Transferee pendente lite with notice can be impleaded in specific performance to ensure an effective and binding decree.

A transferee pendente lite who bought the suit property with notice of a prior agreement to sell and in breach of a restraint order could be impleaded in the specific performance suit. The transfer did not extinguish the transferor's title, but it remained subject to the pending proceedings and any eventual decree. A purchaser for value without notice may resist specific performance, yet that protection was unavailable here because the transferee was not bona fide. The transferee's presence was treated as necessary or proper to ensure effective adjudication, bind the parties to the decree, and avoid prejudice and multiplicity of proceedings.

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Issues: Whether a transferee pendente lite, who had notice of a prior agreement to sell and purchased the suit property in breach of a restraint order, could be impleaded as a defendant in a suit for specific performance.

Analysis: The suit property had been transferred after institution of the specific performance suit and after a restraint order undertaking not to alienate the property. The transferor's title, though not extinguished by lis pendens, remained subject to the outcome of the pending suit. A transferee for value without notice of the original contract may resist specific performance, but a purchaser with notice and in breach of the court's restraint order cannot claim the protection reserved for a bona fide transferee. In a suit for specific performance, the court may implead a person whose presence is necessary or proper for complete adjudication, and a transferee of the entire subject matter can be joined so that the decree, if passed, may effectively bind the parties and avoid prejudice and multiplicity of proceedings.

Conclusion: The transferee pendente lite was not a bona fide purchaser without notice and was entitled to be impleaded as a defendant.

Ratio Decidendi: In a suit for specific performance, a transferee of the suit property pendente lite, who is not a bona fide purchaser without notice, may be added as a defendant where his presence is necessary or proper for effective adjudication, and the transfer remains subject to the plaintiff's rights and the eventual decree.

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