Assignatus utitur jure auctoris - an assignee is clothed with the rights of the assignor.
Assignatus Utitur Jure Auctoris: Meaning and Explanation
Meaning:
The Latin phrase “Assignatus utitur jure auctoris” means “An assignee steps into the shoes of the assignor and can only use the rights that the assignor had.” In other words, when a person (the assignor) transfers his rights under a contract or property to another person (the assignee), the assignee can only exercise the rights that were originally vested in the assignor. The assignee cannot claim any greater rights than those held by the assignor at the time of assignment.
Legal Principle:
The assignee acquires only such rights as were possessed by the assignor.
If the assignor had any defects or limitations in his rights, the assignee takes the same with those defects.
The assignee cannot claim any rights that the assignor did not have or that could not be assigned.
This principle ensures that the assignee is bound by all defenses available against the assignor.
Illustrative Example:
Suppose A has a contractual right to receive payment from B. A assigns his right to C. If A’s right against B was subject to some defense or limitation, C also faces the same defense when he enforces the right against B.
Case Law Illustrations
1. Union of India v. Popatlal J. Khimji (AIR 1962 SC 413)
The Supreme Court held that the assignee acquires only such rights as the assignor possessed.
If the assignor had no right to sue (for example, if the right was barred by limitation or defect), the assignee cannot sue either.
The assignee cannot step beyond the shoes of the assignor.
2. Chinnaya v. Ramayya (AIR 1922 PC 44)
This Privy Council case discussed assignment of rent and rights.
It was held that the assignee can only sue in his own name if the assignor’s title is valid and the assignor had the right to receive rent.
The rights that pass to the assignee are strictly those possessed by the assignor.
3. Sundaram Finance Ltd. v. NEPC India Ltd. AIR 1999 SC 626
Although the case primarily dealt with specific performance, the principle of “assignatus utitur jure auctoris” was reaffirmed in the context of assignment of contractual rights.
The Supreme Court emphasized that an assignee cannot acquire any rights beyond what the assignor had.
4. G.N. Raju v. K.B. Appaji Gowda AIR 1968 SC 1259
The Court reiterated the rule that the assignee takes the rights as they stand, subject to all defenses available against the assignor.
This principle applies even if the assignee is a bona fide purchaser.
Important Points to Note:
Defenses Against Assignee: All defenses (except personal defenses available only against the assignor) are available against the assignee. For example, if the original contract is void or the right is extinguished, the assignee’s claim fails.
Limitations on Rights: If the right assigned is conditional, limited, or subject to an obligation, the assignee inherits those conditions.
Exceptions: Certain rights, especially those which are personal and non-assignable (e.g., rights depending on personal skill or qualification), cannot be assigned, and thus this maxim has no application.
Summary
| Aspect | Explanation |
|---|---|
| Principle | Assignee takes only the rights of the assignor |
| Rights Acquired | Same rights as assignor, no more, no less |
| Defenses Available | All defenses against assignor are valid against assignee |
| Non-Assignable Rights | Personal rights generally not assignable |
| Case Law Reference | Union of India v. Popatlal, Chinnaya v. Ramayya, G.N. Raju v. K.B. Appaji Gowda |
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