1959 Supreme(Cal) 248
HIGH COURT OF CALCUTTA
P. N. MUKHERJEE, NIYOGI
PROVA RANI ADHIKARI - Appellant
Versus
LALIT MOHINI MITRA - Respondent
A. F. A. D. 245 Of 1958
Decided On : DECEMBER 17, 1959
APURBADHAN MUKHERJI, Bijan Bihari Das Gupta, GOUR CHANDRA BISWAS, KANAN KUMAR GHOSH, PROVASH CHANDRA MUKHERJI
The requirements of Section 53A of the Transfer of Property Act must be satisfied before considering the proviso, which protects bona fide purchasers for value without notice.
Headnote:
TRANSFER OF PROPERTY ACT, 1882 - SECTION 53A - AGREEMENT FOR SALE - REQUIREMENTS - POSSESSION - PART PERFORMANCE - ACT DONE IN FURTHERANCE OF CONTRACT - WILLINGNESS TO PERFORM - BONA FIDE PURCHASER FOR VALUE WITHOUT NOTICE - PROVISO.
Fact of the Case:
Plaintiff sued for declaration of title and recovery of possession of property, claiming to have purchased it from Arun Chandra Dutta in 1950. Defendant claimed protection under Section 53A of the Transfer of Property Act, alleging an agreement for sale with Arun in 1947, part payment of consideration, and continued possession in part performance. The trial court decreed the suit, but the lower appellate court reversed the decision and dismissed the suit.
Finding of the Court:
The High Court held that the lower appellate court erred in its approach to Section 53A, as it focused primarily on the plaintiff's status as a bona fide purchaser without notice, rather than first considering whether the defendant had satisfied the requirements of the main part of the section. The court found that the lower appellate court's findings on the defendant's possession, acts in furtherance of the contract, and willingness to perform were not proper findings of reversal and required further consideration.
Issues: 1. Whether the defendant had satisfied the requirements of Section 53A of the Transfer of Property Act to claim protection under the agreement for sale. 2. Whether the plaintiff was a bona fide purchaser for value without notice of the defendant's agreement.
Ratio Decidendi: 1. Under Section 53A, the claimant must first establish an agreement in writing, possession in performance of the agreement, acts in furtherance of the contract, and willingness to perform their part of the contract. Only then can the proviso be considered to defeat the claim. 2. The lower appellate court erred in focusing on the plaintiff's status as a bona fide purchaser without notice before considering the defendant's compliance with the main part of Section 53A. 3. The lower appellate court's findings on the defendant's possession, acts in furtherance of the contract, and willingness to perform were not proper findings of reversal and required further consideration.
Final Decision: The High Court allowed the appeal, set aside the judgment and decree of the lower appellate court, and remanded the case for a proper decision in accordance with the observations made in the judgment.
( 1 ) THIS is the plaintitf's appeal, arising out of suit for declaration of title and recovery of possession and damages. The suit was decreed by the trial court, but that decision was reversed by the learned lower appellate court and the plaintiffs suit was dismissed. Aggrieved by that decision, the present appeal was filed by the plaintiff.
( 2 ) THE relevant facts lie within a short compass and they may be stated as follows: the property in suit originally belonged to one Arun Chandra Dutta. By a Kobala, dated 4-10-1950, the plaintiff claims to have purchased the property and, thereafter, on 4-5-1954, she brought the present suit for recovery of possession of the disputed property from the defendant, on the allegations, inter alia, that the defendant was in occupation of the same without any title whatsoever and that the plaintiff was entitled to a declaration of title and also to recovery of possession as against her. In the meantime, there were some proceedings between the parties, to which reference will be made in due course in course of this judgment.
( 3 ) THE principal defence was one under Section 53a of the Transfer of Property Act and the defendant contended that, long before the plaintiff's aforesaid purchase on 16-12-1947, the plaintiff's vendor Arun entered into an agreement with the defendant, who was his aunt, for sale of the disputed property to her for a consideration of Rs. 18,000/- and, on that agreement, on different dates, a total sum to the extent of roughly Rs. 4,000/- was paid by the defendant to Arun in part payment of the said stipulated consideration money. It was also alleged by the defence that, at some later stage, Arun agreed to receive a reduced consideration for the property, viz. , Rs. 12,000/ -. The defendant contended that she was, at the time of her aforesaid agreement, already in possession of the disputed property as a licensee from Arun and that she continued her possession of the suit property in part performance of the aforesaid agreement between herself and Arun and also did further acts in performance of the same by further payments to Arun under the said agreement. The defendant also stated in her written statement that she was willing to perform her outstanding part of the agreement with Arun. The defence further contended that the plaintiff in the present case was not a bona fide transferee for value without notice of her (defendant's) aforesaid agreement, but was a transferee with notice of the same and so she (plaintiff) would not get the protection or benefit of the proviso to Section 53a of the Transfer of Property Act. A further defence was taken in the written statement that, by reason of the dismissal of a previous suit for ejectment of the defendant from the suit premises, which was brought by the plaintiff on the allegation that the defendant was a tenant, which allegation was subsequently sought to be amended into one of a licensee, the present suit was barred by res judicata - at least constructive. All these defences were overruled by the learned Subordinate Judge and the plaintiff's suit was decreed.
( 4 ) ON appeal, as we have stated above, the decree of the learned Subordinate Judge was set aside and the plaintiff's suit was dismissed, upon findings, inter alia, that Section 53a would be attracted to this case and would give the defendant the necessary protection, the plaintiff not being a bona fide purchaser for value without notice of the defendant's agreement, so as to avail herself of the proviso thereto.
( 5 ) IN arguing this appeal before us on behalf of the plaintiff-appellant, Mr. Dasgupta has particularly drawn our attention to the judgment of the learned Addl. Dist. Judge, which judgment, according to him, is erroneous both in point of law and on facts, and, in any event, is not a proper judgment of reversal. It appears from the judgment of the learned Additional District Judge that his mind was, to some extent, obsessed with t