Section 52 Of The Tpa Does Not Invalidate Transfers During Litigation

This doctrine operates as constructive notice, as the person dealing with property is deemed to have knowledge about the pending litigation. It alerts the potential buyer that the transfer is dependent upon the decision of the court.

In the lis pendens proceedings, when a legal action is filed on the specified immovable property, a public notice is recorded on the place where the property is situated. The purpose of the notice is to give a warning to the potential buyer that the property is in litigation and its ownership depends upon the decision of the court. It protects the integrity of the judicial process and even serves as a safeguard to the rights of the parties. It provides stability for real estate transactions.

Section 52 of the TPA

• There should be a pendency of litigation regarding the specific immovable property. Pendency of suit means that the suit is pending from the initiation of the suit until the termination of the suit. It even includes appeals.
• The subject matter should be immovable property. It should be specific immovable property like land, buildings, etc. This doctrine does not apply to movable property.
• This doctrine applies when there is subsequent transfer during the pendency of litigation. The transfer may be in the form of a sale, mortgage, lease, exchange, etc.
• The recording of Lis Pendens notice serves as a constructive notice to the third parties. It warned that third parties should be aware of the legal implications.

Exceptions of section 52 of TPA

• The transferee should not be the party to the suit. If the third party acquires the property during the litigation and was not impleaded in the suit, then the doctrine of lis pendens does not apply to him.
• This doctrine does not apply to a third party who acquires the property during litigation in good faith, with consideration, and without notice of the pending suit. This exception safeguards the interests of the innocent transferee.
• This doctrine does not apply to those transfers that were made before recording the lis pendens notice. This notice serves as a constructive notice to protect the innocent purchaser. If the transfer is made before such notice, then that transferee does not come under the preview of lis pendens.

Section 52 of TPA does not invalidate transfers during litigation

The Supreme Court recently held in the case that the registered sale deed couldn’t be declared void on the ground that it had been executed during the pendency of the trial. The doctrine of lees pendens does not invalidate the sale deed.

It was also held that this doctrine does not make all the transactions during pendente lite void ab ignition. It only affects the interests of those who are parties to the litigation. The fact that the property was transferred during the pendency of litigation does not render it invalid. Here, the transferee has the right of impleadment in the suit. There is the possibility that the transferor pendente lite might not defend the title or might collide with the plaintiff.

Although the transfer is valid, it will come into effect at the conclusion of the case. The transfer depends upon the court’s decision. It does not matter whether the transferee has notice of the case or not. Moreover, the transferee’s knowledge regarding the suit does not bar him from the option of impeachment.

Hence, the transfer of property during the litigation is not void, but the transference’s right will be subordinate to the rights of the parties to the litigation. It will also be subject to the court’s order.

Lead India offers free legal assistance, digital information, and other legal assistance. We offer a forum where you may talk with a lawyer and ask legal questions. Lead India’s lawyers are here to assist you with any legal issues. Lead India’s attorneys are available to help you with any legal matters. In addition, Lead India provides free online legal assistance in India. Lead India not only offers online legal support, but it also enables users to ask free specialized questions.