Lis Pendens
Lis Pendens
Lis Pendens
Page | 1
bound by the decision of the Court even if he had no actual or constructive notice of the pending
suit.
State Amendments in Gujarat and Maharashtra
Section 52 of the Transfer of Property Act 1882 was amended by the Bombay Act, 1939. This
amendment was subsequently declared to be in force in whole of the present States of Gujarat
and Maharashtra in the year 1959. The amended version of Section 52 provides that this section
is applicable only to those transactions pending litigation which are duly registered. However,
Section 52 of the Bombay Act, 1939 provides that the amendment in Section 52 is applicable
only to immovable properties situated wholly or partly in Greater Bombay but the State
Government is empowered to extend its application to other areas by notification.
PROVISIONS OF SECTION 52
The doctrine of lis pendens as laid down in Section 52 is as follows:
Following conditions are necessary for the application of the doctrine of lis pendens as provided
in Section 52:
When the above mentioned conditions are fulfilled, the transferee is bound by the decision of the
Court. If the decision of the Court is in favour of the transferor, the transferee has rights in the
property transferred to him. If the decision goes against the transferor, the transferee cannot get
any interest in the property.
Page | 2
The other party filed an application for pre-exemption in terms of earlier sale-deed in respect of
the same property on the same date. The Court held that Lis about the claim for pre-exemption
would be deemed to be pending before Collector on date of the execution of sale-deed.
Therefore, this sale-deed was hit by the doctrine of lis pendens. Accordingly, the Courtallowed
the application for pre-exemption by the other party.
Proceedings
The doctrine of lis pendens applies to transfer during pendency of suit or proceeding.
Proceeding means a judicial activity whether civil or criminal. For purposes of this section,
there is no difference between a suit and a proceeding.
This section has been applied to transfers made during revenue proceedings. A claim made under
O. XXI, R. 58 of the Civil Procedure Code is a proceeding under this section. Similarly,
proceedings for ejectment before Revenue Officer are affected by lis pendens. Since Registrar of
Co-operative Societies is regarded as a Court, therefore, proceeding under Rule 14 of the Cooperative Societies Act, 1912 operates as lis pendens. But, proceeding before Settlement Officer
is not a proceeding under this section and such proceeding cannot operate as lis pendens.
Compromise Suit
The doctrine of lis pendensis applicable in cases where the pending litigation is ultimately
compromised and a compromise or consent decree is passed. The word decree or order in this
section contemplates compromise or consent decrees. However, the compromise must be during
the pendency of suit and not a compromise entered into after withdrawal of the suit.
PENDENCY IN COURT OF COMPETENT JURISDICTION
The suit or proceeding during which the property is transferred, must be pending before a Court
of Competent Jurisdiction. Where a suit is pending before a Court which has no proper
jurisdiction to entertain it, the lis pendens cannot apply. For filing a suit, the Civil Procedure
Code has prescribed jurisdictions of the Courts on the ground of territory or on the basis of
valuation of the subject-matter or dispute. The jurisdiction of the Court is, therefore, territorial or
pecuniary or, otherwise as given in the Code. Thus, a suit respecting any immovable property
should be filed only in the Court within whose jurisdiction the property situates. Accordingly, the
Courtcannot pass valid decree so as to affect a transfer made pendente lite. Lis pendens is not
applicable where the suit is pending in any Court is outside the scope of this section.
However, as regards pecuniary jurisdiction, if a suit is filed in a Higher Court which should have
been filed in the Lowest Court, it has been held that there is no lack of jurisdiction; it is merely
an irregularity and Section 52 applies.
RIGHT TO IMMOVABLE PROPERTY MUST BEINVOLVED
The litigation should be regarded title or interest in any immovable property. Where the question
involved in the suit or proceeding does not relate directly to any interest in an immovable
property, the doctrine of lis pendens has no application.
Page | 4
For example, where a suit is pending between landlord and tenant regarding payment of rents
and during litigation the landlord transfers the property, the transfer is not affected by lis pendens
because the litigation is not with regard to any interest in the property but involves payment of
rents. Similarly, where a Hindu widow filed a suit against her stepson for maintenance and
specifies certain immovable properties in possession of such stepson, it was held that right to
immovable property is not directly in issue and this section cannot apply. Mere mention of an
immovable in the plaint is not enough; rights in respect of that immovable property must directly
and substantially be in question. In a suit for specific performance of a contract to transfer an
immovable property, the right to such immovable property is directly and substantially in
question. Therefore, transfer of that property is within the scope of this section.
