Interim Restraint On Creating Third-Party Rights In Property Is Permissible In Specific Performance Suits: Allahabad High Court

The Allahabad High Court held that in suits for specific performance an interim injunction restraining the defendant from creating third-party rights in the property (i.e., alienation or transfer during pendency) can be granted notwithstanding the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882. The facts: plaintiffs filed specific performance suit and during pendency the defendant planned sale to third parties. The trial court rejected injunction on ground that Section 52 barred relief. The High Court found the trial court erred: the doctrine of lis pendens does not automatically oust power to grant injunction under Order 39 Rules 1-2 CPC. To prevent multiplicity of litigation and protect plaintiff’s rights, the Court ordered injunctive relief and directed suit to be decided within six months.