Judgment: Dhanesh Singh & Ors. v. Har Pyari (Dead) through LRs & Ors., Supreme Court, decided on 17 December 2025.
Direct relevance to Banks and Financial Institutions: YES.
Why it matters for banks:
Doctrine of Lis Pendens (Section 52, TPA)
The Supreme Court has categorically held that lis pendens applies even to money recovery suits where the debt is secured by a mortgage over immovable property. Any transfer made during pendency of such proceedings is subject to the outcome of the suit.
Protection of Mortgagee/Bank Rights
Purchasers or transferees pendente lite cannot claim independent rights against the mortgagee bank and are bound by the decree, even if the proceedings were ex parte. This strengthens enforceability of bank securities.
Execution Proceedings Supremacy
The Court clarified that challenges by transferees pendente lite must be raised within execution proceedings under CPC (Order XXI / Section 47) and not by separate civil suits, reducing litigation risk for banks during recovery.
Practical Banking Impact
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