IN THE HIGH COURT OF ORISSA
D.P. Mohapatra, J.
RAMACHANDRA SWAIN - APPELLANT
Versus
DURYODHAN MOHAPATRA AND OTHERS - RESPONDENT
Second Appeal No. 107 of 1984
Decided On : 25-09-1995
TRANSFER OF PROPERTY ACT, 1882 - SECTION 53A - SPECIFIC PERFORMANCE OF CONTRACT - CONTINUANCE OF POSSESSION - ACT IN FURTHERANCE OF CONTRACT - BONA FIDE PURCHASER FOR VALUE WITHOUT NOTICE - SECTION 10 OF THE SPECIFIC RELIEF ACT, 1963.
Fact of the Case:
Plaintiff filed a suit for specific performance of a contract of sale of land against the defendants. The trial court dismissed the suit, holding that the plaintiff had not discharged his initial onus under Section 53A of the Transfer of Property Act and that the defendant No. 3 was a bona fide purchaser for value without notice. On appeal, the lower appellate court reversed the decision of the trial court and decreed the suit.
Finding of the Court:
The High Court held that Section 53A of the Transfer of Property Act is not available to the plaintiff in a suit for specific performance of contract. Further, in order to avail of the benefit of the said statutory provision, the party concerned has to establish that he has done something in furtherance of the contract and is always ready and willing to perform his part of the contract. In a case where the plea taken is one of continuing in possession with a change of character of possession, the party cannot succeed by establishing mere continuance of possession of the property and he has to establish some other action taken in furtherance of the contract.
Issues: 1. Whether Section 53A of the Transfer of Property Act is available to the plaintiff in a suit for specific performance of contract? 2. Whether the plaintiff has discharged his initial onus under Section 53A of the Transfer of Property Act? 3. Whether the defendant No. 3 is a bona fide purchaser for value without notice?
Ratio Decidendi: 1. Section 53A of the Transfer of Property Act is not available to the plaintiff in a suit for specific performance of contract. 2. The plaintiff has not discharged his initial onus under Section 53A of the Transfer of Property Act by merely establishing continuance of possession of the property after execution of the agreement for sale. 3. It is not necessary to consider the question of whether the defendant No. 3 is a bona fide purchaser for value without notice.
Final Decision: The second appeal is allowed. The judgment and decree passed by the lower appellate court are set aside and those of the trial court are confirmed.
JUDGMENT :
D.P. Mohapatra, J. - Defendant No. 3 in the suit has filed this second appeal against the judgment and decree of the lower appellate Court reversing the decision of the trial Court and decreeing the suit for specific performance of contract of sale of the suit land. The suit land, as described in the schedule to the plaint is :
"District Cuttack, S. R. Tirtol, Touzi No. 2484 Mouza-Raypur patna, Sthitiban Khata No. 134/13 (sabak) plot No. 20, A. O. 21 dec. and plot No. 21, A. O. 20 dec. total A. 0. 41 dec. out of A. 1. 18 dec. towards east, bounded by-
N. Bira Sethi and Babaji Sethi,
S. River,
E. Dhaneswar Behera,
W. Keshab Rout."
2. Plaintiff-respondent No. 1 Duryodhan Mohapatra filed title Suit No. 68 of 1979 against Gopinath Satapathy (since deceased and substituted by defendants 1,1 /a and 1/b). Laxmidhar Satapathy and Ramachandra Swain, respondents 1, 2 and 3 respectively, with the prayers that defendants 1 and 2 be directed for executing and registering the sale deed with respect to the suit land in favour of the plaintiff after receipt of the balance consideration of Rs. 500/- within a lime fixed by the Court, otherwise the sale deed may be executed by the Court after depositing the balance consideration of Rs. 500/-; and that defendant No. 3, his men and agents be permanently restrained from interfering with the peaceful possession of the plaintiff and from coming upon the suit land.
After stating facts and findings of trial Court his Lordship found.:
7. On appeal being filed by the plaintiff (Title Appeal No. 20 of 1983), the learned Subordinate Judge. Jugatsinghpur set aside the decision of the learned Munsif, decreed the suit and directed defendants 1 and 2 to execute and register a sale deed in favour of the plaintiff on accepting the balance consideration money of Rs. 500/-within two months. As the discussion in the judgment (paragraph 5) shows, the only questions raised for determination in the appeal were whether the plaintiff has discharged his initial onus u/s 53A of the Transfer of Property Act, and whether defendant No. 3 has proved his case of being a bona fide purchaser for value without notice. The lower appellate Court believed the case of the plaintiff that he was in possession of the suit land prior to the agreement as a Bhag tenant and after the agreement as the owner. He did not believe the evidence of defendant No. 2, who was examined as DW 3. Relying on the statement of this witness that five to six days after the suit he for the first time identified the suit land to defendant No. 3, the Court below disbelieved the plea of defendant No. 3 that he was in possession of the suit land. The Court below rejected the plea taken by defendant No. 3 that he was a bona fide purchaser for value without notice. On these findings, the learned Subordinate Judge decreed the suit on setting aside the decision of the learned Munsif. Therefore, defendant No. 3 has filed this second appeal challenging the decision of the lower appellate Court.
8. Shri B. Routray appearing for the appellant contended that the plaintiff cannot avail of Section 53A of the Transfer of Property Act in a suit for specific performance of contract of sale, and the requirement of the said section is not satisfied in the case since there is neither any pleading nor any evidence to show that the plaintiff had done anything in furtherance of the contract. He submitted that even accepting the finding of possession in favour of the plaintiff recorded by the lower appellate Court, mere continuance of possession cannot be said to be an act in furtherance of the contract of sale. He cited several decisions in support of his contention. I may notice a few of them here.
The Allahabad High Court in the case of Kashi Nath Tewari and Another Vs. Makchhed Tewari and Others, ) held that Section 53A of the Transfer of Propery Act can be used only as a shield and not as a sword and it is not possible for a person who is entitled to the benefits of that Secti
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