Contingent Interest (Section 21)
Where, on a transfer of property, an interest therein is created in favour of a person to take effect only on the Happening of a Specified Uncertain Event, or if a specified uncertain event shall not happen, such person thereby acquires a Contingent Interest in the property. Such interest becomes a vested interest, in the former case, on the happening of the event, in the latter, when the Happening of the Event becomes Impossible.
Exception : Where, under a transfer of property, a person becomes entitled to an interest therein upon attaining a particular age, and the transferor also gives to him absolutely the income to arise from such interest before he reaches that age, or directs the income or so much thereof as may be necessary to be applied for his benefit, such interest is not contingent.
A Contingent Interest is one in which neither any Proprietary Interest nor a right of enjoyment is given at present, but both depend upon Future Uncertain Events.
Three Characteristics of Contingent Interest :
1. Its depend upon the Fulfillment of condition.
2. If the Transferee dies before obtaining possession, the Contingent Interest fails and the property Reverts to the Transferor.
3. It is Transferable. It is quite different from a mere chance ( space succession)
(Mayait v. Official Assignee, 57 I.A.10)