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Under Section 52 of the Transfer of Property Act, 1882, a party transfers immovable property without…

Under section 52 of the Transfer of Property Act, 1882, a party cannot transfer the property during a qualifying suit so as to prejudice the rights of another party under…

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Under Section 52 of the Transfer of Property Act, 1882, a party transfers immovable property without court permission during a non-collusive suit in which a right to that property is directly and specifically in issue. What is the effect?

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Answer and explanation

Correct answer D

Under section 52 of the Transfer of Property Act, 1882, a party cannot transfer the property during a qualifying suit so as to prejudice the rights of another party under the resulting decree or order, unless the court authorises the transfer on its terms. The purchaser takes subject to the result of the suit. A transfer pendente lite is not void merely because the litigation was pending, as explained in Thomson Press (India) Ltd. v. Nanak Builders & Investors Pvt. Ltd.

Option feedback

Option A

Incorrect. The transferee takes subject to the outcome of the suit.

Option B

Incorrect. The transfer does not extinguish the vendor’s rights and liabilities simply by occurring during the suit.

Option C

Incorrect. A pendente lite transfer is not void merely because the suit was pending.

Option D

Correct. The transfer cannot prejudice another party’s rights under the resulting decree or order.

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