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A party sells immovable property without the court’s permission during a pending suit, and the sale…

Under Section 52 of the Transfer of Property Act, 1882, the doctrine of lis pendens ('transfer of property pending suit relating thereto') applies when: (1) a suit or…

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A party sells immovable property without the court’s permission during a pending suit, and the sale could affect another party’s rights under the eventual decree. In which situation does the central rule of lis pendens in section 52 of the Transfer of Property Act, 1882 apply?

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Answer and explanation

Correct answer B

Under Section 52 of the Transfer of Property Act, 1882, the doctrine of lis pendens ('transfer of property pending suit relating thereto') applies when: (1) a suit or proceeding is pending in a court of competent jurisdiction; (2) the suit or proceeding is not collusive; (3) any right to immovable property is directly and specifically in question therein; and (4) during such pendency, the property is transferred (such as by sale) or otherwise dealt with by any party to the suit or proceeding so as to affect the rights of any other party under any decree or order which may be made therein, except under the authority of the court.

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Option A

An indirect connection to the property does not satisfy section 52.

Option B

The suit is non-collusive, the court has jurisdiction, and the right to the immovable property is directly and specifically in issue. An unauthorized transfer cannot prejudice rights under the resulting decree.

Option C

The proceeding must be pending in a court of competent jurisdiction.

Option D

Section 52 applies only to a non-collusive proceeding.

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