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Supreme Court of India

MOHAN LAL (DECEASED) THROUGH HIS LRS. KACHRU AND ORS.versusMIRZA ABDUL GAFFAR AND ANR.

Citation
1995 INSC 886
Decided
12 December 1995
Disposal
Dismissed

Holding

Section 53-A can be used only as a shield and the transferee must be ready and willing to perform his part of the contract; consequently, the appellant could not retain possession.

Summary

The appellant obtained possession of the suit lands in 1956 under a sale agreement, having paid only part of the consideration and later filed a suit for specific performance which was dismissed. The respondent purchased the lands in 1960 and sued for possession, obtaining a decree in the trial court that was reversed on appeal but restored by the High Court. The appellant argued that his long possession gave him title by prescription and that Section 53-A of the Transfer of Property Act allowed him to retain possession as a transferee. The Supreme Court held that a transferee may invoke Section 53-A only as a shield and must demonstrate continuous willingness to perform his part of the contract, which the appellant could not prove. Because the appellant’s possession stemmed from a lawful agreement and his specific performance suit was dismissed, the plea of adverse possession was unavailable. Consequently, the appeal was dismissed, confirming that the appellant could not retain possession.

Issues considered

  • Whether the appellant can claim possession of the property on the basis of adverse possession despite having originally taken possession under a sale agreement.
  • Whether Section 53-A of the Transfer of Property Act can be invoked by the appellant to retain possession after the specific performance suit was dismissed.
  • Whether the appellant must plead and prove his readiness and willingness to perform his part of the contract to rely on Section 53-A.

Legislation cited

Subjects

Transfer of Property ActSection 53-ASpecific Relief ActSection 16(c)specific performanceadverse possessionpart performancepossessionsale agreementprescription

Judgment

A            MOHAN LAL (DECEASED) THROUGH HIS LRS.
                       KACHRU AND ORS.
                              v.
                 MIRZA ABDUL GAFFAR AND ANR.

                              DECEMBER 12, 1995
B
                [K. RAMASWAMY AND B.L. HANSARlA, JJ.]

          Tramfer of Property Act, 1882-Section SJ(A}-Agreement holder
    whose suit for specific peifonnance is dismissed-Not entitled to retain pos-
C   session under the agreenienr:-Plea of adverse possession not maintainable.

           Specific Relief Act, 1963-Section 16(C}-Transfer of Prope1ty Act,
     1882-Section 53(A}-Held, part performance-Conditioned upon the
    transferee's continuous willingness to peifonn his part of the contract-Trans-
    feree to plea and prove the same.
D
          The Appellant was in possession of the suit-lands since 1956, pur-
    suant to an agreement of sale and payment of part performance. The
    Appellant's suit for specific performance of the contract of sale was
    dismissed and it became final. Subsequently, the lands were purchased by
    the Respondent and he filed a suit for possession. The trial court decreed
E   the suit. On Appeal, it was reversed and suit was dismissed. The High
    Court on Second Appeal, set aside the judgment and decree of the appel·
    late court and restored the decree of the trial court.

          In the Special leave Petition, the Appellant contended that having
    remained in possession from 1956, he has perfected his title by prescrip·
F
    tion and that he is entitled to retain his possession by operation of Section
    53-A of the Transfer of Property Act, 1882.

           Dismissing the appeals this Court

G         HELD : 1. Since the appellant's claim is founded on Section 53-A of
    the transfer of property Act, it is admitted that he came into possession
    of the land lawfully under the agreement and continued to remain in
    possession till date of the suit. Therefore the plea of adverse possession is
    not available to the appellant. [640-D]

H          2. A transferee can avail of Section 53-A only as a shield but not as
                                          638
                          MOHAN LAL v. M.A GAFFAR                               639

a sword. Agreement does not create title or interest in the property.                  A
                                                                [640-E-G]
      3. When transferee seeks to avail of section 53-A to retain possession
of the property which he had under the contract, it would also be incum-
bent upon the transferee to plead and prove his readiness and willingness
to perform his part of the contract. Part performance is conditioned upon              B
the transferee's continuous willingness to perform his part of the contract
in terms covenanted thereunder. [641-C-D]

      4. The High Court is right in holding that appellant is not entitled
to retain possession. [641-F]
                                                                                       c
        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4485 of
1986.

     From the Judgment and Order dated 30.9.86 of the Madhya Pradesh
High Court in Second Appeal No. 460/75.
                                                                                       D
        S.K. Gambhir for the Appellants.

        B.S. Banthia for the Respondents.

        The following Order of the Court was delivered :
                                                                                       E
      This appeal by special leave arises from the judgment and decree of
the Madhya Pradesh High Court in Second Appeal No. 460/75 made on
30-9-1986.
             .   .   .'


