Lis Pendens Principle Applies To Property Acquired During Section 9 Arbitration Proceedings: Karnataka High Court

In a recent ruling, the Karnataka High Court affirmed that the principle of lis pendens, which maintains that property subject to litigation cannot be transferred or encumbered, applies to property acquired during arbitration proceedings under Section 9 of the Arbitration and Conciliation Act. This means that if a property is under arbitration, any transfer or encumbrance of that property during the ongoing proceedings is ineffective. The court emphasized the importance of adhering to the lis pendens principle to ensure that the arbitral process remains effective and that the rights of the parties involved are preserved until the dispute is resolved.