Question: Can I sell my property after passing of decree in a civil suit? In 2017, a property dispute was settled by a decree in my favor by the honorable civil court, and there are currently no stay orders associated with the property in question. The petitioner has filed an appeal in the senior division, which is currently pending before the court. There are no pending litigations recorded in the registry office. Now, we are interested in selling a share of the property in question. Is it permissible to sell the share of the suite property? Alternatively, can we transfer the share to another partner of the suite property? I kindly request your guidance and opinion on this matter.
The property is still a suit property; however, the appellate court has not passed any stay order regarding the execution of decree. In this situation, you can sell the property without the consent of the appellate court.
A transfer pendente lite is not illegal ipso jure but remains subservient to the pending litigation. In Nagubai Ammal v. B. Shama Rao [AIR 1956 SC 593] the Supreme Court while interpreting Section 52 of the Transfer of Property Act observed that:
the words ‘so as to affect the rights of any other party thereto under any decree or order which may be made therein’, make it clear that the transfer is good except to the extent that it might conflict with rights decreed under the decree or order. It is in this view that transfers pendente lite have been held to be valid and operative as between the parties thereto.
AIR 1956 SC 593 page: 602, para 25
Therefore, there are no legal obstacles preventing the transfer of the property in question, either through a sale deed or by transferring it to another co-owner of the property. You have the freedom to choose the method by which you wish to transfer the property.
