What is the effect of a caveat and the doctrine of lis pendens on a property under dispute?

Question

There is an ongoing court case over a property I am interested in buying, and I have heard about caveats and lis pendens. How do these affect my purchase? I would like to understand which provision governs this, what it entitles me to, and how long I have before the remedy lapses. I also want to know whether I need a lawyer for this or can do it myself.

MyVakeel Legal Desk · Accepted Answer

In India, the answer to "What is the effect of a caveat and the doctrine of lis pendens on a property under dispute?" turns on Transfer of Property Act 1882, Section 52, Code of Civil Procedure 1908, Section 148A and Registration Act 1908, Section 18. The points below set out the position and then what to do about it, in the order it should be done.

Section 52 of the Transfer of Property Act 1882 embodies the doctrine of lis pendens, providing that property that is the subject matter of an active suit in which a right to immovable property is directly and specifically in question cannot be transferred or otherwise dealt with by any party to the suit in a way that affects the rights of another party under any decree that may be passed.

A transfer made during the pendency of litigation is not automatically void, but it is subject to the outcome of the pending suit, meaning the purchaser takes the property with notice of the litigation and steps into the shoes of the transferring party for the purpose of the suit's result.

Section 148A of the Code of Civil Procedure allows any person claiming an interest in property that is likely to be the subject matter of a suit to lodge a caveat with the court, ensuring that no order, including an ex-parte interim order, is passed without notice to the caveator.

A notice of lis pendens, where the state amendment to the Registration Act requires or permits registration of a pending suit affecting immovable property, puts subsequent purchasers on constructive notice of the dispute even before they conduct a title search at the sub-registrar's office.

A buyer conducting due diligence should always check for pending civil suits at the relevant courts and any lis pendens or caveat entries, since purchasing property under active litigation carries the real risk of losing the property or facing prolonged litigation depending on the case outcome.

What this means for you: 1) Search for pending civil suits relating to the property at the relevant district court and any lis pendens registration; 2) Ask the seller for a certified copy of any court order and the current status of litigation before proceeding; 3) File a caveat under Section 148A if you have an interest in the property and fear an ex-parte order; 4) Avoid completing the purchase until the litigation is resolved or obtain clear legal advice on the risk involved.

Where the facts are disputed, what usually decides a lis pendens section 52 matter is the paper trail — dated complaints, acknowledgments and written replies under Transfer of Property Act 1882, Section 52. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in property law.