Constitution of India, 1950 – Code of Civil Procedure, 1908 – Transfer of Property Act, 1882

• Article 136 – Appellate Jurisdiction of Supreme Court
• Section 96, 100, Order I Rule 10, Order XXII Rule 10 – CPC – Right to Appeal and Leave to Appeal
• Section 52 – Transfer of Property Act – Doctrine of Lis Pendens

Issues:

1. Whether the Karnataka High Court erred in condoning the delay of 586 days in filing the regular first appeal?
2. Whether the Respondents (Subsequent Purchasers) had a legal right to appeal against a decree for specific performance, despite their impleadment application being rejected earlier?
3. Whether the doctrine of lis pendens (Section 52 of the Transfer of Property Act, 1882) barred the Respondents from claiming rights in the suit property?

Submissions:

By Appellants (Plaintiffs):

a) The High Court committed an error in condoning the inordinate and unexplained delay of 586 days.
b) The Respondents’ impleadment application was already rejected, and they never challenged it.
c) The Respondents purchased the suit property in contravention of an injunction order and, hence, cannot claim to be bona fide purchasers.

By Respondents (Subsequent Purchasers):

a) The High Court rightly condoned the delay, as they were unaware of the proceedings.
b) They were bona fide purchasers and should be allowed to appeal, as their vendor colluded with the plaintiffs.
c) The doctrine of lis pendens does not bar their rights since the suit was collusive.

Decision & Ratio:

• The Supreme Court set aside the Karnataka High Court’s order and denied condonation of delay and leave to appeal.
• Ratio:
  • The delay of 586 days was not justified, and the High Court erred in condoning it without sufficient cause.
  • The Respondents’ application for impleadment had already attained finality, and they could not re-litigate under the guise of an appeal.
  • Section 52 of the Transfer of Property Act rendered their purchase subservient to the decree, and they cannot claim independent rights.

Subjects:

Appeal – Delay Condonation – Specific Performance – Impleadment – Lis Pendens – Bona Fide Purchaser – Collusion – Transfer of Property – Res Judicata