Following suits have been held to involve question of rights in immovable property and are
within the scope of this section:
Where the suit or proceeding does not involve any question of right in immovable property, Lis
Pendens does not apply. Thus,
Are outside the scope of this section. Similarly, a suit for recovery of rents of an agricultural
holding is also outside the scope of this section.
Rights in movables
The doctrine of lis pendens does not apply where the suit involves rights in movable properties.
Standing timber is a movable property; therefore, this section cannot apply where the issue
before the Court is rights in respect of standing timber. Similarly, where certain ornaments were
pledged pending a suit for their recovery, it was held that lis pendensis not applicable and the
pledge shall not be subject to decision of the Court.
SUIT MUST NOT BE COLLUSIVE
Lis pendens is inapplicable if the suit is collusive in nature. A suit is collusive if it is instituted
with a mala fide intention.
Page | 5
Mala fide intention behind instituting a suit is inferred from the fact that parties to the suit know
their respective rights in the property and there is no actual dispute. Such suit is, therefore,
fictitious and the very purpose of filing the suit is to get judicial decision for some evil design.
Since such suits are instituted with a mala fide intention of causing injury to a third person, there
is no question of its being a litigation involving rights in an immovable property. Where property
is transferred during pendency of a collusive suit, the transferee is not bound by the result of the
litigation. However, it is impossible that a suit in the beginning is bona fide but during pendency
there is a secret agreement between the parties in the form of a compromise. In such cases too lis
pendens is inapplicable. A Hindu wife filed a maintenance suit against her husband with a secret
agreement that during litigation the husband would transfer the property. During the pendency of
the suit, the husband sold the property. Later on, a charge was created in favour of the wife over
the property. It was held by the Privy Council that the suit was collusive in nature and was,
therefore, outside the scope of lis pendens. Accordingly, the Court held that the purchaser was
not bound by the Charge on the property.
PROPERTY IS TRANSFERRED OR OTHERWISE DEALTWITH
During pendency of suit, the property must be transferred or otherwise dealt with by any of the
parties to suit. Transfer includes sale, exchange, lease and mortgage. Thus, during pendency of
suit is the disputed property is sold or given in exchange, is leased or is mortgaged either by
plaintiff or by defendant, the doctrine of lis pendens shall apply on it and the transfer would be
subject to decision of the Court.
The expression otherwise dealt with has been interpreted to mean those transactions in which
although there is transfer of some interest in the property but they do not come strictly within the
meaning of transfer of property as defined in Section 5 of this Act. Accordingly, surrender,
release or partition would be regarded as transfer for purposes of this section. A contract of sale
has been regarded as a transfer within the meaning of otherwise dealt with. Therefore, entering
into contract of sale of the disputed property during litigation shall attract the provisions of this
section. Partition affected during pendency of the suit shall also come on within the ambit of this
section. Handing over of the disputed property during litigation would mean otherwise dealt
with and Section 52 applies.
To construct building on the disputed land so as to compel the plaintiff to file another suit for its
removal is dealing the property otherwise and comes within the purview of Section 52. Entering
into a compromise respecting disputed property with a third person during litigation is also
dealing the property otherwise.
Involuntary transfers
Transfer of property may either be by act of parties or by operation of law. Transfers by operation
of law are known as involuntary transfers e.g. Court sale or transfer made by order of Court.
Section 52 is applicable to both the kinds of transfers pendente lite.
Page | 6
Formerly there was some doubt whether this section applies to transfers made by operation of
law because this Act does not apply to such transfers. But the Privy Council had settled the law
that the principle of lis pendens is applicable also to transfers by operation of law. In
Samarendra Nath Sinha v. Krishna Kumar Nag, the Supreme Court has also held that it is
true that Section 52 strictly speaking does not apply to involuntary alienations such as Court but,
it is well established that the principle of lis pendens applies to such transfers. Therefore, the
doctrine of lis pendensapplies where the sale is made by order of the Court. Though an
attachment is not a transfer, but a sale in pursuance of an attachment comes within the scope of
this section.
