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2025 Supreme(Mad) 4665

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J.
Gunaseelan - Appellant 
Versus
P.Perumal - Respondent 
A.S.No.118 of 2025 and C.M.P.Nos.2563 & 2566 of 2025
Decided on : 14-03-2025

Advocates:
Advocate Appeared:
For the Appellants : M/s.V.Srimathi
For the Respondent: Dr.A.Thiyagarajan, for Mr.D.Senthil Kumar

Pre-existing contracts for the sale of property hold precedence over subsequent attachments, reaffirming the principle of lis pendens in determining valid titles during concurrent proceedings.

Headnote:(A) Code of Civil Procedure, 1908 - Section 64 - Doctrine of lis pendens - Challenge against order under Order XXI Rule 97(1) and (2) - The appellant filed a suit for specific performance resulting in decree before attachment of property by the respondent in money suit - The attachment not properly communicated as per procedural mandates; hence subsequent sale in favor of the appellant held valid despite prior attachment. (Paras 2, 3, 10, 24, 26)

(B) The principles governing lis pendens - The rights of the attaching creditor cannot supplant pre-existing contracts of sale, as seen in specific performance decrees. The executing court erred in allowing the respondent's application without discussing possible collusion in the money suit. (Paras 7, 19, 27)

(C) The court concluded that the doctrine of lis pendens grants priority to the first-in-time valid title-holder in cases of involuntary transfers. (Paras 17, 20)

Facts of the case:
The appellant challenged an order of the Executing Court permitting the first respondent to remove obstruction related to a property, which was under agreement for specific performance owing to prior suit filed by the appellant against the property’s legal heirs. Respondents had simultaneously filed a money suit leading to attachment and purchase actions during relevant litigation timelines.

Findings of Court:
Execution Petition favoring the appellant stands validated due to proper legal procedures preceding the attachment actions by the respondents, which were not communicated as required.

Issues: The court addressed whether the appellant's purchase was valid concerning the doctrine of lis pendens and if the money decree was collusively obtained.

Ratio Decidendi: The executing court held that pre-existing contractual obligations supersede rights claimed through attachment under the CPC, entitling the appellant to possession.

Result: Appeal allowed.

Table of Content
1. details the procedural background and key events leading to the appeal. (Para 2)
2. appellant argues against the validity of the attachment and asserts rights based on prior decree. (Para 3)
3. court discussions regarding the implications of lis pendens and procedural requirements. (Para 4 , 6 , 10 , 13)
4. the court confirmed the priority of the specific performance decree over the money decree. (Para 24)
5. concluding remarks of the court on the final decision. (Para 28)

JUDGMENT :

Challenging the order passed by the Executing Court under Order XXI Rule 97(1) and (2), the present appeal came to be filed.

2. Brief facts in filing this appeal are as follows:

2.a. The appellant has filed a suit for specific performance in O.S.No.24 of 2013 to enforce the agreement dated 23.05.2012 executed by one Sivakumar (deceased). The suit has been filed against the legal heirs of the said Sivakumar. Before filing the suit, he has issued a notice dated 24.01.2013. As the defendants in the above suit remained exparte, the suit was decreed on 11.09.2013. Pursuant to the said decree and judgment, Execution Petition in E.P.No.247 of 2013 was filed. During the pendency of the said EP, the judgment debtors filed an application to set aside the judgment and decree dated 11.09.2013 along with the delay condonation petition. The said application has been dismissed on merits in I.A.No.2795 of 2014 dated 16.04.2015. Thereafter, it appears that the executing court on 04.03.2016 had executed the sale deed in favour the appellant and the Execution Petition was terminated. Subsequently, the appellant has filed another E.P.No.149 of 2016 for delivery of property and delivery was ordered and EP was terminated on 22.09.2016 by recording delivery.

2.b. In the meanwhile, the first respondent filed a suit for recovery of money for a sum of Rs.18,20,000/- together with interest in O.S.No.32 of 2016 on the basis of promissory note dated 12.02.2012. The said suit was filed on 25.03.2013. In the said suit, an application for attachment before the judgment was taken out in I.A.No.62 of 2013 and the said application was allowed on 19.06.2013 and the suit was decreed on 08.07.2013 and attachment order of judgment and decree in O.S.No.32 of 2013 was registered before the Sub-Registrar, Oulgarpet, Puducherry on 12.09.2013. The first respondent in pursuant to the exparte decree filed execution petition in EP.No.2019 of 2013 for realisation of decree amount and the property was put in court auction sale and he was permitted to bid for the court auction sale as per order in I.A.No.2451 of 2015 and granted permission to set off a sum of Rs.28,37,388.20 as per order dated 05.01.2016 and he was declared as a successful purchaser of the schedule property at the sale held for a sum of Rs.29,08,000/-. The first respondent deposited a sum of Rs.70,611.50/- towards the balance sale consideration and the sale has been confirmed on 21.03.2016 and sale certificate was issued on 22.04.2016 and the sale certificate was registered as document No.13935/2016 dated 14.06.2016. Thereafter, EP was filed in E.P.No.301/2016 for delivery of possession and the same was ordered on 01.02.2017. When Amin went to the schedule property on 16.02.2017, the appellant obstructed the delivery on the ground that property has already delivered to him by decree and judgment. At this stage, the application has filed under Order XX1 Rule 97 of Code of Civil Procedure by the first respondent to remove obstruction.

That application was allowed and the same is challenged in this appeal.

2.c. Before the Executing Court, on the side of first respondent, the first respondent himself was examined as PW1 and marked Exs.P1 to P6. On the side of the appellants, the first appellant was examined as RW1 and marked Exs.R1 to R20.

2.d. Based on the oral and documentary evidences, the Executing Court has allowed the application on the ground that since sale in favour of the appellant is hit by Section 64 of Code of C

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