USHA SINHAversusDINA RAM & ORS.
- Citation
- 2008 INSC 372
- Decided
- 14 March 2008
- Disposal
- Dismissed
- Bench
- C K THAKKER
Holding
Rule 102 of Order XXI CPC applies to a transferee pendente lite, precluding them from resisting execution of a decree, and the High Court was correct in setting aside the stay.
Summary
The respondent obtained an ex‑parte decree in a title suit (No. 140 of 1999) against several defendants. During the pendency of that suit, two of the defendants sold their shares to the appellant, Usha Sinha, by a registered deed. The decree‑holder filed an execution petition, and the appellant sought an injunction to stay execution, arguing that her own suit (No. 226 of 2001) challenging the decree should bar execution. The trial court rejected the injunction, but the executing court stayed the execution; the High Court set aside that stay invoking Rule 102 of Order XXI CPC. On appeal, the Supreme Court examined whether Rule 102, which embodies the doctrine of lis pendens, bars a purchaser pendente lite from resisting execution, and whether the High Court was correct in overturning the stay. The Court held that a transferee from a judgment debtor is deemed aware of the pending suit, and under Rule 102 such a transferee cannot claim protection under Rules 98 or 100 or resist execution. Consequently, the High Court’s decision was affirmed and the appeal dismissed.
Issues considered
- The applicability of Rule 102 of Order XXI CPC to a purchaser of property during the pendency of a suit (lis pendens).
- Whether the appellant could obtain a stay of execution under Rule 29 of Order XXI CPC despite the pending suit.
- The relevance of the doctrine of lis pendens and Section 52 of the Transfer of Property Act, 1882 to the transaction.
- Whether the executing court was justified in staying execution after rejecting the injunction application.
Legislation cited
Subjects
Judgment
[2008] 4 S.C.R. 1192
A USHA SINHA
v.
DINA RAM & ORS.
(Civil Appeal No. 1998 of 2008)
MARCH 14, 2008
B
(C.K. THAKKER AND MARKANDEY KAT JU, JJ.)
Code of Civil Procedure, 1908; O.XXI Rule 29 r/w s. 151;
rr. 96 - 102; O.XXXIX rr. 1 & 2:
C Execution of a decree - Appellant purchasing property
Jn question from defendants against whom a title suit was
pending - Granting of ex-parte decree by trial Court -
Execution - Filing of title suit by appellant in respect of share
in property purchased from defendants and filing of an
D application for injunction against decree holder for staying the
execution till final disposal of title suit - Rejected by trial Court
· - Filing of application for staying the proceeding before
Executing Court - Allowed by the Executing Court - Revision
application allowed by High Court - Correctness of - Held:
E R. 102 of O.XXI C. PC. is based on equity and good conscience
- Transferee should be careful before purchasing of the
property which is the subject matter of litigation - Transferee
from judgment debtor presumed to be aware of the
proceedings before a Court of Law- Purchaser of suit property
F during pendency of litigation has no right to resist/obstruct
execution of decree passed by a competent Court - If
resistance caused or obstruction offered by the transferee, he
cannot seek ben.efit of r. 98 or 100 of O.XXI, CPC - Resistance
offered by transferee at the instance ofjudgment debtor cannot
G be found as resistance offered by a person in his own right -
Doctrine of Lis Pendens attracted to transaction in question
- .Hence, High Court was right in allowing the Revision
Application holding that the case is covered by r 102 of O.XXI
C. PC - Transfer of Property Act, 1882 - Section 52.
H 1192
USHA SINHA v. DINA RAM & ORS. 1193
Doctrines: A
Doctrine of 'Lis Pendens' - Applicability of
Words and Phrases:
'Transferee from the judgment debtor' - Meaning of in
8
the context of r. 102 of O.XXI C. PC, 1908.
