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Civil ProcedureSupreme Court of India

Tahir V. Isani v. Madan Waman Chodankar

Civil Appeal · 2025 INSC 1044Decided 6 May 2025
C.A. No.-006391-006391 - 2025
Justice Vikram Nath · Justice Sandeep Mehta

Background

A property in Panaji, Goa, originally owned by Mrs. Misquita, had part of it rented to respondent Madan Waman Chodankar, who then brought in the "Maliks" as sub-lessees for a hardware business. The original owner later sold the entire property to M/s Rizvi Estate and Hotels Pvt. Ltd., and the appellant, Tahir V. Isani, subsequently purchased the property from Rizvi Estate in 2007 through a registered sale deed. When a decree obtained by the respondent against the Maliks (in a separate suit to which neither Rizvi Estate nor the appellant was a party) was sought to be executed against the property, the appellant filed objections under Order XXI Rules 97 and 101 CPC as the property's bona fide owner. The Executing Court had begun an enquiry into these objections, but years later the respondent applied to discontinue the enquiry, relying on Order XXI Rule 102 CPC (which bars objections from a person who purchased property during the pendency of the suit from the judgment-debtor). The Bombay High Court (Goa Bench) allowed the respondent's application and closed the enquiry, prompting this appeal.

Decision Breakdown

The Supreme Court held that the bar under Order XXI Rule 102 CPC applies only to a transferee who traces title from the judgment-debtor (here, the Maliks) and acquired the property during the pendency of the very suit whose decree is being executed. Since the appellant's title flowed instead from the original owner via Rizvi Estate and Hotels Pvt. Ltd. : a third party never impleaded in the suit between the respondent and the Maliks. The appellant was not a "transferee pendente lite" of the judgment-debtor, and Rule 102 could not bar his objections. The Court also found that the respondent's decade-long delay in seeking to discontinue the enquiry, after having earlier participated in it without objection, undermined the belated application. It therefore set aside the High Court's order, allowed the appeal, and directed the Executing Court to resume and conclude the enquiry into the appellant's objections on their own merits.

Lesson Learnt

A bona fide purchaser of property who derives title independently, not through the losing party (judgment-debtor) in a lawsuit, cannot be barred from raising ownership objections in execution proceedings merely because the purchase occurred while an unrelated suit involving the property was pending; courts will also look unfavourably on attempts to belatedly derail a long-pending inquiry after having earlier participated in it.

Tahir V. Isani v. Madan Waman Chodankar – Legal Case Shots | LegalAware