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2026 Supreme(Online)(Mad) 50197

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.B. Balaji, J
G. Subbulakshmi – Appellant
Versus
Abdul Ali – Respondent
SA(MD). No.103 of 2026|CMP(MD)No.3538 of 2026



Advocates:
For the Appellants/Petitioners: V. Vijayashankar
For the Respondents: P. Rajesh

An agreement holder whose suit for specific performance has been dismissed cannot invoke the protection of part performance, as the failure to obtain a decree indicates a lack of the requisite readiness and willingness to perform the contract, rendering their possession permissive rather than legally protected.

Headnote:(A) Transfer of Property Act, 1882 - Section 53-A - Part performance - Nature of possession - Protection under the doctrine of part performance is not available to a transferee whose suit for specific performance has been dismissed, as the failure to succeed in such litigation demonstrates a lack of the requisite readiness and willingness to perform the contract - Requirement for registration of sale agreements under the statute is not applicable to agreements executed prior to the amendment. (Paras 16, 21, 23)

(B) Civil Procedure Code - Counter-claim - Limitation - A successor-in-interest cannot claim rights better than those originally possessed by the predecessor-in-interest - Challenge to ownership cannot be raised in a counter-claim if the predecessor had full knowledge of the transaction and failed to contest it during appropriate proceedings. (Paras 11, 12)

Facts of the case:
The respondent-plaintiff filed a suit for recovery of possession and damages. The successor of the original defendant, who had previously entered into a sale agreement for the property, claimed protections under the doctrine of part performance. The agreement holder had earlier initiated, and failed in, a suit for specific performance, which was dismissed on the ground of limitation. The trial and appellate courts decreed the suit for recovery of possession in favor of the plaintiff.

Findings of Court:
The Court held that while the amendment regarding the mandatory registration of sale agreements for invoking part performance does not apply retrospectively, the plea for protection still fails. The dismissal of the previous suit for specific performance signifies that the transferee has not satisfied the mandatory condition of being ready and willing to perform the contract, thereby nullifying the claim to retain possession.

Issues: The primary issues were whether an agreement holder is entitled to retain possession under the doctrine of part performance after their specific performance suit has been dismissed, and whether the counter-claim challenging the title of the property holder was maintainable.

Ratio Decidendi: The court reasoned that possession held by an agreement holder following the dismissal of a specific performance suit is merely permissive and does not crystallize into a right protected by law. The unsuccessful prosecution of the specific performance claim negates the existence of the essential conditions required to maintain possession against the true owner.

Result: Appeal dismissed.

Table of Content
1. factual history regarding prior unsuccessful specific performance litigation and subsequent suit for possession. (Para 1 , 6 , 7)
2. contentions regarding section 53-a protection and limitation period for counterclaims. (Para 2)

PRAYER :- Second Appeal filed 100 of under Section Civil Procedure Code, to set aside the judgment and decree passed in O.S.No.104 of 2004 dated 18.11.2024 on the file of the 2nd Additional District Munsif, Tirunelveli as confirmed on appeal by the Principal Sub Court, Tirunelveli in A.S.No.33 of 2025 dated 18.12.2025.

For Appellant : Mr.V.Vijayashankar,

For Respondent : Mr.P.Rajesh,

1. The defendant, in a suit for recovery of possession and for damages for use and occupation, is the appellant herein, aggrieved by the concurrent findings rendered by the trial Court as well as the first Appellate Court.

2. I have heard Mr.V.Vijayashankar, learned counsel for the appellant / defendant and Mr.P.Rajesh, learned counsel for the respondent / plaintiff.

3. I have admitted the above second appeal on 02.06.2026 on the following three substantial questions of law:

“ a) Whether the findings of the Courts below that to claim the statutory protection under Section 53-A of the Transfer of Property Act, the agreement for sale should be registered is correct?

b) Whether the Courts below failed to take note that the plaintiff (respondent herein) is barred from filing the present suit for recovery of possession, as all the ingredients of Section 53 -A of the Transfer of Property Act are satisfied by the appellant (defendant) in the present case?

c) Whether the courts below were correct in dismissing the counter claim filed by the appellant (2nd defendant), as time barred without taking note that the 2nd defendant was impleaded in the suit only in the year 2023 and could thereafter only file the counter claim?”

4. I have heard the submissions of the learned counsel for the parties, revolving around the above three substantial questions of law.

5. For the sake of convenience, the parties are referred to as per their rank before the trial Court.

6. Brief facts, that may be necessary for adjudicating the above substantial questions of law are as follows:

6.1. The respondent / plaintiff filed a suit for recovery of possession and also for damages for use and occupation. Admittedly, the defendants are only agreement holders under the vendor of the respondent / plaintiff. On 11.05.1971, the father of the appellant (the second defendant in the suit) had entered into a sale agreement with one Pitchaiya Chettiyar for purchase of the suit property for a total sale consideration of Rs.15,000/-. The plaintiff had paid an advance of Rs.9,000/- and in part performance, admittedly possession of the suit property was handed over to the second defendant's father, further advance of Rs.1,000/- was paid, subsequently leaving a balance of Rs.5,000/-. The father of the appellant (second defendant in the suit) filed a suit for specific performance in O.S.No.696 of 1985. However, after trial, the suit came to be dismissed on the ground that the suit was barred by limitation. The judgment and decree of the trial Court was unsuccessfully challenged in A.S.No. 152 of 1997 before the first appellate Court as well as in second appeal proceedings in S.A.(MD)No. 1915 of 2001 before this Court. Soon after the dismissal of the suit for specific performance in O.S.No.696 of 1985, the respondent / plaintiff filed O.S.No.104 of 2004 for recovery of possession and also claimed damages for use and occupation.

6.2. The case of the appellant was that the appellant was entitled to protection under Section 53-A of the Transfer of Property Act and further, soon after the sale agreement was entered into with the second defendant's father on 11.05.1974, Pitchaiya Chettiyar had clandestinely sold the property to the respondent / plaintiff and the sale was therefore not valid or binding on the defendants. In fact, the second defendant's father was originally arr

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