Transfers with permission of Court
When a transfer is made during pendency of suit with the permission of Court, the principle of
lis pendensis not applicable. The concluding part if this section exempts transfers pendente lite if
such transfer is made under the authority of the Court and on such terms as it any impose. Under
this clause, the parties to suit are entitled to apply to the Court in which the suit is pending to get
permission for the transfer. If the Court deems in fit, it may give permission for the transfer of
disputed property. In such a situation, Section 52 shall not apply on the transfer of disputed
property. In such a situation, Section 52 shall not apply on the transfer though it is made during
pendency of suit.
Transfer by any party to suit
Transfer of property by a person whose title is not in any way connected with disputed property
is not affected by lis pendens. A party to suit whose name is struck off as a contesting party by
consent is not bound by the decree because lis pendens shall not apply to him. It is to be noted
that the words any party are not merely descriptive but refer to the time when transaction takes
place. The doctrine of lis pendenswas, therefore, not applied where the transfer was made
pending the suit by a person who was not party at the time of transfer but, was subsequently
made a party as a representative of the original defendant.
In Sri Pal Singh v. Naresh, the owner of the property who was a party to the suit sold the
property to a second purchaser. This sale was affected after the first vendee had filled a suit for
specific performance of the sale to him. The Court said that the principle of lis pendenswas to
apply notwithstanding the fact that the right of the subsequent purchaser could be protected
under Section 19(b) of the Specific Relief Act, 1963.
TRANSFER AFFECTS RIGHTS OF ANY OTHERPARTY
The last condition for applicability of Section 52 is that the transfer during pendency must affect
the rights of any other party to suit. The principle of lis pendens is intended to safeguard the
parties to litigation against transfers by their opponents. So, the words any other party here does
not mean stranger to suit. It means any other party between whom and the party who transfers;
there is an issue for decision which might be prejudiced by alienation. Any other party here
means the opposite party whose interest may be affected by transfer pendente lite. Where the
Page | 7
rights only of the transferor and not of the other party to suit are affected, the principle of lis
pendensdoes not apply.
Thus, Section 52 cannot be made applicable between parties who are at one side either as
plaintiff or as defendant because there is no question of any dispute between them.
EFFECT OF THE PRINCLPLE OF LIS PENDENS
When the condition necessary for the applicability of this section are fulfilled the result is that
transferee is bound by the decision of the Court. For example, in a suit between A and B
respecting title of a house if B transfers the house to C during pendency and the judgement is
subsequently in favour of B, then C would be entitled to the house. But if the decree is passed
against B, then it is binding not only on B but also on C with the result that C cannot get the
house. Under this section C cannot take the plea that he had no notice of pending litigation. It
may be noted that normally decree of a Court binds only the parties to the suit. It may be noted
that normally decree of a Court binds only the parties to the suit. But, under the principle of lis
pendens, a person who purchases during pendency of the suit is also bound by the decree made
against that party from whom he had purchased.
The effect of lis pendens is, therefore, that it does not prevent the vesting of title in the transferee
but only makes it subject to the rights of the parties as decided in the suit.
Section 52, therefore, does not invalidate the transfer but renders if subservient or subject to the
rights of the parties to litigation. The words so as to affect the rights of any other party thereto
under any decree or order which may be made therein suggest that the transfer pendente lite is
valid and good to the extent that it might conflict with rights established under the decree.
Where the assignee of a decree was neither impleaded in the first appeal, nor in the second
appeal, it was held that he was nevertheless bound by the result of the second appeal and could
reap the benefit of the decree for possession in the second appeal.
Purchase of property during continuance of a prohibitory order of the Court has been held to
confer no right or title on the purchaser.
Page | 8
BIBLIOGRAPHY
BOOKS
Sinha, R.K. The Transfer of Property Act, 11th Edition. Allahabad: Central Law Agency,
2010.
E-ARTICLES
<http://advocatemmmohan.wordpress.com/2011/11/15/transfer-of-property-act-1882-s-52transfer-of-property-by-a-defendant-pending-a-partition-suit-partition-suit-found-to-be-notcollusive-decree-in-partition-suit-in-terms-of-decree-the-pend/
Page | 9