[Transfer of Property Act] Possession delivered in terms of sale agreement protected under Section 53A: Supreme Court

The Supreme Court recently held that if possession of property is delivered in terms of a sale agreement, then the possession is in part-performance of the agreement and protected in terms of Section 53A of the Transfer of Property Act [Santaram Dewangan v. Shivprasad]..A Bench of Justices Hemant Gupta and V Ramasubramanian held that even if a plea of adverse possession is taken by the possession holder, the same must be examined keeping in view the case set up by the plaintiff that the possession was pursuant to the sale agreement."As per plaintiff himself, the possession was delivered to the defendant in pursuance of an agreement of sale executed on July 16, 1997. Therefore, the possession of the defendant is in part performance of the agreement and is protected in terms of Section 53A of the Transfer of Property Act, 1882. The High Court non-suited the appellant on the ground that the defendant-appellant has raised a plea of adverse possession but such plea has to be examined keeping in view the case set up by the plaintiff that the possession of the defendant was in pursuance of the agreement to the sale executed," the Court said in its order. .The apex court was considering a matter in which the plaintiff- respondent had filed a suit for possession of a piece of land. The plaintiff before the trial court contended that there was an agreement of sale between the plaintiff and the defendant-appellant which was executed in 1997. It is in view of this agreement of sale that possession was delivered to the appellant, he claimed. The trial court dismissed the suit filed by the plaintiff stating that the sale consideration was paid to the plaintiff and the appellant was in possession of the land. It directed the plaintiff to execute the sale deed in favour of the appellant. However, this order was set aside in favour of the plaintiff-respondent by the first appellate court. The order of the first appellate court was later affirmed by the Chhattisgarh High Court prompting the present appeal at the apex court. .The Supreme Court noted that as per the plaintiff himself, possession was delivered in pursuance of an agreement of sale which is protected in terms of Section 53A of the Transfer of Property Act, 1882."The High Court has erred in law in decreeing the suit though the entire sale consideration stands paid to the plaintiff and also the possession in pursuance of the agreement of sale executed", the top court said.Accordingly, it allowed the appeal and set aside the order of the High Court. .Advocates Kaustabh Shukla, Nancy S, V Purushothman and Isha Vatsa appeared for the appellant, and advocates Rajeev Kumar Bansal, Ganesh Barowalia, Nita Sukhanandi and Girish Patel appeared for the respondent..[Read Order]