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Supreme Court of India

USHA SINHAversusDINA RAM & ORS.

Citation
2008 INSC 372
Decided
14 March 2008
Disposal
Dismissed

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

lis pendensRule 102execution of decreetransfer of propertypurchaser pendente liteCivil Procedureinjunctionex‑parte decreeequity

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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