I. General Principles Under Order I Rule 10 Of Code Of Civil Procedure, 1908:
Order I Rules 9 & 10 of the Code of Civil Procedure, 1908 read as under:
9. Misjoinder and non-joinder:
No Suit shall be defeated by reason of the misjoinder or non-joinder of
parties, and the Court may in every suit deal with the matter in controversy so
far as regards the rights and interests of the parties actually before it:
Provided that nothing in this rule shall apply to non-joinder of a necessary
party.
10. Suit in name of wrong plaintiff:
- Where a suit has been instituted in the name of the wrong person as
plaintiff or where it is doubtful whether it has been instituted in the name
of the right plaintiff, the Court may at any stage of the suit, if satisfied
that the suit has been instituted through a bona fide mistake, and that it
is necessary for the determination of the real matter in dispute so to do,
order any other person to be substituted or added as plaintiff upon such
terms as the Court thinks just.
- Court may strike out or add parties.- The Court may at any stage of the
proceedings, either upon or without the application of either party, and on
such terms as may appear to the Court to be just, order that the name of any
party improperly joined, whether as plaintiff or defendant, be struck out,
and that the name of any person who ought to have been joined, whether as
plaintiff or defendant, or whose presence before the Court may be necessary
in order to enable the Court effectually and completely to adjudicate upon
and settle all the questions involved in the suit, be added.
- No person shall be added as a plaintiff suing without a next friend or
as the next friend of a plaintiff under any disability without his consent.
- Where defendant added, plaint to be amended.- Where a defendant is
added, the plaint shall, unless the Court otherwise directs, be amended in
such manner as may be necessary, and amended copies of the summons and of
the plaint shall be served on the new defendant and, if the Court thinks
fit, on the original defendant.
- Subject to the provisions of the Indian Limitation Act, 1877 (15 of
1877), Section 22, the proceedings as against any person added as defendant
shall be deemed to have begun only on the service of the summons.
The provision of sub-rule (2) of Order I Rule 10 of the Code of Civil Procedure,
1908 , empowers the Court to strike out the name of any party improperly joined
whether as plaintiff or defendant and also when the name of any person ought to
have been joined as plaintiff or defendant or in a case where a person whose
presence before the Court may be necessary in order to enable the Court
effectually and completely to adjudicate upon and settle all the questions
involved in the Suit.
Order I Rule 10 of the Code of Civil Procedure, 1908 enables the Court to add
or substitute:
- Any person as a party at any stage of the proceedings;
- The person whose presence before the Court is necessary in order to
enable the Court effectively and completely adjudicate upon and settle all
the questions involved in the Suit.
This also enables the Court to avoid multiplicity of proceedings.
It is a well-settled principle that it is for the plaintiff in a Suit to bring
the parties against whom he has any dispute and to implead them as defendants in
the Suit filed for necessary relief. He cannot be compelled to face litigation
with the persons against whom he has no dispute.
However, if any third party is likely to suffer any injustice, on account of the
outcome of the Suit, he is entitled to get himself impleaded. The question as to
whether an individual is a proper or necessary party to a Suit would depend upon
the nature of relief claimed in the Suit and the right or interest projected by
the persons, who propose to get themselves impleaded.
There is many a time a casual approach to the matter of applications seeking
impleadment of third parties in civil proceedings. Such impleadment applications
tend to be dealt with frequently without checking the law on the subject and
without determining whether the third party can be impleaded or not. The common
refrain is, It is only a joinder application. Impleadment of third
parties who are not entitled in law to be impleaded can result in derailment or
protection of proceedings. However, the law on impleadment is quite well settled
by the Supreme Court in a number of decisions.
