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1957 Supreme(AP) 57

HIGH COURT OF ANDHRA PRADESH
SATYANARAYANA RAJU, J.
D. Venkatachalapathi
Versus
Surya Prakashrao
Civil Revn. Peto. No. 1257 of 1955 from order of Dist. Munsif, Narasapur
Decided On : 13-03-1957

Advocates:
C. Mallikharjuna Rao, for Petitioner; G. Chandrasekhara Sastry, for Respondents.

The court has the discretion to determine whether to add a third party as a party to a suit, and may refuse to do so if it is satisfied that there is no question to be tried as to the third party's liability.

Headnote:

ORDER 8-A, RULE 5, C. P. C. - THIRD PARTY PROCEDURE - CONSTRUCTION - COURT'S DISCRETION TO ADD THIRD PARTY - COURT MAY REFUSE TO ADD THIRD PARTY IF SATISFIED THAT NO QUESTION TO BE TRIED AS TO THIRD PARTY'S LIABILITY.

Fact of the Case:

The defendant in a suit sought to implead a third party, claiming entitlement to contribution or indemnity from the third party. The third party entered appearance, and the defendant applied to the court for directions under Order 8-A, Rule 5 of the Code of Civil Procedure (C. P. C.).

Finding of the Court:

The court held that it had the discretion to determine whether to add the third party as a party to the suit. The court found that there was no question to be tried as to the third party's liability to make the contribution or pay the indemnity claimed, and therefore dismissed the defendant's application for directions.

Issues: Whether the court is bound to add a third party to a suit once the defendant obtains leave to issue a notice to the third party under Order 8-A, Rule 1 of the C. P. C.

Ratio Decidendi: The court held that it is not bound to add a third party to a suit once the defendant obtains leave to issue a notice to the third party under Order 8-A, Rule 1 of the C. P. C. The court has the discretion to determine whether to add the third party as a party to the suit, and may refuse to do so if it is satisfied that there is no question to be tried as to the third party's liability.

Final Decision: The court dismissed the defendant's application for directions to add the third party as a party to the suit.

ORDER :- In this revision petition an interesting question as to the construction of O. 8-A, C. P. C. (added in Madras by an amendment dated 21st of August 1951) has been raised.

2. Order 8-A, R. 5 runs thus :

If the third party enters appearance, the defendant on whose behalf notice was issued may apply to the Court for directions; and the Court may, if satisfied that there is a question to be tried as to the liability of the third party to make the contribution or pay indemnity claimed, in whole or in part, order the question of such liability, as between the third party and the defendant giving the notice, to be tried in such manner, at or after the trial of the suit, as the Court may direct; and, if not so satisfied, may pass such decree or order as the nature of the case may require. The third party notice is issued under R. 1 which provides that :

"Where a defendant claims to be entitled to contribution from or indemnity against any person not already a party to the suit (hereinafter called a third party), he may by leave of the Court, issue a notice (thereinafter called a third party notice) to that effect, sealed with the seal of the Court. The notice shall state the nature and grounds of the claim. Such notice shall be filed into Court with a copy of the plaint and shall be served on the third party according to the rules relating to the service of summohs.

From a combined reading of O. 8-A, Rr. 1 and 5, it is manifest that where a defendant claims to be entitled to contribution from or indemnity against a person, not already a party to the suit, he may, by leave of the Court, issue a notice to that effect. The notice shall state the nature and grounds of the claim. On receipt of the notice, if the third party enters appearance, the defendant, on whose behalf the notice was issued, may apply to the Court for directions.

On such application being made by the defendant for directions, the Court must make an enquiry as to whether there is a question to be tried as to the liability of the third party to make the contribution or to pay the indemnity claimed. If the Court is satisfied it may pass such decree or order as the case may require.

3. As has been pointed out by Venkataramanarao, J. in Venkata Krishna Naidu v. Narayana Swami Iyer, AIR 1939 Mad 172 (A).

"The object of the third party procedure is to prevent the same question being tried twice over, where there is any substantial question common as between the plaintiff and the defendant in the action and as between the defendant and a third person. All the questions between the defendant and the third party need not be identical with the questions to be tried between the plaintiff and the defendant. It is enough if there is a common question to be tried.

At the same time it is the duty of the court to see that by the addition of the third party the plaintiff is not embarrassed in the trial of question in which he would have no concern. If the adjudication of the question between the defendant and the third party would embarrass the plaintiff in his trial, the court generally exercises its discretion by ordering the trial of those issues subsequent to the trial of the action.

4. The contention of the learned counsel for the petitioners is that once the defendant obtains the leave of the court to issue notice to a third party, the court has no option but to add the third party. In other words, the court is precluded from holding that it is not necessary to do so. On a plain reading of the material provisions, I consider that that could not have been the intendment of the rule. If the court is satisfied that there is no question to be tried, as to the liability of the third party to make the contribution or pay the indemnity claimed, it should be at liberty to hold that there is no such question and to dismiss the application for directions.

In this connection it is necessary to remember that under O. 1, R. 10(2), C. P. C., power is given to the court to order that name of any p




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