Respondent filed a title suit in respect of certain
properties against defendant Nos. 1 to 5. During pendency
of the suit, defendant Nos. 4 & 5 allegedly sold their share
in the said properties to the appellants by a registered c
sale deed. Later, an ex-parte decree was passed in the said
case against the defendants. Another title suit was filed
by the appellant and others against the respondent and
others on the ground that she was the absolute owner of
the property as she had purchased the property and
0
prayed that the decree passed in the earlier title suit in
favold:r of respondent be declared null and void as the
respondent has no right, title or interest in the property.
In the meantime, respondent, the decree-holder, filed an
execution petition for executing the decree passed in his
favour. The appellant filed an application for injunction u/ E
0.39 rr.1 & 2 praying for stay of the execution till the title
suit filed by her was finally disposed of. The application
was rejected by the trial Court. Aggrieved by the order of
the trial Court, she filed an application before the
Executing Court for staying the execution. The application F
was allowed by the Executing Court. The respondent
approached the High Court by filing a Revision Petition,
which was allowed by the High Court by setting aside the
order of the Executing Court. Hence, the present appeal.
G
Appellant contended that the High Court was wholly
in error in allowing the revision filed by the respondent
and in setting aside the order passed ~y the Executing
Court granting stay of proceedings in Execution Case;
that the Executing Court was right in relying on the H
1194 SUPREME COURT REPORTS [2008] 4 S.C.R. •
A circumstance that when a substantive suit is filed by the
appellant to set aside ex-parte decree passed in favour of
the respondent in Title Suit, during the pendency of such
suit, execution proceedings ought to be stayed; that the
Executing Court passed an order in the light of the fact
B that a suit filed by the appellant was pending final disposal
which was a relevant consideration and the said order
should not have been interfered with by the High Court
and that the High Court was wrong in invoking r. 102 of
Order XXI of the Code and in holding that the appellant
c had no right to seek protection.
Respondent submitted that the Executing Court was
wholly wrong in entertaining application filed by the
appellant particularly after rejection of similar application
under Order XXI, r. 29 of the Code and by granting relief
D of injunction till the disposal of the Title Suit filed by her;
that admittedly earlier Title Suit was filed by the
respondent and so called registered sale deed was
entered into between defendant Nos. 4 and 5 on one hand
and the appellant on the other hand during the pendency
E of the suit: The doctrine of /is pendens, hence, applies to
such sale; and that Rule 102 of Order XXI of the Code
gets attracted to such sale.
Dismissing the appeal, the Court
F HELD: 1.1 Rule 102 of Order XXI CPC is based on
ju~tice, equity and good conscience. A transferee from a
judgment debtor is presumed to be aware of the
proceedings before a Court of law. He should be careful
before he purchases the property which is the subject
G matter of litigation. It recognizes the doctrine of /is pendens
recognized by s. 52 of the Transfer of Property Act, 1882.
The said Rule thus takes· into account the ground reality
and refuses to extend helping hand to purchasers of
property in respect of which litigation is pending. If unfair,
· inequitable or undeserved protection is afforded to a
H
' USHA SINHA v. DINA RAM & ORS. 1195
transferee pendente lite, a decree holder will never be able A
to realize the fruits of his decree. Every time the decree
holder seeks a direction from a Court to execute the
decree, the judgment debtor or his transferee will transfer
the property and the new transferee will offer resistance
or cause obstruction. To avoid such a situation, the rule B
has been enacted. Keeping in view the avowed object,
the expression 'transferee from the judgment debtor'
has been interpreted to mean the 'transferee from a
transferee from the judgment-debtor'. (Paras - 12 & 14)
[1202-C, D, A, 8, D, E]
c
Vijaya/akshmi Leather Industries (P) Ltd. Vs. K.
Narayanan, Lalitha, AIR 2003 Mad 203 - approved.
Bellamy v. Sabine, (1857) 1 DG & J 566 : 44 ER 847 -
referred to.
