Jayaram Mudaliar v. Ayyaswamy

• Does lis pendens apply to the impugned sale?
• Are public auctions exempt from Section 52 TPA?

• Section 52 TPA (lis pendens): Applies not only to formal transfers, but also to any dealings by a party that can affect another party’s rights in the same litigation.
• Outside agency exception: If an independent authority proceeds against the property (without a litigating party triggering it), Section 52 may not affect that transaction.

Held: The Supreme Court dismissed the appeal. The sale was subject to lis pendens. The doctrine aims to stop parties in pending litigation from acquiring rights in the disputed property so as to prejudice other parties.

Clarification: The outside agency exception applies where an independent authority proceeds against the property without a litigant’s provocation. That was not the case here.

• Section 52 covers not only formal transfers but also other dealings by a litigating party that can affect rival rights.
• A sale conducted in connection with a litigating party during the suit is hit by lis pendens.
• Exemption exists only for actions of a truly independent outside agency—not triggered by a party.

The case teaches that buyers must check for pending litigation. A deal made during a suit can be unsafe and later ineffective against the winning party.

1. Pending suit = red flag: Lis pendens can bind later purchasers.
2. Voluntary sales by parties during the suit are usually hit by Section 52.
3. Outside agency exception is narrow and fact-specific.
4. Always run a litigation search before purchase.

Mnemonic: “Stop Party Sales” (S-P-S).

1. Spot a pending case on the property.
2. Probe if the sale is by/through a litigating party (then Section 52 hits).
3. Scan for an outside agency action—only then may there be an exception.

Issue

Does Section 52 TPA (lis pendens) apply to a sale made during a pending partition suit? Are public auctions exempt?

Rule

Section 52 binds dealings by parties that affect rights in the suit; an independent outside agency may fall outside the bar.

Application

The sale arose from a party-linked transaction during the suit. It was a voluntary alienation, not an independent agency action.

Conclusion

Lis pendens applied; the appeal was dismissed.

Lis Pendens

“Suit pending.” Doctrine that restrains party dealings with disputed property during litigation.

Voluntary Alienation

A sale/transfer done by a party of their own will, not forced by an outside authority.

Outside Agency

Independent authority (e.g., statutory recovery) acting without a litigant’s trigger; may escape Section 52.