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Citation Codes
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citation codes
Case Number
Disposition
Advocates
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Acts
  • Order 6 Rule 17 of the Code
  • Order 22 Rule 10 of the Code
  • Section 115 of the Code of Civil Procedure
  • Order 1 Rule 10 of the Code
  • Section 5, Subsection 2 of the 1983 Income Tax Act does not appear in this excerpt; however, Section 52 is mentioned as part of the Transfer of Property Act.
  • Code of Civil Procedure (hereinafter referred to as “the Code”)
  • Section 52 of the Transfer of Property Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Order 6 Rule 17 of the Code
  • Order 22 Rule 10 of the Code
  • Section 115 of the Code of Civil Procedure
  • Order 1 Rule 10 of the Code
  • Section 5, Subsection 2 of the 1983 Income Tax Act does not appear in this excerpt; however, Section 52 is mentioned as part of the Transfer of Property Act.
  • Code of Civil Procedure (hereinafter referred to as “the Code”)
  • Section 52 of the Transfer of Property Act
Smart Summary

Factual and Procedural Background

Two cross-suits, both instituted in 1983, were pending before the trial court: (i) a suit for redemption of mortgage filed by Amichand Agarwal and (ii) a counter-suit by the opposite party seeking specific performance of an agreement of sale over the same property. In 1996, during the pendency of these suits, the present appellant purchased the suit property from the original plaintiff.

Claiming to have stepped into the shoes of the transferor, the appellant filed three applications in the trial court:

  • for impleadment as co-plaintiff in the redemption suit (Order 1 Rule 10 CPC);
  • for impleadment as defendant in the specific-performance suit (Order 22 Rule 10 CPC); and
  • for consequential amendment of pleadings (Order 6 Rule 17 CPC).

By order dated 11-10-1996, the trial court rejected all three applications, noting that the purchase was pendente lite, no leave of the court had been obtained under Section 52 of the Transfer of Property Act, and early disposal of the long-pending suits was necessary. The High Court of Patna, exercising revisional jurisdiction under Section 115 CPC, declined to interfere by a common order dated 28-07-1997. The transferee-purchaser appealed to the Supreme Court.

Legal Issues Presented

  1. Whether a transferee pendente lite who acquires the suit property without obtaining the court’s leave under Section 52 of the Transfer of Property Act is entitled, as of right, to be impleaded as a party to the pending suits.
  2. Whether the trial court’s refusal to permit impleadment and amendment, and the High Court’s refusal to interfere under Section 115 CPC, amounted to improper exercise of judicial discretion.

Arguments of the Parties

Appellant's Arguments

  • Although a transferee pendente lite, the appellant should be joined in both suits to effectively protect her interest and to bring subsequent events on record.
  • The trial court failed to exercise discretion judiciously; therefore, the High Court ought to have set aside its order.
  • Relied on decisions such as Khemchand Shankar Choudhari v. Vishnu Hari Patil, Jayaram Mudaliar v. Ayyaswami, Savitri Devi v. District Judge, Gorakhpur, Saila Bala Dassi v. Nirmala Sundari Dassi and Dhurandhar Prasad Singh v. Jai Prakash University to contend that impleadment of a transferee pendente lite is ordinarily permitted.

Respondents' Arguments

  • Supported the orders of the trial court and High Court, stressing that a transferee pendente lite without leave is neither a necessary nor a proper party.
  • Placed particular reliance on Sarvinder Singh v. Dalip Singh (1996) 5 SCC 539 to emphasise the bar created by Section 52 of the Transfer of Property Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Khemchand Shankar Choudhari v. Vishnu Hari Patil (1983) 1 SCC 18 Invoked by appellant to suggest that transferees pendente lite may be impleaded. Held distinguishable; not followed.
Jayaram Mudaliar v. Ayyaswami (1972) 2 SCC 200; AIR 1973 SC 569 Relied on by appellant for permissibility of joining subsequent transferees. Distinguished on facts; not applied.
Savitri Devi v. District Judge, Gorakhpur (1999) 2 SCC 577; AIR 1999 SC 976 Cited by appellant to support amendment and impleadment. Distinguished; no assistance to appellant.
Saila Bala Dassi v. Nirmala Sundari Dassi AIR 1958 SC 394; 1958 SCR 1287 Relied upon to argue for bringing subsequent transferees on record. Distinguished; court refused to rely.
Dhurandhar Prasad Singh v. Jai Prakash University (2001) 6 SCC 534 States that transferee without leave is bound by result and bears risk of inadequate conduct by original party. Quoted and applied to affirm trial court’s discretion.
Sarvinder Singh v. Dalip Singh (1996) 5 SCC 539 Section 52 TPA bars alienation affecting rights of parties; transferee pendente lite not necessary or proper party. Extensively quoted; formed primary basis for dismissing appeals.