D
1.2 It is settled law that a purchaser of suit property
during the pendency of litigation has no right to resist or
obstruct execution of decree passed by a competent
Court. The doctrine of '!is pendens' prohibits a party from
dealing with the property which is the subject matter of E
suit. 'Lis pendens' itself is treated as constructive notice to
a purchaser that he is bound by a decree to be entered in
the pending suit. Rule 102, therefore, clarifies that there
should not be resistance or obstruction by a transferee
pendente lite. It declares that if the resistance is caused or
obstruction is offered by a transferee pendente lite of the F
judgment debtor, he cannot seek benefit of Rule 98or100
of Order XXI of the Code. This Court is in respectful
agreement with the proposition of law laid down by this
Court in Silverline Forum. The doctrine is based on the
principle that the person purchasing property from the G
judgment debtor during the pendency of the suit has no
independent right to property to resist, obstruct or object
execution of a decree. Resistance at the instance of
transferee of a judgment debtor during the pendency of
the proceedings cannot be said to be resistance or H
1196 SUPREME COURT REPORTS [2008] 4 S.C.R. •
A obstruction by a person in his own right and, therefore, is
not entitled to get his claim adjudicated. (Paras -18 & 21)
[1204-F, G, H; 1205-H; 1206-A, BJ
Silverline Forum Pvt. Ltd. VS. Rajiv Trust, (1998) 3 sec
723 and Sawinder Singh vs. Dalip Singh, (1996) 5 SCC 539
8 - relied on.
1.3 For invoking r. 102, it is enough for the decree
holder to show that the person resisting the possession
or offering obstruction is claiming his title to the property
c after the institution of the suit in which decree was passed
and sought to be executed against the judgment debtor.
If the said condition is fulfilled, the case falls within the
mischief of r.102 and such applicant cannot place reliance
either on Rule 98 or r. 100 of Order XXI of the Code.
D (Para -22) [1206-C, D]
· 1.4 The doctrine of /is pendens would apply to the
transaction in question, and the High Court was wholly
right in holding that the case was covered by r. 102 of
Order XXI of the Code. The appellant could not seek
E protection of pendency of suit instituted by her. The
Executing Court was not justified in granting stay of
execution proceedings. The High Court was, hence, right
in setting aside the order of the Executing Court. (Para -
23) [1206-F, G]
F 2.1 ·Rule 29 of Order XXI of the Code deals with cases
wherein a suit has been instituted by the judgment-debtor
against the decree-holder and has no relevance to cases
of /is pendens wherein transfer of property has been
effected by the judgment debtor to a third party during
G the pendency of .proceedings. The High Court has rightly
held that the appellant could not be said to be a 'stranger'
to the suit inasmuch as she was claiming right, title and
interest through defendant Nos. 4 and 5 against whom
the suit was pending. She must, therefore, be presumed
H to be aware of the litigation which was before a competent
• USHA SINHA v. DINA RAM & ORS.
[C.K. THAKKER, J.]
1197
Court in the form of Title Suit No. 140 of 1999 instituted by A
) the present respondent against the predecessor of the
appellant. (Para - 24) [1206-H; 1207-A, 8, CJ
2.2 Since the appellant is a purchaser pendente lite
and as she has no right to offer resistance or cause
obstruction and as her rights have not been crystallized B
in a decree, r. 102 of Order 21 of the Code comes into
operation. Hence, she cannot resist execution during the
• pendency of the suit instituted by her. The order passed
by the High Court, therefore, cannot be said to be illegal,
unlawful or otherwise contrary to law. (Para - 24) C
[1207-E, F]
Bellamy vs. Sabine, (1857) 1 DG & J 566 : 44 ER 847
and Silverline Forum Pvt. Ltd. vs.· Rajiv Trust, .(1998) 3 SCC
723 - referred to.
D
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
1998 of 2008.
From the final Judgment and Order dated 04.07.2006 of
the High Court of Judicature at Patna in Civil Revision No. 113
of 2004. E
S.S. Sanyal, Dr. K.D. Prasad, D.K. Sinha,A.K. Sinha and
Salish Vig for the Appellant.
