Doctrine of Part Performance

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15-Feb-2024

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 Transfer of Property Act, 1882 (TOPA)

Introduction
The Doctrine of Part Performance is a significant aspect of property law under the Transfer of
Property Act, 1882 (TPA) which allows for the recognition of partially performed
agreements even if they do not meet the formal requirements stipulated by the Act.

What is the Concept of Doctrine of Part Performance?

 The Doctrine of Part Performance is embodied in Section 53A of TPA.
 This section protects transferees who have taken possession of the property or made
improvements based on an oral agreement or an agreement not registered as required by
law.

What are Elements of Doctrine of Part Performance?

 Existence of an Agreement:
o There must be a valid agreement between the parties for the transfer of property,
even if it is not in writing or registered.
 Payment of Consideration:
o The transferee must have paid or agreed to pay the consideration, either fully or in
part, as per the terms of the agreement.
 Taking Possession or Making Improvements:
o The transferee must have taken possession of the property or performed substantial
acts of improvement on it based on the agreement.

What is a Landmark Case on Doctrine of Part Performance?

 Saradamani Kandappan v. S. Rajalakshmi (2011):
o In the landmark case, the Supreme Court reaffirmed the principles of the Doctrine of
Part Performance as enshrined in Section 53A of the TPA, 1882.
o The case involved an oral agreement for the sale of immovable property between the
parties.
o The SC held that the transferee was entitled to the protection afforded by Section
53A of the TPA, 1882 despite the informality of the agreement and its non-
registration.
o The Court emphasized the importance of equity and fairness in property transactions
and upheld the transferee's rights based on the principles of part performance.
What are Application and Implications of Doctrine of Part
Performance?
 The Doctrine of Part Performance has significant implications for property transactions in
India.
 It provides protection to transferees who have acted in good faith and relied on
agreements, even if they do not meet the formal requirements of the law.
 This doctrine ensures that parties are not unfairly deprived of their rights due to technicalities
or formalities in agreements.
 Moreover, the Doctrine of Part Performance promotes certainty and stability in property
transactions by recognizing the practical realities of transactions where parties have already
taken steps towards performance based on their agreements.

Conclusion
The Doctrine of Part Performance, as enshrined in Section 53A of TPA plays an important role in
property law in India. It provides protection to transferees who have partially performed agreements
for the transfer of property, even if the agreements do not comply with formal legal requirements.