Bombay High Court Allows Second Appeal in Part Performance Case - Doctrine of Part Performance Protects Possession of Purchaser Under Section 53A of Transfer of Property Act, 1882. The court held that dismissal of specific performance does not automatically divest possession if the purchaser is ready and willing.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The case involves two counter appeals arising from a suit for specific performance and possession. The plaintiff, Suresh Kamte, entered into an agreement to sell dated 15.5.1981 with defendant Sadashiv Bhapkar for agricultural land at Pune for Rs.47,000. The plaintiff paid Rs.10,000 as advance and was put in possession of the property. The plaintiff claimed readiness and willingness to pay the balance and sought specific performance. The trial court decreed the suit, but the first appellate court reversed the decree, dismissing specific performance for want of readiness and willingness. However, the appellate court granted the plaintiff the right to retain possession under Section 53A of the Transfer of Property Act, 1882. Both parties appealed: the plaintiff challenged the dismissal of specific performance, and the defendants challenged the grant of possession rights. The High Court framed substantial questions of law regarding the scope of Section 53A. The court analyzed the doctrine of part performance, noting that it is a shield and not a sword. The plaintiff must be ready and willing to perform his part. The court found that the plaintiff failed to prove readiness after a certain date, but the right to retain possession under Section 53A can be enforced if the plaintiff is ready and willing at the time of the suit. The court held that the plaintiff is entitled to retain possession as a shield against the vendor, but cannot seek specific performance. The appeals were disposed of accordingly, with the plaintiff retaining possession but not getting a decree for specific performance.

Headnote

A) Transfer of Property Act - Doctrine of Part Performance - Section 53A - Right to retain possession - The plaintiff-purchaser was put in possession under an agreement to sell and paid part consideration. The suit for specific performance was dismissed for want of readiness and willingness. However, the court held that the plaintiff is entitled to retain possession under Section 53A as a shield against the vendor, provided the plaintiff is ready and willing to perform his part. The dismissal of specific performance does not automatically divest the plaintiff of possession if the plaintiff continues to be ready and willing. (Paras 1, 15-20)

B) Specific Relief Act - Specific Performance - Readiness and Willingness - Section 16(c) - The plaintiff must plead and prove continuous readiness and willingness. In this case, the plaintiff failed to prove readiness after a certain date, leading to dismissal of specific performance. However, the right to retain possession under Section 53A is independent and can survive if the plaintiff is ready and willing at the time of the suit. (Paras 10-14)

C) Civil Procedure Code - Second Appeal - Substantial Question of Law - Section 100 - The appeal involves substantial question of law regarding the scope of right to retain possession under the Doctrine of Part Performance. (Para 1)

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Issue of Consideration

Whether the plaintiff-purchaser in possession under an agreement to sell is entitled to retain possession under the Doctrine of Part Performance (Section 53A of the Transfer of Property Act, 1882) even if the suit for specific performance is dismissed for want of readiness and willingness?

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Final Decision

The High Court dismissed the plaintiff's appeal for specific performance but upheld the right to retain possession under Section 53A. The defendants' appeal against the grant of possession was dismissed. The plaintiff is entitled to retain possession as a shield against the vendor.

Law Points

  • Doctrine of Part Performance
  • Section 53A Transfer of Property Act
  • 1882
  • Right to retain possession
  • Specific performance
  • Readiness and willingness
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Case Details

2018 LawText (BOM) (10) 123

Second Appeal No.15 of 2003 and Second Appeal No.298 of 2007

2018-10-15

A.M. Dhavale, J

Mr. P.K. Dhakephalkar, Sr. Advocate with Mr. Rahul Kate for appellant in SA 15/2003 and respondent in SA 298/2007; Mr. P.S. Dani with Nilesh Wable i/b Mr. R.A. More for appellant in SA 298/2007; Mr. Drupad S. Patil for respondent nos.3 and 4 in both appeals

Suresh Kamte (in SA 15/2003); Sadashiv Bhapkar since deceased through LRs (in SA 298/2007)

Sadashiv Bhapkar since deceased through LRs (in SA 15/2003); Suresh Kamte (in SA 298/2007)

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Nature of Litigation

Civil suit for specific performance of contract and possession of agricultural land.

Remedy Sought

Plaintiff sought specific performance of agreement to sell and possession; alternatively, right to retain possession under Section 53A.

Filing Reason

Defendant failed to execute sale deed despite payment of part consideration and possession being delivered.

Previous Decisions

Trial court decreed specific performance; first appellate court dismissed specific performance but granted right to retain possession under Section 53A.

Issues

Whether the plaintiff is entitled to specific performance of the agreement to sell? Whether the plaintiff is entitled to retain possession under the Doctrine of Part Performance (Section 53A) despite dismissal of specific performance?

Submissions/Arguments

Plaintiff argued readiness and willingness and sought specific performance or retention of possession. Defendants argued plaintiff failed to prove readiness and willingness and that Section 53A cannot be used as a sword.

Ratio Decidendi

The Doctrine of Part Performance under Section 53A of the Transfer of Property Act, 1882, allows a purchaser in possession under an agreement to sell to retain possession as a shield against the vendor, provided the purchaser is ready and willing to perform his part. Dismissal of a suit for specific performance does not automatically divest the purchaser of possession if the purchaser continues to be ready and willing.

Judgment Excerpts

These two counter appeals involve substantial question of scope of right to retain possession under the Doctrine of Part Performance of the Contract. The plaintiff is entitled to retain possession under Section 53A as a shield against the vendor.

Procedural History

Plaintiff filed Special Civil Suit No.665 of 1986 for specific performance. Trial court decreed the suit. First appeal by defendants resulted in dismissal of specific performance but grant of right to retain possession under Section 53A. Both parties filed second appeals before the High Court.

Acts & Sections

  • Transfer of Property Act, 1882: 53A
  • Specific Relief Act, 1963: 16(c)
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