Though S.52 TP Act Doesn't Make Pendente Lite Transfer Void, Court Can Invalidate Such Sale Exercising Contempt Power : Supreme Court

The Supreme Court has held that the Courts can set aside a sale transaction, which was carried out in violation of its directions, as void in the exercise of its contempt jurisdiction. The Court held that although a sale transaction carried out during the pendency of court proceedings would not become void due to the operation of the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882, the Court can reverse such a sale transaction if it was done in contempt of judicial directions. "Thus, we are of the considered view that even in the absence of a registered notice of pendency in terms of the amended Section 52 of TPA the said provision will not be rendered ipso-facto inapplicable, at best it would preclude the party seeking benefit of this doctrine to claim it as a matter of right, but by no stretch would it mean that the third-party conversely would be able to as matter of absolute right claim inapplicability of this doctrine," the Court said. "Thus, although Section 52 does not render a transfer pendente lite void yet the court while exercising contempt jurisdiction may be justified to pass directions either for reversal of the transactions in question by declaring the said transactions to be void or proceed to pass appropriate directions to the concerned authorities to ensure that the contumacious conduct on the part of the contemnor does not continue to enure to the advantage of the contemnor or anyone claiming under him," the Court observed.