IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K. SREENIVASA REDDY, J.
Maram Dattu S/o. Suryanarayana – Appellant
Versus
Manepalli Mohan Rao S/o. Krishna Rao – Respondent
Civil Revision Petition No.2276 of 2022
Decided on : 19-12-2023
Order I Rule 10 - Impleadment in Suit for Specific Performance - Code of Civil Procedure, 1908 - Section 19 of the Specific Relief Act, 1963 - [Thomson Press (India) Limited v. Nanak Builders & Investors Private Limited & others, (2013) 5 SCC 397; Shri Swastik Developers & others v. Saket Kumar Jain & another; Baluram v. P.Chellathangam & others; Kasturi v. Iyyamperumal & others, (2005) 6 SCC 733; Hari Mohan Sharma & another v. Charanjeet Singh Rekhi & others, (2019) 12 SCC 412] - The court discussed the provisions of Order I Rule 10 of the Code of Civil Procedure and Section 19 of the Specific Relief Act, 1963, and their interpretations from various case laws. It emphasized the importance of bringing all interested parties before the court to finally determine all controversies in the suit and avoid multiplicity of proceedings. The court also clarified the distinction between necessary and proper parties in a suit for specific performance, highlighting that a necessary party is one without whom the relief claimed in the suit cannot be granted, while a proper party's presence may be necessary to fully adjudicate upon the matters involved in the suit. The court's decision to allow the impleadment was influenced by the petitioner's limited defences and the need to fully adjudicate the suit for specific performance effectively.
Fact of the Case:
The petitioner filed a suit for recovery of money and obtained attachment before judgment of a property. Subsequently, the respondents filed a suit for specific performance of an unregistered agreement of sale involving the same property. The petitioner sought to implead as a defendant in the latter suit to bring attention to the attachment and claimed to be a proper and necessary party to the suit.
Finding of the Court:
The court found that the petitioner's presence was necessary to fully adjudicate upon the matters involved in the suit for specific performance, considering the attachment of the property obtained by the petitioner and the collusive nature of the suit filed by the respondents. The court allowed the impleadment with limited defences for the petitioner.
Issues: The main issue was whether the petitioner should be impleaded as a defendant in the suit for specific performance, considering the attachment of the property and the collusive nature of the suit filed by the respondents.
Ratio Decidendi: The court's decision was based on the interpretation of Order I Rule 10 of the Code of Civil Procedure and Section 19 of the Specific Relief Act, 1963, emphasizing the importance of bringing all interested parties before the court to finally determine all controversies in the suit and avoid multiplicity of proceedings. The distinction between necessary and proper parties in a suit for specific performance was crucial in allowing the impleadment.
Final Decision: The Civil Revision Petition was allowed, setting aside the lower court's order and allowing the impleadment of the petitioner as a 'proper party' to the suit for specific performance with limited defences, to enable the full adjudication of the matters involved in the suit.
ORDER :
The Civil Revision Petition has been filed aggrieved by the Order dated 06.09.2022 in I.A.No.779 of 2019 in O.S.No.13 of 2014 on the file of the X Additional District Judge, West Godavari at Narsapur, whereby the petition filed by the petitioner, under Order I Rule 10 of the Code of Civil Procedure, 1908 (for short, ‘CPC’) seeking to implead him as 4th defendant in the aforesaid suit, was dismissed by the Court below.
2. The facts, in brief, are as follows.
It is the case of the petitioner that he filed Original Suit No.4 of 2014 before the Court below against 3rd respondent herein for recovery of money basing on a promissory note dated 01.02.2013. In the said suit, the Court below granted attachment before judgment in respect of the subject property viz. land admeasuring Ac.1.36 cents in Old R.S.No.465/6 & New R.S.No.465/6A situated in 26th Ward, Rustumbada village, Narsapur mandal, West Godavari district. Vide judgment dated 28.06.2018, the Court below decreed the suit. Thereafter, he filed E.P.No.7 of 2019 for realization of the decretal amount by way of attachment and sale of the aforesaid property and the same is pending.
It is the further case of the petitioner that respondents 2 and 3 herein, who are wife and husband, entered into a collusive unregistered agreement of sale dated 09.01.2012 with 1st respondent and got filed O.S.No.13 of 2014 through 1st respondent for specific performance of the said unregistered agreement of sale and the same is pending. In the said suit, the subject implead petition in I.A.No.779 of 2019 came to be filed by the petitioner to permit him to implead as 4th defendant in the said suit, but erroneously the said petition was dismissed by the Court below.
3. Heard Sri Akula Sri Krishna Sai Bhargav, appearing for Sri P.L.Narasimha Rao, learned counsel for petitioner; Sri P.Rajesh Babu, learned counsel for 1st respondent; Sri Dasari S.V.V.S.V. Prasad, learned counsel for respondents 2 and 3 and Sri Maheshwara Rao Kunchem, learned counsel for 4th respondent.
4. It is submitted by the learned counsel for the petitioner that the suit in O.S.No.13 of 2014 is a collusive suit between respondent No.1 and other respondents, filed for specific performance of an unregistered agreement of sale, only in order to defeat rights of the petitioner, who is attachment holder in respect of the schedule property in the suit. He further submits that the said unregistered agreement of sale dated 09.01.2012 is a collusive one, brought into existence only to defeat the rights of the petitioner. It is his further submission that the petitioner has semblance of right over the schedule property and hence he is a proper and necessary party to the suit in view of Section 19 of the Specific Relief Act, 1963 and in order to bring to the notice of the Court below regarding the attachment of the said property, as the parties are not seriously contesting the suit, and in the absence of the petitioner, no effective decree can be passed in the suit.
5. On the other hand, the learned counsel for respondents 1 to 3 submit that the petitioner is neither a proper nor a necessary party to the suit which is filed for specific performance of the agreement of sale, and only in order to create multiplicity of litigation and delay the proceedings, the implead petition is filed, which is rightly dismissed by the Court below, and there are no grounds to interfere with the same.
6. Learned counsel for the petitioner relied on a decision in Thomson Press (India) Limited v. Nanak Builders & Investors Private Limited & others, (2013) 5 SCC 397, wherein it is held thus: (para 24 & conclusive portion)
Thomson Press (India) Limited v. Nanak Builders & Investors Private Limited & others
Hari Mohan Sharma & another v. Charanjeet Singh Rekhi & others
A party to a contract for sale is a necessary party in a suit for specific performance, while a person claiming adversely is not; the court recognized the petitioner as a proper party for effective a....
Court cannot allow adjudication of collateral matters so as to convert a suit for specific performance of contract for sale into a complicated suit for title between the plaintiff/appellant.
The decision to allow subsequent purchasers as parties in specific performance suits is justified when they demonstrate a semblance of title or interest to the property, supporting effective judicial....
The main legal point established in the judgment is that the impleadment of a party is not necessary if no legal right has been created in their favor, and their presence is not required to effective....
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