The general principles of law set out by the Supreme Court in the context of
Order I Rule 10 (2) of Code of Civil Procedure, 1908 are enumerated herein
below:
The Dominus Litus Rule:
The general rule is that the plaintiff is the dominus litus and may choose
the persons against whom he wishes to litigate and cannot be forced to sue a
person against whom he does not seek any relief. Hence, a person who is not
a party has no right to be impleaded against the wishes of the plaintiff
unless it is a compulsion of the rule of law or unless a party proposed to
be added has a direct and legal interest in the controversy involved in the
Suit. [Ramesh Hirachand Kundanmal Vs. Municipal Corporation of Greater
Bombay, 1992 (2) SCC 524, Kasturi Vs. Iyyamperumal, (2005) 6 SCC 733,
Mumbai International Airport Vs. Regency Convention Centre, (2010) 7 SCC
417].
O. I R. 10 (2) Of Code Of Civil Procedure, 1908; An Exception To Dominus Litus Rule:
This general rule of the plaintiff being the dominus litus is subject to the
provisions of Order I Rule 10 (2) of Code of Civil Procedure, 1908 as per
which, the Court may, at any stage of the proceedings, either upon or
without the application of either party, and on such terms as may appear to
the Court to be just, order that the name of any person who ought to have
been joined, whether as plaintiff or defendant, or whose presence before the
Court may be necessary in order to enable the Court effectually to
adjudicate upon and settle all the questions involved in the suit, be added.
Order I Rule 10 (2) therefore carves out an exception to the general rule
and gives the Court the discretion to add as a party a person who ought to
have been joined or whose presence is necessary for effectually and
completely adjudicating all questions involved in the Suit, in other words,
a party who is found to be a necessary party or a proper party. It is
required to be noted that Order I Rule 10 (2) does not confer a right upon a
non-party to be joined but is about judicial discretion to add a party.
Court's Limited Discretion:
The discretion of the Court under Order I Rule 10 (2) of Code of Civil
Procedure, 1908 is limited. It is only if a party is a necessary or a proper
party that they can be directed by the Court to be joined in the proceeding.
If a person is not found to be a necessary or proper party, the Court has no
jurisdiction to order impleadment against the wishes of the plaintiff. [Vidur
Impex Vs. Tosh Apartments, (2012) 8 SCC 384].
The Court is therefore duty
bound to arrive at a conclusion that a party is a necessary party or proper
party before it can pass an order directing impleadment contrary to the
plaintiff's wishes The discretion to either allow or reject an application
for impleadment of a party is required to be exercised according to settled
principles of law and according to reason and fair play. ['Mumbai
International Airport Vs. Regency Convention Centre, (supra), CCI Vs.
SAIL, (2010) 10 SCC 744]
Necessary Party:
The Supreme Court has held that a necessary party is one without whose
presence no effective decree can be passed and without whom the Suit itself
would be liable to be dismissed. It has also been held that the reason which
makes it necessary to make such a person a party to an action is so that it
is bound by the result of the action and the question to be settled,
therefore, should be incapable of being completed and effectually settled
unless he is a party.
In Suits relating to property, in order that a third
party may be impleaded, they should have a direct or legal interest in the
subject matter of the litigation as distinguished from a mere commercial interest.
[Razia Begum Vs. Sahebzadi Anwar Begum, AIR 1958 SC 886]. Legal
interest is interpreted to mean that the result of the Suit affects the
third party legally.
Where, however, the subject matter of a litigation is a
declaration as regards status or legal character, the rule of present
interest does not apply with full force since the result of a declaratory
decree on the question of status affects not only the parties before the
Court but generations to come.
A larger Bench of the Supreme Court has evolved these two tests to be
satisfied for determining whether a person is a necessary party:
- There must be a right to some relief against such party in respect of
the controversies involved in the proceedings,
- No effective decree can be passed in the absence of such party.
It has been held that what makes a person a necessary party is not merely
that it has an interest in the correct solution of some question involved in
the litigation or has some legal contentions to advance or has evidence to
give on any of the questions involved. Moreover, a person whose object is to
prosecute its own cause of action or who the defendant wants to prosecute
cannot be joined for merely that reason.
Proper Party:
A proper party is one in whose absence an effective order can be made but
whose presence is necessary for a complete, effective and proper
adjudication on the questions involved in the proceeding. A Court does not
have jurisdiction to join a person whose presence is not necessary for the
effectual and complete adjudication of all the questions involved in the
dispute and this question, i.e. whether his presence is necessary for the
effectual and complete adjudication of all questions, is to be decided
keeping in mind the scope of the suit.
