Legal provisions involved: Section 47 CPC, Order XXI Rules 89, 90, 92, 94, 99; Section 52 of the Transfer of Property Act, 1882 (Doctrine of Lis Pendens)
Judgement by: Supreme Court of India
Judge/Bench: Justice J.B. Pardiwala & Justice R. Mahadevan
Facts
In 1970, Duli Chand took a loan from New Bank of India and mortgaged his land. After he passed away and failed to repay the loan, the bank won a court decree and got the property auctioned. The appellants bought the property at the auction. Later, the respondents, who received the property from the original borrower during the pendency of the suit, claimed they were wrongfully denied access and filed a separate suit challenging the sale.
Key legal provisions
- Section 47 CPC, Order XXI Rules 89, 90, 92, 94, 99
- Section 52 of the Transfer of Property Act, 1882 (Doctrine of Lis Pendens)
Issues raised
Whether the doctrine of lis pendens is applicable when a mortgaged property is specifically sought to be attached and sold?
Arguments of the case
Appellants said the auction and sale were legal. Respondents argued there were irregularities and they should get possession.
Judgement
The Supreme Court held that lis pendens applies when property rights are directly in question. Transferees pendente lite cannot file a separate suit under Section 47 CPC; their remedy is under Order XXI Rules. The appeal was allowed and the appellants ordered to pay Rs. 75 lakh.
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