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2006 (12) TMI 559 - SC - Indian LawsSuit for specific performance of contract - Prayer for impleadment to contest the suit and to permit them to file written statement - transfer pendente lite - HELD THAT - The principles specified in Section 52 of the T.P. Act are in accordance with equity good conscience or justice because they rest upon an equitable and just foundation that it will be impossible to bring an action or suit to a successful termination if alienations are permitted to prevail. A transferee pendente lite is bound by the decree just as much as he was a party to the suit. The principle of lis pendens embodied in Section 52 of the T.P. Act being a principle of public policy no question of good faith or bona fide arises. The principle underlying Section 52 is that a litigating party is exempted from taking notice of a title acquired during the pendency of the litigation. The mere pendency of a suit does not prevent one of the parties from dealing with the property constituting the subject matter of the suit. The Section only postulates a condition that the alienation will in no manner affect the rights of the other party under any decree which may be passed in the suit unless the property was alienated with the permission of the Court. Thus the High Court s view is clearly indefensible and is set aside. Learned counsel for the respondents submitted that since they are not parties in the suit their interest will get jeopardized. It is a trite law that if a person is not a party to a suit the decree does not affect him unless the judgment is in rem and not in personem. Appeal deserves to be allowed which we direct.
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