Transfer of Property Act, 1882 – s.52 – Doctrine of lis pendens – Impleadment of transferee pendente lite who undisputedly had notice of the pending litigation – If barred – Code of Civil Procedure – Order 1 Rule 10.
Held: 1. There is no bar to the impleadment of transferees pendente lite with notice – On facts, the mere fact that the registered sale deed (RSD) in question was executed during the pendency of the Underlying Suit does not automatically render it null and void – The law on impleadment of subsequent transferees, as established by the Supreme Court has evolved in a manner that liberally enables subsequent transferees to protect their interests in recognition of the possibility that the transferor pendente lite may not defend the title or may collude with the plaintiff therein – Misplaced reliance of ADJ on judgment of this Court in Bibi Zubaida – The only principle emerging from Bibi Zubaida is that transferees pendente lite cannot seek impleadment as a matter of right – However it does not place a bar on impleadment of transferees who purchase property without seeking leave of the Court – Permitting the impleadment of a transferee pendente lite is, in each case, a discretionary exercise undertaken to enable a purchaser with a legally enforceable right to protect their interests especially when the transferor fails to defend the suit or where there is a possibility of collusion [Paras 17-19].
2. In the particular facts and circumstances of this case, there is a possibility of collusion between the Respondents – It is also curious that the claim of non-payment of consideration by the Appellant was made for the first time before this Court – Appellant has a registered sale deed in his favor and has therefore seemingly acquired an interest in the Subject Land – Whether or not the consideration was paid, is a disputed question of fact that shall be determined by the Trial Court – Considering the totality of the circumstances, including the fact that the trial has not progressed significantly, the Appellant, in the interest of justice, is entitled to impleadment in the Underlying Suit in order to protect his interests, if any, in the Subject Land – Appellant directed to be added as a party-defendant in the Underlying Suit. [Paras 20, 21, 22] Transfer of Property Act, 1882 – s.52 – Doctrine of lis pendens – Discussed.
Held: The doctrine of lis pendens as provided u/s.52 of the Act does not render all transfers pendente lite to be void ab-initio – It merely renders rights arising from such transfers as subservient to the rights of the parties to the pending litigation and subject to any direction that the Court may pass thereunder. [Para 16]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Bibhuti Bhushan Bose (With assistance from: Geethika. K, LCRA). Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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