The phrase all the questions
involved means only the controversies with regard to the right which is set
up and the relief claimed on one side and denied on the other and not the
controversies which may arise between the plaintiffs inter se, or between
the defendants inter se, or between the plaintiffs and third parties or
between the defendants and third parties. Further, in the case of a proper
party, the court has a discretion to allow or reject the application and a
party has no right to insist upon being impleadment merely because his being
a proper party.
When Non-Joinder Fatal:
Order I Rule 9 of Code of Civil Procedure, 1908 provides that no suit shall
be defeated by reason of the misjoinder or non-joinder of parties, and the
Court may in every Suit deal with the matter in controversy so far as
regards the rights and interests of the parties actually before it.
However,
it contains a proviso to the effect that nothing in the rule shall apply to
non-joinder of a necessary party. Therefore, while non-joinder of necessary
parties may prove fatal, the non-joinder of proper parties may not be fatal
to the proceedings, but would certainly adversely affect interest of justice
and complete adjudication of the proceedings before the appropriate forum.
Multiplicity:
The main object of impleadment of a party is not to prevent multiplicity of
proceedings although it is also one of the objects. [Savitri Devi Vs.
District Judge, (1999) 2 SCC 577] Therefore, impleadment cannot be
permitted solely on this ground de hors the aforesaid principles in regard
to necessary or proper party.
II. Law As To Impleadment In Suits For Specific Performance:
A question which very often raises its head in suits for specific performance is
whether a stranger to an agreement for sale can be added as a party in a Suit
for specific performance of an agreement for sale.
Some of the provisions which would be relevant in the context of impleadment of
parties in suits for specific performance of agreements for sale are reproduced
herein below.
Sections 15 and 19 of the Specific Relief Act, 1963:
15. Who may obtain specific performance:
Except as otherwise provided by this Chapter, the specific performance of a
contract may be obtained by:
- any party thereto;
- the representative-in-interest or the principal, of any party thereto:
Provided that where the learning, skill, solvency or any personal quality of
such party is a material ingredient in the contract, or where the contract
provides that his interest shall not be assigned, his representative in interest
or his principal shall not be entitled to specific performance of the contract,
unless such party has already performed his part of the contract, or the
performance thereof by his representative in interest, or his principal, has
been accepted by the other party;
- where the contract is a settlement on marriage, or a compromise of
doubtful rights between members of the same family, any person beneficially
entitled thereunder;
- where the contract has been entered into by a tenant for life in due
exercise of a power, the remainder man;
- a reversioner in possession, where the agreement is a covenant entered into
with his predecessor-in-title and the reversioner is entitled the benefit of
such covenant;
- a reversioner in remainder, where the agreement is such a covenant, and the
reversioner is entitled to the benefit thereof and will sustain material injury
by reason of its breach;
(f-a) when a limited liability partnership has entered into a contract and
subsequently becomes amalgamated with another limited liability partnership, the
new limited liability partnership which arises out of the amalgamation.
- when a company has entered into a contract and subsequently becomes
amalgamated with another company, the new company which arises out of the
amalgamation;
- when the promoters of a company have, before its incorporation, entered
into a contract for the purposes of the company, and such contract is
warranted by the terms of the incorporation, the company:
Provided that the company has accepted the contract and has communicated such
acceptance to the other party to the contract.
19. Relief against parties and persons claiming under them by subsequent
title:
Except as otherwise provided by this Chapter, specific performance of a contract
may be enforced against- (a) either party thereto;
- either party thereto;
- any other person claiming under him by a title arising subsequently to
the contract, except a transferee for value who has paid his money in good
faith and without notice of the original contract;
- any person claiming under a title which, though prior to the contract
and known to the plaintiff, might have been displaced by the defendant;
(c-a) when a limited liability partnership has entered into a contract and
subsequently becomes amalgamated with another limited liability partnership, the
new limited liability partnership which arises out of the amalgamation.
