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2002 Supreme(SC) 100

ASHOK BHAN, V.N.KHARE
Shrimant Shamrao Suryavanshi – Appellant
Versus
Pralhad Bhairoba Suryavanshi (D) – Respondent


Judgement Key Points

What is the effect of Section 53A of the Transfer of Property Act, 1882 on a defendant transferee’s right to protect possession in a suit for recovery of possession when a suit for specific performance is barred by limitation? What are the conditions required for a transferee to defend or protect possession under Section 53A of the Act? Whether the limitation period for filing a suit for specific performance affects a transferee’s defense under Section 53A to protect possession in a suit for possession?

Key Points: - The Court holds that Section 53A allows a transferee to defend possession even if the suit for specific performance is barred by limitation, provided certain conditions are met (!) (!) (!) . - There are six necessary conditions for protection under Section 53A: (1) there is a contract for transfer of immovable property; (2) contract in writing signed by transferor or on his behalf; (3) writing contains terms to construe the transfer; (4) transferee takes possession in part performance; (5) transferee has done some act in furtherance of the contract; (6) transferee has performed or is willing to perform his part (!) (!) . - The Limitation Act bars the remedy for specific performance but does not extinguish a defendant’s right to defend under Section 53A; law of limitation applies to actions/suits, not to defenses in a suit (!) (!) . - The judicial approach to Section 53A should consider legislative history and the Special Committee’s recommendations, which supported protection for transferees in part performance even after expiry of the limitation period (!) (!) (!) (!) . - The Bombay High Court Full Bench’s view (Mahadeo Nathuji Patil v. Surajbai Khushal Chand Lakkad) is cited as correct, supporting the appellate decision to allow the appeals and remand for further questions of law (!) (!) . - The judgment ultimately allows appeals and remands for further questions of law without cost, clarifying the protection under Section 53A where conditions are fulfilled (!) (!) . - The "Very Important Point" emphasizes that if conditions of Section 53A are complied with, limitation does not bar a defendant from pleading 53A to protect possession, even if specific performance is barred by limitation (!) .

What is the effect of Section 53A of the Transfer of Property Act, 1882 on a defendant transferee’s right to protect possession in a suit for recovery of possession when a suit for specific performance is barred by limitation?

What are the conditions required for a transferee to defend or protect possession under Section 53A of the Act?

Whether the limitation period for filing a suit for specific performance affects a transferee’s defense under Section 53A to protect possession in a suit for possession?


JUDGMENT

V.N. Khare, J.-In this group of appeals the question that arises for our consideration is "whether in a suit brought by a transferor for recovery of possession of the suit property, a defendant transferee can defend or protect his possession over the suit property obtained in pursuance of a part performance on an agreement to sell under Section 53A of the Transfer of Property Act (hereinafter referred to as `the Act ), even if a suit for specific performance of an agreement to sell has barred by limitation".

2. Since common question of law is involved in these appeals, we are deposed to notice the facts which have given rise to Civil Appeal No. 2706/1991.

3. The appellants herein were the defendants in the suit brought by the plaintiff-respondents for recovery of the suit property and for mesne profit. On 9th July, 1964, respondent No. 3 executed an agreement for sale of an agricultural land in favour of appellant No. 1 for a total consideration of Rs. 9,000/-. Appellant No. 1 paid a sum of Rs. 5,700/- towards earnest money. The appellants in pursuance of the said agreement for sale was put in possession over the said property. After the execution of the said agreement, it ca































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