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“actionable claim” shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882;
One may refer to section 130 of Transfer of Property Act, 1882 regarding the manner of ‘transferring’ actionable claims. Transfer of actionable claim can be with consideration or without consideration per the Transfer of Property Act, 1882.
Actionable claim represents a debt and the holder of the actionable claim enjoys the right to demand “action” against any person. Acknowledgement of liability by a creditor to honor a claim, when made, does not constitute actionable claim in the hands of such creditor.
The following aspects need to be noted:
• Assignment of actionable claim without permanently supplanting the holder of the claim would not be supply.
• Under the GST regime, actionable claim relating to lottery, betting and gambling alone will be regarded as ‘goods’ since the definition of goods includes actionable claim.
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