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  • provision of order VIII, Rule 6-A of the Civil Procedure Code,
  • SECTION 53 TRANSFER OF PROPERTY ACT
  • provisions of Article 113 of the Limitation Act.4.
  • provisions of Order VIII, Rule 6-A
  • sub-rule 2 of Rule 6-A
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Citation Codes
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citation codes
Case Number
Advocates
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  • provision of order VIII, Rule 6-A of the Civil Procedure Code,
  • SECTION 53 TRANSFER OF PROPERTY ACT
  • provisions of Article 113 of the Limitation Act.4.
  • provisions of Order VIII, Rule 6-A
  • sub-rule 2 of Rule 6-A
Smart Summary

Comprehensive Summary of the Opinion

Factual and Procedural Background

The present Second Appeal is filed by the original plaintiff who originally executed an Issar Pavati (agreement of sale) in favour of one Pirtaji on 22 May 1961 for a consideration of Rs. 3,000/-, of which Rs. 2,000/- was paid as earnest money and Pirtaji was placed in possession of the suit land (survey no. 8, known as Chikni, admeasuring 31 acres 5 gunthas, western half share), village Manur, taluka Manjalgaon. The agreement and Pirtaji's possession were held proved by the courts below.

The plaintiff earlier filed Regular Civil Suit No. 69 of 1961 against Pirtaji for recovery of possession, which was dismissed on 31 January 1963, the court holding that Pirtaji was entitled to possession under Section 53-A of the Transfer of Property Act. An appeal by Pirtaji was dismissed.

The present suit (filed in 1971) was brought by the plaintiff against defendants who are heirs claiming through Pirtaji. The defendants filed a counterclaim under Order VIII, Rule 6-A for specific performance of the contract and also sought protection under Section 53-A on the basis of continued possession.

At trial the learned Judge held the earlier Civil Suit No. 69 of 1961 operated as res judicata; held that the defendants were willing to perform and had protection under Section 53-A; but the defendants' counterclaim for specific performance was dismissed as time-barred under Article 113 of the Limitation Act. Two appeals to the District Judge, Beed (Regular Civil Appeal No. 118 of 1977 by the plaintiff and No. 166 of 1979 by original defendant no. 3) were dismissed by a common judgment dated 6 November 1981, upholding res judicata and Section 53-A protection while finding the specific performance claim barred by limitation.

The present Second Appeal was filed by the original plaintiff; defendant no. 3 filed cross objections challenging rejection of specific performance. The High Court considered the parties' contentions, precedents, and the effect of the counterclaim (treating it as a cross-suit), and ultimately allowed the appeal.

Legal Issues Presented

  1. Whether defendants (transferees through Pirtaji) can claim protection under Section 53-A of the Transfer of Property Act after their counterclaim/cross-suit for specific performance has been filed and subsequently dismissed as time-barred.
  2. Whether the earlier decision in Civil Suit No. 69 of 1961 operates as res judicata to bar the present plaintiff's suit for possession when the present suit arises after institution and dismissal of proceedings for specific performance in the present suit.
  3. Whether the counterclaim filed under Order VIII, Rule 6-A has the effect of a cross-suit so as to enable the court to pronounce a final judgment on both original claim and counterclaim, and the consequences of dismissal of such a counterclaim on the enforceability of the agreement of sale.
  4. Whether the claim for specific performance is barred by limitation and, if so, whether limitation on specific performance prevents invocation of Section 53-A as a defence to dispossessing the transferee.

Arguments of the Parties

Appellant's Arguments (original plaintiff)

  • Once the defendants' counterclaim (cross-suit) for specific performance is dismissed, the defendants cannot invoke protection under Section 53-A of the Transfer of Property Act.
  • The concurrent finding of res judicata by the courts below is improper because in the earlier suit (Civil Suit No. 69 of 1961) the question of specific performance was not adjudicated upon and did not appear for consideration at that time.
  • Because the defendants' claim for specific performance was rejected by the Trial Court on 19 September 1977, the agreement's enforceability has ended and the plaintiff should be granted possession.

