1. Suit for declaration of sale and lease deeds as null and void — Dispute over title — Impleadment application under Order 1 Rule 10 CPC. (Para 3 , 4 )
Back
Next 
1996 Supreme(SC) 413
SUPREME COURT OF INDIA
A.M. Ahmadi, C.J.I., Sujata .V. Manohar, J.
BALDEV SINGH, APPELLANT
Versus
PUNJAB NATIONAL BANK AND OTHERS, RESPONDENTS.
Civil Appeal No. ... of 1996 (Arising out of SLP (C) No. 19987 of 1995),
decided on February 19, 1996.
When a civil suit regarding the title of a property is pending, rent proceedings may be stayed to prevent conflicting decisions and multiplication of litigation, provided the tenant continues to deposit rent in court.
Headnote:(A) Code of Civil Procedure, 1908 - Order 1 Rule 10 - Impleadment of party - Rent proceedings - Question of title - Where a civil suit for declaration that a sale deed is null and void is pending, the question of title arises for determination - To avoid multiplication of litigation and ensure the rightful party is not left without a remedy, rent proceedings may be stayed pending the decision of the civil court on the question of title, provided the tenant continues to deposit rent or mesne profits in the Rent Control Court. (Para 4)
Facts of the case:
A suit for declaration was filed to declare a sale deed null and void, which would affect the title of the property. In separate rent proceedings, an application was filed to implead the plaintiff of the title suit as a party. The lower courts allowed the impleadment. The appellant challenged this, contending that the question of title cannot be determined in rent proceedings.
Findings of Court:
The rent suit should await the decision of the civil court on the question of title. In the interim, the tenant should continue depositing rent or mesne profits in the Rent Control Court, which may be invested in fixed deposits to yield interest.
Issues: Whether rent proceedings should be stayed pending the determination of title in a separate civil suit to avoid conflicting outcomes and multiplication of litigation.
Ratio Decidendi: If a party claiming title is not impleaded or the proceedings continue, it may lead to the collection of rent by a party who is later found not to have title, thereby multiplying litigation. Therefore, the appropriate course is to stay the rent proceedings until the title is decided by the civil court.
Result: Proceedings before the Rent Controller stayed till the suit is disposed of.
Legal Category Hierarchy
Table of Contents
2. Whether the question of title can be adjudicated in rent control proceedings and whether a party claiming title should be impleaded. (Para 4 )
3. Impleading a party claiming title in rent proceedings prevents multiplicity of litigation and ensures the party is not left without a remedy. (Para 4 )
4. Rent proceedings may be stayed pending the decision of a civil court on the question of title to avoid multiplicity of litigation. (Para 4 )
5. Rent proceedings stayed pending disposal of the civil suit for title; tenant directed to deposit rent or mesne profits in the Rent Control Court. (Para 4 , 5 )
6. Can a party claiming title to a property be impleaded in rent control proceedings?
Yes, the court may allow impleadment or stay proceedings to prevent multiplicity of litigation and ensure that a party claiming title is not left without a remedy. (Para 4 )
7. How should rent be handled when rent proceedings are stayed pending a title suit?
The tenant should continue depositing rent or mesne profits in the Rent Control Court, and the court may invest these funds in fixed deposits to yield interest. (Para 4 , 5 )
8. Is it permissible to stay rent proceedings pending the outcome of a civil suit regarding title?
Yes, the appropriate course is for the rent suit to await the decision of the civil court on the question of title to avoid multiplying litigation. (Para 4 )
ORDER
1. Special leave granted.
2. Heard learned counsel for both the sides.
3. Respondent 2, Santokh Singh has filed a suit in the Court of Senior Sub-Judge, Jullundur for a declaration that the sale deed allegedly executed by Defendant 1, Baldev Singh, in favour of Defendant 2, Harbhajan Kaur, acting as power of attorney of the plaintiff is null and void and consequently the lease deed dated 10-2-1993 is null and void and not binding on the plaintiff. There are certain other consequential reliefs also. The question of title may, therefore, arise for determination in that suit.
4. The present special leave petition has been filed by Baldev Singh against the order dated 1-6-1995 in Civil Revision No. 2174 of 1995 whereby the High Court dismissed the revision from the order of the Additional Rent Controller dated 6-4-1995 allowing the application of Santokh Singh for being impleaded as a party under Order 1 Rule 10 CPC. The learned counsel for the appellant herein contends that the question of title cannot be gone into in the proceedings before the Rent Controller and the Rent Controller was in error in allowing the application and the High Court too was in error in summarily rejecting his revision. The situation which emerges is that if Santokh Singh cannot be, impleaded in the rent proceedings, wherein he would certainly raise the contention in regard to his title to the property, he would be without a remedy and the rent would be collected by Baldev Singh and thereafter he may have to take further proceedings against Baldev Singh, thus, multiplying the litigation. Therefore, the appropriate course would appear to be that rent suit should await the decision of the civil court on the question of title but in the meantime the tenant, i.e., the Punjab National Bank should go on depositing the rent/mesne profits in the Rent Control Court and the question of payment of the amount would be a matter that may be decided by the appropriate court at the appropriate point of time. The parties would be at liberty to move the civil court for an early hearing.
5. In the meantime, the Rent Controller may, at such intervals deemed appropriate, invest the rent in fixed deposits so that it may yield interest. The proceedings before the Rent Controller will remain stayed till the suit is disposed of. The present proceedings will stand disposed of accordingly.
