Actionable Claims [Sections 130 — 137]

A small printing press in Dadar is owed ₹5 lakh by a publisher who has not paid for six months. The owner needs cash now, so he sells the right to collect that money to a finance company at a discount. Does the finance company need the publisher’s permission? Can it sue in its own name? What if the publisher, not knowing of the sale, pays the printer anyway? Sections 130 to 137 deal with the transfer of exactly this kind of right, called an actionable claim.

In two minutes

An actionable claim is a claim to an unsecured debt, or to a beneficial interest in moveable property not in the claimant’s possession, that civil courts recognise; it is transferred only by a signed written instrument, is complete on execution, and the transferee can sue in his own name, but takes it subject to the liabilities and equities attaching to it.

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