Query Serial No. 2          Querist:  Nitin Agarwal            City:  Muzaffar Nagar

       Here I am talking about goods which are movables. But the views expressed hereunder equally apply to immovables. In relation to certain goods, a person may- (i) not have any rights; (ii) have all possible rights; (iii) have only few rights. These rights include right to possess, right to use, right to gift, right to pledge, right to destroy, etc. These all possible rights collectively are called property in goods. Thus property is called bundle of all possible rights which can exist in relation to any goods. A person who, exclusively possesses all possible rights in any goods, is called owner of such goods. When a person, having all rights in respect of any goods, transfers all such rights to any other person, the activity is called transfer of property (bundle of all possible rights) in goods. Such transfer may or may not be for any gain. Where a person gifts or donates any goods to any other person, he transfers property in such goods free of cost. In case of barter or exchange, two persons exchange ownership in goods without valuable consideration. But where a person transfers all possible properties in any goods to any other person for valuable consideration, such transfer is called a sale. Here term valuable consideration is used in terms of monetary consideration. Such monetary consideration may be in terms of cash, deferred payment or other valuable consideration. If activity, of transfer of all rights in certain movables or immovable by one person to any other person for cash, deferred payment or other valuable consideration, can be thought an event or happening, then such event or happening of transfer of all rights, is sale of such movables or immovable. Exception: For the purpose of levy of tax on sale or purchase of goods, in the Constitution of India in Clause (29A) of Article 366, as a special case, transfer of single right viz. transfer of right to use any goods has been defined a sale and purchase of goods. But this provision is for only specific purpose of levy of tax on sale or purchase of goods. This provision cannot be used or generalized for other purposes. We know that tenant does not become owner of house in which he is residing simply because, in respect of such house, he simply possesses only one right that is right to use for residential purposes. Where a person does not possess all rights (including a person who does not possess any right) in relation to certain movable or immovable, it is not his or her property. He or she cannot be addressed as owner of such movable or immovable. Of all possible rights, right to substance, which is the right to destroy, is the supreme right. I would we happy if somebody adds to this reply about legal rights and exercise of such rights.