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Effect of Lis Pendens on transfer of property

In WRIT PETITION NO.1870 OF 2019, Mahesh Mehervan Havewalla vs The State of Maharashtra, the Supreme Court observed that the appellants joined as defendants in the original suit against which this appeal is being made and the sale transactions in favour of the present appellants, purporting to transfer the suit property in part, having been effected after filing of the suit, are therefore directly hit by the doctrine of lis pendens, as embodied in Section 52 of the Transfer of Property Act, 1882.

However, the Supreme Court held that the Transfer of property pending suit as defined under Section 52 of the Transfer of Property Act no way lead to the proposition that any transaction on being hit by Section 52 ibid., is illegal or void ab initio. The effect of doctrine of lis pendens or   is not to annul all the transfers effected by the parties to a suit but only to render them subservient to the rights of the parties under the decree or order which may be made in that  suit. In other words, its effect is only to make the decree passed in the suit binding on the transferee, i.e., the subsequent purchaser. Nevertheless, the transfer remains valid subject, of course, to the result of the suit.

Hence, the effect of Section 52 ibid., for the purpose of the present case would only be that the said sale transactions in favour of the appellants shall have no adverse effect on the rights of the plaintiffs and shall remain subject to the final outcome of the suit in question.


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