tpa project-lis pendens
DESCRIPTION
A Fruitful Project on the doctrine of lis-pendens.TRANSCRIPT
INTRODUCTION:
Lis Pendens' generally means "pendency of a suit in a Court". It embodies the principle that
the subject matter of the suit should not be transferred to third party during the pendency of
the suit. The transferee is bound by the result of the suit in a case when such property is
transferred during the pendency of the suit.
This doctrine aims at the final adjudication of the dispute. Nothing new should be brought in
a litigation. It helps to prevent multiplicity of suits.
The essential condition for the application of this doctrine is that the right to immovable
property must be directly and specifically in question in the suit. The doctrine is mainly based
upon the principles of equity, justice and good conscience. It is applicable to all cases
between co-heirs. It applies to ex-parte judgements, compromise decrees etc. It applies to
both voluntary transfers and involuntary transfers. The doctrine is contained in Section 52 of
the Transfer of Property Act.
It is of some interest that a solution has been found to this problem in the States of
Maharashtra by an appropriate local amendment to section 52 of the Act, by Bombay Act 4
of 1939. Section 52, as applicable in the Maharashtra and Gujarat, reads thus (the amendment
is shown in italics):
“52. (1) During the pendency in any court having authority within the limits of India
excluding the State of Jammu and Kashmir established beyond such limits by the Central
Government, of any suit or proceeding which is not collusive and in which any right to
immoveable property is directly and specifically in question, if a notice of the pendency of
such suit or proceeding is registered under section 18 of the Indian Registration Act, 1908,
the property after the notice is so registered cannot be transferred or otherwise dealt with by
any party to the suit or proceeding so as to affect the rights of any other party thereto under
any decree or order which may be made therein, except under the authority of the court and
on such terms as it may impose.
(2) Every notice of pendency of a suit or proceeding referred to in sub-section (1) shall
contain the following particulars, namely:-
(a) the name and address of the owner of immoveable property or other person whose right to
the immoveable property in question;
(b) the description of the immoveable property the right to which is in question;
(c) the court in which the suit or proceeding is pending;
(d) the nature and title of the suit or proceeding; and
(e) the date on which the suit or proceeding was instituted.
The suit must be pending in a court of competent jurisdiction. So if the suit is filed in a court
not of competent jurisdiction, it is not a suit pending as per Section 52 of the Transfer of
Property Act.
The doctrine of lis pendens is an expression of the principle of the maxim “ut lite pendent
nihil innovetur (pending litigation nothing new should be introduced).
PURPOSE OF LIS PENDENCE
To protect the rights of the party causing the registration of the lis pendens
To advise third persons who purchase or contract on the subject property that they do so at
their peril and subject to the result of the pending litigation
May involve actions that deal not only with title or possession of a property but also with the
use and occupation of a property
The litigation must directly involve a specific property which is necessarily affected by the
judgment
The notice of lis pendens is a notice to the whole world that a particular real property is in
litigation. The inscription serves as a warning that one who acquires interest over litigated
property does so at his own risk, or that he gambles on the result of the litigation over the
property
A purchaser who buys registered land with full notice of the fact that it is in litigation
between the vendor and third party stands in the shoes of his vendor and his title is subject to
the incidents and results of the pending litigation
n Jayaram Mudaliar v. Ayyaswami (AIR 1973 SC 569) this court held that the purpose of
Section 52 of the Act is not to defeat any just and equitable claim, but only to subject them to
the authority of the court which is dealing with the property to which claims are put forward.
This court in Hardev Singh v. Gurmail Singh (2007) 2 SCC 404 held that Section 52 of the
Act does not declare a pendente lite transfer by a party to the suit as void or illegal, but only
makes the pendente lite purchaser bound by the decision in the pending litigation.
OBJECTIVE:
Rights depend upon remedies. This also holds as good regards the right to property. Since
speedy and efficient remedies are of utmost importance, it has to be ensured that once the
person has initiated legal process in court to seek remedy against any invasion on his right or
threat of invasion thereto, the legal process should not be defeated on account of private
deals. Or any transaction, that is transfer of property in dispute or on account of any other
action of any party to such legal process, otherwise the very purpose of seeking relief against
any grievance would be meaningless and ineffective. In order to ensure that the legal remedy
remains efficient throughout the legal process, jurist have evolved a general principle known
as ‘lis pendens’ basing it on the necessity that neither party to the litigation should alienate
the property in dispute so as to affect his opponent.
The principle on which the doctrine of lis pendens rests explained in the leading acse of
Bellamy v Sabine where Turner L.J. observed “It is, as I think, a doctrine common to the
Courts both of Law and Equity, and rests, as I apprehend, upon this foundation – that it would
plainly be impossible that any action or suit could be brought to a successful termination, if
alienations pendente lite were permitted to prevail. The plaintiff would be liable in every
case to be defeated by the defendant’s alienating before the judgment or decree, and would be
driven to commence his proceedings de novo, subject again to be defeated by the same course
of proceeding.”
