Bombay High Court Allows Appeal in Flat Possession Case — Builders Failed to Prove Ownership of Land. Agreement to Sell and Power of Attorney Not Sufficient to Transfer Title Under Transfer of Property Act, 1882.

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

The appellants, plaintiffs in the trial court, filed a suit for recovery of possession of 12 flats or in the alternative for recovery of possession of the land and building. The plaintiffs claimed to be the owners of the suit property by virtue of registered sale deeds and mutation entries in their favour. The defendants, who were builders, claimed that they had purchased the property from the original owner through an agreement to sell and a power of attorney, and that they were in possession of the flats. The trial court dismissed the suit, holding that the plaintiffs had not proved their title and that the defendants were in possession. On appeal, the High Court examined the evidence and found that the plaintiffs had proved their title through registered documents, while the defendants had only an unregistered agreement to sell and a power of attorney, which did not transfer title. The court held that the defendants had not proved adverse possession or part performance under Section 53A of the Transfer of Property Act, 1882. The appeal was allowed, and the suit was decreed in favour of the plaintiffs for recovery of possession of the 12 flats.

Headnote

A) Property Law - Recovery of Possession - Title - Plaintiffs claimed possession of 12 flats based on ownership of land and building - Defendants claimed title through agreement to sell and power of attorney from original owner - Held that an agreement to sell does not transfer title, and a power of attorney does not confer ownership - Plaintiffs proved their title through registered sale deeds and mutation entries - Defendants failed to prove any valid title or adverse possession (Paras 1-20).

B) Property Law - Adverse Possession - Burden of Proof - Defendants claimed adverse possession for over 12 years - Held that mere possession without animus possidendi does not constitute adverse possession - Defendants must prove that their possession was hostile to the true owner and that they had the intention to possess as owners - Defendants failed to prove the date from which their possession became adverse (Paras 21-25).

C) Transfer of Property Act, 1882 - Section 53A - Part Performance - Defendants claimed protection under Section 53A based on agreement to sell and possession - Held that Section 53A requires a written contract, part performance, and willingness to perform - Defendants did not prove that they were ready and willing to perform their part of the contract - Moreover, the agreement was not registered as required by law (Paras 26-30).

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Issue of Consideration

Whether the plaintiffs are entitled to recovery of possession of 12 flats from the defendants, and whether the defendants have proved their title or adverse possession over the suit property.

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Final Decision

Appeal allowed. Judgment and decree of the trial court set aside. Suit decreed in favour of the plaintiffs for recovery of possession of the 12 flats from the defendants.

Law Points

  • Agreement to sell does not transfer title
  • Power of attorney does not transfer title
  • Possession must be proved by defendants
  • Adverse possession requires animus possidendi
  • Section 53A Transfer of Property Act
  • 1882 requires written contract and part performance
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Case Details

2005 LawText (BOM) (01) 78

First Appeal No. 79 of 2004

2005-01-24

B. H. Marlapalle, N. A. Britto

Mr. R. G. Ramani for Appellants, Mr. P. A. Kholkar for Respondents

Smt. Abida Bi and others

Shri Madhav Narayan Naik Kundaikar and another

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Nature of Litigation

Civil suit for recovery of possession of flats or in the alternative recovery of possession of land and building.

Remedy Sought

Plaintiffs sought recovery of possession of 12 flats from defendants.

Filing Reason

Plaintiffs claimed ownership of the property and alleged that defendants were in wrongful possession of the flats.

Previous Decisions

Trial court dismissed the suit, holding that plaintiffs failed to prove title and defendants were in possession.

Issues

Whether the plaintiffs have proved their title to the suit property? Whether the defendants have proved their title or adverse possession? Whether the defendants are entitled to protection under Section 53A of the Transfer of Property Act, 1882?

Submissions/Arguments

Plaintiffs argued that they are the owners by virtue of registered sale deeds and mutation entries. Defendants argued that they purchased the property through an agreement to sell and power of attorney and have been in possession for over 12 years, thus acquiring title by adverse possession.

Ratio Decidendi

An agreement to sell does not transfer title to immovable property; a power of attorney does not confer ownership. To claim adverse possession, the defendant must prove that his possession was hostile to the true owner and with the intention to possess as owner. Section 53A of the Transfer of Property Act, 1882 requires a written contract, part performance, and willingness to perform; an unregistered agreement does not confer protection.

Judgment Excerpts

An agreement to sell does not transfer title to immovable property. Mere possession without animus possidendi does not constitute adverse possession. Section 53A requires a written contract, part performance, and willingness to perform.

Procedural History

Plaintiffs filed S.C.S. No. 26/2002/A in the Civil Judge, Senior Division, Ponda, which was dismissed on 13-11-2002. Plaintiffs appealed to the High Court of Bombay at Goa by way of First Appeal No. 79 of 2004.

Acts & Sections

  • Transfer of Property Act, 1882: Section 53A
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