Doctrine of Part Performance
1. Meaning of the Doctrine of Part Performance
The Doctrine of Part Performance is a legal principle that protects a person who has acted on the basis of an unregistered or defective contract for the transfer of immovable property. It prevents the transferor from refusing to complete the transfer when the transferee has already performed or partly performed their obligations under the contract.
This doctrine is recognized under Section 53A of the Transfer of Property Act, 1882 (TPA) and is based on the principles of equity, justice, and good conscience.
2. Essentials of the Doctrine (Section 53A of TPA)
For the doctrine of part performance to apply, the following conditions must be satisfied:
(i) Existence of a Written Contract
- There must be a written agreement for the transfer of immovable property.
- The contract must be signed by the transferor.
(ii) Transferor’s Obligation to Transfer Property
- The transferor (seller) must have agreed to transfer the property to the transferee (buyer).
(iii) Possession Given to Transferee
- The transferee must have taken possession of the property or continued possession if already in possession.
(iv) Transferee’s Performance of Contract
- The transferee must have acted in furtherance of the contract, such as paying the price, making improvements, or fulfilling other conditions.
(v) Transferor Cannot Deny Transfer
- The doctrine bars the transferor from denying the validity of the transfer, even if the formal legal requirements (like registration) are not fulfilled.
3. Effect of the Doctrine
- The transferor is prevented from evicting the transferee or refusing to complete the sale.
- However, the transferee cannot claim ownership, only protection from eviction.
- The doctrine provides a defensive right (shield) and not an offensive right (sword). This means the transferee cannot sue for ownership but can defend their possession.
4. Exceptions: When Doctrine Does Not Apply
The doctrine will not apply in the following cases:
- Oral Contracts – The contract must be in writing; an oral agreement is not valid.
- No Possession Given – If possession was not handed over to the transferee, the doctrine cannot be invoked.
- Against a Third Party – This protection is only available against the transferor and not third parties.
- Illegal or Void Contracts – If the contract itself is illegal or fraudulent, the transferee cannot claim part performance.
5. Judicial Interpretation
- Arif v. Jadunath (1931) – The Privy Council held that a buyer who has taken possession based on an agreement to sell cannot be evicted by the seller if all conditions of part performance are met.
- K. S. Vidyanadam v. Vairavan (1997) – The Supreme Court ruled that delay in performance can defeat a claim under part performance.
6. Conclusion
The Doctrine of Part Performance protects honest buyers who have fulfilled their obligations under a property contract but face legal hurdles due to non-registration or other formal defects. It acts as a shield against unfair eviction but does not grant ownership rights. This principle ensures equity and justice in property transactions.
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