Transfer of Property Act, 1882-Section 52-General principles-Held: Litigant party is exempted from taking notice of title acquired during pendency of litigation-Principle of lis pendens is of public policy, where good faith or bona fide do not arise-Transferee pendente lite is bound by decree just as much as he was party to the suit-Mere pendency of suit does not prevent one of the parties from dealing with the suit property-Only property alienated with the permission of the Court could affect rights of other party under decree passed in the suit-Thus, order of High Court that transferees pendente lite without leave of the court could be added as parties in the suit, is set aside.
Appellant filed suit for specific performance with regard to the suit property in 1991. During pendency of the suit, in year 1993 suit property was transferred in favour of respondents. Respondents filed an application under Order 1, Rule 10(2) CPC for impleadment to contest the suit in 2005. Trial court held that both the transferees had purchased the suit property after filing of the suit, without obtaining leave of the court and thus, the transfer is pendente lite and is hit by section 52 of the Transfer of Property Act, 1882 and rejected the prayer for impleadment. High Court allowed their writ petition holding that the respondents' vendors were not parties to the suit and there was no representation of respondent to safeguard their interest and therefore, they are required to be added as parties in the suit. Hence the present appeal.
Allowing the appeal, the Court.