Doctrine of Lis Pendens Cannot Be an Engine of Fraud: High Court Sets Aside Trial Court’s Order in Land Sale Case
In a significant judgment, the High Court of Chhattisgarh has overturned a decision of the Second Additional District Judge, Durg, in the much-discussed land sale case (FA No. 16 of 2023). The case, which has garnered attention due to its complex legal implications involving property laws and principles of civil procedure, reached a pivotal moment on November 10, 2023, with the High Court’s pronouncement.
The Bench comprising Hon’ble Mr. Justice Goutam Bhaduri and Hon’ble Mr. Justice Deepak Kumar Tiwari challenged the trial court’s earlier order, which dismissed a suit filed for declaration & injunction by the appellants/plaintiffs. The suit’s dismissal was initially based on the application of Order 7 Rule 11(d) of the Code of Civil Procedure, 1908.
In a statement that underscores the crux of their decision, the Bench observed, “The principle of ‘finality of litigation’ cannot be pressed to the extent of such an absurdity that it becomes an engine of fraud in the hands of dishonest litigants.” This observation highlights the court’s stance on the misuse of legal doctrines to perpetrate fraud.
The case revolved around the sale of property during the pendency of an earlier suit and raised critical questions about the application of the doctrine of lis pendens – a principle that prohibits the transfer of a property under dispute during litigation. The High Court, in its judgment, emphasized the need for a meticulous examination of facts and legal principles, especially when allegations of fraud are involved in obtaining a compromise decree.
Advocates representing both sides presented their arguments, with Mr. B.P. Sharma leading the counsel for the appellants. The High Court’s decision to set aside the trial court’s order and direct further proceedings indicates a significant shift in the case’s trajectory, potentially impacting the doctrine’s application in future property disputes
Date of Decision: 10-11-2023
Mehul Kumar Patel VS Rishikesh Gupta
