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2024 Supreme(P&H) 1389

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
DEEPAK GUPTA, J.
Charanjeet Kaur - Appellant
Versus
Shalini Chaudhary and Others - Respondents
ESA No. 42 of 2022
Decided On : 16-12-2024

Advocates Appeared:
For the Appellant : Parminder Singh
For the Respondents: Ashwarya Bajaj, Ketan Chopra

A bona fide purchaser who acquires property during the pendency of litigation is barred from contesting the execution of a decree against the prior owner.

Headnote:(A) Transfer of Property Act, 1882 - Section 41 - Specific Relief Act, 1963 - Section 13 - Execution of decree for specific performance contested by third party objector claiming bona fide purchase from real owner - Trial Court and Appellate Court dismiss objections under Order XXI Rule 102 CPC citing objector as a 'transferee pendente lite' - Court found no merit in appeal, ruling that objector, having purchased during pendency of suit, could not contest execution of decree. (Paras 2.4, 20, 35)

(B) Civil Procedure Code, 1908 - Order XXI Rule 97, 100, 101 and 102 - Provisions governing objections to execution of decrees - Objector's claim dismissed as not maintainable due to timing of purchase relative to the suit. (Para 20)

Facts of the case:
Execution Second Appeal filed by objector against dismissal of objections to execution of decree for specific performance obtained by decree-holder against Ashok Kumar, who had executed an agreement for sale without a valid title due to prior gift deed to his wife Baldev Kaur. Objector claimed bona fide purchaser status based on a subsequent sale deed from Baldev Kaur. (Paras 2.1-2.3) Findings of court: The objector was deemed a 'transferee pendente lite' and objections not maintainable. (Para 35)

Issues: The main issue was whether objections from the third-party objector were maintainable given her purchase during the pendency of litigation.

Ratio Decidendi: Court ruled that as a 'transferee pendente lite', the objector had no right to resist execution of decree. (Paras 34-35)

Result: Appeal dismissed; objections by the appellant found devoid of merit.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points:

  1. The case involves a dispute over the execution of a decree for specific performance of a property sale agreement, with objections raised by a third-party purchaser during ongoing litigation (!) (!) .

  2. The third-party objector, Charanjeet Kaur, purchased the property from the real owner, Baldev Kaur, during the pendency of the suit. The courts below held that such a purchase made during litigation renders her objections to the execution of the decree not maintainable (!) (!) .

  3. The courts relied on the legal principle that a transferee who acquires property during the pendency of a suit (transferee pendente lite) cannot oppose the execution of a decree against the judgment debtor’s property (!) (!) .

  4. The relevant procedural rules clarify that objections by such transferees are barred under specific provisions, which exclude them from participating in proceedings related to the execution of decrees if the transfer occurred after the suit was instituted (!) .

  5. The legal provisions discussed emphasize that the protection under certain transfer laws (such as Section 41 of the Transfer of Property Act) does not extend to sales made by the real owner, but only to sales by ostensible owners with proper consent and in good faith (!) (!) .

  6. The rights of a purchaser under applicable statutes (notably Section 13 of the Specific Relief Act) are limited when the vendor has only an imperfect or no title, and such rights do not override the rights of decree holders or prior owners who have obtained valid titles (!) (!) .

  7. The courts highlighted that the objections filed by the third-party purchaser were dismissed because they were filed during the pendency of the suit and because the purchaser was deemed to have no independent right to resist the execution of the decree (!) (!) .

  8. The appellate and high courts confirmed that the objections were not maintainable and that the orders passed by the courts below were justified based on procedural and substantive law (!) .

  9. The court clarified that a third-party affected by a judgment can file an appeal against the decree itself, and the limitation for such an appeal may be extended under applicable laws, but the current proceedings dismiss the objections based on legal grounds (!) .

  10. Overall, the legal reasoning underscores that a purchaser during ongoing litigation cannot obstruct the execution of a decree if they acquired the property after the suit was filed, and procedural rules support dismissing such objections to ensure effective enforcement of decrees (!) .

Would you like a more detailed analysis or assistance with specific legal questions related to this case?


