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1986 Supreme(P&H) 111

PUNJAB & HARYANA HIGH COURT
I.S.Tiwana, J.
Balwinderjit Kaur
Versus
Financial Commissioner (Appeals), Punjab
Civil Writ Petition No. 5271 of 1985,
Decided On : APRIL 3, 1986

A transfer of property during the pendency of litigation is hit by the doctrine of lis pendens and a subsequent vendee is bound by the decree passed in the litigation, irrespective of whether the vendee had notice of the litigation.

Headnote:

PARTITION - PUNJAB LAND REVENUE ACT, 1887 - SECTION 111 - TRANSFER OF PROPERTY ACT, 1882 - SECTIONS 41, 51, 52 - LIS PENDENS - BONA FIDE PURCHASER - NOTICE - REJECTION OF PARTITION APPLICATION - QUESTION OF TITLE - CIVIL COURT JURISDICTION - SUBSEQUENT ORDER OF ASSISTANT COLLECTOR - REMAND TO FINANCIAL COMMISSIONER - ADDITIONAL ISSUES - SUMMARY

Fact of the Case:

Petitioner sought partition of land under Section 111 of the Punjab Land Revenue Act, 1887. The Financial Commissioner (Appeals) rejected the application on the ground that a question of title was involved and the subordinate revenue authorities should stay their hands till the title was settled by the Assistant Collector First Grade or the Civil Court. The petitioner had earlier obtained a decree for specific performance of an agreement to purchase a share in the land from one Kartar Singh. During the pendency of the civil litigation, Kartar Singh's co-sharers, Paramjit Singh and Jagjit Singh, transferred their share to respondents 5 to 10, who claimed to be bona fide purchasers without notice.

Finding of the Court:

The court held that the plea of respondents 5 to 10 that they were bona fide purchasers without notice was of no consequence since the transfer to them was hit by the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882. The court also held that the subsequent order of the Assistant Collector directing the petitioner to go to the Civil Court to establish her right vis-a-vis respondents 5 to 10 was a consequential order and would be annulled along with the order of the Financial Commissioner (Appeals).

Issues: 1. Whether the transfer to respondents 5 to 10 was hit by the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882? 2. Whether the subsequent order of the Assistant Collector directing the petitioner to go to the Civil Court to establish her right vis-a-vis respondents 5 to 10 was valid?

Ratio Decidendi: 1. The court held that the transfer to respondents 5 to 10 was hit by the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882, since the transfer was made during the pendency of the civil litigation between the petitioner and Paramjit Singh and Jagjit Singh. The court relied on the settled legal position that in the case of a transfer hit by the doctrine of lis pendens, the question of good faith is irrelevant for the purpose of granting equitable relief to a subsequent vendee under Sections 41 or 51 of the Transfer of Property Act. 2. The court held that the subsequent order of the Assistant Collector directing the petitioner to go to the Civil Court to establish her right vis-a-vis respondents 5 to 10 was a consequential order and would be annulled along with the order of the Financial Commissioner (Appeals).

Final Decision: The court allowed the petition, set aside the order of the Financial Commissioner (Appeals), and directed the authorities to proceed to decide the petitioner's application for partition under Section 111 of the Punjab Land Revenue Act, 1887, in accordance with the law and the observations made in the judgment.

Judgment

1. The petitioner impugns the order of the Financial Commissioner (Appeals), Punjab, dt 14th Aug. 1985, Annexure-P1, whereby her prayer under Section 111 of the Punjab Land Revenue Act for partition of the land in question has been rejected on the ground that since there was a question of title involved the subordinate revenue authorities should stay their hands till that question of title was settled either by the Assistant Collector First Grade himself constituting into a Court or by the Civil Court under the Civil P.C. In order to appreciate the contention raised on behalf of the petitioner, the following facts deserve to be noticed.

2. On 19th Mar. 1958, the petitioner agreed to purchase the share of Kartar Singh son of Mit Singh in the suit land which he was holding jointly with Paramjit Singh and Jagjit Singh sons of Phula Singh in equal shares, i.e., one-third. As prior to the date of the performance of this agreement Paramjit Singh and Jagjit Singh purchased the share of Kartar Singh (one-third share in the joint holding), the petitioner filed a suit against them all, i.e., Kartar Singh, Paramjit Singh and Jagjit Singh for the specific performance of the agreement dt. 19th Mar. 1958. Though she failed in the trial Court yet she succeeded in this Court on 27th April, 1977, when a decree for specific performance was granted in her favour. During the pendency of this litigation Paramjit Singh and Jagjit Singh transferred the very land which they had purchased from Kartar Singh in favour of respondents 5 to 10. Having succeeded in the civil litigation referred to above and a sale-deed having been executed in her favour as a consequence of the same, the petitioner filed the present application for partition of her share in that land. In these proceedings a plea was taken by respondents 5 to 10 that they were bona fide purchasers without notice and were, therefore, not bound by the decree passed in favour of the petitioner by this Court on 27th April, 1977. This plea of theirs was consistently negatived by the Assistant Collector First Grade, the Collector, and the Additional Commissioner but, as already indicated above, it was accepted by the Financial Commissioner (Appeals).

3. Having heard the learned counsel for the parties at some length, I find that the petitioner must succeed. By now it is well laid down that in the case of a transfer which is hit by the doctrine of lis pendens under S.52 of the Transfer of Property Act the question of good faith which is essential to be established before an equitable relief can be granted in favour of a subsequent vendee under Section 41 or S.51 of the Transfer of Property Act is totally irrelevant (see Shanu Ram V/s. Basheshar Nath (1966) 68 Pun LR (D) 44). In the face of this settled legal position, the plea raised on behalf of respondents 5 to 10 that they were bona fide purchasers without notice from Paramjit Singh and Jagjit Singh was obviously of no consequence. Respondents 5 to 10 having purchased the property from these two vendors during the pendency of the civil litigation against them are bound by the decree passed against them, i.e., the vendors and, in view of that, no question of title remained to be settled between the parties, i.e., the petitioner and the subsequent vendees.

4. At this stage it is urged by Mr. Ashok Bhan, the learned Senior Advocate appearing for the respondents, that subsequent to the passing of the impugned order by the Financial Commissioner (Appeals) the Assistant Collector First Grade as a matter of fact passed an order on 3rd Oct. 1985, directing the petitioner to go to the Civil Court to establish her right vis-a-vis respondents 5 to 10. He urges that since this later order of the Assistant Collector has not been impugned in this petition, the petitioner deserves to be non-suited on that score alone. I, however, see no merit in this stand of the learned counsel. It is not disputed that the order passed by the Assistant Collector on 3rd


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