Respondents' Arguments (defendants / their counsel)

  • Even if a suit for specific performance is barred by limitation, the transferees are still entitled to protection under Section 53-A (relied on precedents such as Maruti Gurappa v. Krishna Bala and Nanasaheb Gujaba Bankar v. Appa).
  • The earlier decision in Civil Suit No. 69 of 1961 operates as res judicata and therefore the plaintiff cannot recover possession now.
  • By filing cross objections the respondent challenged the part of the decree refusing specific performance; they argued that the rights under the agreement were enforceable at the time of filing of the present suit and that the plaintiff could only challenge the effect of dismissal of specific performance by filing a fresh suit after that dismissal (argument presented by counsel, though the court rejected it).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Govind v. Devi Sahai, (1982) 1 SCC 237 : AIR 1982 SC 989 Sets out the prerequisites for doctrine of part-performance under Section 53-A: written contract signed by the person sought to be bound; terms ascertainable with reasonable certainty; possession and acts in furtherance of the contract with a real nexus to the contract. The Court cited these tests but distinguished Govind because that and similar cases did not involve a situation where a claim for specific performance had been actively filed and then dismissed; hence the ratio was not directly applicable to the present facts.
Nathulal v. Phulchand, (1969) 3 SCC 120 : AIR 1970 SC 546 Earlier Supreme Court articulation of tests qualifying for protection under Section 53-A (similar prerequisites to Govind). The Court relied on the fact that Nathulal contains the same tests but observed that Nathulal did not consider the effect of dismissal of a suit for specific performance brought by the transferee; thus the precedent was distinguished on facts.
Maruti Gurappa v. Krishna Bala, 1966 Mh. L.J 24 : AIR 1967 Bom. 34 Held that when remedy for specific performance is barred by limitation, protection under Section 53-A can still be validly claimed by the transferee. The Court considered this Bomaby High Court authority but distinguished it because in Maruti Gurappa no suit for specific performance had been filed (and dismissed) — the present case involved a counterclaim that was actually filed and rejected, which the Court held changed the legal consequence.
Nanasaheb Gujaba Bankar v. Appa, 1959 BLR 303 Held that even if remedy to enforce specific performance is barred by limitation, protection under Section 53-A may be available because the question related to possession rather than title. The Court noted this decision but again distinguished it on the factual matrix: in Nanasaheb Gujaba Bankar there was no suit for specific performance that had been filed and subsequently rejected; therefore the case was not controlling on the present facts where specific performance had been claimed and denied.

Court's Reasoning and Analysis

The Court proceeded through a structured analysis focusing on (a) the nature and effect of the defendants' counterclaim under Order VIII, Rule 6-A, (b) the established prerequisites for Section 53-A, and (c) the legal consequences of dismissal of a suit for specific performance after it has been actually claimed.

First, the Court emphasised that a counterclaim under Order VIII, Rule 6-A (specifically sub-rule (2)) has the same effect as a cross-suit and enables the court to pronounce a final judgment both on the original claim and on the counterclaim. Because the defendants had invoked specific performance by way of a counterclaim, that claim must be treated as a suit brought by the defendants and thus its adjudication has final effect between the parties in that suit.

Second, while acknowledging the established principle that Section 53-A is an equitable doctrine of part-performance that operates as a shield (not a sword), and summarising the prerequisites laid down in the cited Supreme Court decisions (e.g., Govind and Nathulal), the Court observed a critical factual distinction: in the precedents relied upon by respondents (Maruti Gurappa and Nanasaheb Gujaba Bankar), there was no actual suit for specific performance prosecuted and dismissed by the transferees. In those cases the protection under Section 53-A was considered in the absence of a pending or dismissed claim for specific performance.

Third, because the defendants in the present proceedings had themselves filed a counterclaim for specific performance which was dismissed on limitation grounds by both courts below, the Court found that the agreement had been asserted in a suit and subsequently denied judicial enforcement. The Court reasoned that once the claim for specific performance is denied in such a cross-suit, the agreement (as against the plaintiff) must be deemed to be annulled for purposes of enforceability between these parties and the rights created by such agreement are no longer enforceable.

Consequently, the factual scenario — a counterclaim equivalent to a cross-suit that was brought and adjudicated against the defendants — made the earlier precedents inapplicable by way of direct authority. The Court held that the dismissal of the specific performance claim means the defendants cannot legitimately rely on Section 53-A as a shield against the plaintiff's suit for possession, and that the earlier suit (Civil Suit No. 69 of 1961) does not operate as res judicata to prevent the plaintiff from obtaining possession because the enforceability of the agreement had been judicially extinguished by the decree in the present proceedings.

