Transfer of Property Act, 1882; Section 41, 52 – Specific Performance – Lis Pendens – Bonafide Purchaser – Doctrine of Lis Pendens – Ostensible Owner – The Supreme Court examined an appeal challenging the Judgement of the Punjab and Haryana High Court, which had reversed the concurrent findings of the trial court and the first appellate court in a suit for specific performance.
The appellant had entered an agreement to sell land, and subsequently filed a suit for specific performance when the respondent failed to execute the sale deed. The respondent, however, contended that the agreement was signed under a misconception.
The High Court reversed the lower court’s decisions, holding that subsequent purchasers were bonafide purchasers for valuable consideration and entitled to protection under Section 41 of the Transfer of Property Act, 1882.
However, the Supreme Court held that the transactions were affected by the doctrine of lis pendens since the suit for injunction was filed before the execution of subsequent deeds. Consequently, the Court set aside the High Court’s judgment, upheld the decree in favor of the appellant, and directed the respondent to execute the agreement to sell in favor of the appellant. (Para 16, 20, 24, and 25)
SUPREME COURT OF INDIA
2024 STPL(Web) 327 SC
[2024 INSC 377]
Chander Bhan (D) Through Lr Sher Singh Vs. Mukhtiar Singh & Ors.
Civil Appeal No. 2991 OF 2024 (ARISING OUT OF SLP (CIVIL) NO. 4134 OF 2020)-Decided on 03-05-2024
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