S.S. Upadhyay, Santosh Mishra, Prabhas Chandra Yadav,
Shiv Mangal Sharma and Sharmila Upadhyay for the F
Respondents.
· The Judgment of the Court was delivered by
C.K. THAKKER, J. 1. Leave granted.
2. The present appeal is filed by the appellant herein G
obstructionist ('appellant' for short) against the judgment and
order dated July 4, 2006 passed by the High Court of judicature
at Patna in Civil Revision No. 113 of 2004. By the said order,
the High Court allowed the Revision filed by respondent No. 1
herein decree-holder ('respondent' for short) and set aside the H
1198 SUPREME COURT REPORTS [2008] 4 S.C.R.
A order passed by the Sub-Judge VI, Purnia.
3. Short facts of the case are that the respondent filed a
suit being Title Suit No. 140 of 1999 on April 10, 1999 against
(1)Arun Choudhary, (2) Poonam Choudhary, (3) Sukhdeo Singh,
(4) Shambhu Prasad, and (5) Binod Kumar in the Court of Sub-
B Judge VI; Purnia. During the pendency of the said suit, defendant
No.4-Shambhu Prasad and defendant No.5-Binod Kumar sold
their share in the property in respect of which the suit was
pending, to the appellant by a registered sale deed dated
February 15, 2000. On May 24, 2001, ex-parte decree was
C passed against the defendants in Title Suit No. 140of1991. In
the judgment rendered by Sub-Judge VI, Purnia, it was observed
that though the defendants were duly served with the summons
and there was publication of summons also in daily newspaper,
the defendants did not appear. The case was fixed for ex-parte ,I
D hearing vide an order dated April 10, 2001. The plaintiff and his
witnesses were examined and on the basis of the said evidence,
the suit was decreed. It was held that plaintiff had right and title
over the suit land and he was entitled for recovery of possession
of land shown in Schedule B.
E 4. The appellant, Binay Kumar Sinha, Pawan Kumar
Choudhary and Ratandeo Prasad Choudhary filed Title Suit No.
226 of 2001 in the Court of Sub-Judge I, Purnia against
respond~nt-Dina Ram and others. It was asserted in the plaint
that the appellant (Usha Sinha) had purchased the property and
F was the absolute owner thereof. It was further stated that the
respondent (plaintiff of Title Suit No. 140of1999) had wrongfully
and illegally filed a suit for recovery of possession of property.
No notice was served to the defendants, or to the appellant
(purchaser of property) and the decree was illegal, inexecutable
G and null and void. It was also fraudulent, collusive and was
obtained by suppressing true and real facts. It was, therefore,
prayed that the decree passed in Title Suit No. 140of1999 be
declared as null and void, being fraudulent, collusive and without
jurisdiction holding that the plaintiff of Title Suit No. 140 of 1999
H had no right, title or interest in the property.
)
• USHA SINHA v. DINA RAM & ORS.
[C.K. THAKKER, J.J
1199
5. A written statement was filed by the respondent A
contending that the suit was not maintainable, there was no
cause of action against the defendant-respondent and the
decree passed in the Title Suit No. 140 of 1999 was legal and
valid.
