Answer the following, giving reasons for your answer: A purchases a house from B for Rs 5,000/- by an unregistered sale deed and is put in possession of the same by B. Later B sues A for possession of the house........

Question: Answer the following, giving reasons for your answer:
A purchases a house from B for Rs 5,000/- by an unregistered sale deed and is put in possession of the same by B. Later B sues A for possession of the house on the ground that no title was passed as the deed was unregistered. What can A plead in defence? [RJS 1979]

Find the answer to the mains question of Property Law only on Legal Bites. [Answer the following, giving reasons for your answer: A purchases a house from B for Rs 5,000/- by an unregistered sale deed and is put in possession of the same by B. Later B sues A for possession of the house on the ground that no title was passed as the deed was unregistered. What can A plead in defence?]

Answer

The provisions of Section 53A of the Transfer of Property Act will apply when the purchaser has paid the price and taken possession of the property under a contract for the transfer of immovable property even if the transfer deed or conveyance has not been registered. In such instances, the transferor is forbidden from contesting the purchaser's property ownership.

The following conditions should have complied under Section 53A:

• There should be a written contract for consideration that is signed by the transferor.
• The contract should be for the transfer of immovable property, and the terms required to complete the transfer should be clearly stated.
• The transferor should have taken possession of the property and done something to further the contract;
• The transferee should be ready and willing to perform his part of the contract;

In this case, even without the execution of a sale deed, the transferee acquires the right to the property, and the transferor cannot claim any rights in respect of the property under consideration other than those expressly provided in the contract terms.

However, the Hon’ble Supreme Court in the case of Ameer Minhaj v. Dierdre Elizabeth (Wright) Issar, Civil Appeal No. 18377 of 2017, ruled that an unregistered agreement to sell can be used as proof of a contract in a suit for a particular performance, but that the protection provided by Section 53A of the Transfer of Property Act 1882 would not apply. The Court cited the case of K.B. Saha and Sons Private Limited v. Development Consultant Limited (2008), holding that while a document must be registered, it can still be included as evidence of a contract in an action for a particular performance if it is unregistered.

Therefore, applying the aforesaid legal provision to the present case at hand, A can plead the provisions of Section 53A of the Transfer of Property Act in defence. Section 53A applies when the purchaser has paid the price, taken possession of the property, and fulfilled certain conditions under a contract to transfer immovable property, even if the transfer deed or conveyance is unregistered. The transferee, in this case, acquires the right to the property, and the transferor is barred from contesting the purchaser's ownership, except as expressly provided in the contract terms.