Lis pendens
It’s a Latin term;
It means ‘suit pending.’
Lis means = litigation;
Pendens means = pending;
In common law practice, the doctrine
of ‘lis pendens’ is construed as a constructive notice to the public that some
litigation is pending in a court of law in respect of that property.
Lis pendens is a constructive notice
that shows that there is a cloud in the title of the property until the same is
resolved in that suit.
Lis pendens does not invalidate any
transfer of the property.
It is always the duty of the
purchaser to make proper enquiry regarding any lis pendens in the property,
before the purchase.
Section
52 of the Transfer of Property Act has clearly prohibited the transfer of
property which is subject matter of a pending suit. The purchase can only be
done with the permission of the Court. If no such permission has been obtained,
then this transfer in favour of the purchaser is certainly hit by the doctrine of lis pendens as
provided under Section 52 of the Act.
An alienee pendente lite is bound by the final decree that may be
passed in the suit. Such an alienee can be brought on record both under this
rule as also under O 1 Rule 10. Since under the doctrine of lis pendens a
decree passed in the suit during the pendency of which a transfer is made binds
the transferee, his application to be brought on record should ordinarily be
allowed.
The doctrine of lis pendens applies
only where the lis is
pending before a Court. Further pending the suit, the transferee is not
entitled as of right to be made a party to the suit, though the Court has a
discretion to make him a party. But the transferee pendente lite can be added
as a proper party if his interest in the subject matter of the suit is
substantial and not just peripheral.
In order to constitute a
lis pendens, the following elements must be present:
1) There must be a suit or
proceeding pending in a Court of competent jurisdiction.
2) The suit or proceeding
must not be collusive.
3) The litigation must be
one in which right to immovable property is directly and specifically in
question.
4) There must be a transfer
of or otherwise dealing with the property in dispute by any party to the
litigation.
5) Such transfer must affect
the rights of the other party that may ultimately accrue under the terms of the
decree or order.
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