of property - BY PARTNERSHIP FIRM

A “Partnership” is typically defined as a relationship between individuals i.e. two or more persons, who have agreed to share the profits/ losses of the business, which is carried on by all or any one of them acting for all. Such persons are called “partners” and the business concern is known as “partnership firm”.  The document containing the terms of the partnership agreement, powers of the partners and objectives of the partnership is known as a “partnership deed”.

The Indian Partnership Act, 1932 (hereinafter called the “Act”), governs the conduct of the partnership business and the minimum number of partners prescribed is two, whereas the maximum number is 10 in case of firms doing Banking business and 20 in other cases. A minor can be admitted only to the benefits of the partnership business. The partnership concern is to be registered with the Registrar of Firms and on registration a registration certificate is issued.

Section 14 of the Act defines what constitutes Partnership property. The property of the firm is nothing but the joint property of the partners held in their joint names as opposed to the properties owned by the individual partners in their personal names. Partnership property consists of property originally brought in by the individual partners as their capital contribution or may consist of property purchased by the partners jointly out of the funds belonging to the partnership concern.

Issues may arise to determine the ownership/ title of the immovable property, in cases where either the property belonging to a partner is put to firm’s use or in cases where the immovable property is jointly owned by the partners i.e. by the partnership firm and the same is converted and title to a jointly held property is conferred to an individual partner. In such cases the courts have drawn a judicious line to distinguish and differentiate between the two.

Section 22 of the Act states that in order to bind the firm and all its partners thereof, every act must be done in the name of the firm or expressly on behalf of the firm. It is desirable to make the firm duly represented by one or more of its partners as a party to any such transaction. It is also clarified that a mere description of the signatory that he/ she is a partner of a firm may not be sufficient to bind the firm. In cases where an immovable property is to be acquired or sold off by way of purchase/ sale or by way of lease or otherwise, it is essential to make all or some of the partners as parties and not just the firm in its name.

A Partnership is not a legal entity and the name of the partnership firm is only a collective expression representing all the partners constituting the firm. Thus a transfer of property can only be made by or in favour of a legal or juridical person as provided in Section 5 of the Transfer of Property Act.

A Partnership firm unlike a Company registered under the Indian Companies Act, does not have a separate legal identity, different from partner and a partnership firm cannot sell or purchase property in its name.  A partner has no implied authority to sell or buy any immovable property on behalf of the partnership.  The legal entity is the partner himself.  All partners in their individual capacity should also join as parties to the agreement to sell or to the conveyance deed and execute it in their individual capacity. When an immovable property is transferred to a firm it vests in all the partners of the firm and not in the firm, since the firm has no separate legal existence.

At certain times, a single partner represents the partnership firm, which is not a correct practice.  In such cases, the said partner should have power of attorney or authority of other partners to execute the documents. Even if a partnership is formed between an individual and a partnership firm the deed of the partnership should be signed by all the partners of the firm. Transfer of property by or in favour of a firm without the names of partners is ineffective.

However, the distribution of the assets of the firm on dissolution, where a partnership property is divided or distributed among partners or taken over by one or more partners from others, does not amount to transfer of property and needs no registration.  Such a deed attracts stamp duty under a separate category Dissolution deed and not as a conveyance deed.

If the property purchased was in the name of a partner of the firm and on his death, his share, right, interest in the property would vest in his heirs or legal representatives. In case of transfer of such property, the heirs/legal representatives of the deceased partner should also join the execution of the document.  

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Saturday, May 30, 2015

RESTRICTION ON THE USE OF IMMOVABLE PROPERTY

RESTRICTION ON THE USE OF IMMOVABLEPROPERTY

The absolute owner has absolute rights over the property. He might use the property as he likes. However these are sure compulsions, that prohibit his rights to use the perform as he likes. The restrictions are obligatory below varied levels, largely in common interest of public in massive. When any individual becomes owner of property, one among his/her necessary right is true to use and luxuriate in the property in any lawful purpose and peaceful manner. The Transfer of property Act provides sure as shooting exceptions. This is often mirrored in Sec eleven of transfer of property Act – 1882, that provides as follows:

Sec 11 Restriction offensive to interest created — “Where on a transfer of property, an interest there in is made completely in favor of any individual, however the terms of the transfer direct that such interest shall be applied or enjoyed by him during a explicit manner, he shall be entitled to receive and lose such interest as if there no such direction”.

