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A Project On
Dalip Kaur And Others vs Jeewan Ram And Others
Submitted by
Arpit MittalRoll No. 32
Div. A
Symbiosis Law School, NOIDASymbiosis International University, PUNE
Under the guidance of
Prof Kiran kale Course in Charge,
Property Law
Symbiosis Law School,NOIDA 201301
ON 6th October, 2012
Dalip Kaur And Others vs Jeewan Ram And OthersPage 1
DECLARATION
I Arpit Mittal , student of BBA,LL.B(A) V Semester of Prestige Institute of Symbiosis Law
School, NOIDA hereby declare that the report titled “Dalip Kaur And Others vs Jeewan Ram
And Others” is submitted by us in the line of partial fulfillment of course objectives for the
BBA,LL.B
I assure that this synopsis is the result of my own efforts and that any other institute for the
award of any degree or diploma has not submitted it.
Date- 6th October, 2012
Place: Symbiosis Law School, NOIDA Arpit Mittal
Dalip Kaur And Others vs Jeewan Ram And OthersPage 2
CERTIFICATE
This is to certify that Arpit MIttal student of B.B.A.LL.B, B Semester of Symbiosis law School,
Noida has successfully completed his Project report. We have prepared this report “Dalip Kaur
And Others vs Jeewan Ram And Others” under my direct supervision and guidance.
Date- 6th October, 2012 Prof. Kiran Kale
Place- NOIDA (Faculty Guide)
Dalip Kaur And Others vs Jeewan Ram And OthersPage 3
ACKNOWLEDGEMENT
It is a great pleasure for me to put on records my appreciation and gratitude towards Dr. C.J.
Rawandale, Director for his immense support and encouragement all through the preparation of
this report. I would like to thank our faculty Prof. Kiran Kale (Project Guide) for his valuable
support and suggestions for the improvement and editing of this project report. Last but not the
least, I would like to thank all the friends and others who directly or indirectly helped us in
completing our project report.
Date- 6th October , 2012 Arpit Mittal
Place- NOIDA (B.B.A.LL.B, Fourth Semester)
Dalip Kaur And Others vs Jeewan Ram And OthersPage 4
Introduction
Transfer of property is the taking over of possession by one person from another.The Transfer of
Property Act 1882 contains specific provisions regarding what constitutes transfer and the
conditions attached to it. According to the Act, 'transfer of property means an act by which a
person conveys property to one or more persons, or himself and one or more other persons'. The
act of transfer may be done in the present or for the future. The person may include an
individual, company or association of individuals, and any kind of property may be transferred.
A transfer of property passes forthwith to the transferee all the interest which the transferor is
capable of passing in the property, unless a different intention is expressed or implied. Every
person, who is competent to contract, is competent to transfer property, which can be transferred
in whole or in part. He should be entitled to the transferable property, or authorized to dispose
off the transferable property which is not his own. The right may be either absolute or
conditional, and the property may be movable or immovable, present or future. Such a transfer
can be made orally, unless a transfer in writing is specifically required under any law.
In case a property is transferred subject to the condition that absolutely restrains the transferee
from parting with or disposing off his interest in the property, the condition is void. The only
exception is in the case of a lease where the condition is for the benefit of the lessor or those
claiming under him. Generally, only a person having interest in a property is authorized to
transfer his interest in the property and can pass on proper title to any other person. According to
the Act, property of any kind may be transferred. A person insisting on non-transferability must
prove the existence of some law or custom which restricts the right to transfer. Unless there is
some legal restriction preventing the transfer, the owner of a property may transfer it. Transfer of
property means transferring possession of a property from one person to another person.The
Transfer of Property Act 1882 contains specific provisions regarding what exactly constitutes
transfer and the conditions which are required to be satisfied for it to be valid. According to the
Act ‘transfer of property’ means an act by which a living person conveys property to one or more
other living persons, or to himself and one or more other living persons’. A transfer of property
passes to the transferee all the interest which the transferer is capable of passing in the property,
unless a different intention is expressed or implied.The act of transfer may be done immediately
or for the future. The transferer may be an individual, company or association, or a body of
Dalip Kaur And Others vs Jeewan Ram And OthersPage 5
individuals. As per the Act, property of any kind may be transferred. The owner of a property
may freely transfer it unless there is some legal restriction preventing the transfer. However, in
some cases, there may be transfer of property by unauthorised persons who subsequently acquire
interest in the property.