6. It may be stated that for execution of decree passed in 8
Title Suit No. 140 of 1999, a petition, being Execution Case
No. 10 of 2002 was filed by the respondent-plaintiff who was
the decree holder. The present appellant filed an application for
injunction under Order 39, Rules 1 and 2, Order 21, Rule 29
read with Section 151 of the Code of Civil Procedure, 1908 C
(hereinafter referred to as 'the Code) against the respondent-
decree holder, inter alia, contending that the ex-parte decree
passed in Title Suit No. 140 of 1999 was not legal and valid and
could not be executed against her. It was further stated that a
substantive suit was filed by the appellant being Title Suit No. D,
226 of 2001 and till that suit is finally decided, execution should
be stayed and the decree-holder should be restrained from
interfering with the possession of the appellant (plaintiff of Title
Suit No. 226of2001). The respondent contested the application
contending that no such application could lie under Order XXI, E
Rule 29 of the Code. The application came to be rejected by
the Court on August 16, 2003. In view of rejection of the
application, the appellant moved the Executing Court in which
Execution Case No. 10 of 2002 was pending. The application
was registered as Misc. Case No. 13 of 2003. In the application, F
it was stated by the appellant that she had purchased the
property by a registered sale deed dated February 15, 2000;
that she had also filed Title Suit No. 226 of 2001 for setting
aside ex-parte decree in Title Suit No. 140 of 1999 which was
pending; if during the pendency of the substantive suit filed by G
her, ex-parte decree is executed, irreparable loss and injury
would be caused to her. The Executing Court, vide an order
dated November 20, 2003, allowed the application and stayed
further proceedings in Execution Case No. 10 of 2002 till the
disposal of Misc. Case No. 13 of 2003. Being aggrieved by the H
A
1200 SUPREME COURT REPORTS [2008] 4 S.C.R.
said order, the respondent approached the High Court by filing
•
Revision Petition. The High Court allowed the Revision and set
aside the order of the Executing Court which has been
challenged by the appellant by invoking Article 136 of the
Constitution.
B 7. We have heard learned counsel for the parties.
8. The learned counsel for the appellant contended that
the High Court was wholly in error in allowing the revision filed
by the respondent and in setting aside the order passed by the
c Executing Court granting stay of proceedings in Execution
Case. It was submitted that the Executing Court was right in
relying on the circumstance that when a substantive suit is filed
by the appellant to set aside ex-parte decree passed in favour
of the respondent in Title Suit No. 140 of 1999, during the
pendency of such suit, execution proceedings ought to be
0
stayed. The Executing Court passed an order in the light of the
fact that a suit filed by the appellant was pending final disposal
-(
which was a relevant consideration and the said order should
not have been interfered with by the High Court. It was also
submitted that the High Court was wrong in invoking Rule 102
E of Order XXI of the Code and in holding that the appellant had
no right to seek protection. The counsel also relied upon Rule
29 of Order XXI of the Code which deals with the situation where
a substantive suit is filed by the judgment-debtor against the
decree-holder and execution proceedings are pending before
F a Court. Till the suit is finally decided, execution proceedings
should not be allowed to continue further resulting in virtual
dismissal of the suit. It was, therefore, submitted that the order
passed by the High Court deserves to be set aside by restoring
the order passed by the Executing Court.
G
9. The learned counsel for the respondent, on the other
hand, supported the order passed by the High Court. It was
submitted that the Executing Court was wholly wrong in
entertaining application filed by the appellant particularly after
H rejection of similar application under Order XXI, Rule 29 of the
• USHA SINHA v. DINA RAM & ORS.
[C.K. THAKKER, J.]
1201
Code and by granting relief of injunction till the disposal of Title A
)_
Suit No. 226 of 2001 filed by her. It was submitted that admittedly
Title Suit No. 140 of 1999 was filed by the respondent on April
10, 1999 and so called registered sale deed was entered into
between defendant Nos. 4 and 5 on one hand and the appellant
on the other hand on February 15, 2000 i.e. during the pendency B'
of the suit. The doctrine of /is pendens, hence, applies to such
sale. Rule 102 of Order XXI of the Code immediately gets
)
attracted to such sale. The said provision expressly enacts that
nothing in Rules 98 and 100 of Order XXI shall apply to
resistance or obstruction in execution of a decree for the c
possession of immovable property by a person to whom the
jµdgment-debtor has transferred the property after the institution
of the suit in which the decree was passed. It was, therefore,
submitted that the appeal deserves to be dismissed.