NOTICE OF LIS PENDENS
Section 76. Notice of lis pendens. No action to recover possession of real estate, or to quiet
title thereto, or to remove clouds upon the title thereof, or for partition, or other proceedings
of any kind in court directly affecting the title to land or the use or occupation thereof or the
buildings thereon, and no judgment, and no proceeding to vacate or reverse any judgment,
shall have any effect upon registered land as against persons other than the parties thereto,
unless a memorandum or notice stating the institution of such action or proceeding and the
court wherein the same is pending, as well as the date of the institution thereof, together with
a reference to the number of the certificate of title, and an adequate description of the land
affected and the registered owner thereof, shall have been filed and registered.
The filing of lis pendens in effect—
o Keeps the subject matter of litigation within the power of the court until entry of final
judgment so as to prevent the defeat of the latter by successive alienations
o Binds the purchaser of the land subject of the litigation to the judgment or decree that will
be promulgated thereon whether such purchaser is a bona fide purchaser or not
o Doesn’t create a non-existent right or lien
> Purpose of this rule is founded on public policy and necessity
EFFECT OF SUCH NOTICE
1. It keeps the subject matter of the litigation within the power of the court until the entry of
final judgment so as to prevent the defeat of the latter by successive alienations
2. It binds the purchaser of the land subject of the litigation to the judgment or decree that
will be promulgated thereon whether such purchaser is a bona fide purchaser or not
> It is not correct to speak of it as part of the doctrine of notice, the purchaser pendent elite is
affected not by notice but because the law doesn’t allow litigating parties to give to others,
pending the litigation, rights to the property in dispute so as to prejudice the other party
NOTICE IS ONLY AN INCIDENT IN THE MAIN CASE; MERITS THEREOF
UNAFFECTED
> A notice of lis pendens is ordinarily recorded without the intervention of the court where
the action is pending
> It is but an incident in an action, an extrajudicial one. It doesn’t affect the merits thereof.
NOTICE NEED NOT BE ANNOTATED ON THE OWNER’S COPY
> Annotation at the back of the original copy of the certificate of title on file with the RD is
sufficient to constitute constructive notice to purchasers or other persons subsequently
dealing with the same property
> One who deals with property subject of a notice of lis pendens cannot invoke the right of a
purchaser in good faith—neither can he acquire the rights better than those of his
predecessor-ininterest
NOTICE OF LIS PENDENS—WHEN APPROPRIATE
1. Action to recover possession of real property
2. Action to quiet title thereto
3. Action to remove cloud thereon
4. Action for partition
5. Any other proceedings of any kind in court directly affecting the title to the land or the use
or occupation thereof or the buildings thereon
NOTICE NOT PROPER IN THE FOLLOWING
1. Preliminary attachments
2. Proceedings for the probates o f wills
3. Levies on execution
4. Proceedings for the administration of estate of deceased persons
5. Proceedings in which the only subject is the recovery of a money judgment
CONTENTS OF NOTICE OF LIS PENDENS
1. A statement of the institution of an action or proceedings
2. The court where the same is pending
3. The date of its institution
4. A reference to the number of certificate of title of the land
5. An adequate description of the land affected and its registered owner
PRINCIPLE OF PRIMUS TEMPORE, POTIOR JURE; EFFECT OF LIS PENDENS
> The principle of primus tempore, potior jure gains greater significance in the law on double
sale of immovable property
> Reliance on the principle of constructive notice operates only such upon the registration of
the notice of lis pendens
> More fundamentally, a notice of lis pendens is only a warning to the prospective purchaser
or incumbrancer that the particular property is in litigation and that he should keep his hands
off the same, unless he intends to gamble on the results of the litigation
CARRY OVER OF NOTICE ON SUBSEQUENT TITLES
> In case of subsequent transfers or sales, the RD is duty bound to carry over the notice of lis
pendens on all titles to be issued
> Act of RD in erasing notice of lis pendens is in plain violation of his duty, constitutes
misfeasance in the performance of his duties for which he may be held civilly and even
criminally liable for any prejudice caused to innocent third persons and cannot affect those
who are protected by the notice inscribed in the original title
CANCELLATION OF LIS PENDENS
> Ordinarily a notice which has been filed in a proper case cannot be cancelled while the
action is pending and undetermined, except in cases expressly provided for by statute
> It may be cancelled upon order by the court or upon action by the Register of Deeds at the
instance of the party who caused the registration of the notice
> While the trial court has inherent power to cancel a notice of lis pendens, such power is
exercised under express provisions of law—
o If the annotation was for the purpose of molesting the title of the adverse party
o When the annotation isn’t necessary to protect the title of the party who caused it to be
recorded
Section 77. Cancellation of lis pendens. Before final judgment, a notice of lis pendens may be
canceled upon order of the court, after proper showing that the notice is for the purpose of
molesting the adverse party, or that it is not necessary to protect the rights of the party who
caused it to be registered. It may also be canceled by the Register of Deeds upon verified
petition of the party who caused the registration thereof.
At any time after final judgment in favor of the defendant, or other disposition of the action
such as to terminate finally all rights of the plaintiff in and to the land and/or buildings
involved, in any case in which a memorandum or notice of lis pendens has been registered as
provided in the preceding section, the notice of lis pendens shall be deemed canceled upon
the registration of a certificate of the clerk of court in which the action or proceeding was
pending
stating the manner of disposal thereof.