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IN THE HIGH COURT OF DELHI
Jayant Nath, J.
Rakesh Katyal - Appellant
Versus
Uma Pati Sood - Respondent
CS (OS) 116 of 2020 & I.A. 7600 of 2020, 9374 of 2020 and 3508 of 2020
Decided On : 23-03-2021




The doctrine of lis pendens does not affect third parties' rights in property disputes, reinforcing the non-binding nature of agreements on non-parties.

Headnote:(A) Property Law - Doctrine of Lis Pendens - Collaboration Agreement dated 12.06.2015 claimed to affect ownership and rights in the property - Suit for partition of property filed, defining shares as 1/4th (plaintiff), 1/2nd, and 1/8th (defendants) - Agreement cannot bind non-parties and does not affect plaintiff's rights in absentia of key parties. (Paras 14, 15)

Facts of the case:
The plaintiff sought partition of property claiming a 1/4th share after the intestate death of the owner, resulting in suit amidst contention over collaboration agreements and sales executed without the consent of all heirs.

Findings of Court:
The court recognized the shares as claimed and emphasized the non-applicability of the collaboration agreement to the plaintiff and third party rights. A local commissioner appointed for partitioning the property.

Issues: Main issues included the validity of the collaboration agreement, the rights of the parties post-consent decree, and the scope of the doctrine of lis pendens in property claims.

Ratio Decidendi: The doctrine of lis pendens does not affect the rights of the parties who are not involved in the prior litigation; thus, non-parties retain their claims notwithstanding any agreements made between other parties.

Result: A preliminary decree for partition was granted as per the defined shares.

Table of Content
1. plaintiff seeks partition of property. (Para 1 , 2 , 3)
2. defendant raises objections regarding ownership and prior agreements. (Para 4 , 5 , 10)
3. court discusses legal implications of consent decree. (Para 6 , 11 , 12 , 14)
4. court analyzes collaboration agreement and sale deed. (Para 7 , 8 , 9)
5. court affirms rights in properties based on valid deeds. (Para 13 , 15)
6. court orders appointment of local commissioner for property partition. (Para 16 , 17 , 18 , 19 , 20 , 21 , 22)

JUDGMENT

Jayant Nath, J. (Oral)--This suit is filed by the plaintiff seeking a decree of partition of property No. D-2/7, Janak Puri, New Delhi measuring 351 sq. mtrs declaring the share of the plaintiff as one fourth share.

2. The case of the plaintiff is that late Shri Jagan Nath Sood became the owner of the freehold land measuring 351 sq mtrs bearing No. 7, Block - D2, Janak Puri, New Delhi vide the conveyance deed dated 28.06.2002. On 23.03.2007 Shri Jagan Nath Sood died intestate leaving behind four legal heirs including defendant No.1 his son/Uma Pati Sood and another son Shri Rama Pati Sood and two daughters. His wife expired in 2007. On 23.02.2013 the two daughters relinquished their right, title and interest in favour of their brothers, namely, defendant No.1 Shri Uma Pati Sood and Shri Rama Pati Sood vide registered relinquishment deed. Rama Pati Sood at the relevant time was residing in USA and executed his General Power of Attorney in favour of one Mrs.Kiran Aggarwal and empowered her to sell and transfer his half undivided share in the property/land. The said power of Attorney holder on behalf of Rama Pati Sood executed a sale deed on 24.11.2015 in favour of Defendant No.2, M/s Jolly Brothers Buildwell Pvt. Ltd. and defendant No.3. Hence, Defendant No.2 and Defendant No.3 became owners of 1/8th undivided share each in the said land. M/s Jolly Brothers Buildwell Pvt. Ltd executed a sale deed on 26.12.2018 and sold their undivided share in the land to Mr.Rakesh Katyal i.e. the plaintiff. Hence, Plaintiff claims one fourth undivided share in the land. The share of the parties is stated as follows:

Plaintiff1/4th undivided share in the land
Defendant No.11/2nd undivided share in the land
Defendant No.21/8th undivided share in the land
Defendant No.31/8th undivided share in the land

3. Hence, the present suit for partition.

4. The plaintiff and defendant Nos. 2 and 3 are agreeable to a preliminary decree of partition defining the share of the respective parties, as noted above. Defendant no.1, however, has strong objections to the partition. In the written statement defendant No.1 does not dispute that defendant No.1 and Shri Rama Pati Sood became absolute owner of the said property. It is stated that Defendant No.1 had executed a Collaboration Agreement with defendant No.2 on 12.06.2015 for construction of the entire suit property. Under Clause 7 of the Agreement after completion of the construction work the ownership of the entire basement, second floor without roof rights, third floor with roof rights along with proportionate parking area etc. was to be owned by defendant No.2 and he was to pay a sum of Rs.2.25 crores to Shri Rama Pati Sood. Hence, it is claimed that defendant No.2 who had already executed the collaboration agreement with defendant No.1 could not have purchased any portion of the suit property. It is clear that all this happened behind the back of Shri Rama Pati Sood and against his interest.

5. Thereafter, defendant No. 1 filed a suit being CS No. 1053/2018 titled as Uma Pati Sood vs. M/s. CRS Infrastructure and Anr. in the district court. The aforesaid suit was filed for declaring the joint sale deed and also the collaboration agreement dated 12.06.2015 as null and void. The said suit was disposed of by passing a consent order dated 07.03.2019 whereby it is stated that defendant No. 2 agreed to complete the construction as per collaboration agreement. Hence, it is stated that defendant No.2 cannot s

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