Legal Reference Library

The Kerala High Court, in the case of Lakshmi vs State of Kerala and Ors, has held that mere pendency of litigation does not ispo facto affect the person’s right to alienate the property. The court relied on Section 52 of the Transfer of Property Act to hold that a sale which takes place in the face of a pending litigation would at its best amount to a lis pendens sale. Justice Dama Sheshadri Naidu noted that in such a case, the sale would give the purchaser a title which the seller has at that point of time and the purchaser’s right to property would be subject to the outcome of the litigation. The court further noted that in such transactions, the maxim caveat emptor holds the field and Section 52 of the Transfer of Property Act protects the interests of the buyer in such situations. The court also reiterated the principle that the right to alienate the property is a vital right attached to the enjoyment of the property. Further, a holistic interpretation of Article 300-A of ...

In United Finance Corporation v. M.S.M. Haneefa, instant appeal arises before the Hon'ble Supreme Court out of order passed by High Court of Kerala allowing revision and thereby dismissing application filed by Appellant under Order XXI Rule 95 of Code of Civil Procedure,1908 (CPC) on ground that, application is barred by limitation and declining direction for delivery of possession of immovable property purchased in Court auction sale to Appellant. Challenging impugned order, it was submitted that, Court auction sale does not become absolute on passing of a mere order of confirmation of sale as enjoined by Order XXI Rule 92(1) of C.P.C. but it becomes absolute only on termination of proceedings initiated to set aside the order confirming the sale. The Hon'ble court said that "In our view, the sale could not have become absolute till the proceedings in the revision in C.R.P.No.2829/2002 was over and the revision was disposed of. The judgment-debtor, as discussed earlier, ...