Friday, March 6, 2026

A transferee who has taken possession of property in part performance of an agreement of sale can defend and protect his possession under Section 53-A of the Transfer of Property Act even if the limitation period for filing a suit for specific performance has expired, since the law of limitation bars only the remedy and not the defence. Paras: 20–22

1. Transfer of Property Act, 1882 – Section 53-A – Part performance – Protection of possession

A transferee who has taken possession of immovable property in part performance of an agreement of sale is entitled to protect his possession under Section 53-A T.P. Act, provided the statutory conditions are fulfilled.

Such protection is available even if the transferee has not filed a suit for specific performance.

Paras: 17–18, 19

2. Limitation Act – Effect on defence under Section 53-A T.P. Act

The expiry of limitation for filing a suit for specific performance does not extinguish the right of a transferee to defend his possession under Section 53-A T.P. Act.

The law of limitation bars the remedy but does not extinguish a defence.

Paras: 20–22

3. Section 53-A – Nature of right – Shield and not sword

Section 53-A confers a defensive right on the transferee in possession.

It enables the transferee to protect possession against the transferor or persons claiming under him, though it does not confer title.

Paras: 15–18

4. Legislative object of Section 53-A T.P. Act

Section 53-A was introduced by the Transfer of Property (Amendment) Act, 1929 to incorporate the equitable doctrine of part performance.

The purpose of the provision is to protect a transferee who has acted upon a contract and taken possession in good faith so that the transferor cannot commit fraud by evicting him.

Paras: 12–16

5. Conditions for invoking Section 53-A T.P. Act

For a transferee to invoke protection under Section 53-A, the following conditions must be satisfied:

There must be a contract to transfer immovable property for consideration.
The contract must be in writing and signed by the transferor.
The terms of the contract must be capable of being ascertained.
The transferee must have taken possession in part performance.
The transferee must have performed or be willing to perform his part of the contract.

Para: 17

Ratio Decidendi

A transferee who has taken possession of property in part performance of an agreement of sale can defend and protect his possession under Section 53-A of the Transfer of Property Act even if the limitation period for filing a suit for specific performance has expired, since the law of limitation bars only the remedy and not the defence.