Court's Reasoning and Analysis

The Supreme Court accepted that the appellant was a transferee pendente lite who had neither sought nor obtained the court’s leave under Section 52 of the Transfer of Property Act. While recognising that a subsequent transferee may ordinarily be joined, the Court emphasised that such joinder is not an absolute right. Key considerations were:

  • The suits had been pending since 1983; allowing impleadment in 1996 risked further delay.
  • The trial court found the alienation prima facie non-bona-fide and an attempt to complicate proceedings.
  • Section 52 protects the rights of parties to litigation from being affected by transfers during its pendency; hence the appellant would anyway be bound by the eventual decree.
  • Precedents cited by the appellant turned on their own facts and did not establish a rigid rule mandating impleadment.
  • Conversely, Sarvinder Singh and Dhurandhar Prasad Singh underscored that a transferee without leave cannot insist on being treated as a necessary or proper party and must bear the litigation’s outcome.

Finding that the trial court had exercised its discretion on cogent grounds and that the High Court rightly declined to interfere under Section 115 CPC, the Supreme Court concluded that no error of law or jurisdiction existed.

Holding and Implications

DISMISSED – All appeals were dismissed with costs payable by the appellant to the contesting respondents.

Implications: The judgment reaffirms that a transferee pendente lite who acquires property without the court’s leave has no automatic right to be impleaded. Whether to allow such impleadment remains a matter of judicial discretion, especially when late joinder may delay long-pending suits. No new legal principle was created; the decision primarily confirms and applies the doctrine of lis pendens under Section 52 of the Transfer of Property Act.

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    Bibi Zubaida Khatoon v. Nabi Hassan Saheb And Another

    D.M Dharmadhikari, J.— These appeals are directed against a common judgment dated 28-7-1997 passed by the High Court of Patna in two revisions under Section 115 of the Code of Civil Procedure (hereinafter referred to as “the Code”).

    2. In the cross-suits, one filed for redemption of mortgage and the other filed for specific performance of agreement of sale, the petitioner made two applications, for her impleadment as a co-plaintiff in one suit and defendant in the other. Third application was filed for amendment of the pleadings consequent to her proposed joinder as a party in the two suits. The three applications were made respectively under Order 1 Rule 10, Order 22 Rule 10 and Order 6 Rule 17 of the Code.

    3. According to the petitioner, during pendency of the suits, she had purchased the suit property in the year 1996 from the original plaintiff Amichand Agarwal and has, thus, acquired in his place the right of redemption of the mortgaged suit property. In the cross-suit of the opposite party seeking specific performance of the agreement of sale based on the same acquisition of title during pendency of suit, joinder was sought to that suit as a defendant.

    4. The trial court by an order dated 11-10-1996 rejected the prayer for joinder of the petitioner in the two suits observing that the property having been purchased during pendency of the suit, the decree passed in the suit shall bind the transferee pendente lite. It also observed that the suit being old, of the year 1983, its earliest disposal is necessary.

    5. For the same reasons the two other applications under Order 1 Rule 10 and Order 6 Rule 17 were also rejected by the trial court.

    6. By the impugned common order, the High Court in its revisional jurisdiction which was invoked under Section 115 of the Code, declined to interfere. Aggrieved thereby, the present appeals have been filed.

