Doctrine of Lis Pendens

Doctrine of Lis Pendens Latest News

The Delhi High Court has held that courts can exempt a property from the doctrine of lis pendens, to shield genuine owners from vexatious suits.

About Doctrine of Lis Pendens

• The Doctrine of Lis Pendens, derived from Latin, translates to “pending litigation.” 
• It is a legal principle that pertains to immovable property and is dealt with in Section 52 of the Transfer of Property Act (TPA), 1882, in India. 
  • Section 52 of the TPA, 1882, provides that if there is any transfer of any immovable property pending litigation, the same shall not affect the rights of the parties in respect to the immovable property.
  • The outcome of the litigation, passed by a court of competent jurisdiction, in the matter during the pendency of which the transfer had taken place, would be binding upon such a purchaser, who has purchased the property during the pending litigation.
• The underlying rationale behind this doctrine is to prevent the subject matter of a lawsuit from being transferred to a third party while the case is still pending. 
  • In situations involving immovable property, any transfer of ownership must comply with the court’s decision, and the transferee is bound by the court’s judgment.
  • The effect of the rule of lis pendens is not to invalidate or avoid the transfer but to make it subject to the result of the litigation.
• This doctrine serves to protect the rights and interests of parties involved in a pending lawsuit concerning a specific property.
• Conditions for Applicability: 
  • There must be a pendency of a suit or proceeding.
  • The instituted suit should be filed in court with competent jurisdiction.
  • The right of title of an immovable property is directly and specifically in question.
  • The suit directly affects the rights of the other party.
  • The property in question is being transferred by either party.
  • The suit must not be collusive (a suit in which a decree is obtained by fraud or collusion) in nature.
• Non-Applicability of Doctrine: 
  • Sale made by mortgager in exercise of his power conferred under the deed.
  • In cases where only the transferor is affected.
  • In cases where proceedings are collusive in nature.
  • When the property is not described correctly and making it unidentifiable.
  • When the right to the said property is not directly in question and alienation is permitted.

Source: LIVELAW

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