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        Case ID :

        2004 (8) TMI 688 - SC - Indian Laws

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        Part performance under Section 53-A cannot be used by a third party without privity or derived title from the original transferor. Section 53-A of the Transfer of Property Act operates only as an equitable shield for a transferee in possession against the transferor or persons ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Part performance under Section 53-A cannot be used by a third party without privity or derived title from the original transferor.

                            Section 53-A of the Transfer of Property Act operates only as an equitable shield for a transferee in possession against the transferor or persons claiming under him. An agreement to sell does not create any interest in immovable property, and title passes only through a registered sale deed under Section 54. As the intermediate purchaser had no registered conveyance or transferable interest, he could not pass any better right to the appellant. Lacking privity of contract with the original owner, the appellant could not invoke part performance to resist the owner's claim for possession.




                            Issues: Whether a person claiming possession through a purchaser who himself had only an agreement to sell, and no registered conveyance, can invoke the doctrine of part performance under Section 53-A of the Transfer of Property Act against the original owner with whom he had no privity of contract.

                            Analysis: Section 53-A operates as an equitable shield in favour of a transferee who has been put in possession in part performance of a contract and has fulfilled the statutory conditions. The protection is available only against the transferor or persons claiming under him. An agreement to sell does not by itself create any interest in immovable property, and title passes only by a registered sale deed as contemplated by Section 54. Since the intermediate purchaser had no registered title and therefore no transferable interest, he could not confer upon the appellant any better right than he himself possessed. The appellant, being a third party to the original transaction and lacking privity of contract with the owner, could not rely on Section 53-A to resist the owner's claim for possession.

                            Conclusion: The appellant could not invoke Section 53-A against the respondent and was not entitled to protect his possession.


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                            ActsIncome Tax
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