High Court Of Delhi
JOGINDER SINGH BEDI - Appellant
Versus
SARDAR SINGH NARANG - Respondent
REGULAR FIRST APPEAL 24 of 1982
Decided On : 02/03/1984
SPECIFIC PERFORMANCE - SALE OF IMMOVABLE PROPERTY - DOCTRINE OF LIS PENDENS - EFFECT OF SALE MADE BY VENDOR IN FAVOUR OF SISTER DURING PENDENCY OF SUIT - TRANSFEROR AND TRANSFEREE BOUND BY DECREE IN SUIT - SECTION 52, TRANSFER OF PROPERTY ACT, 1882.
Fact of the Case:
The appellant, Joginder Singh Bedi, agreed to sell his house to the respondent, Narotam Singh, a Thailand-based Indian, for a sum of Rs. 1,35,000 on 29-4-1972. A sale deed was executed in favor of the purchaser on 3-5-1972, but the vendor did not obtain an income tax clearance certificate, which was necessary for the registration of the sale deed. The purchaser sent a telegram and issued a notice to the vendor on 3-7-1972 asking him to complete the sale, but the vendor did not respond. The purchaser instituted a suit for specific performance on 10-7-1972. During the pendency of the suit, the vendor sold the property to his sister, Smt. Nirmal Jyot, on 3-8-1972. The sister claimed to be a transferee in good faith for value without notice.
Finding of the Court:
The court held that the sale in favor of the sister was hit by the doctrine of lis pendens contained in section 52 of the Transfer of Property Act, 1882. The suit was filed by the purchaser on 10-7-1972, and the sale in favor of the sister was made on 3-8-1972. Therefore, the sale was directly hit by section 52. The court also held that the sister, being a transferee pendente lite, was bound by the result of the suit. The court further held that the agreement dated 25-2-1972, which was relied upon by the vendor and the sister to support their claim, was a bogus and fictitious document.
Issues: 1. Whether the sale in favor of the sister was hit by the doctrine of lis pendens contained in section 52 of the Transfer of Property Act, 1882? 2. Whether the sister, being a transferee pendente lite, was bound by the result of the suit? 3. Whether the agreement dated 25-2-1972, which was relied upon by the vendor and the sister to support their claim, was a bogus and fictitious document?
Ratio Decidendi: 1. The doctrine of lis pendens is founded upon the principle that it would be impossible for any action or suit to be brought to a successful termination if alienations pendente lite were permitted to prevail. 2. Where a litigation is pending between a plaintiff and a defendant as to the right to a particular estate, the necessities of mankind require that the decision of the court in the suit shall be binding, not only on the litigant parties, but also on those who derive title under them by alienations made pending the suit, whether such alienees had or had no notice of the pending proceedings. 3. The object of section 52 of the Transfer of Property Act is to maintain the status quo unaffected by the act of any party to the litigation pending its determination.
Final Decision: The appeal was dismissed, and the decree of the learned single judge was modified. A decree of specific performance and damages was passed in favor of the purchaser against the vendor, with costs throughout. The sister was left to pursue her remedies against the vendor.
( 1 ) THIS appeal arises out of a suit for specific performance. The suit was decreed in favour of the purchaser by a learned single judge of this court on 4-12-1981. From that decree the vendor appeals to this court. A transferee of the property has also filed cross-objections.
( 2 ) THE appellant Joginder Singh Bedi was the owner of House No. A-67 South Extension Part I, New Delhi. He is the vendor. On 29-4-1972 he agreed to sell the house to Narotam Singh, respondent No. 2, a Thailand based Indian for a sum of Rs. 1,35,000. He is the purchaser. At the time of the execution of the agreement to sell a sum of Rs. 20,000 was paid by the purchaser to the vendor. In furtherance of the agreement to sell the vendor executed a sale deed in favour of the purchaser on 3-5-1972 engrossed on a stamp paper of the value of Rs. 10,800. The purchaser asked the vendor to obtain an income tax clearance certificate and to get the sale deed registered. The purchaser was prepared to pay the balance of the purchase price, that is, Rs. 1,15,000 at the time of the registration of the sale deed. The vendor did not do his part. He took no steps to obtain the income. tax clearance certificate. And without the clearance certificate the sale deed could not be registered. The purchaser sent a telegram and issued a notice to the vendor on 3-7-1972 asking him to complete the sale. But as the vendor did not come forward the purchaser instituted a suit for specific performance on 10-7-1972.
( 3 ) AT the threshold the vendor pleaded that he had already sold the property to his sister Smt. Nirmal Jyot on 3-8-1972. Therefore, the purchaser sought amendment of the plaint by* seeking to add the sister as a party defendant to the suit. The amendment was allowed on May 14, 1973. The sister was added as defendant No. 2 to the suit. She will hereafter be generally referred to as the sister. She is the transferee. Her case is that she is a transferee in good faith for value without notice.
( 4 ) THIS is atriangular contest on the one side is the purchaser. On the other side are the vendor and his sister, the transferee. The vendor and the sister contested the purchaser s suit on a variety of grounds. Several issues were raised. But the central point in this case is : What is the effect of the sale made by the vendor in favour of the sister on 3-8-1972 ? The transaction is clearly hit by the doctrine of lis pendens contained in section 52 of the Transfer of Property Act,. 1882. The suit was filed by the purchaser on 10-7-1972. The vendor sold the property to the sister on 3-8-1972. Section 52 provides that pendents lite neither party to the litigation in which any right to immovable property is in question can alienate or otherwise deal with such property so as to affect his opponent. On the doctrine I of lis pendens the leading case in England is Bellamy v. Sabine, (1857) I Dandj566 = 44 English Reports 842 (1 ). In India the leading case is Faiyaz Hussain Khan v. Munshi Prag Narain, (1907) 34 Ind. App. 102 (2 ). The legal position seems to be clear. The sale in favour of the sister will not affect the rights of the purchaser who has obtained a decree in his favour. The only question is whether the decree has rightly been passed.
( 5 ) THE doctrine of lis pendens with which section 52 is concerned is not, as Turner LJ observed in Bellamy v. Sabine (supra), "founded upon any of the peculiar tenets of a Court of Equity as to implied or constructive notice. It 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 correct mode of stating the doctrine, as Cranworth L. C. observed in the same case, is that "pendente lite neither party to the litigation can alienate the property in dispute so as to affect his opponent. " "where a litiga
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