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2025 Supreme(Mad) 3051

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
G.R. SWAMINATHAN, M. JOTHIRAMAN, JJ.
P. Marimuthu - Appellant 
Versus 
S.S. Prabhakaran and Anr. – Respondents
A.S(MD)No.158 of 2020 and CMP(MD)No.5842 of 2020
Decided On : 28-03-2025 

Advocates Appeared:
For the Appellant : Mr. S. Parthasarathy for Mr. R.J. Karthick
For the Respondents: Mr. S. Parthasarathy, Senior Counsel for Mr. P. Athimoolapandian, Mr. S. Sadeskumar.

The doctrine of lis pendens applies to suits for specific performance, limiting rights of subsequent purchasers unless they are permitted to intervene. The court ruled that the trial court erred in dismissing the impleading petition of a bonafide purchaser.

Headnote:(A) Specific Relief Act, 1963 - Section 19(b) - Transfer of Property Act, 1882 - Section 52 - Doctrine of lis pendens - Appeal for specific performance involving claims from a subsequent purchaser who acquired the suit property during the pendency of the suit. The court ruled that the doctrine of lis pendens applies, and rights of the subsequent purchaser are subordinated to the outcome of the pending litigation. The trial court erred in not allowing the impleading petition of the appellant who is a bonafide purchaser for value. (Paras 6, 10, 12, 20)

(B) The court emphasized the necessity of judicial discretion in the impleadment of subsequent purchasers and under Order 1 Rule 10 CPC, held that an application can be allowed at any stage prior to judgment. (Paras 12, 21)

Facts of the case:
The appellant purchased the property after a sale agreement was entered into between the original plaintiff and defendant. The defendant failed to defend the suit after selling the property to the appellant. The appellant sought to be joined as a party to contest his interest in the property.

Findings of Court:
The appellate court confirmed that the trial court's dismissal of the appellant's impleading application was erroneous and set aside the prior decree, allowing the case to be decided on merits.

Issues: The core issue was whether a subsequent purchaser can intervene in a suit for specific performance and under what circumstances.

Ratio Decidendi: The court underscored that the doctrine of lis pendens is applicable, confirming an intervening purchaser's rights depend on prior existing claims in litigation, but also allowed for the possibility of introducing subsequent purchasers to protect their interests.

Result: Appeal allowed; matter remitted to trial court.

Table of Content
1. contract for sale specifics and plaintiff's claims. (Para 2 , 3)
2. procedural issues regarding impleadment and appeal. (Para 4 , 6 , 12 , 19)
3. doctrine of lis pendens applicability. (Para 7 , 10)
4. trial court's discretion in specific performance matters. (Para 8 , 18 , 20)
5. inclusion of subsequent purchaser in ongoing litigation. (Para 11)
6. judicial discretion regarding attempts to reopen proceedings. (Para 14)
7. defenses available to the impleaded defendant. (Para 17)
8. judgment setting aside trial court decision. (Para 21)

JUDGEMENT :

(G.R. SWAMINATHAN, J.)

This appeal arises out of a suit for specific performance.

2.The plaintiff / Prabakaran entered into sale agreement on 25.07.2011 with the defendant / Subburaj. To specifically enforce the sale agreement, Prabakaran filed O.S.No.26 of 2013 on the file of the Principal District Court, Virudhunagar at Srivilliputhur on 13.03.2013. His case was that the defendant agreed to sell the suit property measuring 12 acres and 72 cents in his favour for a sale consideration of Rs.41,23,000/-. According to him, a sum of Rs.10,50,000/- was paid as advance on 25.07.2011 and further a sum of Rs.5,00,000/- was paid on 10.10.2011. Since the defendant did not come forward to conclude the transaction, he filed the said suit.

3.The defendant filed written statement stating that the time for concluding the transaction ended on 11.11.2011. Hence, the defendant sent legal notice dated 15.12.2011 cancelling the agreement itself. The defendant questioned the plaintiff's readiness and willingness to perform the contract. The defendant pleaded that the plaintiff failed to adhere to the terms of the contract. The defendant also claimed that the plaintiff had forfeited whatever advance amount, he had paid.

4.Based on the rival pleadings, the trial Court framed as many as four issues. The defendant, after selling the suit property in favour of P.Marimuthu / appellant herein on 16.10.2015, did not take part in the proceedings. He was set ex parte on 27.02.2019. On 13.03.2019, the plaintiff was examined as P.W.1 and Exs.A1 to A5 were marked. The suit was reserved for judgment. At that stage, Marimuthu filed I.A.Nos.1 and 2 of 2019 on 18.03.2019 for re-opening the suit proceedings and for impleading himself as the second defendant in the suit. The impleading petition filed by the appellant herein was contested by the plaintiff. On 18.07.2019, both the IAs were dismissed. Even before Marimuthu could contest the said order by filing a civil revision petition, the suit came to be decreed as prayed for on 24.07.2019. Challenging the same, this third party appeal came to be filed under Section 96 of the CIVIL PROCEDURE CODE by the appellant.

5.Heard the learned counsel for the appellant, the learned senior counsel for the first respondent / plaintiff and the learned counsel for the vendor / defendant.

6.The points that arise for determination are as follows:-

(1) Whether the subsequent purchaser is entitled to get himself impleaded in the suit proceedings and whether the Court below erred in dismissing the petitions filed by him ?

(2) Whether the petitions filed by the subsequent purchaser after the suit was reserved for judgment was maintainable?

(3) In the event of this Court setting aside the impugned judgment and decree, and impleading the appellant as the second defendant in the said suit, what are the defences open to him to canvass?

Though, the appellant claims that he is a transferee for value who has paid his money in good faith and without notice of the original contract between the plaintiff and the defendant, yet, he cannot claim any benefit under Section 19(b) of the SPECIFIC RELIEF ACT , 1963 (unamended). This is because, the transfer did not take place before filing of the suit but during the pendency of the suit. In other words, the appellant was a transferee pendente lite. Therefore, the doctrine of lis pendens will operate against the appellant.

7.The doctrine of lis pendens is em

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