1) wait for expiry of appeal period
2) then sell or gift the property
3) if you transfer the property and appeal is filed then transfer would be subject to the outcome of appeal
Hi. A specific performance case was filed in district court. Suit is dismissed with cost. As of now there is no case, appeal, stay on defendant. Can defendant gift or sell the property or should wait till appeal period is completed. What will happen if property is transferred during appeal period before appeal is filed. Thanks.
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1) wait for expiry of appeal period
2) then sell or gift the property
3) if you transfer the property and appeal is filed then transfer would be subject to the outcome of appeal
The best you will wait for expiry of appeal period.
What will happen if property is transferred during appeal period before appeal is filed
The broad principle underlying S. 52 of the Transfer of Property Act is to maintain the status quo unaffected by the act of any party to the litigation pending its determination even after the dismissal of a suit.
A purchaser is subject to lis pendens, if an appeal is afterwards filed if after the dismissal of a suit and before an appeal is presented. The ‘lis’ continues so as to prevent the defendant from transferring the property to the prejudice of the plaintiff-no reason to hold that between the date of dismissal of the suit plainly be impossible that any action or suit could be brought to a successful termination if alienations pendent lite were permitted to prevail.The doctrine of lis-pendens is founded in public policy and equity and if it has to be read meaningfully such a sale until the period of limitation for second appeal is over will have to be held as covered under S. 52 of the TP Act.
‘Lis’ means an action or a suit. ‘Pendens’ is the present principle of Pendo, meaning continuing or pending, and the doctrine of lis pendens may be defined as the jurisdiction, power, or control that courts have, during the pendency of an action over the property involved therein.
unless and until period of limitation to file appeal has elapsed, it cannot be said that decree is became final.if dependant tries to sell it within period of limitation of appeal that sell will become void in the eyes of law.
If the schedule property is sold during the appeal period and before filing of appeal, then the party preferring the appeal will implead the person who bought the schedule property as well in the appellate court.
If the defendant is waiting till the expiration of the appeal limitation period, then he may have strong grounds to defend his interests in the appeal if preferred by the appellant subsequently.
If the defendant hurries to sell the property even before the expiration of appeal limitation period then he may face the problem of cancelling the sale deed and restore the property to the appellant if the appellate court decrees the suit in his favor.