Non-Completion of Transaction by Transferor - The transferor often fails to execute a registered deed in favor of the transferee, which is legally required to complete the transfer process. Despite possession and partial performance by the transferee, the transferor does not take further steps to finalize the transaction, such as registering the sale deed or closing associated loans. This prevents the transfer from being legally complete ["2025 0 Supreme(Gau) 611"], ["1948 0 Supreme(Ori) 6"], ["
T.KRISHNAN vs B.SHIVARAJAN, - Madras
"].Part Performance Doctrine (Section 53A) - When a transferee takes possession and acts in furtherance of the contract, they can invoke the doctrine of part performance to assert their rights against the transferor or persons claiming under him. However, this right does not extend against third parties without notice of the contract, especially if the transferor has not taken steps to enforce the sale or complete registration ["2025 0 Supreme(Gau) 611"], ["2004 6 Supreme 399"], ["2004 0 Supreme(MP) 660"], ["1948 0 Supreme(Ori) 6"], ["1994 Supreme(Online)(Bom) 17"].
Requirement of Steps to Complete Sale - Merely entering into an agreement and taking possession is insufficient; the transferee must actively take steps such as obtaining registration or enforcing the contract through legal means to solidify their rights. Lack of such steps leaves the transferor free to retract or claim ownership, even if the transferee has performed their part ["2024 0 Supreme(Cal) 1369"], ["2023 0 Supreme(Guj) 407"], ["
HAJI OSMAN BIN ABU BAKAR vs SAIYED NOOR BIN SAIYED MOHAMED
"], ["2016 0 Supreme(Ori) 917"].Legal Implication of Not Taking Further Steps - If the transferor does not execute the registered deed or enforce the sale, the transaction remains incomplete legally, and the transferee's possession or partial performance alone does not entitle them to enforce specific performance against a third party or the transferor. The law emphasizes active steps by the transferee to complete the transfer for the doctrine of part performance to be invoked effectively ["2025 0 Supreme(Gau) 611"], ["1948 0 Supreme(Ori) 6"], ["1994 0 Supreme(Bom) 3"].
Analysis and Conclusion:The primary insight across these sources is that the transferor's failure to take necessary legal steps—such as executing a registered sale deed—prevents the transaction from being legally complete. While the doctrine of part performance allows a transferee to assert rights against the transferor or those claiming under him if they have taken possession and acted in furtherance of the contract, this doctrine does not protect passive transferees who have not actively completed the transfer process. Therefore, without the transferor executing the requisite legal formalities, the transferee cannot enforce the contract or claim rights against third parties, emphasizing the importance of active steps to perform the contractual obligations.
