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2011 Supreme(Bom) 423

High Court of Judicature at Bombay
THE HONOURABLE MR. JUSTICE A.S. OKA
Pralhad Jaganath Jawale & Others
Versus
Sau. Sitabai Chander Nikam & Others
APPEAL FROM ORDER NO.884 OF 2010 WITH APPEAL FROM ORDER NO.857 OF 2010
Decided on : 08-04-2011

Advocates appeared:
For the Applicants:.Sandeep D. Shinde, Advocate.
For the Respondents:R1 to R8, V.V. Pai, R9 & R10, M.M. Sathaye, Advocates.

The main legal point established in the judgment is the interpretation and application of Section 52 of the Transfer of Properties Act, 1882, and the legal effect of transfer pendente lite.

Headnote:

Kachhi Properties - Interpretation of Judgment - Act of 1882 - Section 52, Indian Registration Act, 1908 - Summary of the judgment

Fact of the Case:

The Appellants filed a suit seeking declaration that a compromise decree was void, perpetual injunction, and protection of possession under Section 53-A of the Transfer of Properties Act, 1882. The temporary injunction application was rejected, leading to the appeal.

Finding of the Court:

The Court found that the substituted Section 52 of the Act of 1882 applied only to properties in Mumbai, not to those in Nasik District. The Court also discussed the legal effect of Section 52, the consequences of non-registration of lis pendens, and the effect of transfer of property in violation of an order of temporary injunction.

Issues: The issues involved interpretation of Section 52 of the Act of 1882, the legal effect of transfer pendente lite, and the consequences of non-registration of lis pendens.

Ratio Decidendi: The Court held that the substituted Section 52 applied only to properties in Mumbai, and the legal effect of transfer pendente lite was discussed. The Court also emphasized the consequences of non-registration of lis pendens and the effect of transfer in violation of an order of temporary injunction.

Final Decision: The Court dismissed the appeal from order No.884 of 2010, allowed the admission of appeal from order No.857 of 2010, expedited the hearing of the suit, and clarified that the pendency of the appeal would not stay the proceedings of the suit.

Judgement Key Points

Key Points: - Section 52 applies only to properties in Mumbai in the State of Bombay (!) (!) . - Transfer pendente lite is not illegal or void; it only binds the transferee by the litigation outcome (!) (!) . - Transferees pendente lite cannot claim impleadment as of right (!) (!) . - Courts have discretion to grant temporary injunction if Section 52 protection is inadequate (!) (!) . - Violation of temporary injunction renders transfer illegal and void (!) (!) . - Trial court discretion must consider prima facie case, irreparable loss, and balance of convenience (!) (!) . - Appeal from Order No.884 dismissed; appeal from Order No.857 admitted with expedited hearing (!) (!) .

What is the legal effect of a transfer pendente lite under Section 52 of the Transfer of Properties Act, 1882?

What are the rights of transferees pendente lite regarding impleadment?

When can a court grant temporary injunction to restrain alienation of property pending suit?


Judgment :

I have heard the learned counsel appearing for the Appellants in Appeal from Order No.884 of 2010. I have heard the learned counsel appearing for the Respondent Nos.1 to 8 and the learned counsel appearing for the Respondent Nos.9 and 10 in Appeal from Order No.884 of 2010. I have heard the learned counsel appearing for the Appellants in Appeal from order No.857 of 2010. I have heard Mr.Uday Warunjikar, learned counsel who had requested that he should be heard on the legal question involved.

2. The Appeal from Order No.884 of 2010 takes an exception to the judgment and order dated 4th December, 2009 passed by the learned trial Judge by which the application made by the Appellants (the plaintiffs) at Exhibit - 61 for temporary injunction has been rejected. In Appeal from Order No.857 of 2010, the challenge is to the judgment and order dated 22nd July 2009 by which the application made by the Appellants-Plaintiffs at Exhibit 5 for temporary injunction has been rejected.

3. These two appeals are taken up together for hearing as to admission as both involve the question of interpretation of the judgment of this Court in the case of Kachhi Properties, Satara Vs. Ganpatrao Shankarrao Kadam (2010 (5) Mh.L.J. 903). As far as Appeal from Order No.857 of 2010 is concerned, the same will have to be admitted and ad-interim relief will have to be continued. Therefore, I am dealing in detail only with the facts of the case in Appeal from Order No.884 of 2010. The suit is filed by the Appellants for declaration that compromise decree passed in Special Civil Suit No.379 of 1996 is void and that on the basis of the compromise decree, no rights have been acquired by the Respondent Nos.1 to 10. The second prayer is for perpetual injunction. The third prayer is for declaration that the possession of the Appellants over the suit property has been protected by Section 53-A of the Transfer of Properties Act, 1882 (hereinafter referred to as "the Act of 1882"). The Appellants -plaintiffs are relying upon the sale-deed dated 27th April, 1998 obtained by them from the Respondent Nos.1 to 8 and the Respondent No.11. The Appellants are placing reliance on a decree passed in Special Civil Suit No.155 of 1996 in which the Respondent No.11 was the Plaintiff. It is a decree for specific performance directing the Respondent Nos.1 to 8 herein to execute a sale-deed in favour of the Respondent No.11. By the impugned order, the application at Exhibit 61 for temporary injunction made by the Appellants has been rejected.

The learned counsel appearing for the Appellants submitted that though there may have been an order of injunction operating against Respondent Nos.1 to 8 when they executed the sale deed dated 27th April, 1998, the Respondent No.11 was the title holder and therefore, the title has been passed to the Appellants on the basis of sale deed dated 27th April 1998. He submitted that only a limited interim relief of restraining the Respondents from creating third party interests was sought, which ought to have been granted. His submission is that the decision in the case of Kachhi Properties (supra) does not lay down any proposition of law.

4. The learned counsel appearing for the Appellants in Appeal from Order No.857 of 2010 has made detailed submission. His submission is that apart from the fact that the decision in the case of Kachhi Properties (supra) does not lay down any proposition of law, the said decision will not bind this Court as the same has been delivered by ignoring the binding precedents and specific provisions of law. He has placed reliance on several decisions of the Apex Court and this Court.

5. Mr.Warunjikar, the learned counsel, sought permission of this Court to make submissions on the decision in the case of Kachhi Properties (supra). As he submitted that there are large numbers of matters in which this issue is involved, I have heard his submissions. Mr.Warunjikar, the learned counsel pointed out that Special Lea








































































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