Every person who is competent to contract is competent to transfer property.The transfer may be
in whole or in part. He should be entitled to the transferable property, or authorised to dispose
transferable property which is not his own. The right may be either absolute or conditional. The
property may be movable or immovable, present or future. Such transfer can be made orally,
unless transfer in writing is specifically required under any law. In case the property is
transferred subject to a condition which absolutely restrains the transferee from parting with or
disposing of his interest in the property,the condition is void.The only exception is in the case of
a lease where the condition is for the benefit of the lessor or those claiming under him.
Generally,only a person having interest in the property is authorised to transfer his interest, and
can pass on proper title to any other person.
In the Present case Lachhman respondent No. 24 filed a suit for possession by way of pre-
emption of the land measuring 9 kanals 9 Marias which had been sold to respondents I to 5
(original vendees). A part of this land had been sold by respondents 1 to 5 to respondents 6 to 21.
The suit for possession by pre-emption was decreed by the trial Court on August 22, 1983. In
pursuance to this decree, Lachhrnan took possession of the suit land on October 6,1983. The
appeal filed by respondents 1 to 5 was dismissed by the learned District Judge on March 18,
1985. The second appeal to this Court was dismissed on September 26, 1985. Thereafter,
respondents 1 to 5 filed a special leave petition under Article 136 of the Constitution of India.
Leave was granted. The appeal of respondents 1 to 5 was accepted vide order, dated October 5,
1989. Accordingly, the suit filed by Lachhman was dismissed. Thereafter, the original vendees
and respondents 6 to 21 filed an application under Section 144, Code of Civil Procedure, for
restitution of possession. The appellants along with respondents 22 and 23 filed objections
alleging that they had purchased the suit land from Lachhman. Being bona fide purchasers for
consideration, the petition under Section 144 of the Code was not competent. Respondents I to
21 filed reply to the objections and pleaded that the matter was governed by the principle of lis
pendens.
Dalip Kaur And Others vs Jeewan Ram And OthersPage 6
Issues
1) Whether the principal of Lis Pendence is applicable.
2) Restitution of property applicable or not.
Ruling
It is held that proceedings before the Supreme Court are a continuation of those in the original
suit and that the principle of lis pendens as well as restitution shall apply to the proceedings.
Accordingly, it is held that there is no merit in this appeal. It is dismissed. However, in the
circumstances of the case, no order as to costs were made. However, it was also observed that
"there is no doubt that the transferee during the pendency of a suit or other proceedings is bound
by the result thereof but that principle cannot be made applicable to the facts of this case in view
of the insertion of Clause (iv) in paragraph 10 of , the petition of compromise and then its
deletion, which were conscious acts and amounted to not disturbing the rights of Purshottam Das
Rattan." In the case Mewa Singh v. Jagir Singh 1 . It was, thus, clearly a case on its own facts.
However, the principle that the transferee during the pendency of the proceedings is bound by
the result was recognized.
Thus the appeal was dismissed.
1 AIR 1971 Punj & Har 244
Dalip Kaur And Others vs Jeewan Ram And OthersPage 7
Analysis
Arguments:
The appellants along with respondents 22 and 23 filed objections alleging that they had
purchased the suit land from Lachhman. Being bona fide purchasers for consideration, the
petition under Section 144 of the Code was not competent. Respondents I to 21 filed reply to the
objections and pleaded that the matter was governed by the principle of lis pendens.
The Supreme Court is at the head of the 'pyramid' of the judicial system in this country. It
exercises original and appellate jurisdiction. It has the poweer to "pass such decree or make such
order as is necessary for doing complete justice in any cause or matter -- and any decree so
passed or order so made shall be enforceable throughout the territory of India". The law declared
by the Supreme Court is binding on all Courts within the territory of India. Under Article 136 of
the Constitution of India, the Supreme Court has the discretion to "grant special leave to appeal
from any judgment, decree, determination, sentence or order in any cause or matter passed or
made by any Court or Tribunal" in the terrirotory of India. Their Lordships can even interfere
with an interlocutory order. The powers conferred on the Court under the Constitution are very
wide. This power has been invoked and exercised not only in case where substantial questions of
law are involved but even in those where the High Court has come to a wrong conclusion from
the evidence. The court has interfered with the orders passed by the High Court in Second
Appeals or Revision Petitions.
Doctrine of Lis Pendens and restitution of property was applied.
1) Doctrine of Lis Pendens:
The law incorporated in Section 52 is based on the doctrine of lis pendens. ‘Lis’ means
‘litigation’ and ‘Pendens’ means ‘pending’. So Lis Pendens would mean ‘pending
litigation’. The doctrine of Lis Pendens is expressed in the well-known maxim: pendente
lite nihil innovature, which means during pendency of litigation, nothing new should be
introduced. Under this doctrine, the principle is that during pendency of any suit
regarding title of a property, any new interest in respect of that property should not be
created. Creation of new title or interest is known as transfer of property. Therefore, in
essence, the doctrine of lis pendens prohibits the transfer of property pending litigation. It
is a very old doctrine and has been operating in the English Common Law. Under this
Dalip Kaur And Others vs Jeewan Ram And OthersPage 8
doctrine the judgements in the immovable properties were regarded as overriding any
alienation made by the parties during pendency of litigation.
