ISSUE:
Whether Section 53A of the Transfer of Property Act, 1882, allows a transferee in possession under an unregistered contract of sale to assert ownership rights actively?
Whether Section 53A can confer an actionable right to the transferee to challenge the rights of a subsequent transferee with a registered title?
RULE:
Section 53A of the Transfer of Property Act, 1882 (“TP Act”), protects a transferee in possession under an unregistered contract of sale from being dispossessed by the transferor or any person claiming under them.
Section 53A of the TP Act is a defensive provision and does not grant any active title or right to sue upon the transferee.