- when a company has entered into a contract and subsequently becomes
amalgamated with another company, the new company which arises out of the
amalgamation;
- when the promoters of a company have, before its incorporation entered
into a contract for the purpose of the company and such contract is
warranted by the terms of the incorporation, the company:
Provided that the company has accepted the contract and communicated such
acceptance to the other party to the contract.
Section 52 of the Transfer of Property Act, 1882:
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 or established beyond such limits by
the Central Government of any Suit or proceeding 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 so as to affect the rights of any other party thereto under
the decree or order which may be made therein, except under the authority of the
Court and on such terms as it may impose.
Explanation:
For the purposes of this Section, the pendency of a Suit or
proceeding shall be deemed to commence from the date of the presentation of the
plaint or the institution of the proceeding in a Court of competent
jurisdiction, and to continue until the Suit or proceeding has been disposed of
by a final decree or order and complete satisfaction or discharge of such decree
or order has been obtained, or has become unobtainable by reason of the
expiration of any period of limitation prescribed for the execution thereof by
any law for the time being in force.
Order XXII Rule 10 of Code of Civil Procedure, 1908:
10. Procedure in case of assignment before final order in Suit.
- In other cases of an assignment, creation or devolution of any interest
during the pendency of a Suit, the Suit may, by leave of the Court, be continued
by or against the person to or upon whom such interest has come or devolved.
- The attachment of a decree pending an appeal therefrom shall be deemed to be
an interest entitling the person who procured such attachment to the benefit of
sub-rule (1).
The principles laid down by the Supreme Court in regard to impleadment in Suits
for specific performance of agreement for sale are as under:
- The scope of a Suit for specific performance cannot be enlarged to
convert the same into a Suit for title and possession, A third party or a
stranger to the contract could not be added so as to convert a suit of one
character into a suit of a different character. [Bharat Karsondas Thakkar Vs. Kiran Construction
Co., (2008) 13 SCC 658].
A person who claims independently and adversely to the
claim of the vendor would not fall within any of the categories provided for in
Section 19 of the Specific Relief Act, 1963, which is exhaustive on the question
as to who are the parties against whom specific performance of a contract may be
enforced. Such as person is therefore not a necessary party and is not entitled
to be joined in a suit for specific performance.
Further, in a Suit for specific
performance of a contract for sale, the issue to be decided is the existence,
validity and enforceability of the contract entered into between the parties
thereto, whether the plaintiff is ready and willing to perform their part of the
contract and whether he is entitled to a decree for specific performance of such
contract. The presence of a third party claiming title independently or
adversely to the vendor would therefore not be necessary for the Court to
effectually and completely adjudicate upon the questions arising in a suit for
specific performance. Therefore such a person is not even a proper party to the
Suit.
This is in fact nothing but application of the aforementioned general
principles in regard to impleadment. Based on the aforesaid principle, a
person, who was not a party to the contract but wanted to be impleaded as a
defendant on the ground that he had acquired subsequent interest in the
property by virtue of a separate decree obtained from the Court, was held
not entitled to be joined as a defendant. [Anil Kumar Singh Vs. Shivnath Mishra, 1995 (3) SCC 147].
However, in another case, where the original defendant was not the only
titleholder of the subject property but was joint holder along with his
sons, it was held that it cannot be laid down as an absolute proposition
that whenever a suit for specific performance is filed by A against B, a
third party C can never be impleaded in that Suit and that, if C can show a
fair semblance of title or interest he can certainly file an application for
impleadment. [Sumtibai Vs.
Paras Finance Co. Regd. Partnership Firm Beawer (Raj.), (2007) 10 SCC 82].
- On the other hand, the usual question which arises is in regard to the
status of a purchaser of the Suit property from the vendor in a Suit for
specific performance of a prior agreement for sale by the vendor in favour
of the plaintiff. In light of Section 19 (b) of the Specific Relief Act,
1963, a sale of immovable property in the teeth of an earlier agreement to
sell is immune from specific performance of an earlier contract for sale
only if the transferee has acquired the title for valuable consideration, in
good faith and without notice of the original contract. [Thomson Press
(India) Ltd. Vs. Nanak Builders & Investors (P) Ltd., (2013) 5 SCC 397].
