Lis Pendens Doctrine Applies from Filing of Petition, Not Court Notice; Valid Even if Petition Has Defects: Supreme Court
The Supreme Court, in M/s Siddamsetty Infra Projects Pvt Ltd v. Katta Sujatha Reddy and Others, held that the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882, applies from the date a petition is filed, not when notice is issued. The Court clarified that lis pendens is effective even if the petition is initially defective and pending in the Registry.
A bench comprising Chief Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra made this observation while reviewing and recalling a 2022 judgment that denied specific performance of a sale agreement. The issue arose after the property was sold following the 2022 judgment, with respondents arguing that the sale occurred before the review petition's registration.
The Court emphasized that lis pendens prevents defendants from undermining judicial proceedings by transferring disputed property. The doctrine applies if the following conditions are met:
1. A non-collusive suit or proceeding is pending in a competent court.
2. The dispute directly concerns immovable property.
3. The property transfer affects other parties' rights in the case.
The Court underscored that under Section 52, pendency starts at the petition’s filing and continues until the final resolution. It rejected the argument that defects in filing negate the doctrine, ruling that the petition’s institution within the limitation period was sufficient to invoke lis pendens. Any property transfer during such pendency is subject to the litigation’s outcome.