The Supreme Court has delivered a judgment expounding the doctrine of “lis pendens” under Section 52 of the Transfer of Property Act.
The Court explained that a transfer is not void just because the transfer is made during the pendency of litigation and the effect of Section 52 is that the transfer will be subject to the outcome of the suit. The Court further pointed out that the pleas of bona fide purchase or lack of notice are not defences available to the purchaser against the doctrine of lis pendens.
Disagreeing with the High Court view, the bench observed that neither the fact that the transferee had no notice nor the fact that the transferee acted bonafide, in entering into the transaction, are relevant for applying Section 52 to a transaction.