Suit for specific performance

A suit for Specific Performance was filed on an Agricultural Land 2 months ago.
This suit was filed using an unregistered sale deed to challenge a registered sale deed.
Please advise me if the Agricultural land in question can be gifted or sold now, as there is no stay order given by the court as of now. if gifted/sold, what are the repercussions.

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Answer framed by Ayushi Singhal, Lawfarm Researcher:

No, the land against which a suit is pending cannot be sold, or transferred otherwise, except after taking permission from the court as per Section 52 of the Transfer of Property Act, 1882. This is irrespective of a stay order.

Further, while an unregistered document cannot be admitted as an evidence under regular suits, it can be admitted for suits for specific performance as per Section 49 of the Registration Act, 1908.

The transfer so made however remains valid, but is subject to the final outcome of the suit (See, Jayaram Mudaliar v. Ayyaswamy, AIR 1973 SC 569). For instance if here the suit is decided in favor of the person with the unregistered deed, the property will have to be transferred to this person, irrespective of the earlier gift/sale made of the property.

Answered on April 23, 2016.
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