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The Delhi High Court has recently ruled that courts possess the discretion to exempt a property from the application of the doctrine of lis pendens under certain circumstances. The decision aims to protect genuine property owners from vexatious or frivolous litigation that seeks to unjustly restrict the transfer or enjoyment of property rights.

About the Doctrine of Lis Pendens

• The term Lis Pendens is derived from Latin, meaning “pending litigation.”
• In India, the doctrine is codified under Section 52 of the Transfer of Property Act (TPA), 1882.
• The principle holds that any transfer of immovable property during the pendency of a legal dispute concerning that property will be subject to the outcome of the litigation.
• The doctrine does not invalidate the transfer but makes it subordinate to the result of the pending case.
• Its primary objective is to prevent one party from defeating the rights of another through the transfer of the disputed property while the court proceedings are ongoing.

Essence and Legal Rationale

• The doctrine seeks to maintain the status quo of property ownership during litigation, ensuring that the final judgment of a competent court remains effective despite any transactions made during the pendency of the case.
• It prevents the multiplicity of proceedings and protects the interests of the rightful claimant, as the transferee of such property is bound by the court’s decree.

Key Conditions for Applicability

1. A suit or proceeding must be pending before a court of competent jurisdiction.
2. The dispute must directly relate to the title or rights of an immovable property.
3. The property must be specifically identifiable and properly described in the suit.
4. The transfer of the property must occur during the pendency of the litigation.
5. The suit must be bona fide, i.e., not collusive or fraudulent in nature.

If these conditions are met, any transfer made during the lawsuit will not override the court’s final decision.

Non-Applicability of the Doctrine

The doctrine does not apply in certain cases, including:

• When the mortgagor transfers property under a power explicitly granted in the mortgage deed.
• When the transfer affects only the transferor’s interest and not the other party’s rights.
• In collusive suits—where the proceedings are staged to defraud others.
• When the property is not properly described, making its identification impossible.
• Where the right to the property is not directly in dispute and alienation has been permitted.

Recent Delhi High Court Ruling

• A Division Bench of the Delhi High Court, led by Justice Anil Kshetarpal, clarified that the doctrine of lis pendens is not absolute and can be relaxed by judicial discretion.
• The Court held that in cases where litigation is filed with mala fide intent or used as a tool to harass legitimate owners, the court may exempt the concerned property from the operation of the doctrine to protect bona fide ownership and prevent misuse of legal processes.
• This interpretation strengthens the judiciary’s power to distinguish genuine disputes from vexatious claims, thereby ensuring fairness and efficiency in property litigation.

Significance of the Judgment

• Protects Genuine Owners: Shields rightful property holders from baseless legal actions aimed at stalling legitimate transactions.
• Prevents Misuse of Law: Discourages abuse of the doctrine for fraudulent or extortionate purposes.
• Balances Rights and Justice: Ensures that while the doctrine maintains judicial control over disputed properties, it does not become a weapon against bona fide parties.
• Clarifies Judicial Discretion: Affirms that courts have the inherent authority to exclude specific cases from the doctrine’s ambit when equity demands.