Sec 11 directs that there is no restriction on the enjoyment of property that has been transferred completely.E.g., wherever the property has passed completely to the customer, any direction contained within the sale deed that is contrary to absolutely the enjoyment is void and not enforceable.

But, Section 11 provides for an exception. Section stipulates that if any restrictions are obligatory on a chunk of immobile property for the aim of securing the useful enjoyment of another piece of such property such directions/restrictions shall prevail over. This example arises largely just in case, wherever a little of proportion is transferred and also the portion is maintained by the owner.

The owner might place some restrictions on the employment of the property sold for the advantage of portion of land maintained by the owner. But such restrictions aren't binding on third parties who aren't a celebration to the contract.

Section 40 of the Transfer of property Act additionally deals with restrictions on the employment of the property by its owner. within the section prescribes “Where, for a lot of useful enjoyment of his own immovable property, a 3rd person has severally of any interest within the immobile property of another person, or any easement there on, right to restrain the enjoyment during a particulars manner of later property. This is often right of a 3rd person. Who isn't a celebration to the contract?

This right is offered against transferees. However such rights are enforceable against a transferee with notice or against transferees got the property inconsiderately they're not enforceable against transferee without warning or against a transferee considerately or against the property.

There are clear variations between section eleven and forty. The restrictions below section 11 are positive or affirmative. These restrictions are enforceable solely against the parties to the contract. However restrictions below forty square measure negative in nature and are enforceable by the third parties, against transferees.

Occupancy Certificate

Another necessary section that restricts the employment of property is section seventeen. In step with this section, the transferer might direct the transferee to accumulate. The financial gain arising from the property. The direction might to accumulate the financial gain either fully or partially. But such directions to accumulate the financial gain can't be permanent. Such directions are also obligatory for a amount of eighteen years from the date of transfer or for the lifetime of transferer whichever is longer. Any direction for accumulation of financial gain arising from the property transfer for an amount longer, than the periods referred are void.

For example, the granter of the property might offer for enjoyment of the property by mister. “A' till mister. “B” attains eighteen years more matured also are direct mister. “A” to accumulate the financial gain from the property till “B” attains eighteen years more matured. However transferer will direct the transferee to accumulate the financial gain arising from such property for indefinite amount for the aim of
• Payment of the debts of the transferer
• The availability of parts of youngsters
• Remoter issue of the transferer
• For the preservation or maintenance of the property transferred

Section 95 of In state Land Revenue Act provides that, agricultural land can't be used for non-agricultural purpose while not the permission of the Deputy Commissioner and Section ninety seven provides that non-agricultural land can't be used for agricultural purpose once more while not permission of the Deputy Commissioner. This is often chiefly to regulate the conversion of agricultural land and to safeguard agriculturists.

The state Land Reforms Act, below Section 109, permits sure class of establishments from the restrictive provisions of owning agricultural land. Such establishments might use agricultural land for non-agricultural purpose, however cannot sale such agricultural lands permissible uses are industrial development, academic establishments, places of worship, housing comes, and gardening, horticulture and agro based mostly industries. These are restrictions on holding of the agricultural property a relying upon the character of the employment.

The state city and country coming up with Act, 1961 Sec 14 (1) provides that “On and from the date on that a declaration of intention to arrange a top level view is printed below Sub-Section (1) of Sec – ten each land use, amendment in land use and each development within the space coated by the arrange shall adjust to the provisions of this act the define Development arrange and also the rules as finally approved by the regime below section (3) of section thirteen.  Sec fourteen (2)  provides that such amendment in land use or development as is brought up in sub-sec(1) shall be created except with the written permission of the design Authority that shall be contained during a commencement certificate granted by the design authority within the type prescribed u/s 15(1)  Sec 15(4)  says that if any individual will any work on, or makes any use of any property in dispute of Sec 14(1), the design authority might direct such person by notice in writing, to prevent any such add progress or discontinue any such use, and will when creating an inquiry take away or pull down any such work and restore the land to its original condition or because the case is also take any live to prevent such use.

