Module 8.9
Module 8.9
1882
- Khyati Nayak
CONTENT OUTLINE :
MODULE 8
● Lis Pendens
○ Analyzing the doctrine of Lis Pendens
○ Sections Referred: Section 52
MODULE 9
● Part Performance
○ Analyzing the doctrine of Part Performance
○ Sections Referred: Sec. 53A
Section 52 in The Transfer of
Property Act
LIS PENDENS
SECTION 52 IN THE TRANSFER OF
PROPERTY ACT, 1882
● 52. Transfer of property pending suit relating thereto—
● During the [pendency] in any Court having authority [within the limits of India excluding the
State of Jammu and Kashmir] or established beyond such limits] by [the Central Government]
● of [any] suit or proceedings which is not collusive ; and
● in which any right to immoveable property is directly and specifically in question,
● the property cannot be transferred or otherwise dealt with by any party to the suit or
proceeding
● so as to affect the rights of any other party thereto under any decree or order which may be
made therein,
● except under the authority of the Court and on such terms as it may impose.
● [Explanation.— For the purposes of this section,
● the pendency of a suit or proceeding shall be deemed
● to commence from
○ the date of the presentation of the plaint or
○ the institution of the proceeding in a Court of competent jurisdiction, and
● to continue
○ until the suit or proceeding has been disposed of by a final decree or order and complete satisfaction or
discharge of such decree or order has been obtained, or
○ has become unobtainable by reason of the expiration of any period of limitation prescribed for the execution
thereof by any law for the time being in force.
Lis Pendens
Govind Pillai Gopala Pillai v. Aiyappan Krishnan, 1975 Ker 10
● Lis Pendens - Jurisdiction, Power, or Control that courts have, during the pendency of an action over the
property involved therein.
● Lis Pendens literally means ‘litigation pending’ or ‘pending suit’ and is drawn from the concept based on
the maxim “Pendente lite nihil innovature” which means that nothing new must be introduced while a
litigation or suit is pending.
● This Doctrine states that the Transfer of property shall be restricted when there is a litigation pending on
the title or any rights that arise directly thereof involving an immovable property.
● The suit commences the moment a complaint is presented or the day of commencement of proceedings in
the appropriate Court and shall be terminated by Order of the Court.
● The Court may, however, permit any party to the suit to transfer the property on such terms which it may
think fit and proper to impose.
● The sale of immovable property can take place through private negotiations, but the said Transfer will
be subservient to the verdict of the competent Court.
● The doctrine of Lis Pendens has its origin by Lord Justice Turner in
● Bellamy Vs. Sabine, 1857
● Where the Court observed the following:
● “This is a doctrine common to both law and equity courts, on the grounds that, if
alienation pendente lite was allowed to prevail, it would simply not be possible for any
action or suit to be resolved successfully.
● In any case, the Plaintiff will be responsible for the Defendant who alienated the property
before the judgment or the decree and must be obliged, according to the same course of
action, to initiate these proceedings de novo.”
● The crux is that when litigation is pending in respect of any property, none of two shall
be permitted to transfer the same except with permission of court.
● Anybody buying it would get the title which will be subject to court’s decision in suit that is
pending. He may or may not be impleaded. He is to honor the verdict.
BELLAMY VS. SABINE, 1857
● The facts of the above case were the following:
○ However, while this litigation was pending, Mr. A sold the property to Mr. B, who did
not take notice of the suit.
○ The Court held that the son Mr. Z was entitled to the property and the sale was set
aside.
○ Mr. B who purchased the property from Mr. A does not get any title as he purchased
the property from someone who did not have the title and therefore cannot convey it.
● Therefore, evolving the principles of common law and Section 52 of The Transfer of Property
Act, 1882, was born and is as follows:
○ When there is an ongoing lawsuit in any Court having authority within the limits of India,
○ a suit or proceeding in which any right to immovable property is precisely in question,
○ the property cannot be conveyed by any party to the lawsuit which can influence the rights of
any other party thereto under any order which may be rendered therein,
○ unless under the jurisdiction of the Court and on such conditions as it may enforce.
● (2) Every transfer of immoveable property made without consideration with intent to defraud a
subsequent transferee shall be voidable at the option of such transferee.
○ For the purposes of this sub-section, no transfer made without consideration shall be deemed to have been made with
intent to defraud by reason only that a subsequent transfer for consideration was made.
PART Section 53A in The Transfer of
PERFORMANCE Property Act, 1882
SECTION 53A IN THE TRANSFER OF
PROPERTY ACT, 1882
● 53A. Part performance.—
● and the transferee has, in part performance of the contract, taken possession of the property or any part
thereof, or
● the transferee, being already in possession, continues in possession in part performance of the contract and
has done some act in furtherance of the contract,
(DELIVERY OF POSSESSION)
● and the transferee has performed or is willing to perform his part of the contract,
(WILLINGNESS TO PERFORM)
● then,
○ notwithstanding that where there is an instrument of transfer,
○ that the transfer has not been completed in the manner prescribed therefor by the law for the time
being in force,
○ the transferor or any person claiming under him shall be debarred from enforcing against the
transferee and persons claiming under him
○ any right in respect of the property of which the transferee has taken or continued in possession,
○ other than a right expressly provided by the terms of the contract.
