There is a contract to sell a house between 'A' and 'B'. 'B' files a suit against 'A' for specific performance of contract. While the suit is pending 'A' sells the house to 'C' who does not have notice of pendency in the suit. Suit is decreed in favour of 'B'. Can the decree be executed against 'C'?

Question: There is a contract to sell a house between 'A' and 'B'. 'B' files a suit against 'A' for specific performance of contract. While the suit is pending 'A' sells the house to 'C' who does not have notice of pendency in the suit. Suit is decreed in favour of 'B'. Can the decree be executed against 'C'? [JJS 2014]

Find the answer to the mains question of Property Law only on Legal Bites. [There is a contract to sell a house between 'A' and 'B'. 'B' files a suit against 'A' for specific performance of contract. While the suit is pending 'A' sells the house to 'C' who does not have notice of pendency in the suit. Suit is decreed in favour of 'B'. Can the decree be executed against 'C'?]

Answer

In the given case at hand, where 'B' filed a suit for specific performance against 'A' regarding the sale of a house, and during the pendency of the suit, 'A' sells the house to 'C' without 'C' having notice of the ongoing litigation, the doctrine of lis pendens under Section 52 of the Transfer of Property Act (TPA) comes into the picture.

The doctrine of lis pendens dictates that during the pendency of any suit or proceeding in which the right to immovable property is directly and specifically in question, the property cannot be transferred by any party to the suit so as to affect the rights of other parties under the decree or order that may be made in that suit.

In this case, since 'B' filed a suit for specific performance against 'A' concerning the same property, and the suit is eventually decreed in favour of 'B', the decree obtained by 'B' would be binding not only on 'A' but also on those who derived title under 'A,' including 'C.' Even though 'C' did not have notice of the pending suit at the time of purchase, the doctrine of lis pendens operates to prevent 'A' from transferring the property to 'C' during the pendency of the suit.

Therefore, the decree obtained by 'B' can be executed against 'C.' The sale of the house to 'C' during the pendency of the suit is deemed void as per the doctrine of lis pendens, and the rights of 'C' would be subject to the decree obtained by 'B.' 'C' would be bound by the court's decision, and the execution of the decree can be enforced against the property now owned by 'C.'