Section Meaning and Definition of Actionable Claims and complete Article on its GST Taxability

Financial Year: 2017

Section 2(1) of CGST Act

Actionable Claim

 

It has same meaning as mentioned in section 3 of Transfer of Property Act 1882.

 

As per section 3 of transfer of property Act 1882,

 

“Actionable claim”

means a claim to any debt,

 

other than

a debt secured by mortgage of immoveable property

or by hypothecation or pledge of moveable property,

or to any beneficial interest in moveable property not in the possession,

either actual or constructive, of the claimant,

which the Civil Courts recognise as affording grounds for relief,

 

whether such debt or beneficial interest be existent, accruing, conditional or contingent.
 

Conclusion:-

 

It means that Claim of secured debt is not actionable claim.

 

“Beneficial interest in moveable property” is a right or expectancy in movable property.
 

Example:-

 

Claim for Arrear of Maintenance by Society

Claim for Arrear of rent by Landlord,

Claim for Amount Due under insurance policy

 

Thanks

CA Rahul Gupta