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1974 Supreme(Mad) 28

Madras High Court
K. VEERASWAMI,VARADARAJAN
S.F.Munuswami Gounder - Appellant
Versus
Erusa Gounder - Respondent
Decided On : 01/22/1974

Advocates:
R. Shanmugham, for Appellants, R. Sundaralingam, for Respondent.

Section 53-A of the Transfer of Property Act confers a right on the transferee to be protected from interference with possession, but does not confer title.

Headnote:

Transfer of Property Act - Agreement for sale - Part performance - Section 53-A

Fact of the Case:

The suit was for declaration of title and for an injunction from interference based on an agreement of sale between the first defendant and the guardian of the plaintiff and another minor. The trial court found in favor of the plaintiff, but the first appellate court discharged the finding. The second appellate court reversed the judgment of the first appellate court and restored the trial court's decree.

Finding of the Court:

The second appellate court found that the plaintiff had been put in possession as part performance of the agreement to sell the properties and directed the first appellate court to reconsider the case in light of this judgment.

Issues: The main issue was whether the plaintiff had been put in possession as part performance of the agreement and whether the conditions of Section 53-A of the Transfer of Property Act had been fully satisfied.

Ratio Decidendi: The court emphasized that Section 53-A of the Transfer of Property Act confers a right on the transferee to be protected from interference with possession, but does not confer title. The transferee can seek protection of the right envisaged by Section 53-A as a shield, but cannot claim title based on it.

Final Decision: The appeal was allowed, and the first appellate court was directed to reconsider the case in light of the judgment, ensuring that the conditions of Section 53-A had been fully satisfied.

Judgement

VEERASWAMI, C.J. :- (24-10-72). The defendants appeal under the Letters Patent from a judgment of Venkatadri J. who reversed the judgment of the first appellate court and restored the decree of the trial court. There is no dispute that the suit properties belong to the first defendant on the basis of a purchase made by him on 31-1-1935. He entered into a contract with one Lakshmiammal as the guardian of the present plaintiff and Krishnaswami who were minors, for sale of the properties to them for a consideration of Rs. 500 within two years. The suit was for declaration of title and for an injunction from interference. This was on the basis that Lakshmiammal and the minors were put in possession of the properties in part performance of the agreement to sell the properties. Defendants 2 and 4 who were among the appellants, had obtained a sale from the 1st defendant and attempted to trespass. That was the case of the plaintiff. The trial court found that there was an agreement of sale and the plaintiff had been put in possession, and, on that basis, it granted the prayers asked for in the plaint. The first appellate court proceeded upon the view that Section 53-A of the Transfer of Property Act by itself did not confer title on the plaintiff, and that, therefore, he could not rest the claim, on the basis of part performance, for title. As to possession, it considered that the finding of the trial court, in the circumstances, was unnecessary and discharged the finding. When the matter came up in second appeal, Venkatadri J. said :-

"After going through the documentary and oral evidence in the case, I am of opinion that the appellant continued to be in possession of the suit properties in spite of the sale in favour of defendants 2 and 3 by the first defendant."

He referred to Achayya v. Venkatasubba Rao, AIR 1957 Andh Pra 854 and finally held that the appeal should be allowed and the trial courts decree should be restored.

2. It seems to us that the judgment in second appeal cannot be supported. Subba Rao, G. J. (as he then was) himself observed in that case -

"It is settled law, that, under Section 53-A of the Transfer of Property Act, no title passes to a transferee. He cannot file a suit for declaration of his title to the property or seek to recover possession of the same on the basis of any title conferred on him."

Venkatadri J. was, therefore, not right in allowing the appeal, which would mean that he was giving declaration of title sought for. As pointed out in AIR 1957 Andh Pra 854 which is representative of a large volume of judicial opinion, Section 53-A of the Transfer of Property Act does confer some right on the transferee, if the conditions of that section are fully satisfied, and what is that right is also clear from the provisions of Section 53-A. The right is to have the transferor or any person claiming under him debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession. This right can be enforced by the transferee always as a shield and not as an independent claim either in the capacity of plaintiff or defendants, that is to say, he cannot ask for title basing his claim on the fact that he has fulfilled the conditions of Section 53-A. But he can, as a shield, ask for protection of the right envisaged by Section 53-A by debarring ; in other words, by getting an injunction against the transferor and those claiming under him from interfering with his possession.

3. In this case, the first appellate Court had discharged the trial court's finding as to the plaintiff's possession. No doubt, Venkatadri, J. purported to look into the oral and documentary evidence and find that the finding was correct. But, sitting as he did in second appeal, we think that the proper thing which the learned Judge should have done was to remit the matter to the first appellate court to find whether the trial court's fi




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