AIR 1946 BOMBAY 462

Bombay High Court

Hon'ble Judge(s): Lokur , J

Transfer of Property Act (4 of 1882) , S.52— Applicability - Pending suit ending in consent or compromise decree - Section applies - But consent or compromise must be honest and not fraudulent or collusive. The rule of lis pendens applies even though the pending suit ends in a consent decree or a compromise decree, but the consent or compromise must be honest and not fraudulent or collusive. A person, who takes transfer of property which is the subject-matter of a suit during its pendency, takes the risk of losing it if the result of the suit goes against the party from whom he has taken the transfer. But he takes such a risk of an adverse decision obtained in a fair and legal manner. If the final decision in the pending litigation is brought about by fraud or collusion, it cannot be said that lis pendens was fairly decided and that decision cannot affect the rights of the transferee pendente lite.(Para 464C1) Defendant 1, widow of defendant 2's brother, obtained a decree for possession of certain property against defendant 2, having succeeded in proving that her husband and defendant 2 were separate. During the pendency of an appeal against the decree filed by defendant 2, defendant 1 sold the property to the plaintiff who, however, did not get himself impleaded in the appeal. The plaintiff filed a suit against both the defend....