All NotesCivil LawTransfer of Property Act (TPA)

Transfer of Property Act (TPA)

Doctrine of Lis Pendens under Section 52: Meaning, Object, Essentials and the Effect of a Transfer Pendente Lite

A court that is trying a dispute about land must be able to give an effective decree at the end of it. If either party could sell the property while the suit was running and leave the successful litigant with a judgment against a man who no longer owned anything, litigation would be a waste of everybody's time. Section 52 prevents that, not by forbidding the transfer but by subordinating it: the property may be sold, and the sale is perfectly good between the parties to it, but the purchaser takes subject to whatever the court decides.

Figure 1: The property during the pendency, the transfer that crosses it, and the position of the transferee

1. The Section

Section 52, TPA

During the pendency in any court having authority within India of any suit or proceeding which is not collusive and in which any right to immoveable property is directly and specifically in question, the property cannot be transferred or otherwise dealt with by any party to the suit or proceeding so as to affect the rights of any other party thereto under any decree or order which may be made therein, except under the authority of the court and on such terms as it may impose.

Explanation — the pendency is deemed to commence from the date of the presentation of the plaint or the institution of the proceeding in a court of competent jurisdiction, and to continue until the suit or proceeding has been disposed of by a final decree or order and complete satisfaction or discharge of it has been obtained, or has become unobtainable by reason of the expiration of the period of limitation for its execution.

2. Meaning and Object

The doctrine is expressed in the maxim *ut lite pendente nihil innovetur — nothing new should be introduced while litigation is pending. Its classical statement is that of Turner LJ in Bellamy v. Sabine (1857): the doctrine rests not on notice but on necessity*, because otherwise there could be no certainty that litigation would ever end, the defendant being able by alienation to put the property beyond the plaintiff's reach as often as he pleased.

  1. To protect the decree. The successful party must get the property, not a judgment against a person who has parted with it.
  2. To prevent multiplicity of proceedings. Without the rule, each transfer would require a fresh suit against the new holder.
  3. To keep the subject matter within the court's reach until it has finished with it.
  4. And not to punish the purchaser. He is not a wrongdoer, and his deed is not a nullity; he has simply bought a lawsuit along with the land.

3. The Essentials

Requirement

Content

A pending suit or proceeding

In a court having authority within India, or established beyond its limits by the Central Government

The court must be competent

The Explanation requires institution in a court of competent jurisdiction

The suit must not be collusive

A collusive proceeding, got up between the parties, does not attract the section

A right to immoveable property directly and specifically in question

The property itself must be the subject matter. A money suit, or a suit in which the property is only incidentally involved, is outside the section

A transfer or other dealing by a party

A dealing by a stranger to the suit is not caught; and 'otherwise dealt with' covers mortgages, leases, charges and the like

So as to affect the rights of another party under the decree

The section bites only where the dealing would prejudice a co-litigant's rights under the decree or order

4. The Effect: Not Void, but Subordinate

The point most often stated wrongly

A transfer pendente lite is not void, and it is not illegal. It is fully effective between the transferor and the transferee, who may sue each other on it.

What it cannot do is affect the rights of any other party to the suit under the decree. If the plaintiff succeeds, the decree binds the property in the transferee's hands as it would have bound it in the transferor's. If the plaintiff fails, the transferee keeps what he bought.

5. Commencement and Termination

Stage

Position

Commencement

The date of presentation of the plaint or institution of the proceeding — not the date of service on the defendant, and not the date of any interim order

Continuation

Throughout the suit, and through appeals and further proceedings in the same litigation

Execution

The Explanation carries the pendency on until complete satisfaction or discharge of the decree, so a transfer during execution is equally hit

Termination

On complete satisfaction or discharge of the final decree or order; or when execution has become unobtainable by limitation

6. Where the Section Does Not Apply

  1. A collusive suit. The section says so expressly.
  2. A suit in which no right to immoveable property is directly and specifically in question — for instance an ordinary suit for money, even though the debtor happens to own land.
  3. A transfer by a person who is not a party to the suit or proceeding.
  4. A court without jurisdiction, since the Explanation requires a court of competent jurisdiction.
  5. A transfer made under the authority of the court, which the section itself preserves, and on such terms as the court imposes.

Note also that in some States the section has been amended so that it applies only where a notice of pendency has been registered under the Registration Act. The local position must always be checked.

Retention aid

From the plaint to the last rupee of satisfaction. The transfer is good, the transferee is bound, and notice has nothing to do with it. The only exits are a collusive suit, property not directly in question, a transferor who was not a party, or the court's own leave.

7. Landmark Cases

📖 Bellamy v. Sabine, (1857) 1 De G & J 566

Held: The doctrine of lis pendens is a doctrine common to the courts both of law and of equity, and rests upon this foundation: that it would plainly be impossible that any action or suit could be brought to a successful termination if alienations pendente lite were permitted to prevail. The plaintiff would be liable in every case to be defeated by the defendant's alienating before the judgment.

Ratio: The doctrine rests on necessity, and not on notice.

📖 Rajender Singh v. Santa Singh, (1973) 2 SCC 705

Held: The purpose of the doctrine is not to defeat any just and equitable claim, but to subject the parties to the jurisdiction of the court so as to prevent the litigation from being rendered infructuous. A transfer pendente lite is not void; it remains valid between the parties to it, but is subject to the result of the litigation.

Ratio: The transfer is subordinated to the decree, not annulled.

8. Related Topics and Provisions

  • Lis Pendens and Execution Proceedings — how far the pendency runs
  • Lis Pendens vs Res Judicata — during the suit and after it
  • Lis Pendens vs Notice — why knowledge is irrelevant
  • Bona Fide Purchaser During Pendency of Suit — what the purchaser can and cannot do
  • Section 64, Code of Civil Procedure, 1908 — private alienation after attachment
  • Bellamy v. Sabine (1857) 1 De G & J 566 — the classical statement of the doctrine