The Court accepted that the defendants' claim for specific performance was time-barred and found no basis to reverse that conclusion. The Court therefore rejected the respondents' contention that Section 53-A protection survives a dismissed suit for specific performance where that suit was actually filed and adjudicated.

On ancillary matters the Court observed that the defendants' claim for refund of Rs. 2,000/- need not be considered because defendants had been in possession of the suit land for more than 25 years. The Court also refused an oral request for leave to the Supreme Court and refused a request for time for delivery of possession for execution.

Holding and Implications

APPEAL ALLOWED.

Holding (direct effect on the parties):

  • The Second Appeal filed by the plaintiff is allowed and the plaintiff is entitled to recover possession of the suit land.
  • The defendants are not entitled to protection under Section 53-A of the Transfer of Property Act in the present proceedings, because they had filed a counterclaim (treated as a cross-suit) for specific performance which was dismissed and consequently the agreement was held not enforceable between the parties.
  • The defendants' counterclaim/cross objections challenging the refusal of specific performance were dismissed; the Court agreed that the claim for specific performance was time-barred.
  • The claim of the defendants for refund of Rs. 2,000/- was not considered by the Court on the ground that the defendants had been in possession for more than 25 years.
  • No costs were awarded; leave to approach the Supreme Court was refused; the request for time to deliver possession was refused.

Implications (scope and precedent): The Court distinguished earlier authorities that had allowed Section 53-A protection even where specific performance was barred by limitation, on the ground that those cases did not involve a cross-suit or counterclaim for specific performance that had been adjudicated and dismissed. The Court's decision rests on that factual and procedural distinction; the opinion bases its result on the effect of an adjudicated counterclaim and does not purport to overrule the general tests for Section 53-A stated in earlier Supreme Court decisions. The immediate consequence is the restoration of possession to the plaintiff and the denial of Section 53-A protection to the defendants in these proceedings; the opinion does not claim to establish a broader new legal principle beyond the factual distinction emphasised.

Disposition: Appeal allowed; cross objections dismissed; no orders as to costs; leave to Supreme Court refused; request for time for delivery of possession refused.

    Sheikh Nagaji Sheikh Chattu v. Ashroba Pirtaji Bhoi And Others

    1. This Second Appeal is filed by original plaintiff who filed a suit for recovery of possession of suit land bearing survey number 8, known as Chikni, admeasuring 31 acres 5 gunthas to the extent of western half share situated at village Manur, taluka Manjalgaon. This Second Appeal raises interesting question of law. The plaintiffs executed Issar Pavati (agreement of sale) in favour of one Pirtaji on 22nd May 1961 for a consideration of Rs. 3,000/- and he had received Rs. 2,000/- towards earnest money from Pirtaji and had placed him in possession over the suit land. The fact regarding agreement and the possession of Pirtaji is held to be proved by the Courts below.

    2. The plaintiff had filed a Regular Civil Suit number 69 of 1961 against Pirtaji for recovery of possession of the suit land. The suit was dismissed on 31st January, 1963. It was held in that suit that Pirtaji, the predecessor in title of the defendants, was entitled for possession under Section 53-A of the Transfer of Property Act on the basis of agreement of sale and his possession over the suit land. An appeal filed by Pirtaji against the decree passed by the Trial Court was dismissed. The present suit is filed by the plaintiff against the defendants who are heirs and are claiming through Pirtaji for recovery of possession of the same land which was a subject matter of Regular Civil Suit number 69 of 1961. After filing of the present suit, a counter claim is filed by the defendants under the provisions of Order VIII, Rule 6-A claiming decree for specific performance of contract for sale against the present plaintiff. The defendants also claimed the protection of Section 53-A of Transfer of Property Act on the basis of their possession under the agreement executed in favour of Pirtaji by the plaintiff, as Pirtaji was in possession of the suit land since the date of agreement, and thereafter, the present defendants continued to be in possession of the suit land till the filing of the suit.

    3. The learned Trial Judge held that the judgment passed in Civil Suit number 69 of 1961 operates as res judicata between the parties. It was also held that Pirtaji was willing, and the defendants are willing, to perform their part of contract, but the plaintiff denied to perform his part of contract by refusing to execute sale-deed. It was also held that the defendants are entitled to protect their possession over the suit land on the basis of agreement of sale dated 23rd May, 1960. However, the claim of the defendants for decree for specific performance of contract for sale against the present plaintiff was not granted, on the ground that the claim is time barred in view of the provisions of Article 113 of the Limitation Act.