10. Before we consider the legality or otherwise of the D
decision impugned in the present appeal, it may be appropriate
if we note the relevant provisions of law. Rules 97 to 106 of
Order XXI of the Code deal with "Resistance or obstruction to
delivery of possession to decree holder or purchaser". Rule 97
enables the decree holder or auction purchaser to complain to E
Executing Court if he/she is resisted or obstructed in obtaining
possession of such property by 'any person'. The Court on
receipt of such application will proceed to adjudicate it. Rule
101 requires the Court to make full fledged inquiry and determine
all questions relating to right, title and interest in the property F
l
arising between the parties to the proceeding or their
representatives. The Court will then pass an order upon such
adjudication (Rule 98). Rule 99 permits any person other than
the judgment debtor who is dispossessed by the decree holder
or auction purchaser to make an application to Executing Court
G
complaining such dispossession. The Court, on receipt of such
application, will proceed to adjudicate it (Rule 100). Rule 103
declares that an order made under Rule 98 or Rule 100 shall
.... have the same force and be subject to the same conditions as
to appeal or otherwise as if it were a decree.
H
1202 SUPREME COURT REPORTS [2008] 4 S.C.R. •
A 11. Rule 102 clarifies that Rules 98 and 100 of Order XXI
"-
of the Code do not apply to transferee pendente lite. That rule
is relevant and material and may be quoted in extenso;
102. Rules not applicable to transferee pendente lite
B Nothing in rules 98 and 100 shall apply to resistance or
obstruction in execution of a decree for the possession of
immovable property by a person to whom the judgment-
debtor has transferred the property after the institution of
the suit in which the decree was passed or to the
c dispossession of any such person.
12. Bare reading of the rule makes it clear that it is based
on justice, equity and good consclence. A transferee from a
judgment debtor is presumed to be aware of the proceedings
before a Court of law. He should be careful before he purchases
D the property which is the subject matter of litigation. It recognizes
the doctrine of /is pendens recognized by Section 52 of the
Transfer of Property Act, 1882*. Rule 102 of Order XXI of the
Code thus takes into account the ground reality and refuses to
E *Section 52 - Transfer of property pending suit relating thereto
During the pendency in any Court having authority within the limits of India
excluding the State of Jammu and Kashmir] or 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, the property cannot be transferred or otherwise ,
F 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.
Explanation. For the purposes of this section, the pendency of a suit or
G proceeding shall be deemed to commence from the date of the presentation
of the plaint or the institution of the proceeding in a Court of competent ,
jurisdiction, and to continue until the suit or proceeding has been disposed
of by a final decree or order and complete satisfaction or discharge of such
decree or order has been obtained, or has become unobtainable by reason J--
of the expiration of any period of limitation prescribed for the execution
H thereof by any law for the time being in force.
• USHA SINHA v. DINA RAM & ORS.
[C.K. THAKKER, J.]
1203
extend helping hand to purchasers of property in respect of which
).
A
litigation is pending. If unfair, inequitable or undeserved
protection is afforded to a transferee pendente lite, a decree
holder will never be able to realize the fruits of his decree. Every
time the decree holder seeks a direction from a Court to execute
the decree, the judgment debtor or his transferee will transfer B
' the property and the new transferee will offer resistance or cause
)
obstruction. To avoid such a situation, the rule has been enacted.
13. Before one and half century, in Bellamy v. Sabine,
(1857) 1 DG & J 566 : 44 ER 847, Lord Cranwoth, L.C.
proclaimed that where a litigation is pending between a plaintiff c
and a defendant as to the right to a particular estate, the
necessities of mankind require that the decision of the Court in
the suit shall be binding not only on the litigating parties, but
also on those who derive title under them by alienations made
pending the suit, whether such alienees had or had not notice D
of the pending proceedings. If this were not so, there could be
no certainty that the litigation would ever come to an end.
14. Keeping in view the avowed object, the expression
'transferee from the judgment debtor' has been interpreted to
mean the 'transferee from a transferee from the judgment-debtor E
[vide Vijayalakshmi Leather Industries (P) Ltd. Vs. K.
Narayanan, Lalitha, AIR 2003 Mad 203].