Table of Content
1. factual background of property ownership and agreements. (Para 1 , 2)
2. court's observations on ownership and ostensible title. (Para 4 , 5 , 6 , 7)
3. applicability of section 41 of the transfer of property act. (Para 8 , 9 , 10 , 11 , 12 , 13)
4. rights of purchasers under section 13 of the specific relief act. (Para 14 , 15 , 16 , 17 , 18)
5. objections filed under order xxi rule 97 and 99 cpc. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
6. scope of order xxi rule 102 regarding transferees pendente lite. (Para 32 , 33 , 34 , 35)
7. dismissal of appeal based on lack of merit. (Para 36)
8. final conclusion and directions regarding appeal. (Para 37)

JUDGMENT :

DEEPAK GUPTA, J.

1. This Execution Second Appeal has been filed by third party objector, whose objections have been dismissed by ld. Civil Judge (Jr. Div.) Sonipat vide order dated 08.09.2022 and the appeal filed by her has been dismissed by ld. Additional District Judge vide order dated 25.11.2022.

2. To take stock of the controversy involved in the matter, following dates are important to be noticed:

Ashok was owner of the suit property.
30.06.2008

 Gift deed by Ashok in favour of his wife Baldev Kaur

 Baldev Kaur, thus, becomes owner of suit property

25.06.2010

 Agreement to sell by Ashok (no longer the owner) in favour of Shalini

 Baldev Kaur (real owner) & her son Vishal are attesting witnesses to ATS

11.05.2012

 Suit for specific performance filed by Shalini against defendants Ashok, Baldev Kaur & Vishal

 All defendants proceeded ex-parte

17.10.2012 Baldev Kaur (real owner) sold suit property to Charanjit Kaur
17.09.2016

 Suit filed by Shalini for Spec. Perf.

 Decreed ex-parte

 Execution by DH Shalini for possession

08.09.2022Objections filed by Objector Charanjit Kaur dismissed by Executing Court
25.11.2022Appeal of objector dismissed by Appellate court

2.1 As evident from above table, Ashok Kumar son of Dhara Singh (respondent N: 2 herein) was the owner of the suit property, who executed a registered gift deed No.2078 dated 30.06.2008 regarding the said property in favour of his wife Smt. Baldev Kaur (respondent N:3 herein). Smt. Baldev Kaur, thus, became owner of the suit property. However, vide an agreement to sell dated 25.06.2010, Ashok Kumar agreed to sell the suit property in favour of Smt. Shalini Chaudhary (respondent N:1 herein) for consideration of ₹6,15,000/-. He received an amount of ₹4,15,000/- as earnest money on the same date. Sale deed was agreed to be executed on receipt of balance sale consideration. On 24.06.2011, said Ashok Kumar received another amount of ₹35,000/- towards earnest money and executed another agreement dated 24.06.2011. Thus, out of total amount of ₹6,15,000/-, he received ₹4,50,000/-. Sale deed was agreed to be executed on or before 23.06.2012. It is relevant to mention here itself that agreement to sell was witnessed by Baldev Kaur (who had become real owner of the property by virtue of gift deed dated 30.06.2008); and also by Vishal (respondent No.4 herein), who is the son of Ashok and Baldev Kaur.

2.2 Smt. Shalini brought suit for specific performance on 11.05.2012 based on the agreement to sell in her favour against Ashok, his wife Baldev Kaur and son Vishal. All these defendants were proceeded ex party. During the pendency of the suit, Baldev Kaur i.e. real owner, sold the suit property to Smt. Charanjeet Kaur-3rd party objector (appellant herein) vide sale deed date 17.10.2012. The suit filed by Shalini Chaudhary for specific performance was decreed on 17.09.2016. Thereafter, said decree holder-Shalini filed execution seeking possession of the suit property.

2.3 Objections were filed by Charanjeet Kaur claiming to be bona fide purchaser of the suit property. It was the contention of the appellant- objector that she had purchased the suit property from the real owner Smt. Baldev Kaur and that decree in favour of decree holder-Shalini Chaudhary was null and void, as agreement to sell in her favour was executed by Ashok Kum

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