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Protection envisaged under Sec-53A given to a person put in possession and has a lease agreement in his favor even though lease is not executed: SC

Team SoOLEGAL 19 Aug 2020 4:11pm

Protection envisaged under Sec-53A given to a person put in possession and has a lease agreement in his favor even though lease is not executed: SC

It was observed by the Supreme Court that Section-53A of Transfer of Property Act, 1882 which provides protection to a person who is put in possession with regard to a lease agreement in his favor even though no lease deed had been executed.

The ruling came under the case where government had taken over a land which belonged to Gaon Sabha Luhar Heri, Delhi. M/s K.C. Sharma & Co. claimed the compensation as they stated that the land was given to them to remove the ‘Shora’ on lease by the Gaon Sabha as it was not fit for cultivation. The Civil Court ruled that K.C. Sharma & Co. were entitled to compensation to an extent of 87% and the remaining 13% shall be given to Gaon Sabha.

Further, a suit was filed by the Government alleging that the said decree and the judgment had been obtained through fraud. The suit by the Government was held by the trial court but was later set aside by the High Court.

The SC bench comprising of Justices Ashok Bhushan, R. Subhash Reddy and M.R. Shah, while agreeing by the High Court noted, As the evidence on record discloses that fraud, as pleaded, was not established, in absence of any necessary pleading giving particulars of fraud, we are of the view that no case is made out to interfere with the well reasoned judgment of the High Court."

Another contention raised by the Appellant was that the lease deed being absent, it can only treated as a license to remove “Shora”. To that regard, the bench cited Section-53A and further dismissed the appeal by stating that, “Section 53A of the Transfer of Property Act, 1882 protects the possession of persons who have acted on a contract of sale but in whose favor no valid sale deed is executed or registered. As it is clear that respondents were put in possession and the Panchayat has acted upon their proposal for grant of lease said case law supports the case of the respondents."



Tagged: Sec-53A   lease agreement   Transfer of Property Act   Supreme Court   Gaon Sabha   Civil Court   High Court   Justice Ashok Bhushan   Justice R. Subhash Reddy   Justice M.R. Shah  
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