Why in news?
The Delhi High Court has ruled that courts may, in suitable circumstances, exempt a property from the doctrine of lis pendens to protect genuine owners from vexatious litigation. The decision clarifies that this equitable principle should not be misused to harass bona fide purchasers.
Background
"Lis pendens" is a Latin term meaning "pending suit." In property law, it refers to the rule that any transfer of immovable property while a lawsuit concerning that property is pending will not affect the rights of the parties to the suit. Section 52 of the Indian Transfer of Property Act (1882) codifies this doctrine. It stipulates that although the sale remains valid, the buyer takes the property subject to the outcome of the litigation and is bound by the court's eventual decree.
The purpose of the doctrine is to maintain the status quo and prevent the subject matter of a dispute from being alienated during proceedings. Without this rule, litigants could defeat court orders by selling their property to third parties. For the doctrine to apply there must be a bona fide suit pending in a competent court, the suit must directly question the title of immovable property and the litigation should not be collusive.
Delhi High Court judgment
In the case before the Delhi High Court, the plaintiff sought to restrain the defendant from selling a property, claiming an oral agreement to purchase it. The single judge refused to impose such a restraint, and the appellate bench upheld that decision. The court observed that the doctrine of lis pendens is rooted in equity and cannot be turned into a weapon of harassment. Judges have the discretion to exempt a property from the doctrine where continuing the restriction would cause undue hardship or where the underlying suit appears frivolous.
Implications
The ruling provides guidance for lower courts on balancing the rights of litigants with those of innocent purchasers. It underscores that while the doctrine protects the integrity of judicial proceedings, courts can and should intervene to prevent its misuse. Genuine transactions need not be stalled merely because someone files a weak or collusive lawsuit.
Conclusion
The doctrine of lis pendens remains an essential tool for preserving the status of disputed properties during litigation. However, the Delhi High Court's judgment reminds us that equitable principles must be applied flexibly to serve justice. Courts should scrutinise each case on its merits and protect genuine owners against malicious claims.
Source: LiveLaw - Delhi HC ruling on lis pendens . LawBhoomi - Doctrine of Lis Pendens explained