       It is not necessary to elaborate all the facts in detail. Suffice it to state
that the appellant had come into possession of the suit-lands pursuant to              F
an agreement of sale dated March 8; 1956. He paid part consideration of
Rs. 500 and obtained possession of the lands. Subsequently, the respondent
purchased the lands by sale deed dated March 23, 1960. In the meanwhile,
the appellant's suit for specific performance of the contract for sale was
dismissed and became final. The respondent filed the suit for possession               G
which has given rise to this appeal. The trial Court decreed the suit. On
appeal, it was reversed and dismissed. In second appeal. the High Court
set aside the judgment and decree of the.appellate Court and. restored the
decree of the trial Court. Thus this appeal by special leave.

        The only question is whether the appellant is entitled to retain H
    640                    SUPREME COURT REPORTS [1995] SUPP. 6 S.C.R.

A possession of the suit property. Two pleas have been raised by the appel-
    lant in defence. One is that having remained in possession from March 8,
    1956, he has perfected his title by prescription. Secondly, he pleaded that
    he is entitled to retain his possession by operation of Section 53-A of the
    Transfer of Property Act, 1882 (for short, 'the Act').

B        As regards the first plea, it is inconsistent with the second plea.
  Having come into possession under the agreement, he must disclaim his
  right thereunder and plead and prove assertion of his independent hostile
  adverse possession to the knowledge of the transferor of his successor in
  title or interest and that the latter had acquiesced to his illegal possession
C during the entire period of 12 years, i.e., upto completing the period of his
  title by prescription 11ec vi 11ec clam 11ec precario. Since the appellant's claim
  is founded on Section 53-A, it goes without saying that he admits by
  implication that he came into possession of the land lawfully under the
  agreement and continued to remain in possession till date of the suit.
D Thereby the plea of adverse possession is not available to the appellant.

         The question then is whether he is entitled to retain possession under
  Section 53·A. It is an admitted fact that suit for specific performance had
  been dismissed and became final. Then the question is whether he is
  entitled to retain possession under the agreement. Once he lost his right
E under the agreement by dismissal of the suit, it would be inconsistent and
  incompatible with his right to remain in possession under the agreement.
  Even otherwise, a transferee can avail of Section 53-A only as a shield but
  not as a sword. It contemplates that where any person contracts to transfer
  for consideration any immovable property by writing signed by him or on
F his behalf from which the terms necessary to constitute the transfer can be
  ascertained with reasonable certainty and the transferee has performed or
  is willing to perform his part of the contract, he would be entitled to retain
  possession and to continue in possession which he has already received
  from the transferor so long as he is willing to perform his part of contract.
  Agreement does no create title or interest in the property. Since the
G agreement had met with dismissal of the suit his willingness to perform his
  part of the contract does not arise.

         Even otherwise, in a suit for possession filed by the respondent,
  successor-in·interest of the transferor as a subsequent purchaser, the ear-
H lier transferee must plead and prove that he is ready and willing to perform
                     MOHAN LAL v. M.A GAFFAR                           641

 his part of the contract so as to enable him to retain his possession of the A
immovable property held under the agreement. The High Court has
pointed out that he has not expressly pleaded this in the written statement.
We have gone through the written statement. The High Court is right in
its conclusion. Except vaguely denying that he is not ready and willing to
perform his part, he did not specifically plead it. Under Section 16 (c) of B
Specific Relief Act, 1963, the plaintiff must plead in the plaint, his readi-
ness and willingitess from the date of the contract till date of the decree.
The plaintiff who seeks enforcement of the agreement is enjoined to
establish the same. Equally, when trasferee seeks to avail of Section 53-A
to retain possession of the property which he had under the contract, it
would also be incumbent upon the transferee to plead and prove his C
readiness and willingness to perform his part of the contract. He who
comes to e ~uity must do equity. The doctrine of readiness and willingness
is ar. emphauc .<ay of expression to establish that the transferee always
abides by the terms of the agreement and is willing to perform his part of
the contract. Part performance, as statutory right is conditioned upon the D
transferee's continuous willingness to perform his part of the contract in
terms covenanted thereunder.

      In the earlier proceedings before Taluk Board, the appellant had
admitted that he paid only Rs. 500. He pleaded in the written statement
that consideration is Rs. 1,000. In other words, he did not discharge his E
part of the contract to the owner, i.e., did not pay Rs. 1,000 before the land
was sold to the respondent nor did he deposit the amount when the suit
was filed nor did he offer payment.

       We are, therefore, of the view that the High Court is right in its
conclusion that appellant is not entitled to retain possession. However,      F
since the appellant has remained in possession under the agreement of sale,
the respondent is not entitled to claim any damages from him.

      The appeal is accordingly dismissed but in the facts and circumstan-
ces of the case without easts.
                                                                              G
V.M.                                                    Appeal dismissed.


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