Also Sec three hundred of the state Municipal firms Act, 1976 provides that the development or reconstruction of a building shall not be begun unless and till the commissioner has granted permission for the execution of the work, Sec 304 provides that the commissioner shall not allow the development of any building of public recreation or any addition to that, if such building is:Within a radius of two hundred meters from any residential establishment connected to a recognized institution like, a school or highschool or Ladies College or Public Hospital with an oversized indoor patient ward or an orphanage containing 100 or a lot of inmates. Placed in any thickly inhabited community that is either completely residential or reserved or used usually for residential as distinguished from business functions Located in any space reserved for residential functions by any housing or coming up with theme or otherwise below any enactment. The design authorities and native bodies additionally impose restrictions on construction, use of the land largely to make sure orderly constructions with natural light-weight and air and additionally to produce peaceful and correct atmosphere and atmosphere to academic establishments, hospitals.

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Friday, May 29, 2015

HOUSING NEEDS OF BANGALORE

HOUSING NEEDS OF BANGALORE

The Bangalore Development Authority and the Karnataka Housing Board are the only two government agencies dealing with the housing needs of the people of Bangalore, though, however, there are a large number of private property developers including housing cooperative societies in the field.

Ever since its formation in the year 1976, the. B.D.A. has formed 62 layouts and has allotted house sites/to about 2lakhs people. But the newly formed layouts such as Visveswaraiah Layout, Banashankari 6th stage, Anjanapura Layout, lack even the basic civic amenities such as good roads, water and sanitary facilities, public transport, schools and colleges, market centres, recreation clubs, parks, street lights even though several years have elapsed. The resultant effect is that many of the allottees of sites in these layouts have not come forward to put up construction.

When this is the plight of the allottees of the house sites in these layouts, there are a large number of people eagerly waiting for announcement of new layouts to try their luck. The population of Bangalore is estimated to be around 85lakhs and at least about 50% of them may be in need of house or house sites. Assuming that the K.H.B has allotted house and or house sites to about 1lakh people, in addition to the house sites allotted by the BOA, and further assuming that about 10% to 15% of the remainder have purchased properties from the private property developers, still there remains a large number of people who are yet to get their housing needs fulfilled.

Before initiating any steps for formation of new layouts, the B.D.A. and other connected agencies may take up on priority basis the work relating to the civic and other amenities in the already formed layouts to make them fit for human habitation so that the allotters of sites may construct their houses and move into them. Only thereupon, the 3.0.A may initiate action to develop fully fledged townships with all civic amenities and best road and rail connectivity. The present practice of simply forming layouts without providing civic amenities and making the allottees to wait for several years for these facilities may be discontinued. It is suggested that the procedure adopted in the case of private property developers permitting them to sell only 60% of the total sites in their layouts at the first stage and to sell the remaining 40% upon completion of the layout fully may be adopted in respect of the new layouts to be formed by the BDA so that the BDA may move faster.

Further, the role of the private property developers cannot be overlooked particularly for the reason that the BDA/KHB are not in a position to meet the housing needs of the people fully. It would be fair if the Government encourages the private property developers and introduce a single window clearance system for approval of layouts formed them to avoid unnecessary delay in granting approval and tossing the documents to several departments. While at the same time, stringent punishment may be inflicted on the property developers who violate building bye-laws and other statutory regulations and cheat the public.

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Thursday, May 28, 2015

POSITION OF INSOLVENTS PROPERTY

POSITION OF INSOLVENTS PROPERTY

The term “Insolvent”, in common parlance is referred as Pauper or Bankrupt. An insolvent is not considered a legal person for the purpose of enforcement of any obligation committed by him either during the pendency of insolvency proceedings or after he is adjudged as insolvent.

Adjudication of an Insolvent
In India, jurisdiction of the courts to adjudicate a person as an insolvent has been conferred by two Acts, namely, the Presidency towns Insolvency Act, 1909, which is applicable in the Presidency towns in India and the Provincial Insolvency Act, 1920, applicable in the muffusil areas.

Purchase of Apartment

To adjudicate a person as an Insolvent, such a person has to be a “Debtor” and should have committed an act of insolvency. A debtor, under these Acts, includes only those who are subjected to Indian laws, either by birth or by domicile including a  temporary residence. Thus, a foreigner cannot be adjudged insolvent by a court in India unless the alleged act of insolvency was committed or suffered by that person during his personal residence in India.

Minor cannot be adjudged insolvent
Under Indian Laws, as a minor is not competent to enter into a contract he cannot be adjudged Insolvent even on his own petition.  In the case of a minor being a partner in a firm consisting of adult and minor partners and if adjudication order is sought against the firm, the same shall be binding on the firm/partners except the minor.

