Order XXI Rule 102 CPC | Transferee Pendente Lite Has No Right To Obstruct Execution Of Decree : Supreme Court
The Supreme Court reaffirmed that a purchaser who acquires property during the pendency of litigation, as a transferee pendente lite, has no right to obstruct the execution of the decree and remains bound by the outcome of the proceedings, holding the transfer strictly subservient to the decree. A Bench of Justices Manoj Misra and Ujjal Bhuyan upheld the Bombay High Court's ruling dismissing...
The Supreme Court reaffirmed that a purchaser who acquires property during the pendency of litigation, as a transferee pendente lite, has no right to obstruct the execution of the decree and remains bound by the outcome of the proceedings, holding the transfer strictly subservient to the decree.
A Bench of Justices Manoj Misra and Ujjal Bhuyan upheld the Bombay High Court's ruling dismissing the appeal filed by a transferee pendente lite, who had challenged the rejection of his objections to the execution of a decree for specific performance under Order XXI Rule 97 of the Code of Civil Procedure (CPC).
The Court held that a transfer made during the pendency of a suit is hit by Section 52 of the Transfer of Property Act and remains subject to the litigation's outcome. Since the appellant bought the property during the pendency of specific performance suit, the decree in favour of the buyer prevailed, leaving the appellant with no independent rights over the property, as well as to resist the execution of the decree due to the specific bar contained under Order XXI Rule 102 CPC. (See Tahir V. Isani vs. Madan Waman Chodankar)
“Admittedly in the present case, the transfer of the suit property is pendente lite. Therefore, the doctrine of lis pendens as encapsulated in Section 52 of the Transfer of Property Act is squarely applicable. All the courts have recorded a clear finding of fact that the appellants were fully aware of the pendency of the suit. However, even that is not necessary. As has been held by this Court in Silverline, the scope of adjudication is limited to the only question as to whether the objector who has resisted execution is a transferee pendente lite or not and if the finding is in the affirmative, then such a transferee has no right to resist.”, the court observed.
The Case
The dispute traces back to a 1973 agreement for sale. After the seller's default, a suit for specific performance was filed in 1986 by the Respondent No.1-original buyer, which was decreed in 1990. During the pendency of the suit, the judgment debtor-seller sold portions of the property to third parties, from whom the present appellants later derived title, leading to repeated obstruction in execution.
Execution began in 1991, and a court-commissioned sale deed was executed in 1993, but possession was blocked. In 2019, the appellants obstructed the delivery of possession upon filing an application under Order XXI Rule 97 CPC. Their objections were rejected by the executing court, the First Appellate Court, and the Bombay High Court, leading to an appeal before the Supreme Court.
Decision
Affirming the impugned decision, the judgment authored by Justice Bhuyan observed that since the property was purchased by the Appellants during the pendency of the suit, and the decree being passed in favor of the original buyer, thus they won't be entitled to resist the execution of the decree, due to their position as a pendente lite transferee, and have to hand over the physical possession of the property to the original buyer.
“Now that the decree and conveyance in favour of respondent No. 1 have attained finality, the transferee pendente lite i.e. the appellants have to give way and hand over actual physical possession of the suit property to respondent No. 1.”, the court said.
The Court rejected the Appellants' reliance on Lala Durga Prasad Vs. Lala Deep Chand, (1953) 2 SCC 509, which validates the subsequent transfer if done before filing of the suit. Distinguishing this case with facts of the present case, the Court found it to have no application as the transfer was pendente lite i.e., made during the pendency of the suit.
Approving the impugner order, the court observed:
“the High Court held that if the subsequent transferee acquires right, title and interest with respect to the subject property before filing of the suit, the law laid down in Lala Durga Prasad would be applicable. In paragraph 41 of the impugned judgment, the High Court noted that since in the present case, the transfers are pendente lite, such transactions are covered by Section 52 of the Transfer of Property Act and hence the law laid down in Lala Durga Prasad would have no application.”
Accordingly, the appeal was dismissed, and while ordering the appellants to hand over possession by February 15, 2026, the Court took the extraordinary step of issuing a blanket injunction against future litigation.
Headnote
Transfer of Property Act, 1882 – Section 52 – Doctrine of Lis Pendens – Specific Performance – Execution of Decree – Code of Civil Procedure, 1908 – Order XXI Rules 35, 97, 98, 101, and 102 – Specific Relief Act, 1963 – Section 19(b) – The Supreme Court reaffirmed that a purchaser who acquires property during the pendency of litigation, as a transferee pendente lite, has no right to obstruct the execution of the decree and remains bound by the outcome of the proceedings, holding the transfer strictly subservient to the decree - Key findings held i. Doctrine of Lis Pendens and Transferee Pendente Lite: The principle of lis pendens enshrined in Section 52 of the Transfer of Property Act, 1882, is based on equity, good conscience, justice, and public policy - A transferee pendente lite is bound by the ultimate decree of the court, irrespective of whether they had notice of the pending suit or acted in good faith; ii. Registration of Lis Pendens (Bombay Amendment): Under the Maharashtra amendment to Section 52, once a notice of lis pendens is registered, the property cannot be transferred or dealt with so as to affect the rights of any party under a subsequent decree - The lack of knowledge of the proceedings is not a valid defense against the application of this doctrine; iii. Execution against Obstructionists: In execution proceedings for the delivery of immovable property, the Executing Court has the mandate under Order XXI Rule 97 and Rule 98 CPC to remove any person bound by the decree, including a transferee pendente lite, who resists or obstructs possession; iv. Adjudication of Rights in Execution: All questions relating to the right, title, or interest of an obstructionist arising under Order XXI Rule 97 must be determined by the Executing Court under Rule 101 and not by a separate suit - For transferees pendente lite, their title is subservient to the decree and is effectively extinguished by the court-executed sale deed; v. Interplay between Specific Relief Act and Transfer of Property Act: While Section 19(b) of the Specific Relief Act protects subsequent transferees for value without notice at a stage prior to the institution of a suit, it must give way to Section 52 of the Transfer of Property Act once a suit is instituted – Appeals dismissed. [Relied on Celir LLP v. Somati Prasad Bafna (2024 SCC Online SC 3727); Sanjay Verma v. Manik Roy (2006) 13 SCC 608; Guruswamy Nadar v. P. Lakshmi Ammal (2008) 5 SCC 796; Jayaram Mudaliar v. Ayyaswami (1972) 2 SCC 200; Danesh Singh v. Har Pyari (2025 SCC OnLine SC 2805); Paras 41-64]
Cause Title: ALKA SHRIRANG CHAVAN & ANR. VERSUS HEMCHANDRA RAJARAM BHONSALE & ORS.
Citation : 2026 LiveLaw (SC) 44
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Appearance:
For Petitioner(s) : Mr. Shivaji M. Jadhav, AOR Mr. Vinay Navare, Sr. Adv. Mr. Shivaji M. Jadhav, Adv. Mr. R.d. Barve, Adv. Mr. Mahesh Barve, Adv. Mr. Brij Kishor Sah, Adv. Ms. Apurva, Adv. Mr. Vignesh Singh, Adv. Mr. Aditya S. Jadhav, Adv.
For Respondent(s) : Caveator-in-person, AOR