15. In Vijayalakshmi Leather Industries, it was urged that
the provisions of Rules 98 and 100 of Order XXI of the Code · F
y' had limited application to the transferee of the judgment-debtor
and could not extend to 'a chain of transactions' where the
transferee of the judgment-debtor had transferred his interest.
16. Referring to statutory provisions and case law, the Court
negatived the contention, stating- G
If such contention of the learned senior counsel for the
appellant is to be accepted, then we are closing our eyes
" regarding the intention of the statute. It is obvious while
interpreting the provisions of the statute, the court must
H
1204 SUPREME COURT REPORTS [2008] 4 S.C.R.
•
A give due weight to the intention of the statute in order to "'
give effect to the provisions. If any narrow interpretation is
given and thereby 'the purpose of the statute is being
defeated, the courts must be careful to avoid such
interpretations. If we look at Section 52 of the Transfer of
B Property Act and Rule 102 of Order 21 C.P.C, it is very t
clear that the intention of the Parliament with which the
statute had been enacted is that the rights of one of the ·(
parties to the proceeding pending before the court cannot
be prejudiced or taken away or adversely affected by the
c action of th_e other party to the same proceeding. In the
absence of such restriction one party to the proceeding,
just to prejudice the other party, may dispose of the
properties which is the subject matter of the litigation or
put any third party in possession and keep away from the
court. By such actions of the party to the litigation the other
D
party will be put to more hardship and only to avoid such ...
prejudicial acts by a party to the litigation these provisions
are in existence. When in spite of such statutory
restrictions, for the transfer of the properties, which are
the subject matter of litigation by a party to the proceeding,
E the courts are duty bound to give effect to the provisions
of the statute.
17. The above observations, in our opinion, lay down
correct proposition of law.
F
.
18. It is thus settled law that a purchaser of suit property
during the pendency of litigation has no right to resist or obstruct '
execution _of decree passed by a competent Court. The doctrine
of '/is pendens' prohibits a party from dealing with the property
which is the subject matter of suit. 'Lis pendens' itself is treated
G as constructive notice to a purchaser that he is bou'nd by a
decree to be entered in the pending suit. Rule 102, therefore,
clarifies that there should not be resistance or obstruction by a
;..-
transferee pendente lite. It declares that if the resistance is
caused or obstruction is offered· by a· transferee pendente lite
H of the judgment debtor, he cannot seek benefit of Rule 98 or
I
e
USHA SINHA v. DINA RAM & ORS. 1205
[C.K. THAKKER, J.]
100 of Order XXI. A
19. In Silverline Forum Pvt. Ltd. v. Rajiv Trust, (1998) 3
SCC 723, this Court held that where the resistance is caused
or obstruction is offered by a transferee pendente lite, the scope
of adjudication is confined to a question whether he was a
transferee during the pendency of a suit in which the decree B
was passed. Once the finding is in the affirmative, the Executing
Court must hold that he had no right to resist or obstruct and
such person cannot seek protection from the Executing Court.
20. The Court stated; c
"It is true that Rule 99 of Order 21 is not available to any
person until he is dispossessed of immovable property by
the decree-holder. Rule 101 stipulates that all questions
"arising between the parties to a proceeding on an
application under rule 97 or rule 99" shall be determined D
by the executing court, if such questions are "relevant to
the adjudication of the application". A third party to the
decree who offers resistance would thus fall within the
ambit of Rule 101 if an adjudication is warranted as a
consequence of the resistance or obstruction made by E
him to the execution of the decree. No doubt if the
resistance was made by a transferee pendente lite of the
judgment debtor, the scope of the adjudication would be
shrunk to the limited question whether he is such transferee
and on a finding in the affirmative regarding that point the F
execution court has to hold that he has no right to resist in
view of the clear language contained in Rule 102.
