What is the effect of the rule of andlsquo;Lis Pendensandrsquo; on property transfers during pending litigation?a)It invalidates the transferb)It makes the transferee subject to the result of the litigationc)It allows for unrestricted property transfersd)It absolves the transferee from any liabilitiesCorrect answer is option 'B'. Can you explain this answer?

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What is the effect of the rule of ‘Lis Pendens’ on property transfers during pending litigation?

a)
It invalidates the transfer
b)
It makes the transferee subject to the result of the litigation
c)
It allows for unrestricted property transfers
d)
It absolves the transferee from any liabilities

Correct answer is option 'B'. Can you explain this answer?

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What is the effect of the rule of ‘Lis Pendens’ on propert...

The Supreme Court recently held that the non-applicability of the provisions of Section 52 of the Transfer of Property Act, 1881 (TPA) wouldn't bar the applicability of principles of lis-pendens, which are based on justice, equity and good conscience.

About Doctrine of Lis Pendens:

“Lis Pendens,” when translated, means “pending suit or cause.”
This doctrine has been expressed in the maxim: "pendente lite nihil innovature" which means nothing new should be introduced during the pendency of litigation.
This doctrine prohibits the transfer of property in pending litigation.
It is dealt with in Section 52 of the Transfer of Property Act, 1882, in India.
It serves to protect the rights and interests of parties involved in a pending lawsuit concerning a specific property.
The doctrine of lis pendens can be defined as the legal authority, control, or jurisdiction that a court holds over the propertyin question during the entire duration of a lawsuit, extending until a final judgment is reached.
The underlying rationale behind the doctrine of lis pendens is to prevent the subject matter of a lawsuit from being transferred to a third party while the case is still pending.
Conditions for Applicability: The Supreme Court has stated the required elements for the applicability of the rule of lis pendens under Section 52. They are as follows:
The suit must be in proceeding.
The instituted suit should be filed in courtwithcompetent jurisdiction.
The right of title of an immovable property is directly and specifically in question.
The suit directly affects the rights of the other party.
The property in question is being transferred by either party.
The suit must not be collusive (a suit in which a decree is obtained by a fraud or collusion) in nature.
Non-Applicability of Doctrine: This doctrine is not applicable in certain cases. They are as follows:
Sale made bymortgager in exercise of his power conferred under the deed.
In cases where only the transferor is affected.
In caseswhere proceedings are collusive in nature.
When the property is not described correctly and makes it unidentifiable.
When the right to the said property is not directly in question and alienation is permitted.
This doctrine fails to apply when a court orders the restoration of immovable property under Rule 63 of order 21 under the Civil Procedure Code, 1908.
Effect of Doctrine of Lis Pendens:
The effect of the rule of lis pendens is not to invalidate or avoid the transfer but to make it subject to the result of the litigation.
According to this rule, therefore, whosoever purchases a property during the pendency of a suit is bound by the judgment that may be made against the person from whom he derived title, even though such a purchaser was not aparty to the action or had no notice of the pending litigation.

Hence option b is the correct answer.

Answered by Notes Wala · View profile

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What is the effect of the rule of ‘Lis Pendens’ on property transfers during pending litigation?a)It invalidates the transferb)It makes the transferee subject to the result of the litigationc)It allows for unrestricted property transfersd)It absolves the transferee from any liabilitiesCorrect answer is option 'B'. Can you explain this answer?

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