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Shingara Singh vs. Daljit Singh & Anr.

Not available · 2024 INSC 770Decided 14 Oct 2024
Not available
Justice Hrishikesh Roy · Justice Prashant Kumar Mishra

Background

In 1990, Daljit Singh entered an agreement to buy land from Janraj Singh (defendant no. 1) for an agreed price, paying earnest money. When Janraj failed to complete the sale, Daljit sued for specific performance in December 1992. Days later, in January 1993, Janraj sold the same land to Shingara Singh (the appellant) instead, while the lawsuit was already pending. The trial court and first appellate court denied Daljit specific performance (giving him only a refund of his earnest money), reasoning that Shingara Singh was a bona fide purchaser unaware of the earlier agreement. The High Court reversed this, ruling that the sale to Shingara Singh, made after the lawsuit was filed, was hit by the doctrine of "lis pendens" and could not defeat Daljit's claim. Shingara Singh appealed to the Supreme Court.

Decision Breakdown

The Supreme Court upheld the High Court's decision and dismissed the appeal. It held that the doctrine of lis pendens (Section 52 of the Transfer of Property Act) applies to any transfer of property made while a related lawsuit is pending, regardless of whether the buyer knew about the litigation: good faith or bona fide purchase is not a defence. Since the sale to Shingara Singh occurred after Daljit had already filed his suit, that sale could not override Daljit's earlier agreement to buy the land. The Court also held that the first appellate court had wrongly reopened a finding (that the original agreement was not the product of fraud) which neither side had specifically challenged on appeal, applying the settled principle that a party who has not filed a cross-appeal or cross-objection cannot attack a portion of a decree that went against them.

Lesson Learnt

Once a property dispute is filed in court, any sale of that property to a third party during the litigation does not protect the buyer, even if the buyer had no knowledge of the case: the eventual court decision binds them regardless. Buyers should always check for pending litigation before purchasing property.

Official source (sci.gov.in)View Judgment (PDF)

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