Section 52 of the Transfer of Property Act, 1882 imposes a prohibition on transfer or otherwise dealing of a property during the pendency of a suit, provided the conditions laid down in section are satisfied. The statement is

Section 52 - Transfer of property pending suit relating thereto: During the pendency in any court having authority within the limits of India (excluding the State of Jammu and Kashmir Government or established beyond such limits) by the Central Government of any suit or proceedings, which is not collusive and in which any right to immovable property is directly and specifically in question, the property cannot be transferred or otherwise dealt with by any party to the suit or proceeding. Thus it is true and option (2) is correct.