Part performance defence survives limitation where a transferee in possession remains ready and willing to perform the contract.

A transferee in possession under an agreement to sell may still invoke the defence of part performance under Section 53A of the Transfer of Property Act even after limitation bars a suit for specific performance, because limitation ordinarily bars the remedy by suit and does not extinguish a statutory defence unless the law so provides. The protection under Section 53A continues where the transferee entered into possession in part performance and remains ready and willing to perform contractual obligations. On that basis, the defence remained available and the matter was remitted to the High Court for decision on any remaining question of law.

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Issues: Whether a transferee in possession under an agreement to sell can defend his possession under Section 53A of the Transfer of Property Act when a suit for specific performance is barred by limitation.

Analysis: Section 53A does not contain any express restriction denying the defence of part performance merely because the transferee can no longer sue for specific performance within limitation. The provision was enacted to protect a transferee who has entered into possession in part performance and remains willing to perform his part of the contract. The historical background and legislative materials show that the protection was intended to continue even after expiry of the period for filing a suit for specific performance. The general rule of limitation is that it bars the remedy and does not extinguish a defence unless the statute so provides. Since the transferee had taken possession under the contract and was ready and willing to perform, the defence remained available.

Conclusion: The transferee can protect possession under Section 53A despite the bar of limitation on a suit for specific performance, provided the statutory conditions are satisfied.

Final Conclusion: The judgment under appeal was set aside and the matter was sent back to the High Court for decision on any remaining question of law.

Ratio Decidendi: Limitation bars the enforcement of a contractual right by suit but does not, by itself, defeat the defence of part performance under Section 53A where the statutory requirements are fulfilled.

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