Bombay High Court
SMT. MONILA AMAR KOTHARI AND OTHERSversusMR. SARDARMAL CHUNILAL CHAVAN AND OTHERS
- Decided
- Disposal
- Disposed Off
Holding
The appeal is dismissed; the compromise decree remains valid and the sale deed is barred by the principle of lis pendens.
Summary
The appellants sought title to a suit property based on a 1979 agreement of sale, alleging that a later sale deed executed on 31 August 1995 in their favour was valid despite a compromise decree dated 28 February 1995 that settled a specific‑performance suit in favour of the plaintiffs. The District Judge had set aside the 1995 consent decree as bad in law and dismissed the appellants’ obstruction proceedings. On appeal, the High Court examined whether the principle of lis pendens under Section 52 of the Transfer of Property Act applied to the 1995 sale deed, noting that the execution proceedings were filed in 2006 before the limitation period expired. The Court held that the decree was still pending and the sale deed fell within the lis pendens period, and that the proper remedy was to challenge the decree before the court that passed it, not through obstruction proceedings. Consequently, the appeal was dismissed and the interim application disposed.
Issues considered
- Whether the principle of lis pendens under Section 52 of the Transfer of Property Act applies to the sale deed executed on 31 August 1995 after the compromise decree of 28 February 1995.
- Whether obstruction proceedings can be filed against a compromise decree when the decree is still pending execution.
- Whether the District Judge erred in setting aside the consent decree dated 28 February 1995.
Legislation cited
- Transfer of Property Act, 1882 — s. 52
Subjects
- lis pendens
- compromise decree
- obstruction proceedings
- Transfer of Property Act
- execution of decree
- consent decree
- specific performance
Judgment
2026:BHC-AS:36454
9 sa 276 of 2026.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
SECOND APPEAL NO.276 OF 2026
Monila Amar Kothari and Ors. ... Appellants
versus
Sardarmal Chunilal Chavan and Ors. … Respondents
WITH
INTERIM APPLICATION NO.4311 OF 2026
Mr. Aditya S. Desai, for Appellants.
CORAM: N.J.JAMADAR, J.
DATE : 2 SEPTEMBER 2026
ORAL ORDER :
1. Heard the learned Counsel for the Appellants.
2. The challenge in this appeal is to a judgment and order dated 28
November 2025 passed by the learned District Judge, Panvel, in Regular
Civil Appeal No.486 of 2019, whereby the order passed by the Executing
Court dated 10 April 2017 in Regular Darkhast No.30 of 2012 came to be set
aside and the obstruction proceedings taken out by the Appellants came to be
dismissed. By the said judgment and order dated 10 April 2017, the learned
Civil Judge has set aside the consent decree dated 28 February 1995 as bad
in law.
3. Mr. Desai, learned Counsel for the Appellants, submitted that, the
Appellants were claiming title over the suit property on the basis of a pre-
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9 sa 276 of 2026.doc
existing right to purchase the suit property, pursuant to an agreement for sale
executed on 28 March 1979.
4. On 18 December 1980, the holders of the suit property i.e. Defendant
Nos.1 and 2, had executed an agreement for sale in favour of the Plaintiffs in
Suit No.93 of 1989. On the basis of the said agreement for sale, the Plaintiffs
had instituted a suit for specific performance of the contract. By a
compromise decree dated 28 February 1995, the original holders agreed to
execute the sale deed in favour of the Plaintiffs. Subsequently, on 31 August
1995, Judgment Debtor No.2 executed a registered deed in favour of the
Appellants. Since the said sale deed was executed in pursuance of the
agreement for sale dated 28 March 1979, the compromise decree did not bind
the appellants.
5. Mr. Desai, further submitted that, the learned District Judge erred in
holding that the said sale deed dated 31 August 1995 was affected by the
principle of lis pendence.
6. I find it rather difficult to accede to the submission of the learned
Counsel for the Appellants. A compromise decree was passed on 28
February 1995. Thereafter, on 31 August 1995, Judgment Debtor No.2
executed the sale deed in favour of Defendant No.3. The explanation
appended to Section 52 of the Transfer of Property Act, 1882, makes it clear
the duration for which the principle of lis pendence applies. It, inter alia,
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9 sa 276 of 2026.doc
provides that the pendency of a suit or proceeding shall be deemed to
commence from the date of the presentation of the plaint or the institution of
the proceeding in a Court of competent jurisdiction, and to continue until the
suit or proceeding has been disposed of by a final decree or order and
complete satisfaction or discharge of such decree or order has been obtained,
or has become unobtainable by reason of the expiration of any period of
limitation prescribed for the execution thereof, by any law for the time being
in force.
7. Evidently, in the case at hand, the execution proceedings was filed on 1
March 2006, before the expiration of period prescribed for the execution of the
decree. The transfer in question in favour of Judgment Debtor No.2 was
under a month and half of the passing of the compromise decree on 28
February 1995. In the face of the aforesaid time lag, the Trial Court erred in
delving into the merits of the compromise decree and in the process, travelled
beyond the compromise decree.
8. In any event, the compromise decree could not have been assailed by
filing obstruction proceedings, as the proper course available to the
Appellants was to approach the Court which had passed the compromise
decree; the legality and validity of which was sought to be put in contest. A
profitable reference in this context can be made to the judgment of the
Supreme Court in the case of Trilok Nath Singh V/s. Anirudh Singh (D)
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through legal heirs and Ors.1
9. The learned District Judge has correctly appreciated the legal position.
No question of law, much less, a substantial question of law arises for
consideration.
10. The Second Appeal, thus, stands dismissed.
11. Interim Application No.4311 of 2026 also stands disposed.
( N.J.JAMADAR, J. )
1 AIR 2020 SC 2111
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Signed by: S.S.Phadke
Designation: PS To Honourable Judge
Date: 07/09/2026 10:34:43
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