The validity of a sale deed cannot be declared non-est absent a stay, despite a violation of an interim order.

IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR BEFORE HON'BLE SHRI JUSTICE G. S. AHLUWALIA

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ON THE 14 OF OCTOBER, 2025 MISC. CIVIL CASE No. 2511 of 2024 GODEC CONSTRUCTION PRIVATE LIMITED THROUGH MANAGING DIRECTOR SHIV SHANKAR GOYAL Versus SMT KIRAN GOYAL AND OTHERS Appearance:

Shri Anand V. Bhardwaj - Advocate for applicant.

None for respondents.

ORDER This application under Order 39 rule 2-A of CPC has been filed complaining the breach of temporary injunction order dated 18/3/2019 passed by Coordinate Bench of this Court in First Appeal No. 2178/2018.

2. It is submitted by counsel for applicant that a civil suit was filed by applicant for specific performance of contract. The civil suit was registered as RCS No. 500011-A/2013, and by judgment and decree dated 4/9/2018, the civil suit was dismissed and it was directed that the legal representatives of defendant No. 1, i.e., defendants No. 1 to 8 shall pay Rupees 10 lakh to the plaintiff jointly or severally and shall also pay interest at the rate of 7.5%

from the date of agreement till the actual payment is made.

3. Being aggrieved by said judgment and decree passed by the trial court, applicant/plaintiff has filed First Appeal No. 2178/2018, and on 18/3/2019, it was directed that "Meanwhile, as an interim measure, it is Signature Not Verified directed that parties to the suit shall be subject to the provision of Section 52 of Transfer of Property Act and in case any alienation is made by the respondents of the suit property, then the instrument of alienation shall contain mention of pendency of this appeal."

4. It is submitted by counsel for applicant that respondents have alienated the property but have given a false declaration that neither any case is pending in respect of the property in dispute nor there is any stay. Thus, it is submitted that the false declaration made in the sale deed dated 2/7/2024, executed by Kiran Goyal, Vikram Goyal, and Shubham Goyal in favor of Lavdhi Buildcon Private Limited, is in violation of the interim order passed by this Court.

5. Heard learned counsel for applicant.

6. Section 52 of Transfer of Property Act provides that no third-party right shall be created during the pendency of the suit except with the leave of the court. It is well-established principle of law that if any sale deed has been executed during the pendency of suit, then the same would not be a void or invalid sale deed but the only repercussion would be that the buyer would be bound by the decree which may be passed either in favor or against the vendor. In the present case, there was no stay on the sale of property, but it was made clear that the sale shall be subject to the provisions of Section 52 of Transfer of Property Act . Thus, it is clear that the purchaser would be governed by the provisions of Section 52 of Transfer of Property Act , and in case if the decree is passed against the seller, then he would be bound by the same.

Signature Not Verified

7. In order to protect the interest of the purchaser, it was observed by the Coordinate Bench of this Court that the sale deed shall contain a specific declaration that the present appeal is pending. However, the sale deed in question contains a contrary declaration. It is for the buyer to claim that since the sale deed has been executed by keeping him in dark, therefore, the sale deed should be declared as non-est. Admittedly, the buyer has not filed any application for declaration of sale deed as invalid on the ground that it has been obtained by playing fraud on him.

8. Under these circumstances, this Court is of considered opinion that it is true that the sale deed in question contains a false declaration to the effect that no case is pending, and there is no stay, but in view of Section 52 of Transfer of Property Act , and in absence of any specific stay on the execution of the sale deed, this Court is unable to hold