    4. Before the learned District Judge at Beed, two Appeals came to be filed; one by the plaintiff, being Regular Civil Appeal number 118 of 1977, and another by the original defendant number 3 i.e son of Pirtaji, being Regular Civil Appeal number 166 of 1979. Learned District Judge, Beed, who heard both the Appeals simultaneously and disposed of both these appeals by a common judgment, on 6th November 1981. The lower Appellate Court also held that the present suit of the plaintiff is barred by res judicata. The original defendants are entitled for protection under Section 53-A of the Transfer of Property Act, and therefore, the plaintiff is not entitled for possession of the suit land. The lower Appellate Court also came to the conclusion that the claim of the defendant for specific performance of contract is barred by limitation. In view of the said observations, the learned District Judge dismissed both the Appeals. This Second Appeal is filed by the original plaintiff while the defendant number 3 has filed cross objections as the claim of the defendants for specific performance is rejected also by the lower Appellate Court.

    5. Learned Counsel Shri P.R Deshmukh appearing for the Appellant (original plaintiff) contended that in view of the dismissal of a cross suit by way of a counter claim regarding specific performance of contract, the defendants are not entitled for any protection now under the provisions of Section 53-A of the Transfer of Property Act. According to learned Counsel, as the claim by way of cross suit for specific performance is dismissed by the decision of the Trial Court on 19th September, 1977, the defendants cannot protect their possession in the light of the provisions of Section 53-A of the Transfer of Property Act and the concurrent findings of the courts below regarding res judicata is also not proper, because the earlier suit was filed when the claim for specific performance of Pirtaji was not adjudicated on. Not only that, but in that suit, the question of specific performance did not appear for consideration.

    6. Learned Counsel cited two authorities of Supreme Court to substantiate his contention. In (1982) 1 SCC 237 : AIR 1982 SC 989, Govind v. Devi Sahai, the provisions of Section 53-A of the Transfer of Property Act, are considered and what is held is that:—

    “…. To qualify for the protection of the doctrine of part-performance it must be shown that there is a contract to transfer for consideration immovable property and the contract is evidenced by a writing signed by the person sought to be bound by it and from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty. These are pre-requisites to invoke the equitable doctrine of part-performances. After establishing the aforementioned circumstances it must be further shown that a transferee had in part performance of the contract, either taken possession of the property or any part thereof, or the transferee being already in possession continues in possession in part-performance of the contract and has done some act in furtherance of the contract. There must be a real nexus between the contract and the acts done in pursuance of the contract or in furtherance of the contract and must be unequivocally referable to the contract….”

    7. Supreme Court has considered the ratio laid down in its earlier judgment reported in (1969) 3 SCC 120 : AIR 1970 SC 546, Nathulal v. Phulchand. The above tests which qualify for the protection provided under Section 53-A are also mentioned in the earlier judgment of the Supreme Court. Learned Counsel Shri Mundhe, appearing for some of the respondents, contended that even though the counter claim by way of cross suit for specific performance of contract is not granted in favour of the defendants, they are still entitled for protection under Section 53-A of the Transfer of Property Act. Learned Counsel relied upon the judgment of this Court reported in 1966 Mh. L.J 24 : AIR 1967 Bom. 34, Maruti Gurappa v. Krishna Bala*. The ratio laid down in that decision is to the effect that the remedy for specific performance of contract barred by limitation, still protection under Section 53-A can be held good. There is also another judgment of our High Court reported in 1959 BLR 303, Nanasaheb Gujaba Bankar v. Appa. In that decision also, it is held that if the remedy to enforce specific performance of agreement is barred by limitation, still the protection under Section 53-A of the Transfer of Property Act is available to the defendants as the question in the suit relates not to the title, but to the possession.

    8. There is no dispute that the protection under Section 53-A of the part of performance is to use as a shield and not as a sword. It can only be used by way of defence to protect the possession. In none of the cases cited by both the Counsel, the point which is necessary to decide the present case came for consideration because in all these cases, bar of limitation is considered in the absence of a suit filed for specific performance. In the present case, the defendants are seeking not merely the protection of Section 53-A of the Transfer of Property Act by way of defence, but they have claimed execution of sale-deed in their favour by specific performance, and that is why, they have filed a counter claim under provisions of Order VIII, Rule 6-A for specific performance and both the Courts have denied the claim for specific performance by the defendants. In the cases which were cited before me, the claim for specific performance was not made by the defendants at all. Therefore, the protection of Section 53-A was considered without there being any claim for specific performance by the transferees. On the facts of the present case, the ratio laid down in the earlier decision is required to be distinguished.

