1972 (4) TMI 102 - SC - Indian Laws

Supreme Court Affirms Rule 28 Validity & Lis Pendens Doctrine in Land Sales Case

The Supreme Court dismissed the appeal, affirming the validity of Rule 28 of the Madras High Court Rules and holding that the sales were subject to the ... - Issues Involved:1. Preliminary Objection on Appeal Hearing2. Application of Doctrine of Lis Pendens3. Validity of Rule 28, Order IV of the Madras High Court Rules4. Nature of Sales and Pre-existing Liabilities5. Impact of Revenue Sales under Land Improvement Loans Act6. Binding Nature of Alienations by Karta of Joint Hindu FamilyDetailed Analysis:1. Preliminary Objection on Appeal Hearing:The respondent raised a preliminary objection, arguing that the appellant did not follow the required procedure under Rule 28, Order IV of the Madras High Court Rules to seek a certificate for a Letters Patent appeal immediately after the judgment. The appellant contended that the rule itself was invalid. The court held that Rule 28 was neither ultra vires nor invalid, emphasizing that it served a necessary procedural purpose. The court also noted that the appellant's failure to seek the certificate immediately did not preclude the appeal from being heard, given that special leave had already been granted by the Supreme Court.2. Application of Doctrine of Lis Pendens:The primary issue on merits was whether the sales in question were affected by the doctrine of lis pendens under Section 52 of the Indian Transfer of Property Act. The court found that both the voluntary sale of 7-7-1958 and the revenue sale of 15-7-1960 were subject to lis pendens. The doctrine was applicable because the properties were the subject matter of a pending partition suit, and the sales were executed after the suit had commenced. The court emphasized that the doctrine aims to prevent any party from transferring property in a manner that would affect the rights of other parties involved in the litigation.3. Validity of Rule 28, Order IV of the Madras High Court Rules:The appellant challenged the validity of Rule 28, arguing it conflicted with Clause 15 of the Letters Patent, which only requires the judge to declare a case fit for appeal. The court upheld the rule, stating it was a procedural requirement designed to facilitate immediate decisions on the fitness of cases for further appeal. The rule did not curtail any substantive rights but merely regulated the timing and manner of applications for certificates.4. Nature of Sales and Pre-existing Liabilities:The appellant argued that the sales were for discharging pre-existing liabilities of the joint Hindu family, thus falling outside the purview of lis pendens. The court rejected this argument, noting that the sales were voluntary and not executed in the course of satisfying a mortgage decree. The court also observed that the properties in question were joint family properties, and any alienation by the karta (head of the family) must be for legal necessity to bind the entire family. The court found no evidence that the sales were made for such necessity.5. Impact of Revenue Sales under Land Improvement Loans Act:The revenue sale conducted under the Land Improvement Loans Act was examined to determine if it had any special status that would exempt it from lis pendens. The court held that while the Act allowed for the recovery of loans as arrears of land revenue, this did not exclude the sale from the doctrine of lis pendens. The court directed that properties sold for the improvement of which loans were taken should be identified and treated separately in the final decree proceedings.6. Binding Nature of Alienations by Karta of Joint Hindu Family:The court reiterated that a karta's alienations of joint family property are only binding if made for legal necessity. The trial court had found that the properties were joint family properties and that the sales were not made for any legal necessity. The High Court affirmed this finding, and the Supreme Court agreed, noting that the voluntary sale deed did not purport to be on behalf of the entire joint family.Conclusion:The Supreme Court dismissed the appeal, holding that the sales were affected by the doctrine of lis pendens and that the procedural requirements under Rule 28 of the Madras High Court Rules were valid. The court also directed that the properties sold under the Land Improvement Loans Act should be identified in the final decree proceedings to ensure that only those properties genuinely improved by the loans were excluded from the purview of lis pendens.