Section 16 of TPA : Section 16: Transfer To Take Effect On Failure Of Prior Interest

Explanation using Example

Imagine a scenario where Mr. Sharma, in his will, leaves his house to his son, Arjun, but only if Arjun graduates from college by the age of 25. This is a conditional transfer under the rules in sections 13 and 14 of the Transfer of Property Act. If Arjun doesn't graduate by 25, the interest in the house fails. Mr. Sharma also stipulates in the same transaction that if Arjun doesn't meet the condition, then the house should go to his niece, Priya. According to Section 16, since Arjun's interest in the house failed because he did not graduate by 25, the subsequent interest that was to go to Priya also fails. Therefore, the house cannot be transferred to Priya based on this condition and might instead be subjected to the rules of intestate succession or other provisions in Mr. Sharma's will, if any.