Bombay High Court Dismisses Second Appeal in Agricultural Land Possession Suit; Rejects Claim of Part-Performance Under Section 53A of Transfer of Property Act, 1882. Defendants' Possession Deemed Not Protected as They Failed to Prove Written Contract, Payment of Consideration, and Readiness to Perform as Required by Section 53A.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The dispute pertained to agricultural land originally owned by one Gangaram, father of the plaintiff Saraswatibai. After Gangaram's death, the plaintiff succeeded to the property but, residing in her matrimonial village, permitted her uncle Nangan (father of defendant no.1) and another uncle (defendant no.2) to cultivate the land on crop-share basis. Relations soured in 1999 when a compensation cheque for crop loss was issued in the plaintiff's name, whereupon the defendants allegedly began claiming ownership based on their long cultivation and refused to hand over possession. The plaintiff filed a suit for possession and mesne profits, asserting her title and that the defendants' possession was permissive. The defendants resisted, claiming that Gangaram had sold the land to them in 1965 for Rs.10,000 under an agreement to sell, the document being lost in 1983 floods, and that the plaintiff later acknowledged this in a written document dated 20-05-1991 (Exh.61), promising to execute a sale deed. The trial court decreed possession in favour of the plaintiff and dismissed the defendants' counterclaim for specific performance, a decision upheld by the first appellate court. In the second appeal, the High Court framed a substantial question of law: whether the defendants were entitled to protection under Section 53A of the Transfer of Property Act, 1882, even without a specific pleading to that effect. The appellants argued that Exh.61, signed by the plaintiff and acknowledging the earlier transaction and receipt of consideration, satisfied the written contract requirement; that they were in possession in part-performance; and that as rustic litigants, their pleadings deserved liberal construction. They contended that since the entire consideration had been paid by Gangaram, no further act remained for them to perform, so readiness and willingness were implicit. The respondent countered that Exh.61 did not mention any fresh consideration and did not prove the alleged 1965 payment; the defendants' varying stands (sometimes calling the 1965 transaction a sale deed, sometimes an agreement) and failure to explain why no registered sale deed was obtained undermined their claim. The Court, examining the conditions under Section 53A and the precedent in Shrimant Shamrao Suryavanshi v. Pralhad Bhairoba Suryavanshi, found that the defendants had not established a valid contract in writing with proof of consideration, nor demonstrated readiness and willingness. Their possession, initially permissive, could not be treated as part-performance of a contract whose consideration was unproved. Accordingly, the appeal was dismissed and the decree for possession confirmed.

Headnote

A) Property Law - Transfer of Property Act, 1882, Section 53A - Part-Performance - Protection of Possession - Transfer of Property Act, 1882, Section 53A - The defendants sought protection under Section 53A based on an alleged agreement to sell executed by the plaintiff's father in 1965 and a subsequent acknowledgment by the plaintiff in 1991. They claimed that consideration was paid and possession was taken in part-performance, and argued that their pleadings as rustic villagers should be liberally construed. The Court examined the requirements of Section 53A and found that the defendants failed to prove the payment of consideration and did not establish readiness and willingness to perform their part of the contract. Held, the conditions for part-performance were not satisfied and the defendants were not entitled to retain possession; the decree for possession was affirmed. (Paras 8-12)

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Issue of Consideration

Whether the appellants were entitled to protection under Section 53A of the Transfer of Property Act, though they did not take specific defence to that effect?

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Final Decision

Appeal dismissed. Decree of possession in favour of plaintiff confirmed. Defendants not entitled to protection under Section 53A of Transfer of Property Act.

Law Points

  • Section 53A Transfer of Property Act
  • part-performance doctrine
  • conditions for protection: written contract signed by transferor
  • consideration paid
  • transferee performed or willing to perform his part
  • possession taken in part-performance
  • liberal construction of pleadings of rustic villagers
  • burden of proof on defendant claiming protection under Section 53A
  • necessity of proving payment of consideration and existence of valid agreement
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Case Details

2019 LawText (BOM) (01) 161

Second Appeal No. 0753 of 2009

2019-02-15

Smt. Vibha Kankanwadi, J.

Mr. A.G. Godhamgaonkar, Ms. Geeta Deshpande

Rajeshwar s/o Nagan Kale, Shankar s/o Satwaji Kale

Saraswatibai w/o Rangoji Kale

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Nature of Litigation

Suit for possession and mesne profits of agricultural land

Remedy Sought

Plaintiff sought possession of suit land and mesne profits; defendants counterclaimed for specific performance of agreement to sell

Filing Reason

Defendants refused to hand over possession after relationship strained due to compensation cheque; claimed ownership based on prior agreement

Previous Decisions

Trial Court partly decreed suit ordering possession and dismissed counterclaim; First Appellate Court dismissed defendants' appeal

Issues

Whether the appellants (defendants) were entitled to protection under Section 53A of the Transfer of Property Act despite not specifically pleading such defence?

Submissions/Arguments

Appellants contended that Exh.61 (1991 document) signed by plaintiff acknowledged the 1965 agreement and receipt of consideration by her father, thus conditions of Section 53A including written contract and payment of consideration were met; they were in possession and ready to perform their part, no further act required; pleadings should be liberally construed as they are rustic villagers. Respondent argued that defendants failed to prove payment of consideration, Exh.61 does not mention any consideration paid, the alleged 1965 agreement was lost and unproved, defendants' stance inconsistent, and the necessary ingredients of Section 53A were not satisfied; thus no protection.

Ratio Decidendi

To avail protection under Section 53A of the Transfer of Property Act, the defendant must establish a valid contract in writing, payment of consideration, readiness and willingness to perform, and possession taken in part-performance; a mere acknowledgment of a prior oral agreement without proof of consideration is insufficient.

Judgment Excerpts

Whether the appellants were entitled to protection under Section 53A of the Transfer of Property Act, though they did not take specific defence to that effect ? Taking into consideration the substantial question of law that has been framed in the case, it is required to be seen whether the appellants are complying the requirement of Section 53A of the Transfer of Property Act. ... the said document dated 20051991 was produced at Exhibit 61. It was impounded by the learned trial Court. Therefore, there was a document in writing which was in respect of an immoveable property. It is signed by the plaintiff who is the owner of the property.

Procedural History

Original suit filed before Civil Judge (J.D.), Dharmabad, in Regular Civil Suit No. 37 of 2000, decided on 2004-07-13 partly decreeing suit and dismissing counterclaim; appeal by defendants in Regular Civil Appeal No. 24 of 2004 before District Judge-1, Biloli, dismissed on 2009-09-30; present second appeal filed in High Court.

Acts & Sections

  • Transfer of Property Act, 1882: 53A
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