Part-performance under Section 53A of the Transfer of Property Act.

Case Citation

Court Name: Supreme Court of India
Case Title: Giriyappa & Anr. v. Kamalamma & Ors.
Case No.: Special Leave Petition (Civil) No. 30804 of 2024 [Diary No. 56304/2024]
Date of Judgment: December 20, 2024
Judges: J.B. Pardiwala, J., and R. Mahadevan, J.

Facts of the Case

The dispute centered on a suit property claimed by Kamalamma and others (respondents), who filed an Original Suit (OS No. 364/1988) seeking declaration of title and recovery of possession. The trial court decreed the suit in favor of the respondents. The petitioners, Giriyappa and another, contested the decree, asserting possession based on an alleged unregistered sale agreement dated November 25, 1968, through which they claimed to have acquired ownership of a portion of the property. The appellate courts, including the Karnataka High Court in RSA No. 1740/2008, dismissed their appeals, holding that the petitioners failed to substantiate their claims under Section 53A of the Transfer of Property Act, 1882. Consequently, the petitioners approached the Supreme Court through a Special Leave Petition.

Contentions of the Appellants

The petitioners contended that the courts below erred in disregarding the protection afforded under Section 53A of the Transfer of Property Act. They argued that the alleged sale agreement, though unregistered, entitled them to retain possession as they had partly performed their obligations under the agreement. They further submitted that the trial court and appellate courts failed to appreciate the evidence supporting their possession and misapplied the legal principles governing part-performance and specific performance.

Contentions of the Respondents

The respondents maintained that the petitioners had failed to produce credible evidence of the alleged sale agreement or prove their compliance with its terms. They asserted their ownership over the property and argued that the petitioners’ possession was unlawful and unsupported by any valid or enforceable contract. They further contended that the findings of the trial court and the appellate courts were consistent with the evidence and did not warrant interference.

Issues on This Judgment
  • Whether the courts below were justified in decreeing the suit for recovery of possession in favor of the respondents despite the petitioners’ plea of protection under Section 53A of the Transfer of Property Act.
  • Whether the alleged unregistered sale agreement could provide a valid defense of part-performance to the petitioners.
  • Whether the evidence on record adequately supported the petitioners’ claims regarding possession and ownership of the property.
Observations/Findings/Analysis of the Supreme Court

The Supreme Court examined the case in light of the principles of part-performance under Section 53A of the Transfer of Property Act. The Court emphasized that the protection under Section 53A is conditional upon the transferee demonstrating possession and part-performance of contractual obligations, backed by a valid written agreement. The Court found that the petitioners failed to prove the existence of the alleged sale agreement or their compliance with its terms. It noted that the lower courts had carefully evaluated the oral and documentary evidence, concluding that the respondents’ claim to ownership was legitimate and the petitioners’ possession was unlawful. The Court also highlighted that Section 53A operates as a shield and not a sword, requiring strict adherence to its prerequisites. Rejecting the petitioners’ reliance on precedent, the Court observed that the principles enunciated in the cited cases were inapplicable due to the absence of a valid and enforceable agreement in the present case. It reiterated the necessity of strict construction of exceptions under property law to prevent misuse.

Principle(s) Laid Down by the Court
  1. Section 53A of the Transfer of Property Act operates as a protective mechanism for transferees who act in part-performance of valid contracts but does not serve to validate or enforce unsubstantiated or fraudulent claims.
  2. Exceptions to statutory requirements, such as registration of agreements, must be strictly construed to prevent abuse and uphold the integrity of property transactions.
  3. The possession of immovable property, absent valid legal or contractual backing, cannot be sustained against the lawful owner.
Final Order

The Supreme Court dismissed the Special Leave Petition, affirming the concurrent findings of the lower courts. It held that the petitioners had no legal right or protection under Section 53A of the Transfer of Property Act and directed that the respondents be restored to possession of the suit property. All pending applications were disposed of accordingly.

Importance of This Judgment to Society

This judgment underscores the importance of adhering to statutory requirements in property transactions and the necessity of upholding the rights of lawful owners. By reaffirming the strict interpretation of Section 53A, the Court discourages frivolous and fraudulent claims based on unregistered or informal agreements, thereby enhancing the transparency and reliability of property dealings. The decision strengthens public confidence in the judicial process as a safeguard against unlawful possession and misuse of legal provisions.

 

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