    9. If we consider the provision of order VIII, Rule 6-A of the Civil Procedure Code, which provides for counter claim by defendants; sub-rule 2 of Rule 6-A provides as under:

    “….(2) Such counter claim shall have the same effect as a cross-suit so as to enable the court to pronounce a final judgment in the same suit, both on the original claim and on the counter claim….”

    10. Such counter claim, shall for the same, is a cross suit so as to enable the Court to pronounce a final judgment in the same suit, both on the original claim and on the counter claim. Therefore, the claim made by way of counter claim amounts to the claim in a suit as if filed by the defendants. The claim for specific performance is not granted by the Courts below on the ground of limitation, but the fact remains that specific performance was claimed by the defendants and was not granted by the Courts. Therefore, in view of this factual aspect, the ratio laid down in the earlier decisions have no application in the present case. I am of the opinion, therefore, that once the claim or suit for specific performance is denied to the defendants, the agreement of which the specific performance was sought, therefore, be deemed to be annulled and the rights created by such agreement, are not enforceable. Learned Counsel for the respondent contended that the decision in the earlier suit i.e 69 of 1961 will operate as res judicata; in spite of the fact that the claim for specific performance is rejected in the present suit. I am unable to appreciate this contention. In the earlier suit, the protection was available to the defendants under Section 53-A because the rights under the agreement had not come to an end and they were still enforceable. But in view of the decree passed in the present case, the right under the agreement cannot be enforced. Therefore, there is no question of res judicata by virtue of the decision in the earlier suit. The question of specific performance was not before the Court then for consideration. Therefore, the lower Appellate Court has committed an error in consideration that the decision in the earlier suit operates as res judicata.

    11. Learned Counsel for the respondents further argued that he has filed cross objections in this Appeal challenging that part of the decree by which the claim of defendants for specific performance is refused. Both the Courts found that the claim for specific performance of contract is time barred. I do not find any reason to come to a different conclusion on the question of limitation, as admittedly, the claim is time barred. Learned Counsel relying on certain observation of this Court reported in the above cited two cases that even though the claim for specific performance, is time barred, it is held that the defendants are entitled for protection under Section 53-A. I am unable to appreciate this contention also because in those two reported decisions, the claim for specific performance was not agitated before the Courts, and there was, therefore, no question of considering the fact of dismissal of suit for specific performance on the agreement of sale as there was no suit filed for specific performance of contract in those two cases; the agreement in those cases was enforceable agreement, but the distinguishing feature in the present case is that the claim for specific performance is rejected and the consequence of dismissal of the claim for specific performance is that the rights accrued under the agreement cannot be enforceable thereafter. The third contention which the learned counsel for the respondents agitated is that the suit is filed prior to dismissal of the claim for specific performance. So the decisions of the Courts below are right in view of the fact that on the date of the suit, the rights under the agreement were enforceable, and if at all plaintiff wants to claim on the basis of the dismissal of the suit for specific performance, he could file a fresh suit thereafter for possession, but the claim of the plaintiff for recovery of the possession in the present suit which is filed in the year 1971, cannot be considered as the defendants claim for specific performance is rejected by the Trial Court on 19th September, 1977. I do not think it possible to accept the contention of the learned counsel because when there is a judicial pronouncement on the enforceability of the agreement, the parties need not be dragged again to a further litigation, and in my opinion, the plaintiff can be granted the relief of possession in the suit itself. I, therefore, hold that the defendants are not entitled for protection under Section 53-A of the Transfer of Property Act. The plaintiff is entitled for possession of the suit land. The claim of the defendant for refund of an amount of Rs. 2,000/- need not be considered as defendants are in possession of the suit land for more than 25 years. This Second Appeal is allowed. There shall be no orders as to costs. The cross objections are dismissed. At this stage, learned Counsel for respondent asked for leave to Supreme Court orally. Leave is rejected. He also requested, for time for delivery of possession for execution. That is also rejected.

    Appeal allowed.
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    Sheikh Nagaji Sheikh Chattu v. Ashroba Pirtaji Bhoi And Others
    (Oct 16, 1987)