Probodh Kumar Das v. The Dantamara Tea Co. Ltd. (AIR 1940 PC 1)
Section 53A of the Transfer of Property Act is a shield, not a sword.
- Quick Summary
- Issues
- Rules
- Facts
- Arguments
- Judgment
- Ratio
- Why It Matters
- Key Takeaways
- Mnemonic
- IRAC
- Glossary
- FAQs
- Related
Case Meta
Quick Summary
This case explains the true reach of Section 53A, Transfer of Property Act, 1882. A buyer in possession under an unregistered agreement can use Section 53A to defend that possession. But the buyer cannot use it to claim ownership or to sue a later purchaser who holds a valid registered title. The Privy Council confirmed: 53A is a shield, not a sword.
Issues
- Does Section 53A allow a transferee in possession under an unregistered sale agreement to assert ownership rights?
- Can Section 53A give the transferee an actionable right to challenge a later transferee with a registered deed?
Rules
- Section 53A TPA: protects a transferee who has taken possession in part performance of a contract, by preventing the transferor (and persons claiming under them) from disturbing that possession.
- It is a defensive right; it does not create title and does not grant an independent right to sue.
Facts (Timeline)
Timeline Image
Mortgage & Auction: A tea estate in Chittagong was mortgaged and later bought at auction by Gillanders, Arbuthnot & Co. without a formal conveyance.
1931 – Agreement with S.N. Roy: Gillanders agreed to sell to S.N. Roy by an unregistered agreement. Roy paid part of the price and took possession. No deed was executed.
1934 – Registered Sale: Gillanders sold the estate to Dantamara Tea Co. Ltd. through a registered deed. The company was recognised for the estate’s export quota.
Suit: The appellant, Probodh Kumar Das, claiming through Roy, sued to declare that Dantamara had no title to the land and quota rights, relying on Section 53A.
Procedural History: Trial court allowed the claim; High Court reversed, holding Section 53A cannot found such a suit. Appeal went to the Privy Council.
Arguments
Appellant
- Roy was in possession after part performance; Section 53A should protect his position.
- Therefore, the later registered transferee should not defeat his claim to the estate and related quota rights.
Respondent
- Section 53A is only a defence to resist dispossession; it does not create ownership.
- The respondent has a registered title; the appellant cannot sue on Section 53A to defeat a registered conveyance.
Judgment
Judgment Image
The Privy Council dismissed the appeal. Section 53A does not give an active right to sue or a title in the transferee. It only bars the transferor and those claiming under the transferor from disturbing the transferee’s possession when the contract has been partly performed and the transferee is willing to perform the rest. A later purchaser with a registered deed cannot be defeated by using Section 53A as an offensive claim.
Ratio Decidendi
Section 53A creates a personal equity of defence to protect possession; it does not transfer ownership or create a cause of action. Hence, it cannot be used to upset a valid registered title of a subsequent transferee.
Why It Matters
- Clarifies the defensive nature of part performance under Indian law.
- Signals the importance of registration for transferring title in immovable property.
- Guides litigation strategy: use Section 53A to defend possession, not to claim title.
Key Takeaways
- Shield only: Section 53A protects possession; it is not a source of title.
- No right to sue: It cannot be the basis of an offensive claim.
- Registration matters: A later registered transferee stands on stronger ground.
Mnemonic + 3-Step Hook
Mnemonic: “53A = POS” — Possession Only Shield.
- Step 1: Ask: “Am I defending my possession?” If yes, 53A may help.
- Step 2: Check readiness to perform your part of the contract.
- Step 3: Remember: No title without a registered deed.
IRAC Outline
Glossary
- Part Performance
- Doing acts under a contract (like paying money, taking possession) so the other side is stopped from acting unfairly.
- Registered Title
- Ownership recorded through a formal registered deed under law.
- Defensive Equity
- A right used to defend a position (like possession), not to start a lawsuit for ownership.
FAQs
Related Cases
- Nathulal v. Phoolchand — Good faith readiness to perform under Section 53A.
- Shrimant Shamrao Suryavanshi v. Pralhad Bhairoba Suryavanshi — Scope of part performance.
- Ram Kumar Agarwal v. Thawar Das — Limits of equitable protection.
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