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2004 Supreme(SC) 70

ASHOK BHAN, R.C.LAHOTI
Raj Kumar – Appellant
Versus
Sardari Lal – Respondent


Judgement Key Points

Certainly. Based on the provided legal document, here are the key points:

  1. A lis pendens transferee, even if not formally brought on record under Order 22 Rule 10 of the Civil Procedure Code (CPC), has the legal standing to apply under Order 9 Rule 13 of the CPC to set aside an ex-parte decree passed against his transferor. This is because such a transferee is considered a representative-in-interest of the judgment debtor (!) (!) .

  2. The doctrine of lis pendens, which is incorporated into the Transfer of Property Act, states that during litigation, no new interests in the property should be introduced that could affect the outcome. A transferee pendente lite is bound by the decree, regardless of whether they have been formally brought on record, as they are deemed to claim under the judgment debtor (!) (!) .

  3. The discretion to bring a lis pendens transferee on record lies with the court and is not an automatic right. Nonetheless, even if not formally recorded, such transferees remain bound by the decree and can seek to set aside ex-parte decrees against their transferor (!) (!) .

  4. The application to set aside an ex-parte decree by a transferee pendente lite is permissible because the transferee is considered a person claiming under the defendant, and proceedings can be taken against such persons under Section 146 of the CPC, which recognizes claims under persons claiming under the original party (!) (!) .

  5. The legal framework ensures that a decree passed against a defendant is executable against a transferee pendente lite, whether or not the transfer occurred before or after the decree, and irrespective of whether the transferee was brought on record at the appropriate time (!) (!) .

  6. The court emphasizes that the rights of a transferee pendente lite are recognized as those of a person claiming under the original judgment debtor, and such persons can participate in proceedings and seek relief, including setting aside decrees, even if they were not initially parties or not formally recorded (!) (!) .

  7. The decision underscores the importance of the procedural provisions and the discretion vested in courts to permit the addition of transferees during ongoing litigation, ensuring that the decree's enforcement and the rights of parties are properly balanced (!) .

  8. Overall, the legal principles affirm that a transferee pendente lite, despite not being formally recorded under Order 22 Rule 10, retains the right to challenge decrees and participate in execution proceedings, safeguarding the interests of those claiming under the original judgment debtor (!) (!) (!) .

Please let me know if you need any further analysis or clarification.


JUDGMENT

R.C. Lahoti, J.-Leave granted.

2. During the pendency of a civil suit relating to an immovable property, respondent No. 4 herein purchased the suit property from the defendants (respondent Nos. 2 & 3) by a registered deed of sale dated 24.9.1995. The respondent No. 4, it appears, was not aware of the pendency of the suit; rather the vendors stated in the deed of sale that the property was not a subject matter of any litigation. On 27.11.1995, the suit was decreed ex-parte against the defendants (respondent Nos. 2 & 3). On 30.5.1998, the respondent No. 4 filed an application under Order 9 Rule 13 of the CPC seeking setting aside of the decree and also making a prayer under Order 22 Rule 10 of the CPC for being brought on record. Prayer was also made for condoning the delay in filing the application inasmuch as the ex-parte decree was not in the knowledge of the respondent No. 4. The trial Court has allowed the application condoning the delay in filing the same and held that a sufficient cause for setting aside the decree within the meaning of Order 9 Rule 13 of the CPC was made out. The appellant preferred a civil revision in the High Court which has been dismissed.

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