Basis of Lis Pendens
The basis of lis pendens is ‘necessary’ rather than actual or constructive notice. It may be
said that this doctrine is based on notice because a pending suit is regarded as
constructive notice of the fact of disputed title of the property under litigation. Therefore,
any person dealing with that property, pending litigation, must be bound by the decision
of the Court. For administration of justice it is necessary that while any suit is still
pending in a Court of law regarding title of a property, the litigants should not be allowed
to take decision themselves and transfer the disputed property.
The Indian Courts have also taken the view that basis of Section 52 is not the doctrine of notice
but expediency i.e. the necessity for final adjudication and public policy. It has been held that
“foundation for the doctrine of lis pendens does not rest upon notice, actual or constructive; it
rests solely upon necessity—the necessity that either party to the litigation should alienate the
property in dispute so as to affect his opponents. In Rejendar Singh v. Santa Singh the
Supreme Court has said that the doctrine of Lis Pendens is intended to strike at attempts by
parties to a suit to curtail the jurisdiction of the Court by private dealings which may remove the
subject matter of litigation from the power of the Court to decide a pending dispute and frustrate
its decree.
Since the Courts in India regard ‘necessary’ as the basis of the doctrine of lis pendens, it is
immaterial whether the transferee had any notice of pendency of suit or not. The transferee is
bound by the decision of the Court even if he had no actual or constructive notice of the pending
suit.
The doctrine of lis pendens as laid down in Section 52 is as follows:
During the pendency of a suit or proceeding.
Property cannot be transferred or otherwise dealt with, and
Dalip Kaur And Others vs Jeewan Ram And OthersPage 9
If so transferred, the transferee is bound by the decision of the Court whether or not he
had notice of the suit or proceeding.
ESSENTIAL CONDITIONS FOR APPLICATION OF SECTION 52
Following conditions are necessary for the application of the doctrine of lis pendens as provided
in Section 52:
There is a pendency of a suit or proceeding.
The suit or proceeding must be pending in a Court of competent jurisdiction.
A right to immovable property is directly and specifically involved in the suit.
The suit or proceeding must not be collusive.
The property in dispute must be transferred or otherwise dealt with by any party to suit.
The transfer must affect the rights of the other party to litigation.
When the above mentioned conditions are fulfilled, the transferee is bound by the decision of the
Court. If the decision of the Court is in favour of the transferor, the transferee has rights in the
property transferred to him. If the decision goes against the transferor, the transferee cannot get
any interest in the property.
In N.C. Bhartia v. Gandevi Peoples Co-operative Bank Ltd., an order of attachment of
judgement-debtor’s property was passed during execution proceedings. Subsequently, the
relatives of the judgement-debtor objected the attachment and claimed a share in that property.
They also sold that property and this sale-deed was executed during pendency of the execution
proceedings. Gujarat High Court held that the sale-deed was hit by the doctrine of lis pendens.
Litigation in a mortgage suit continues after the decree and does not terminate till the security is
realised for the satisfaction of the decree. After a final decree, the defendant has a right to appeal
within the period of limitation. Where an appeal is preferred within limitation period, the appeal
would be a continuation of the suit and the lis shall be deemed to continue during appeal.
Transfer of property made during appeal shall be a transfer during pendency of suit and the
provisions of Section 52 shall apply on it.
Dalip Kaur And Others vs Jeewan Ram And OthersPage 10
Any transfer made outside the period of litigation will not be affected by lis pendens. In Suresh
Singh v. State of Bihar2, a registered sale-deed was executed in favour of the petitioner.
The other party filed an application for pre-exemption in terms of earlier sale-deed in respect of
the same property on the same date. The Court held that ‘Lis’ about the claim for pre-exemption
would be deemed to be pending before Collector on date of the execution of sale-deed.
Therefore, this sale-deed was hit by the doctrine of lis pendens. Accordingly, the Court allowed
the application for pre-exemption by the other party.
Following suits have been held to involve question of rights in immovable property and are
within the scope of this section:
A suit for partition.
A suit on mortgage.
A suit for pre-exemption.
Easement suit.
Suit for maintenance by a Hindu widow in which she claims to have her maintenance
made a charge on specific immovable property and a decree is passed creating a charge
on such property.
