A transfer which is made lispendens it is settled law, is not a void document The Supreme Court has delivered a judgment; expounding the doctrine of “Lis Pendens” under section 52 of the Transfer of Property Act.
The Court explained that; a transfer is not void just because the transfer is made during the pendency of litigation ;and the effect of Section 52 is that the transfer will be subject to the outcome of the suit.
The court further pointed out that; the pleas of bonafide purchase of lack of notice are not defenses available to the purchaser against the doctrine of Lis Pendens.
The court was considering an appeal that arose from a specific performance suit. The factual background is as follows:
– On 04.04.1979, the plaint schedule property, which consisted of a site,allotted to the first defendant, by the Bangalore Development Authority
– The plaintiff instituted the Suit in question, seeking specific performance. The first defendant, after filing a Written Statement on 14.08.1986, died pending the Suit, on 18.07.1994.
-on 19.06.1996, A Sale deed executed by the BDA in favor of the son of defendant no.1 and defendant-1(a).
– The son of the first defendant, sold the property on 19.09.1996.
– the son of first and second defendant impleaded on 09.04.1997.
-The court observed that the transfer made in favor of the second defendant made at a time;when the son of the first defendant was not a party to the suit .
This trial Court accepted the contention that the transfer not hit by the Doctrine of LisPendens. The High Court reserved this finding.
Disagreeing with the High Court view, the bench observed;that neither the fact that the transferee had no notice nor the fact that; the transferee acted bonafide, are relevant for applying Section 52 to a transaction.
The Court allowed the appeals setting aside the High court Judgment.
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