The Supreme Court recently ruled that a transferee cannot seek protection under Section 53-A of the Transfer of Property Act, 1882 (TPA) if they fail to prove the execution of the sale agreement on which they claim possession. The Court also clarified the conditions required to invoke Section 53-A of the Transfer of Property Act 1882.
A bench of Justice J.B. Pardiwala and Justice R. Mahadevan was hearing an appeal against the Karnataka High Court’s decision, which upheld the rulings of the Trial Court and First Appellate Court. These courts had ruled in favor of the plaintiff-respondent, declaring title and granting recovery of possession.
The defendants-petitioners claimed possession of 2 Guntas of land based on a sale agreement allegedly executed by the plaintiff-respondent. They invoked Section 53-A of the TPA, arguing that they were prospective transferees who had partially performed their contractual obligations. The petitioners contended that the plaintiff had executed a sale agreement on 25.11.1968, granting them possession and enjoyment of the property, and that Section 53-A barred the plaintiff from enforcing the contract against them.
However, the Trial Court found in favor of the plaintiff-respondent, and this decision was upheld by the First Appellate Court and the High Court. The High Court noted that the defendants had failed to prove the existence of the sale agreement and their possession under it, making them ineligible for protection under Section 53-A.
Section 53-A of the TPA is a safeguard for transferees who hold possession of property under an unregistered sale agreement. It prevents the transferor from enforcing the contract if the transferee has fulfilled or is willing to fulfill their part of the agreement. The Court emphasized that this provision was introduced to protect transferees who rely on unregistered agreements and make investments based on them.
The Court outlined the conditions for invoking Section 53-A:
- A written and signed contract for transferring immovable property that specifies the terms of the transfer.
- The transferee must have taken or retained possession of the property in part-performance of the contract.
- The transferee must have performed or be willing to perform their contractual obligations.
In this case, the Court held that the petitioners failed to prove the sale agreement and meet these conditions. As a result, they could not claim protection under Section 53-A. The petition was dismissed.
Case Title: Giriyappa & Anr. vs. Kamalamma & Ors.
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