Property of an insolvent
The expression “Property of an Insolvent”, has been defined as only the property of the insolvent which is divisible amongst the creditors and not otherwise. It includes any property over which or over the profits of which any person has the  power of alienation which can be exercised for his own  benefit.

The word 'property' includes the right in the property or things of a person. However, to constitute the property, an insolvent should have an interest in praesenti to dispose of the same and not such an interest which may depend upon the fulfillment of certain conditions or contingencies.

Appointment of Official Assignee or Receiver
Under section 17 of the Presidency Town Insolvency Act or section 28(2) of Provincial Insolvency Act, 1920, after the order of adjudication, the property of an insolvent vests in the Official Assignee and becomes divisible amongst the creditors, irrespective of its situation.  However, when an order of adjudication has been passed under the Presidency Town Insolvency Act, 1909, any order of adjudication passed against the same insolvent by the District Court of another place, at a later date under Provincial Insolvency Act will not operate since the said property is already vested in the Official Assignee under the Presidency Town Insolvency Act.

Movable and Immovable property
The order of adjudication operates as a statutory transfer to the Official Assignee of all the property of the insolvent person in India, whether movable or immovable.  Similarly, the movable property of an insolvent situated in foreign country shall vest with the Official Assignee or Receiver.  But, the immovable property of an insolvent situated in a foreign country, shall be governed by the law of the country within whose jurisdiction such property is situated.

Divisible and indivisible Properties
The property which is divisible amongst the creditors of the insolvent can only vest with the Official Assignee or the Receiver, which may be:
  1. Property belonging to an insolvent at the time of commencement of insolvency proceedings.
  2. Property which may be acquired by or devolve on the insolvent after the order of adjudication and before his discharge.
  3. Goods in possession, or disposition of the insolvent.

The properties which are not divisible amongst the creditors of the insolvent falls into two classes
a)   Property held by the insolvent in trust for any other person and
b)   Tools of trade, apparel and other similar property.

Vesting of property in the Official Receiver or Assignee
Immediately upon an order of adjudication by the Court, the property of the insolvent wherever situated vests in the official assignee/receiver. Till an Official Receiver is appointed by the Court, all the rights and powers exercisable by the Receiver can be exercised by the Court itself.

Intervention of Official Assignee is must
The right and interest of an insolvent over the property do not automatically get transferred in favour of the Official Receiver upon passing of an adjudication order by the court unless the Official Assignee intervenes on behalf of the insolvent. Where the official assignee does not intervene and the insolvent transfers the said property to another person who takes it in good faith and for value, the transferee acquires a good title to the property.

Powers of the Official Receiver or Assignee
With the order of adjudication, the property of the insolvent vests in the Official Assignee or the receiver and it is the duty of the assignee to realize such properties of the insolvent expeditiously and to distribute dividends to the creditors entitled thereto. However, before exercising the power of realization of properties of an insolvent, abundant caution has to be exercised by the assignee to avoid unnecessary litigations.

Under the aforesaid Acts, certain powers have been vested with the assignee:
Power to sell: The Receiver is empowered to sell the insolvent's property without the consent of the Court. But the aforesaid Acts do not empower the receiver or the official assignee to sell anything more than the property of the insolvent which vests in him by reason of the adjudication.

Power in case of mortgaged property: Where a Receiver is appointed by consent of the parties after passing of a decree in a mortgage suit for sale of such mortgaged property and it is agreed that the receiver shall recover the rents of the property for a period of one year to hand over the same to the mortgagee, the mortgagee's right to receive the rents will not be affected by insolvency of the mortgagor at any time during this period and neither the official assignee nor other decree-holders will be entitled to a rate able distribution of such rents.

Bonafide Sale
Section 53 of the Provincial Insolvency Act provides that a transfer of property not being a transfer in favour of a purchaser in good faith and for valuable consideration shall, if the transferor is adjudged insolvent within two years after the date of transfer, be voidable as against the Receiver. Further, where the debtor transfers all or substantially all the properties in consideration of the past debts, such a transfer constitutes an act of insolvency since it has the effect of withdrawing all the property from the legal process, which his creditors have a right to enforce against the insolvent. 

Thus, an order of adjudication of insolvency will deprive the insolvent from dealing with his properties which shall be dealt with by the Official Assignee or Receiver when once such a person is appointed by the Court.

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