In order to answer your question, let me refer to Section 52 of the Transfer of Property Act, 1882:
“52. Transfer of property pending suit relating thereto.— During the pendency in any Court having authority within the limits of India excluding the State of Jammu and Kashmir or established beyond such limits by the Central Government 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 any decree or order which may be made therein, except under the authority of the Court and on such terms as it may impose.
Explanation.—For the purposes of this section, the pendency of a suit or proceeding shall be deemed to commence from the date of the presentation of the plaint or the institution of the proceeding in a court of competent jurisdiction, and to continue until the suit or proceeding has been disposed of by a final decree or order and complete satisfaction or discharge of such decree or order has been obtained, or has become unobtainable by reason of the expiration of any period of limitation prescribed for the execution thereof by any law for the time being in force.”
So, what this legal provision says is that a suit property cannot be transferred by any party to the suit so as to affect the rights of any other party thereto, except under the authority of the court and on such terms as such court may impose.
If there is a specific injunction against transfer of the property during the pendency of the suit, then, of course, such property cannot be transferred against the terms of the injunction order. Even if there be no injunction, it is advisable to obtain orders from the court to sell such property which is the subject matter of the suit. In any case, as Section 52 of the Transfer of Property Act lays down, as mentioned above, any such transfer of the property cannot adversely affect the rights of other parties to the suit and such sale/transfer shall be subject to the final outcome of the suit. Even the purchaser of such property may also have to bear the risk of the final outcome of the suit.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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