1937 Supreme(SC) 56
Privy Council At Allahabad
Sir George Rankin, Sir Shadi Lal , Justice Lord Macmillan, JJ.
Parmeshari Din -Appellant
Versus
Ram Charan and others -Resopndent
Appeal No. 47 of 1935, Allahabad Appeal No. 14 of 1933
Decided On : 14-06-1937
Nehra and Co., V.K. Krishna Menon
A transferee pendente lite is a representative-in-interest of the transferor and is bound by the decree in the suit, as the doctrine of lis pendens prevents the alienation of property in dispute from prejudicing the rights of the opposing party.
Headnote:(A) Transfer of Property Act, 1882 - Section 52 - Doctrine of lis pendens - Transfer of immovable property during the pendency of a suit - A transfer made during the pendency of a suit or proceeding in which any right to immovable property is directly and specifically in question cannot prejudice the rights of the decree-holders - The amendment by Act 20 of 1929 substituted "pendency" for "active prosecution" to remove uncertainty regarding the standard of diligence required - Where no evidence of delay or remissness in the prosecution of the suit is present, the transferee is bound by the decree to the same extent as the transferor.
(B) Civil Procedure Code - Section 47 - Execution of decree - Dispute between decree-holders and a representative-in-interest of the judgment-debtor regarding the execution of a decree - The executing court has jurisdiction to determine such disputes under Section 47.
(C) Representative-in-interest - A person who acquires property pendente lite is treated as a representative-in-interest of the judgment-debtor and is bound by the result of the decree, regardless of whether they were a party to the original suit; neither party to the litigation can alienate property in dispute so as to affect the opponent.
Facts of the case:
Mortgagees obtained a final decree for foreclosure of a property. During the pendency of the suit, the mortgagor granted a usufructuary mortgage and subsequently sold the equity of redemption to a third party. The decree-holders sought to recover possession from the transferee, invoking the doctrine of lis pendens. The transferee challenged this, arguing that the doctrine did not apply as there was no active prosecution of the suit at the time of the transfer.
Findings of Court:
The transfer occurred during the pendency of the suit and cannot prejudice the rights of the decree-holders. The transferee, having acquired the property pendente lite, is a representative-in-interest of the judgment-debtor and is bound by the decree. The executing court properly exercised jurisdiction under the law to resolve the dispute.
Issues: Whether the doctrine of lis pendens applies to transfers made during the pendency of a foreclosure suit and whether a transferee pendente lite is bound by a decree executed against the transferor.
Ratio Decidendi: A transferee pendente lite is a representative-in-interest of the judgment-debtor and is bound by the result of the decree. The doctrine of lis pendens ensures that neither party to litigation can alienate property in dispute to the detriment of the opponent. Under the Transfer of Property Act, the term "pendency" clarifies that transfers during the litigation cannot defeat the rights of the successful party.
Result: Appeal dismissed.
Legal Category Hierarchy
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property law
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transfer of property act
- lis pendens
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mortgages
- foreclosure
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transfer of property act
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practice and procedure
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civil procedure code
- execution of decrees
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civil procedure code
Sir Shadi Lal:-
This appeal, which has been heard ex parte, raises the question of the application of the doctrine of lis pendens to a transfer of immoveable property, upon which the appellant founds his claim. The facts bearing upon the question lie within a narrow compass. The plaintiffs, who are respondents before their Lordships, were mortgagees of the property in dispute, and commenced in 1923 an action for the foreclosure of the mortgage against the mortgagor, Nurul Hassan, and one Ram Narain. They obtained, on 30th September 1924, a preliminary decree for foreclosure, which, after an unsuccessful appeal by Ram Narain to the Chief Court at Lucknow, was followed on 28th July 1926, by a final decree for foreclosure. The decree-holders then made an application for the recovery of the property by executing their decree, and obtained symbolical possession from the judgment-debtors. The appellant, Parmeshari Din, was, however, in actual possession of it, and he based his title to it upon a usufructary mortgage granted to him by Nurul Hassan on 15th February 1924, and upon a sale of the equity of redemption in February 1928, in execution of a money decree against the mortgagor. It will be observed that the mortgage and the sale invoked by the appellant took place during the pendency of the plaintiff's suit for foreclosure; and the plaintiffs, relying upon the rule of lis pendens, sought to recover possession of the property from the transferee. The Court of first instance dismissed the application, but the Court of Appeal has granted it, holding that the transfer in favour of the appellant being pendente lite cannot adversely affect the rights of the plaintiffs; and that the appellant is bound by the decree in their favour to the same extent as his transferor.
Against the judgment of the Court of Appeal, the transferee has preferred this appeal, and it is argued on his behalf that the doctrine of lis pendens does not apply, as there was no active prosecution of the suit, when the transfer in question was made. Now, S. 52, T. P. Act 4 of 1882, which embodies the rule of lis pendens, prohibited a transfer made during the active prosecution of a suit or a proceeding in which any right to immoveable property was directly and specifically in question. The expression "active prosecution," which existed in the section before its amendment in 1929, led to much uncertainty in the application of the rule, and caused a divergence of judicial opinion. It was felt that the standard of diligence, which would constitute "active prosecution," could not be defined with precision. To remove this uncertainty, the law was amended in 1929, and the amending Act 20 of 1929 substituted the word "pendency" for the phrase "active prosecution"; and there can now be no difficulty in deciding whether the transfer was made during the pendency of a suit or proceeding. It is clear that the question of the active prosecution of a suit is one of fact, but it was not suggested in either of the Courts in India that the plaintiffs had not actively prosecuted the suit, and were consequently debarred from availing themselves of the rule of lis pendens. The learned Judges of the Court of Appeal had, therefore, no opportunity to express their opinion on this point; and their Lordships cannot entertain an objection, which depends upon a question of fact not dealt with below. Upon the record before them, there is no indication of any delay or remissness in the prosecution of the suit, for which the plaintiffs can be held responsible. Their Lordships, therefore, agree with the High Court that the transfer relied upon by the appellant cannot prejudice the rights of the decree-holders, and that he cannot resist the decree obtained by them.
It is then said that the appellant was not a party to the decree which is sought to be executed against him. But he took the property from the defendant pendente lite and must be treated as his representative-in-interest. He is bound by the