Contingent Interest (CI)—

Section 21 deals with the contingent interest. (MPAPP-10/UKJ-2006)
Contingent means uncertain future event. In CI vesting of interest depends upon happening or non-happening of specified uncertain future event and the interest does not vest immediately in the transferee. (MPJ-2009)
Illustration: A transfers property to B and in case B dies without issue to C. Here, C has a contingent interest which may become vested only upon B dying childless.

Nature of CI—

In the following circumstances, a CI becomes VI—

On the happening of the specified uncertain event.
On non-happening of the specified uncertain event.
Exceptions: If the transferor gives to the transferee also an absolute right in the income arising out of the property, the interest of the transferee is a vested interest.

Sl	Vested Interest (VI)	Sl	Contingent Interest (CI)
1	A VI accrues immediately to the transferee on the date of transfer.	1	A CI does not vest in the transferee until the specified uncertain event happens or does not happen.
2	VI confers complete and perfect title on the transferee.	2	CI confers imperfect title.
3	VI is owned absolutely.	3	CI is owned conditionally.
4	VI is heritable.	4	CI is not heritable.
5	In VI transferee has present fixed right in property.	5	In CI the transferee has mere future possible right the property.
6	A VI may be attached or brought to sale in execution of a decree.	6	A CI can not be attached or brought to sale in execution of a decree.
7	A vested interest is not defeated by the death of the transferee before he obtains possession.	7	A contingent interest can not take effect in the event of transferee’s death before the fulfillment of the condition.

______________________________________

Prepared by team LegalMines. The copyright is with the LegalMines.