Exclusion of such a transferee from raising further
contentions is based on the salutary principle
adumbrated in Section 52 of the Transfer of Property G
Act." (emphasis supplied)
[See also Sarvinder Singh v. Dalip Singh, (1996) 5 SCC
539]
21. We are in respectful agreement with the proposition H
1206 SUPREME COURT REPORTS [2008] 4 S.C.R.
of law laid down by this Court in Silverline Forum. In our opinion, "'-
A I
the doctrine is based on the principle that the person purchasing I
\.
property from the judgment debtor during the pendency of the I
suit has no independent right to property to resist, obstruct or
object execution of a decree. Resistance at the instance of
B transferee of a judgment debtor during the pendency of the
proceedings cannot be said to be resistance or obstruction by
a person in his own right and, therefore, is not entitled to get L.
his claim adjudicated.
22. For invoking Rule 102, it is enough for th·e decree
c holder to show that the person resisting the possession or -
offering obstruction is claiming his title to the property after the
institution of the suit iri which decree was passed and sought to
be executed against the judgment debtor. If the said condition
is fulfilled, the case falls within the mischief of Rale 102 and
D such applicant cannot place reliance either on Rule 98 or Rule
100 of Order XXI.
23. So far as the present case is concerned, the facts are
no more in dispute. As already noted earlier, Title Suit No. 140
of 1999 was instituted by the respondent-plaintiff on April 10,
E 1999. Thus, the litigation was pending in respect of the property
and the matter was sub-judice. The appellant thereafter
purchased the property from original defendant Nos. 4 and 5 by
a registered sale deed on February 15, 2000 i.e. during the r
I
pendency of the suit. It is also not in dispute that ex-parte decree
F came to be passed against the defendants on May 24, 2001. In y
the situation, in our considered opinion, the doctrine of /is
pendens would apply to the transaction in question, and the
High Court was wholly right in holding that the case was covered
by Rule 102 of Order XXI of the Code. The appellant could not
G seek protection of pendency of suit instituted by her. The
Executing Court was not justified in granting stay of execution
proceedings. The High Court was, hence, right in setting aside
>-
the order of the Executing Court.
24. Rule 29 of Order XXI of the Code deals with cases
H
USHA SINHA v. DINA RAM & ORS. 1207
[C.K. THAKKER, J.]
wherein a suit has been instituted by the judgment-debtor A ·
against the decree--holder and has no relevance to cases of /is
pendens wherein transfer of property has been effected by the
judgment debtor to a third party during the pendency of
proceedings. The High Court, in our opinion, rightly held that
the appellant could not be said to be a 'stranger' to the suit B
inasmuch as she was claiming right, title and interest through
defendant Nos. 4 and 5 against whom the suit was pending.
She must, therefore, be presumed to be aware of the litigation
which was before a competent Court in the form of Title Suit No.
·140 of 1999 instituted by the present respondent against the c
predecessor of the appellant. As held in Bellamy, the fact that
the purchaser of the property during the pendency of the
proceedings had no knowledge about the suit, appeal or other
proceeding is wholly immaterial and he/she cannot resist
execution of decree on that ground. As observed in Silver/ine
0
Forum, a I. ~ited inquiry in such cases is whether the transferee
is claiming 1 is right through the judgment-debtor. In our judgment,
the High Court was also right in observing that if the appellant
succeeds in the suit and decree is passed in her favour, she
can take appropriate proceedings in accordance with law and
apply for restitution. That, however, does not preclude the decree E
holder from executing the decree obtained by him. Since the
appellant is a purchaser pendente lite and as she has no right
to offer resistance or cause obstruction and as her rights have
not been crystallized in a decree, Rule 102 of Order 21 of the
Code comes into operation. Hence, she cannot resist execution F
during the pendency of the suit instituted by her. The order
passed by the High Court, therefore, cannot be said to be illegal,
unlawful or otherwise contrary to law.
25. For the aforesaid reasons, the appeal deserves to be
dismissed and is accordingly dismissed. On the facts and in G
the circumstances of the case, however, there shall be no order
as to costs.
S.K.S. Appeal dismissed.
H
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