Rule against Perpetuity

1. Statutory Provision
   Section 14 of the Transfer of Property Act, 1882 provides for the Rule against Perpetuity.
2. Meaning
   The term perpetuity means an indefinite period. Thus, this rule is against the transfer which makes property inalienable for an indefinite period.
3. The rule has come into existence because the law is not in favour of tying up of property for a long period. It is therefore necessary that the interest in property should not be created beyond a certain limit.
4. As per Section 14, no transfer of property can create an interest which is to take effect after the lifetime of one or more persons living at the date of such transfer and the minority of the ultimate beneficiary.
5. Section 114 of the Indian Succession Act, 1925 also deals with the rule against perpetuity.
6. Exceptions
   The following are the exceptions to the Rule against Perpetuity:
   1. The rule does not apply to transfers made for the benefit of the public.
   2. The renewal of lease with a covenant does not affect the rule against perpetuity.
   3. It does not apply to personal agreements.
   4. It does not apply to the mortgagor’s right of redemption.
   5. It does not apply to vested interests.

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