Lis Pendens in Property Disputes.
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The Bombay High Court recently clarified the scope and cessation of the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882. In a case concerning the division of assets between two groups, the Court observed that once immovable properties are alienated—either through sale or surrender—the nature of the suit transforms. At that point, the suit becomes one for accounting or a monetary claim, to which the doctrine of lis pendens no longer applies.
The Court emphasized that the primary purpose of lis pendens is to prevent the subversion of a pending suit by transferring the disputed property. However, once the property is no longer part of the dispute, the rationale for applying lis pendens ceases. Therefore, the registered notice of lis pendens, which had been filed during the pendency of the suit, no longer restricts the defendants’ ability to deal with their property.
This judgment underscores that the applicability of lis pendens is contingent upon the property remaining the subject matter of the litigation. Once the property is alienated and the suit’s focus shifts to financial claims, the doctrine ceases to operate.
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