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The Judgment of the Court was delivered by K. RAMASWAMY, J.- Leave granted.

2. The conflict of judicial opinion among the High Courts in interpretation of Explanation VIII to Section II of the Code of Civil Procedure, as introduced by the Code of Civil Procedure (Amendment) Act, 1976, is to be resolved in this appeal. Kutty Ammna executed Udambadi (settlement deed) on May 19, 1961 giving life estate to her husband Krishnan Nair, for short K, and vested remainder in favour of the respondent. She died in the year 197 1. K alienated the property in 1972 by a registered sale deed in favour of Narayanan Nair and Chennan. Tile respondent filed O.S. No. 151 of 1972 in the District Munsif Court to restrain K from alienating the properties and committing acts of waste. Pending the suit, the appellant purchased the suit property on April 7, 1975 under Ex. B-1 from Narayanan Nair and Chennan. The trial court, by its judgment and decree, Ex. A-2, dated November 18, 1975 decreed the suit holding that K had no right to alienate the lands and permanent injunction was issued restraining him from committing acts of waste. The appeal in A.S. No. 31 of 1976 by K was dismissed under Ex. A-4 on June 9, 1978. The appellant, being not a party to the earlier suit, when he was committing acts of waste, the respondent filed O.S. No. 237 of 1975 against K and the appellant for perpetual injunction restraining them from committing the acts of waste. The suit was decreed under Ex. A-5, on October 22, 198 1. Therein the validity of the appellant's title was left open. The respondent filed O.S. No. 61 of 1982 in the Court of Subordinate Judge for declaration of his title and possession against the appellant. The trial court by judgment and decree dated October 14, 1986, decreed the suit and granted mesne profits. On appeal, it was confirmed. The second appeal was dismissed. Thus this appeal by special leave.

9. Shri Sukumaran further contended that the remedy of injunction is an equitable relief and in equity, the doctrine of res judicata cannot be extended to a decree of a court of limited pecuniary jurisdiction. We find no force in the contention. It is settled law that in a suit for injunction when title is in issue for the purpose of granting injunction, the issue directly and substantially arises in that suit between the parties. When the same issue is put in issue in a later suit based on title between the same parties or their privies in a subsequent suit the decree in the injunction suit equally operates as res judicata. In this case, when the right and interest of the respondent were questioned in his suit against K, the validity of the settlement deed and the terms thereof were gone into. The civil court found, at K acquired life estate under the settlement deed executed by his wife conferring vested remainder in the respondent and on its basis the respondent was declared entitled to an Injunction against K who was prohibited not only from committing acts of waste, but also from alienating the properties in favour of third parties. The later suit of injunction to which the appellant was a party also binds the appellant. Therefore, even the decree founded on equitable relief in which the issue was directly and substantially in issue and decided, and attained finality, would operate as res judicata in a subsequent suit based on title where the same issue directly and substantially arises between the parties. As the appellant is deriving title from K who was a party in the former suit is also hit by the doctrine of lis pendens under Section 52 of the Transfer of Property Act.