    7. The learned Senior Counsel Shri S.B Sanyal strenuously urged that even though the petitioner is a transferee pendente lite within the meaning of Section 52 of the Transfer of Property Act, to afford effective opportunity to her to prosecute the suit for redemption of mortgage and the counter-suit for specific performance of the contract, her joinder in the two suits as party and prayer to bring subsequent events on record by proposed amendment to the pleadings ought to have been allowed by the trial court. It is submitted that the High Court ought to have interfered with the orders of the trial court as the latter had failed to exercise its judicial discretion in accordance with law. Reliance is placed on Khemchand Shankar Choudhari v. Vishnu Hari Patil (1983) 1 SCC 18, Jayaram Mudaliar v. Ayyaswami (1972) 2 SCC 200, AIR 1973 SC 569, Savitri Devi v. District Judge, Gorakhpur (1999) 2 SCC 577, AIR 1999 SC 976, Saila Bala Dassi v. Nirmala Sundari Dassi AIR 1958 SC 394, 1958 SCR 1287 and Dhurandhar Prasad Singh v. Jai Prakash University (2001) 6 SCC 534.

    8. The learned counsel appearing for the contesting respondents, supported the impugned orders of the trial court and the common order passed by the High Court. Reliance is placed on Sarvinder Singh v. Dalip Singh (1996) 5 SCC 539.

    9. It is not disputed that the present petitioner purchased the property during pendency of the suit and without seeking leave of the court as required by Section 52 of the Transfer of Property Act. The petitioner being a transferee pendente lite without leave of the court cannot, as of right, seek impleadment as a party in the suits which are long pending since 1983. It is true that when the application for joinder based on transfer pendente lite is made, the transferee should ordinarily be joined as a party to enable him to protect his interest. But in the instant case, the trial court has assigned cogent reasons for rejecting such joinder stating that the suit is long pending since 1983 and prima facie the action of the alienation does not appear to be bona fide. The trial court saw an attempt on the part of the petitioner to complicate and delay the pending suits.

    10. The decisions cited and relied on behalf of the appellant turned on the facts of each of those cases. They are distinguishable. There is no absolute rule that the transferee pendente lite without leave of the court should in all cases be allowed to join and contest the pending suits. The decision relied on behalf of the contesting respondents of this Court in the case of Sarvinder Singh (1996) 5 SCC 539 fully supports them in their contentions. After quoting Section 52 of the Transfer of Property Act, the relevant observations are thus:

    “6. Section 52 of the Transfer of Property Act envisages that:
    ‘During the pendency in any court having authority within the limits of India … of any suit or proceeding which is not collusive and in which any right to immovable property is directly and specifically in question, the property cannot be transferred or otherwise dealt with by any party to the suit or proceeding so as to affect the rights of any other party thereto under the decree or order which may be made therein, except under the authority of the court and on such terms as it may impose.’
    It would, therefore, be clear that the defendants in the suit were prohibited by operation of Section 52 to deal with the property and could not transfer or otherwise deal with it in any way affecting the rights of the appellant except with the order or authority of the court. Admittedly, the authority or order of the court had not been obtained for alienation of those properties. Therefore, the alienation obviously would be hit by the doctrine of lis pendens by operation of Section 52. Under these circumstances, the respondents cannot be considered to be either necessary or proper parties to the suit.”
    (emphasis supplied)

    11. In the case of Dhurandhar Prasad Singh (2001) 6 SCC 534 observations relevant for the purpose of these appeals read thus:

    Where a party does not ask for leave, he takes the obvious risk that the suit may not be properly conducted by the plaintiff on record, yet he will be bound by the result of the litigation even though he is not represented at the hearing unless it is shown that the litigation was not properly conducted by the original party or he colluded with the adversary.

    12. The above statement of law by this Court in the cases (supra) clearly shows that the trial court has rightly exercised its discretion in rejecting the three applications for impleadment of the transferee pendente lite as a party to the suits and for amendment of the pleadings. The High Court was also justified in refusing to interfere with the order of the trial court. Consequently, there is absolutely no merit in any of these appeals. They are, accordingly, dismissed with costs to be borne by the petitioner of the contesting respondents.

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    Bibi Zubaida Khatoon v. Nabi Hassan Saheb And Another
    (Nov 6, 2003)