Section 19(b) SRA versus Section 52 TPA

Two provisions guard an earlier contract against a later buyer, and they divide the ground between them by time. Section 19(b) of the Specific Relief Act governs a purchase made before the suit, and allows the later buyer the good-faith-purchaser defence. Section 52 of the Transfer of Property Act, the doctrine of lis pendens, governs a purchase made during the suit, and allows no such defence. This note explains each in its own right, compares them, and works through an example.

Figure: Section 19(b) SRA and Section 52 TPA compared, two provisions covering two time-frames

1. Section 19(b) in Its Own Right

Section 19(b) tells us against whom specific performance may be enforced: any person claiming under a party by a title arising after the contract, except a transferee for value who has paid his money in good faith and without notice of the original contract. It thus allows the later buyer a defence, but a demanding one: he must prove value, good faith and want of notice, and the burden is on him. It operates on a purchase made before the suit, when the buyer could still claim to have been innocent of the earlier contract.

2. Section 52 in Its Own Right

Section 52 of the Transfer of Property Act states the doctrine of lis pendens: during the pendency of a suit in which any right to immovable property is directly in question, the property cannot be transferred so as to affect the rights of any party under the decree, except with the court's authority. A transfer during the suit is thus subject to its result. It allows no good-faith defence: it is not a matter of what the buyer knew, but simply that the transfer, being made while the litigation was on foot, takes subject to the outcome.

3. The Two Provisions Compared

4. Two Provisions, Two Time-Frames

5. A Worked Example

Suppose A has agreed to sell land to B, and A then sells to a third party. Which provision applies depends on when. If the sale to the third party was before B filed his suit, Section 19(b) governs: the third party is bound by B's contract unless he proves he paid value, acted in good faith and had no notice. If the sale was after B filed his suit, Section 52 governs: lis pendens makes the sale subject to the result, and the third party is bound by any decree B obtains, whatever his good faith. The two provisions are complementary, one for each side of the moment the suit is filed, and between them they close off every route by which a later buyer might try to defeat B's earlier contract.

6. Frequently Asked Questions

Q. What is the difference between Section 19(b) and Section 52?
A. Section 19(b) of the Specific Relief Act governs a purchase before the suit and allows the good-faith-purchaser defence; Section 52 of the Transfer of Property Act governs a purchase during the suit and allows no such defence.

Q. Does Section 52 allow a good-faith defence?
A. No. Lis pendens makes a transfer during the suit subject to its result regardless of the buyer's knowledge or good faith.

Q. Which provision applies to a purchase before the suit?
A. Section 19(b), under which the later buyer is bound unless he proves value, good faith and want of notice.

Q. How do the two provisions work together?
A. They divide the ground by time: Section 19(b) covers the pre-suit purchase and Section 52 the pendente lite purchase, so a buyer cannot outflank an earlier contract at either stage.