#Section 53A Transfer of Property Act

NCLAT rules that possessory rights under Section 53A of the Transfer of Property Act, when affirmed by a consent decree, cannot be disturbed by a Resolution Professional under the Insolvency and Bankruptcy Code. The ruling clarifies that IBC proceedings do not automatically extinguish pre-existing property rights established through judicial decrees, offering critical protection to parties with settled possessory claims.

Bombay High Court rules that Section 53A of the Transfer of Property Act protects possession only as per the exact terms of the agreement. Constructed structures on open land, not covered in the agreement, do not enjoy protection, and failure to seek specific performance defeats the claim. The ruling underscores the need for precise alignment between possession and contractual terms in property disputes.

Allahabad HC rules that a transferee’s possessory title under Section 53A of the Transfer of Property Act remains enforceable even after the agreement’s expiry, provided possession is undisturbed and full consideration is paid. The ruling shields transferees from eviction or interference by the transferor or third parties, reinforcing equitable protection for part-performance.

The Bombay High Court has ruled that an unregistered Agreement for Sale cannot extinguish a pre-existing landlord-tenant relationship, even if possession is claimed under Section 53A of the Transfer of Property Act. This clarifies that registration is mandatory for equitable ownership claims, preserving tenants' rights against speculative sales agreements and reinforcing procedural safeguards in property transactions.