Where the suit or proceeding does not involve any question of right in immovable property, Lis
Pendens does not apply. Thus,
A suit for debt or damages where the claim is limited to money,
A suit for the recovery of movables, or
A suit for an account.
Transfers with permission of Court
When a transfer is made during pendency of suit with the permission of Court, the principle of lis
pendens is not applicable. The concluding part if this section exempts transfers pendente lite if
such transfer is made under the authority of the Court and on such terms as it any impose. Under
this clause, the parties to suit are entitled to apply to the Court in which the suit is pending to get
permission for the transfer. If the Court deems in fit, it may give permission for the transfer of
2 AIR 1994 Pat 34, 1993 (41) BLJR 1098
Dalip Kaur And Others vs Jeewan Ram And OthersPage 11
disputed property. In such a situation, Section 52 shall not apply on the transfer of disputed
property. In such a situation, Section 52 shall not apply on the transfer though it is made during
pendency of suit.
In Sri Pal Singh v. Naresh, the owner of the property who was a party to the suit sold the
property to a second purchaser. This sale was affected after the first vendee had filled a suit for
specific performance of the sale to him. The Court said that the principle of lis pendens was to
apply notwithstanding the fact that the right of the subsequent purchaser could be protected
under Section 19(b) of the Specific Relief Act, 1963.
SUIT MUST NOT BE COLLUSIVE
Lis pendens is inapplicable if the suit is collusive in nature. A suit is collusive if it is instituted
with a mala fide intention.
Mala fide intention behind instituting a suit is inferred from the fact that parties to the suit know
their respective rights in the property and there is no actual dispute. Such suit is, therefore,
fictitious and the very purpose of filing the suit is to get judicial decision for some evil design.
Dalip Kaur And Others vs Jeewan Ram And OthersPage 12
Conclusion
When the condition necessary for the applicability of this section are fulfilled the result is that
transferee is bound by the decision of the Court. For example, in a suit between A and B
respecting title of a house if B transfers the house to C during pendency and the judgement is
subsequently in favour of B, then C would be entitled to the house. But if the decree is passed
against B, then it is binding not only on B but also on C with the result that C cannot get the
house. Under this section C cannot take the plea that he had no notice of pending litigation. It
may be noted that normally decree of a Court binds only the parties to the suit. It may be noted
that normally decree of a Court binds only the parties to the suit. But, under the principle of lis
pendens, a person who purchases during pendency of the suit is also bound by the decree made
against that party from whom he had purchased.
The effect of lis pendens is, therefore, that it does not prevent the vesting of title in the transferee
but only makes it subject to the rights of the parties as decided in the suit.
Section 52, therefore, does not invalidate the transfer but renders if subservient or subject to the
rights of the parties to litigation. The words “so as to affect the rights of any other party thereto
under any decree or order which may be made therein” suggest that the transfer pendente lite is
valid and good to the extent that it might conflict with rights established under the decree.
Where the assignee of a decree was neither impleaded in the first appeal, nor in the second
appeal, it was held that he was nevertheless bound by the result of the second appeal and could
reap the benefit of the decree for possession in the second appeal.
Purchase of property during continuance of a prohibitory order of the Court has been held to
confer no right or title on the purchaser.
Dalip Kaur And Others vs Jeewan Ram And OthersPage 13
Bibliography:
A) Websites:
1) http://www.lawyersclubindia.com/judiciary/Section-52-of-Transfer-of-Property-Act-1882--
2360.asp#.UG8nPJiR8jI
2) http://www.legalserviceindia.com/issues/topic693-sec-52-transfer-of-property-pending-
suit-relating-thereto.html
3) http://www.vakilno1.com/bareacts/TransferofPropertyAct1882/S52.html
4) http://legaldevelopments.blogspot.in/2010/10/supreme-court-on-lis-pendens-and.html
5) http://advocatemmmohan.wordpress.com/2011/11/15/transfer-of-property-act-1882-s-52-
transfer-of-property-by-a-defendant-pending-a-partition-suit-partition-suit-found-to-be-
not-collusive-decree-in-partition-suit-in-terms-of-decree-the-pend/
6) http://lawmirror.com/search.php?
passed=&searchterm=transfer+of+property+act+section+52&sel=headnote&court=0
B) Books
1) Dr. R.k. Sinha “The transfer Of Property Act” 13 Edition
C) Cases
1) Mewa Singh v. Jagir Singh
2) Rejendar Singh v. Santa Singh
3) Sri Pal Singh v. Naresh
4) Suresh Singh v. State of Bihar
5) N.C. Bhartia v. Gandevi Peoples Co-operative Bank Ltd
Dalip Kaur And Others vs Jeewan Ram And OthersPage 14