You are at liberty to sell your shop which is occupied by your tenant during pendency of suit proceedings 

You should sell the property as is where is basis .

inform buyer about pendency of case for eviction 

1) You can file an application under Order I Rule 10 of the Code of Civil Procedure (CPC) to implead (add) the new buyer as a party to the suit.2) The suit will not be dismissed because of the sale. The new buyer will simply replace or be added to the previous owner, and the case will proceed from the stage it was at.

Since your matter is sub judice (pending before a court), whether you can sell the shop depends mainly on what the case is about and whether the court has passed any restrictive order.

If there is no stay or injunction order by a court, you can sell the property but the sale will be subject to the final outcome of the case.  The buyer steps into your shoes. If you lose the case, the buyer also loses.

Your position depends on the nature of the case.  It is very risky to sell, buyer may sue you for cheating or misrepresentation also. 

On the safer side, you may file an application before the same court seeking permission to sell the property and offer to deposit sale amount in court if required.

Since you have filed the eviction case against your tenant for non-payment of rent, your situation is clearer.

You can sell the shop even if the tenant has not vacated, but the buyer will step into your position as landlord and continue the eviction case.

Under Section 109 of the Transfer of Property Act, when a landlord sells the property, the purchaser automatically becomes the new landlord.  All rights of the landlord (including eviction case) transfer to the buyer. 

Therefore the sale is valid even if the tenant is still in possession, eviction suit is pending and the arrears of rent is also pending.

The case continues in buyer’s name from the same stage. No need to start fresh case.

The case continues in buyer’s name from the same stage.

The buyer must understand that the property is tenanted, the eviction may take time and the likelihood  that the tenant may file an appeal also even after decree. 

Also please note that the  tenant cannot stop the sale. But tenant may delay the proceedings, challenge the buyer’s title and may even demand proof of ownership.

If you do not disclose the pendency of the eviction case, the possession with the tenant and the arrears dispute, then the buyer can later sue you for misrepresentation. So full disclosure in sale deed is essential

If it’s not vacated then the future buyer will have to fight for the possession 

Based on the facts stated by you, the pendency of an eviction suit against the tenant does not by itself bar you from selling the shop property. Under Indian law, a property owner is legally competent to transfer his ownership rights even when litigation relating to that property is pending, subject to the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882. This doctrine does not prohibit the sale; it only makes the transfer subject to the final outcome of the pending case. Therefore, if you sell the shop while the eviction suit is sub judice, the purchaser will take the property along with the existing tenancy and will be bound by the result of the eviction proceedings.
If the property is sold without the tenant vacating the shop, it will not render the sale illegal, but it may affect the commercial value of the property and the buyer’s willingness, as the buyer steps into your shoes as the landlord. The tenant cannot legally object to the sale merely on the ground that an eviction case is pending. However, the buyer must be made fully aware, through proper disclosure in the sale deed, that the property is under tenancy and that eviction proceedings are ongoing. This disclosure is important to avoid future disputes or allegations of misrepresentation.
As regards the pending eviction suit, once the property is sold, the new purchaser can continue the case. The suit does not automatically abate. An application can be filed before the concerned court to bring the purchaser on record as the new landlord/owner by way of substitution or impleadment. Upon such substitution, the new owner can prosecute the eviction suit at the stage at which it is pending. The nature and grounds of the eviction case remain the same, and the tenant cannot seek dismissal merely because ownership has changed.
It is important to note that the suit cannot be “converted” in the sense of changing its nature or restarting it afresh through the buyer. What is legally permissible is continuation of the same proceedings by the transferee-in-interest. Courts routinely allow such substitution, provided the transfer is lawful and properly documented.
Given that the matter has been pending for a considerable period without trial commencing, the buyer may also choose to pursue the case more actively after substitution, including pressing for early hearing or trial, depending on the applicable rent law and procedural stage.
In summary, you can lawfully sell the shop even while the eviction case is pending, the sale will be subject to the outcome of that case, the tenant’s occupation does not invalidate the sale, and the new buyer can step into your position and continue the eviction proceedings after being brought on record by the court.

Dear client,

It is possible to sell a shop before the tenant has vacated and before an eviction case has been decided in the courts. You will not face any legal obstacles in completing your sale. However, the tenant will still have the right to occupy the property that has been sold and the pending eviction will not be resolved prior to the sale. Purchasers of real estate with tenants in possession are normally bound by any registered leases and/or any pending landlord-tenant disputes.

