Section 9 Arbitration Act & Section 52 of TP Act – Lis Pendense purchase
The non-signatory / purchaser of the property from vendors of the respondent during pendency of section 9 proceedings are bound by the Arbitral Award that may be passed in the arbitration proceedings.
Moreover, the transaction is hit by doctrine of lis pendens. Section 52 of the Transfer of Property is applicable to the proceedings under Section 9 of the AA. The term “proceeding” used in Section 52 of the TP Act applies to the “proceeding” under Section 9 of the AA if such proceeding involves a direct or substantial question relating to a right in an immovable property. Any such lis pendense transfer will be subject to the outcome of the suit or proceeding.
Judgment dated 24.7.2024 of the Division Bench of the Karnataka High Court at Bengaluru in Misc. First Appeal No.2978 of 2024 (AA) of M/s. Devtree Corp LLP Vs. M/s. Bhumika North Gardenia
