PROPERTY LAW ASSIGNMENT

SECTION 53(A) OF THE TRANSFER OF PROPERTY ACT, 1882

Section 53(A) of the Transfer of Property Act, 1882, seeks to protect the prospective
transferees by allowing them to retain the possession over the property, against the rights of
the transferors, who after the execution of an incomplete instrument of transfer, fails to
complete it in the manner specified by law, without there being any fault on part of the
transferee.

It is based upon the equitable doctrine of part performance in English law. It is also
known as ‘equity of part-performance’. The doctrine of part performance of contract is based
on the general doctrine of prevention of fraud. It is meant to protect the transferee who has
taken possession, spent money in further improvements. When a transferee has, in the faith
that the transfer would be completed according to the law, taken possession, it would be
inequitable to allow the transferor to treat the transferee as trespasser.

ESSENTIAL CONDITIONS FOR THE APPLICATION OF SEC.53(A):

In Vasanthi v. Venugopal, the Supreme Court restated the essential conditions

necessary for application of this section which are as follows:

1. A written contract for the transfer of an immovable property.

2. The transferee takes possession of the property under this contract.
3. The transferee has either performed his part of contract or is willing to perform the
same.

If these requirements are fulfilled, the transferee is entitled to claim, under this
section, that he/she should not be evicted/dispossessed from the property.

Also, this claim under this section, which is a statutory right, cannot be denied on the
ground of laches. This is available only as a defence for the transferee against the transferor.
The transferor’s rights, if there exists the defence of part performance, cannot invoke any of
his rights to get the property. Though the right is available to the transferee against the
transferor, and that it protects the right of the transferee of possession over the property, it
does not provide any entitlement to the transferee. It only provides with the right to remain or
obtain the possession over the property by the transferee
NATURE OF TRANSFEREE’S RIGHTS UNDER SECTION 53(A):

1. No title or interest in property:

Section 53A does not affect the ownership rights of the proposed transferor who
remains full owner of the lands till they are legally conveyed by sale-deed to the
transferee.

2. Passive equity; no right of action:

Section 53A merely provides a right of defence, it can be used only as a shield not
as a sword. The scope of this section is therefore, limited because no right of action is
available to transferee.

EXCEPTION TO SEC-53(A):

The rule laid down in this section has no application/or affect the right of a
subsequent transferee for consideration who has no notice of the contract or of the part
performance thereof.