What is the Doctrine of Lis Pendens?

About Doctrine of Lis Pendens:

• Lis pendens in common parlance means “a pending legal action”.
• The maxim representing this doctrine means that ‘during the pendency of litigation, nothing new should be introduced, and to maintain the status quo, to abstain from doing anything which may affect any party to the litigation.
• It is based on the principle that during the pendency of a suit, the subject matter of it (i.e. the property in the suit) should not be transferred to a third party.
• It is dealt with in Section 52 of the Transfer of Property Act, 1882, which 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.
• It serves to protect the rights and interests of parties involved in a pending law suit concerning a specific property.
• Effect of Doctrine of Lis Pendens:
  • 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.
  • According to this rule, therefore, whosoever purchases a property during the pendency of a suit is bound by the judgment that may be made against the person from whom he derived title, even though such a purchaser was not a party to the action or had no notice of the pending litigation.
• Conditions for Applicability: The Supreme Court has stated the required elements for the applicability of the rule of lis pendens under Section 52. They are as follows:
  • The suit must be in 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 a fraud or collusion) in nature.
• Non-Applicability of Doctrine: This doctrine is not applicable in certain cases. They are as follows:
  • 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 makes it unidentifiable.
  • When the right to the said property is not directly in question and alienation is permitted.

Q1: What is the Transfer of Property Act, 1882?

In India, the Transfer of Property Act 1882 is a crucial law regulating the transfer of movable and immovable property from one person to another. It's a crucial law since it protects the integrity of property sales and purchases. The Act aims to establish a sound legal basis for the transfer of ownership and to spell out the steps for the transfer to be recognised by the law. Individuals, corporations, and nonprofits alike will find the conveyance of their property simplified by this Act. This law safeguards the rights of all parties involved in a real estate transaction, from the seller to the buyer.

Source: S.52 TP Act | Once Transaction Is Hit By Lis Pendens, Bona Fide Purchase Or Lack Of Notice Of Agreement Not Defences : Supreme Court