Allahbad High Court
S.K.KAUL
Ganga Charan - Appellant
Versus
Bans Bahadur Singh - Respondent
Decided On : 05/20/1974
SPECIFIC PERFORMANCE - SECTION 52 OF THE TRANSFER OF PROPERTY ACT - APPLICABILITY - LIS PENDENS - DOCTRINE APPLIES TO SUITS FOR SPECIFIC PERFORMANCE - TRANSFER DURING PENDENCY OF SUIT - EFFECT - TRANSFEROR BECOMES TRUSTEE FOR PURCHASER - CANNOT DEAL WITH ESTATE TO INCONVENIENCE PURCHASER.
Fact of the Case:
Plaintiff filed a suit for specific performance of an agreement to sell certain plots of land. During the pendency of the suit, the defendant sold the plots to the appellant, who claimed to be a bona fide purchaser for value without notice. The trial court and the lower appellate court decreed the suit in favor of the plaintiff, holding that the appellant was not a bona fide purchaser and that his defense was barred by Section 52 of the Transfer of Property Act.
Finding of the Court:
The court held that Section 52 of the Transfer of Property Act applies to suits for specific performance of a contract and that the appellant, as a transferee during the pendency of the suit, was bound by the principle embodied in Section 52. The court further held that the doctrine of lis pendens applies to suits for specific performance and that the appellant could not take advantage of the exception in Section 19 (b) of the Specific Relief Act relating to bona fide purchasers for value without notice.
Issues: 1. Whether Section 52 of the Transfer of Property Act applies to suits for specific performance of a contract. 2. Whether the appellant was a bona fide purchaser for value without notice. 3. Whether the doctrine of lis pendens applies to suits for specific performance.
Ratio Decidendi: 1. Section 52 of the Transfer of Property Act applies to suits for specific performance of a contract because the right to immovable property is directly and specifically in question in such suits. 2. The appellant was not a bona fide purchaser for value without notice because he had notice of the pending suit at the time of his purchase. 3. The doctrine of lis pendens applies to suits for specific performance because it is necessary to maintain the status quo and prevent the parties from dealing with the property in a way that would prejudice the rights of the other party.
Final Decision: The court dismissed the appeal with costs, with the modification that the sale consideration paid by the appellant to the defendant should be paid to the appellant if and when deposited by the plaintiff.
2. The learned Civil Judge, who tried this case, held that there was an agreement to sell between the plaintiff and Girja Baksh Singh and that defendant No. 2 was not a bona fide purchaser for value without notice and that in any case his defence was barred by Section 52 of the Transfer of Property Act. Consequently, he decreed the suit of the plaintiff. An appeal was preferred by Ganga Charan before the learned District Judge but the same was dismissed.
3. Feeling dissatisfied he has now come up in appeal to this Court.
4. Sri S. N. Misra who argued this case on behalf of the appellant urged three points before me. The first point was that Section 52 of the Transfer of Property Act did not apply in this case; secondly that no issue had been framed on the point that the appellant was a bona fide purchaser, for value without notice with the result that his client' case had been prejudiced; and lastly that in any case since the appellant had been ordered to join Girja Baksh Singh in executing the sale deed and since the appellant has paid full consideration to Girja Baksh Singh, Rs. 2,900 if deposited by the plaintiff should be paid to the appellant.
5. Coming to the first submission Sri S. N
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