If you are selling a property with a tenant in possession and an ongoing eviction case; you must provide full and complete disclosure of the tenant and eviction case to any prospective purchaser. If you fail to do this, the purchaser will likely have an action against you for the fraudulent misrepresentation of a material fact. As a general rule the sales contract with the purchaser should specify that the purchaser assumes all rights to the tenant and the pending eviction case.

Yes, the new purchaser can continue with the eviction action. Upon completion of the sale, the future purchaser becomes the landlord to the tenant by virtue of the deed and is able to file a motion with the court to replace you as the original landlord in the current case. Most judges allow such motions as the conversion of ownership has been made legal.

It is therefore permissible to sell this real property; however the purchaser will acquire both the ownership of the property and the ownership of all rights; this includes any legal rights related to the tenant, including a right to proceed with continuing the eviction against the tenant.

If you have any query please feel free to contact us

you can very well sell your property with the case going on provided your buyer is agreeable to buy such disputed shop

if the sale happens you can continue to prosecute the case 

obviously if the property is not vacated there would be dispute but so long as your buyer is aware that property is disputed and provided you have not agreed with him that you will obtain vacant possession of the shop, the buyer cannot cry foul and hold you responsible if the defendant tenant does not vacate or if your case gets rejected 

Your situation is quite common in landlord–tenant disputes, and the law does permit transfer of property even when eviction proceedings are pending. However, certain legal precautions are essential to avoid future complications.

I will address your concerns point-wise.

1. Can You Sell the Shop While Eviction Case Is Pending?

Yes. There is no legal prohibition on selling a property merely because an eviction or rent recovery case is pending.

Under Section 109 of the Transfer of Property Act, the landlord is entitled to transfer his interest in the property even during subsistence of tenancy or litigation.

However, the buyer purchases the property subject to existing tenancy and pending litigation.

Meaning:

• The tenant does not automatically vacate because ownership changes.

• The purchaser steps into the shoes of the landlord.

Therefore, sale during pendency of suit is legally valid.

2. Will There Be Legal Dispute if Tenant Has Not Vacated at Time of Sale?

There is no illegality, but practical risks exist.

The purchaser must clearly understand that:

• The shop is under occupation of a tenant.

• Eviction proceedings are pending.

• Possession is not vacant.

If this fact is concealed, the buyer may later allege misrepresentation or fraud.

Hence, the safest course is:

• Mention pending tenancy and court case explicitly in the Sale Deed.

• Provide case number, court name and nature of proceedings.

• Record that purchaser is buying property with full knowledge of litigation.

Such disclosure protects you from future disputes.

3. Effect of Pending Case After Sale

Once the property is sold:

• You cease to be landlord.

• The purchaser becomes the new landlord automatically by operation of law.

• Tenant becomes tenant under the new owner.

But the pending eviction case does not automatically transfer unless procedural steps are taken.

4. Can the Pending Suit Continue in the Name of the New Buyer?

Yes. This is legally permissible.

The correct procedure is:

The purchaser files an application before the same court under Order XXII Rule 10 of the Code of Civil Procedure seeking:

• Substitution or impleadment as plaintiff,

• On the ground that interest in the property has devolved during pendency of suit.

After court permission:

• The new owner continues the eviction proceedings from the existing stage.

• Fresh filing is not required.

• Earlier pleadings and evidence remain valid.

This is known as devolution of interest during pendency of litigation.

5. Important Doctrine – Lis Pendens

Your sale will also be governed by Section 52 of the Transfer of Property Act (doctrine of lis pendens).

This means:

• Sale is valid,

• But purchaser remains bound by outcome of pending litigation.

Therefore, if eviction succeeds, benefit goes to purchaser.
If case fails, purchaser also faces consequences.

6. Practical Commercial Reality

In practice, buyers usually insist on one of the following:

• Reduced sale consideration due to tenant dispute; or

• Assignment of litigation rights; or

• Power of Attorney enabling seller to continue case temporarily.

Proper structuring avoids delay.

7. Recommended Legal Safeguards Before Sale

You should ensure:

• Tenant litigation is disclosed in Sale Deed.

• Right to continue eviction proceedings is assigned to purchaser.

• Purchaser undertakes to substitute himself in pending suit.

• Rent attornment notice is issued to tenant after sale informing change of ownership.

- Being the owner of the property /shop , you have right to sell the same without taking the consent of the tenant and also the Court. 

- If you inform the Court , then the tenant can file a separate file for Injunction for getting stay and to restrained you from selling eh property till disposal of the suit. 

- However, even after selling the property the case will continue .