Where the Suit is pending before the competent court, in which any right to property is in question, the property can’t be transferred or dealt with by any party to the suit except under the authority by the court or such terms as it may impose.
In simple words, when the title of a property is in question before the court of competent jurisdiction, such property should not be transferred by way of sale or gift or lease or mortgage. If transferred, such transfer is invalid, and the transferee has no claim.
Essential Condition of the Lis-Pendens Transfer.
- There must be pendency of a suit or pendency of a proceeding.
- The pendency of the suit must be n the court of competent jurisdiction.
- A right to the immovable property either directly or indirectly should be in question in the suit.
- The transfer should be made by one of the parties to the litigation without the authority of the court.
- The alienation must affect the right of the other party.
What is the Pendency of a suit?
The Pendency of suit commences from the date of filing of the plaint and continues till the disposal of the suit by a decree or an order. Appeal and execution proceedings come within the purview of continuation of the proceedings.
An example regarding Lis-Pendens.
A sale deed was executed in my favour on 16.08.2021 and the same of presented for registration on 08.10.2021, but on 07.09.2021 a brother of my vendor brought a title suit relating to the same property before the court of competent jurisdiction. Certainly, the sale deed was got registered in the pendency of a title suit. Now question is that whether such sale deed is lis- pendens transfer?
The position of law is that ownership is not transferred until registration is affected. As soon as the sale deed got registered the ownership under the sale deed passes on the date of the execution of the sale deed, irrespective of the date of registration. So, a registered sale deed will not be defeated by another sale deed executed later but got registered earlier. And if a deed is registered after a suit has been filed, the transfer will not be subject to lis-pendens if the deed was executed before the suit was filed.