(TRANSFEROR SHALL BE DEBARRED)
● Provided that nothing in this section shall affect the rights of a transferee for consideration
who has no notice of the contract or of the part performance thereof.
(RIGHT OF BONAFIDE TRANSFEREE WITHOUT NOTICE)
UNDERLYING PRINCIPLES:
● Doctrine of Part Performance is an equitable doctrine and it is incorporated to prevent fraud
and from taking illegal advantage on account of non-registration of the document.
● Doctrine of Part Performance protect transferees, and allow them to retain property, who
after executing an incomplete instrument fails to complete the instrument in manner
provided by law, without there being any fault on part of transferee. (willing to perform)
● This Doctrine is based on the maxim, Equity look at as it is done which ought to have been done.
INGREDIENTS OF THE SECTION 53-A
● Bombay High Court in Kamalabai Laxman Pathak v. Onkar Parsharam Patil, has given emphasis on the
ingredients of the Section 53-A which are as follows:
It is one of the necessary ingredients of section 53-A that the terms of written contract must be
ascertainable with reasonable certainty.
(Hamida v. Humer and Ors.)
● There should be some real nexus between the contract and the act done in the pursuance of the
contract.
● For example – payment of reduced rent after renewal of lease, Taking electricity connections or
making some improvements etc.
● Transferee is willing to perform his part of contract.
Section 53-A is based on the principle of Equity. Equity says that one who seeks equity must
do equity.
Therefore, where a person claims protection of his possession over a land under section 53-A,
his own conduct must be equitable and just.
It is an essential condition for the applicability of this section that the transferee must be willing
to perform his part of contract.
(Sardar Govindrao Mahadik and Anr. vs. Devi Sahai and Ors Govind).
● A contract to transfer his immovable property to B by way of sale and put B in possession of
the property before a regular Sale-Deed is executed.
● The contract is said to be partly performed and if later on A refuses to execute regular
document of sale and files a suit for eviction against B treating B as trespasser.
● Then,
● B can resist A’s claim on the ground that the contract of transfer in his favour has partly
been performed and that A should not be allowed to go back upon his own word.
● Plea of Part performance
○ Ram Kumar Agarwal v. Thawar Das, (1999)
■ For the first time at second stage of appeal
● In order to get benefits of Section 53A of the Transfer of Property Act, the document relied upon must be a registered
document: High Court of Delhi
● The High Court of Delhi held that in order to give benefits of Section 53A of the Transfer of Property Act, the document relied
upon must be a registered document. Any unregistered document cannot be looked into by the court and cannot be relied upon
on or taken into evidence in view of Section 17(1A) read with Section 49 of the Registration Act. Thus, benefit of Section 53A
could have been given to the respondent, if and only if the alleged Agreement to Sell cum receipt satisfied the provisions of
Section 17(1) A of the Registration Act.
● Had the petitioner been in lawful possession, he definitely would have filed a suit under Section 6 of the Specific Relief Act
within six months.
● The Court stated that the present petition looked like an attempt by the petitioner to get the possession of the property and to
get over the limitation for filing the suit. Therefore, the writ petition was dismissed with the above observations along with
pending applications.
The Document must be registered:
● 24th Sep 2001
● Sec 49 Reg Act 1908
● Pre- 1929
Provided that the transferee, after taking reasonable care to ascertain that the transferor had
power to make the transfer, has acted in good faith.
(In case of - Bona-fide Transferee)
WHO IS AN OSTENSIBLE OWNER ?
● A person who has all indicta of ownership without being the real owner.
● May have :
■ Possession
■ Enjoyment
■ Name entered on all the legal Documents
● Such situation may arise where for some reason a person purchases property in
the name of another person. Where the person purchases the property in the
name of another person it is known as benami transaction.
Kanulal v. P. Sahu
Section 41 of TPA is an equitable remedy to a bonafide purchaser. (Exception to the general rule ; Nemo dat quod non
habet)
WHO CAN OR CAN NOT BE
OSTENSIBLE OWNER
● The manager, licensee, servants, agent, trustee, donor in possession or mahant etc can not be ostensible owner.
Held :
A person shall not be permitted to represent a state of fact at one time, and afterwards when such representations
has induced another to change his position, seek to show that as such his representation was erroneous. It is a doctrine
too well established now to be shaken, and whether it is accurately called “estoppel” or not, the principle is perfectly
intelligible.
ESSENTIAL CONDITION FOR
APPLICABILITY OF SECTION 41
1. Transferor is the ostensible owner of property (with express or implied consent of the real owner).
1. The real owner is not responsible, unless the apparent ownership of transfer has been permitted or created
by him.
