Meaning and examples of actionable claims

  Mr Dodiya,

  I feel the 'term actionable claims' means where some action such as recovery by auction,refunds etc can be  can be initiated to realise the claim. When no action can be initiated like no addressee found etc it becomes unactonable  or a non-performance claim......MJK

Hello,

As per Section 3 of the Transfer of Property Act, 1882

Actionable Claim is a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in possession either actual or constructive, of the claimant, which the civil courts recognise as affording grounds of relief whether such debt or beneficial interest be existent, accruing or conditional or contingent.

Example of Actionable Claim

The benefit of a contract giving an option to purchase the land.

Claim for arrears of rent.

Claim for rent to fall due in future.

An option to repurchase the properties sold.

earnest money becoming repayable

dividend due on shares

amount due under a policy of life insurance

fixed deposit receipts

As defined in Section 65B(25) of the Finance Act 1994:- "Goods" means- every kind of moveable property other than actionable and money- Since FDR is an an actionable claim therefore outside the ambit of goods.

can we say, prize money receivable from TV shows like KBC as actionable claims???

Actionable claim is with in the definition of "goods"

But the same is not a supply, since, it is included in Schedule III 

FDR is money. Does not get covered under actionable claim.

Yes sir..................................

• Actionable claims is a
• right to claim a benefit or debt
• which is conditional or contingent upon happening of some event or action.

For eg -

1) A lottery ticket bought is an actionable claim for the buyer as realisation of benefit is dependent upon the draw.

2) Similarly, scratch card is an actionable claim as the benefit is certain only after scratching the surface of the card.

3) Sodexo cards or coupons cannot be classified as 'actionable claim' as the benefit is already in the knowledge of holder.

but “Goods’’ means every kind of movable property other than money and securities but includes actionable claims ,growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

Section 2(52) of CGST Act