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Suit decreed partially for recovery, doctrine of lis pendens...

Supreme Court Upholds Specific Performance, Applying Lis Pendens; Agreement Not Fraudulent or Collusive, Appeal Dismissed.

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Indian Laws October 16, 2024 Case Laws SC
Suit decreed partially for recovery, doctrine of lis pendens applied. Agreement dated 17.08.1990 not found fraudulent or result of collusion between plaintiff and defendant no. 1. Trial court's finding on issue no. 5 not challenged by defendants through cross-appeal or objections. First Appellate Court erred in finding agreement collusive without cross-objections. Doctrine of lis pendens u/s 52 of Transfer of Property Act, 1882 applies to alienation during pendency of suit, irrespective of notice to alienee. Sale deed executed on 08.01.1993 by defendant no. 1 in favor of defendant no. 2 during pendency of suit filed on 24.12.1992. Plaintiff non-suited on ground of defendant no. 2 being bona fide purchaser without notice, contrary to doctrine of lis pendens. High Court justified in setting aside Trial Court and First Appellate Court judgments, decreeing specific performance. Supreme Court affirmed High Court judgment, dismissed appeal.

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Acts Income Tax