Further, Section 52 of the Transfer of Property Act, 1882 makes it evident
that a transfer pendente lite is not illegal ipso jure but remains
subservient to the pending litigation, that is, the transfer is good except
to the extent it might conflict with rights decreed.[Nagubai Ammal Vs. B. Shama Rao,
AIR 1956 SC 593, Vinod Seth Vs.
Devinder Bajaj, (2010) 8 SCC 1, A. Nawab John Vs. V, N. Subramaniyam, (2012)
7 SCC 738, T. Ravi v. B. Chinna Narasimha, (2017) 7 SCC 342, Thomson Press
(India) Ltd. Vs. Nanak Builders & Investors (P) Ltd., (2013) 5 SCC 397].
Even
where the sale deed is executed in breach of an injunction issued by a competent
Court, such breach would not render the transfer whether by way of an absolute
sale or otherwise ineffective and while the party committing the breach may
doubtless incur the liability to be punished for the breach committed by it but
the sale by itself may remain valid as between the parties to the transaction
subject only to any directions which the competent court may issue in the Suit
against the vendor.
Therefore, a transferee pendent lite, who is a representative-in-interest of the
party from whom he has acquired the interest, would be a necessary party in a
Suit for specific performance inter alia since he would be directly affected by
the outcome of the Suit and bound by the final decree therein and it is likely
that a transferor pendente lite may not even defend the title properly as he has
no interest in the same or may collude with the plaintiff in which case the
interest of the transferee pendente lite would be ignored.
[Amit Kumar Shaw
Vs. Farida Khatoon, (2005) 11 SCC 403]. In any case, independent of Order I
Rule 10 (2), such person would be added even on account of the provisions of
Order XXII Rule 10 of Code of Civil Procedure, 1908.[Khemchand Shankar
Choudhari Vs. Vishnu Hari Patil, (1983) 1 SCC 18].
Furthermore, the proper form of decree in case specific performance is
ultimately granted to the plaintiff is to direct specific performance of the
contract between the vendor and the plaintiff and direct the subsequent
transferee to join in the conveyance so as to pass on the title that resides in
him to the plaintiff.[28]
Therefore, looking to all these factors, although there is some divergence of
opinion on the right of transferee pendent lite to be joined, it has been held
that an application for joining a transferee pendente to be joined, it has been
held that an application for joining a transferee pendente lite should be
liberally considered and normally allowed.
However, it has also been held in one case that the Court can order impleadment
of a purchaser whose conduct is above board, and who files the application for
being joined as party within reasonable time of his acquiring knowledge about
the pending litigation but if the applicant is guilty of contumacious conduct or
is beneficiary of a clandestine transaction or a transaction made by the owner
of the Suit property in violation of the restraint order passed by the court or
the application is unduly delayed then the Court would be fully justified in
declining the prayer for impleadment. Some Judgments have even gone to the
extent of holding in a blanket manner that a transferee pendente is not required
to be joined as a party at all. In the humble opinion of this author, these
views do not appear to be correct.
- Under Order XXII Rule 10, no detailed inquiry at the stage of granting
leave is contemplated and the Court has only to be prima facie satisfied for
exercising its discretion. The question about the existence and validity of
the assignment, creation or devolution can be considered at the final
hearing of the proceedings.
Conclusion:
Thus, the provisions of law as contained in sub-section (2) Order XXII Rule 10
is not to change the scope and character of the Suit by adding new parties or
enable them to litigate their own independent claims but simply to avoid
litigation which might otherwise become necessary. The balance has, therefore,
to be struck by the Court in each case by making a sound judicial approach. The
law on impleadment is quite well settled, and such applications should be
decided based on the law so as to ensure that unnecessary complications are
avoided at a later stage.
Written By: Dinesh Singh Chauhan, Advocate - J&K High Court of Judicature, Jammu.
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