2. Nirus Purve v. Mt. tetri Pasin (1916)
3. Annoda Mohan v. Nilphamari (1922)
4. Transferee has exercised reasonable care and after an enquiry purchased the property.
SECTION 42 IN THE TRANSFER OF
PROPERTY ACT, 1882
● 42. Transfer by person having authority to revoke former transfer.—
● Where a person transfers any immoveable property, reserving power to revoke the transfer, and
subsequently transfers the property for consideration to another transferee, such transfer operates in
favour of such transferee (subject to any condition attached to the exercise of the power) as a revocation
of the former transfer to the extent of the power.
○ Illustration : A lets a house to B, and reserves power to revoke the lease if, in the opinion of a specified surveyor, B should
make a use of it detrimental to its value. Afterwards A, thinking that such a use has been made, lets the house to C.
● This operates as a revocation of B’s lease subject to the opinion of the surveyor as to B’s use of the house
having been detrimental to its value.
● Principle : If a person has a right to transfer property, after exercising the right to revoke previous
transfer, a transfer of such property by him will imply exercise of right of revocation by him. (though
subjected to condition)
Section 35. Election: Election
DOCTRINE OF ELECTION when necessary
DOCTRINE OF ELECTION –
MEANING
● Doctrine of Election – Based on Principle of Equity
● Election means choosing between two inconsistent or alternative rights. Under any instrument if two rights are conferred on a
person in such a manner that one right is in lieu of the other, he is bound to elect (choose) only one of them.
subject nevertheless,
(i) where the transfer is gratuitous, and the transferor has, before the election, died or otherwise become
incapable of making a fresh transfer,
(ii) and in all cases where the transfer is for consideration,
○ to the charge of making good to the disappointed transferee the amount or value of the property
attempted to be transferred to him.
Illustrations
○ The farm of Sultanpur is the property of C and worth Rs. 800.
○ A by an instrument of gift professes to transfer it to B, giving by the same instrument Rs. 1,000 to C.
○ C elects to retain the farm. He forfeits the gift of Rs. 1,000.
○ In the same case, A dies before the election. His representative must out of the Rs. 1,000 pay Rs. 800 to B.
● Knowledge of the fact that Whether transferor had the authority to transfer property or not is
immaterial.
○ The rule in the first paragraph of this section applies whether the transferor does or does not believe that which he
professes to transfer to be his own.
● The occasion of election arises only where a benefit is directly conferred on the owner of the
property.
○ A person taking no benefit directly under a transaction, but deriving a benefit under it indirectly, need not elect.
Vallamai v. Naggappa AIR 1967
● Duty to elect arises only when the person acts in one and the same capacity.
○ A person who in his one capacity takes a benefit under the transaction may in another dissent therefrom .
Deputy Commissionaer v. Ram Swaroop (1917)
EXCEPTION TO THE LAST PRECEDING
FOUR RULES.—
● Part of same Transaction (Only when the ‘transfer’ and ‘benefits’ are interdependent and
inseparable) ; There is no duty to elect if the benefits are not in lieu of transfer –
● Where a particular benefit is expressed to be conferred on the owner of the property which the
transferor professes to transfer,
● and such benefit is expressed to be in lieu of that property, if such owner claim the property, he
must relinquish the particular benefit,
● but he is not bound to relinquish any other benefit conferred upon him by the same
transaction.
MODE OF ELECTION
● Express Election
● Implied Election
● Being Aware of his duty to elect and having full knowledge of circumstances accepts the benefits.
● Acceptance of the benefit by the person on whom it is conferred constitutes an election by him to confirm the transfer, if he is
aware of his duty to elect and of those circumstances which would influence the judgment of a reasonable man in making
an election, or if he waives enquiry into the circumstances.
● Presumption that he has knowingly chosen to accept the benefit –
○ Such knowledge or waiver shall, in the absence of evidence to the contrary, be presumed, if the person on whom the benefit
has been conferred has enjoyed it for two years without doing any act to express dissent.
○ Such knowledge of waiver may be inferred from any act of his which renders it impossible to place the persons interested
in the property professed to be transferred in the same condition as if such act had not been done.
■ Illustration A transfers to B an estate to which C is entitled, and as part of the same transaction gives C a coal-mine. C
takes possession of the mine and exhausts it. He has thereby confirmed the transfer of the estate to B.
● Requisition to Elect –
● If he does not within one year after the date of the transfer signify to the
transferor or his representatives his intention to confirm or to dissent from the
transfer, the transferor or his representative may, upon the expiration of that
period, require him to make his election;
● and, if he does not comply with such requisition within a reasonable time after
he has received it, he shall be deemed to have elected to confirm the
transfer.
● Suspension Of Election –
● In case of disability, the election shall be postponed until the disability ceases,
or until the election is made by some competent authority.
KHYATI NAYAK
Assistant Professor (Law)
THANK YOU KPMSOL, NMIMS, MUMBAI
Email : [email protected]