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2024 Supreme(AP) 1471

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI NATH TILHARI, J.
Pitta Ramesh - Appellant
Versus
Poosarla Vineel Kumar and others – Respondent
CRP No.3028 of 2024
Decided on : 20-12-2024

Advocates:
Advocate Appeared:
For the Appellant : Arrabolu Sai Naveen

Court allowed dismissal of impleadment application for lack of legal standing, emphasizing that unregistered sub-leases cannot assert rights post-expiration of the main lease.

Headnote:(A) Constitution of India - Article 227 - Civil Procedure Code, Order 1 Rule 10 - Civil revision petition challenging rejection of impleadment application in suit for eviction and recovery of rent - The petitioner claimed rights through a sub-lease but failed to demonstrate its validity post-expiration of the main lease. Courts recognized the necessity of party's presence for effective adjudication, but held that the unregistered sub-lease could not confer such rights. The application for impleadment was justifiably dismissed, with no illegalities attributable to the Trial Court's decision. (Paras 2, 19, 28)

(B) Impleadment - The court emphasized the importance of necessity and propriety of parties in a suit, highlighting the requirement for valid documentation and legal standing to seek inclusion in ongoing proceedings, leading to dismissal when those criteria are unmet. (Paras 15, 21)

Facts of the case:
The petitioner, a third party, sought to be added as a defendant citing a sub-lease agreement with the main tenant. Plaintiff landlords opposed, arguing expiration of the main lease precluded the validity of the sub-lease, even if it existed.

Findings of Court:
The original sub-lease was unregistered and invalid post-expiration of the main lease; therefore, the petitioner was neither necessary nor proper for the effective determination of the suit.

Issues: Whether the petitioner had a legal standing as a necessary party given the expired main lease and unregistered status of the sub-lease.

Ratio Decidendi: The Court upheld that the unregistered sub-lease could not be acknowledged legally, and absence of a required party does not lead to injustice if the primary tenant's rights are adequately assessed.

Result: Civil revision petition dismissed, and no costs awarded.

Table of Content
1. introduction of civil revision petition and factual background. (Para 2 , 3 , 4)
2. petitioner's claim and opposition to impleadment. (Para 5 , 6 , 7)
3. court's rejection of impleadment application and legal basis. (Para 8 , 9 , 10 , 11)
4. legal standards for joining parties and relevance of documents. (Para 12 , 13 , 14 , 15)
5. sub-lease terms and impact on impleadment. (Para 16 , 17 , 18 , 19 , 20)
6. clarification on necessity of parties in lease-related suits. (Para 21 , 22 , 24 , 25)
7. final conclusions on legality of the order. (Para 26 , 27 , 28 , 29 , 30)

JUDGMENT :

Heard Sri Arrabolu Sai Naveen, learned Counsel for the petitioner.

2. This civil revision petition (CRP) under Article 227 of the Constitution of India has been filed by Pitta Ramesh challenging the order dated 20.11.2024, passed by the IX Additional District Judge (FTC), Chodavaram in IA No.30 of 2024 in OS No.162 of 2019, rejecting the IA.

3. The petitioner is the third party/proposed defendant in OS No.162 of 2019. The respondent Nos.1 to 4 are the plaintiffs in the suit and the 5th respondent is the sole defendant.

4. The plaintiff-respondents filed OS No.162 of 2019 against the defendant for a decree of eviction of the said defendant from the plaint schedule property as also for recovery of an amount of Rs.56,43,996/- towards arrears of rent against him. The plaintiff's case, inter alia, is that the defendant, is the tenant of the suit schedule property. The plaintiffs are the landlords/lessors. They jointly executed a lease agreement/the lease deed dated 27.01.2015, registered at Registrar's Office, Chodavaram as Document No.261/2015. The lease period came into force with effect from 27.01.2015 upto 26.01.2021, for a period of six years and on expiry of the lease period, the said defendant had to hand over the lease hold premises giving its possession to the plaintiffs. The defendant violated the terms of the lease deed, so, the plaintiffs issued notices which were also replied by the defendant.

5. In OS No.162 of 2019, the petitioner, a third party, filed IA No.30 of 2024 for his impleadment as defendant No.2. He submitted inter alia that the defendant in the suit entered into a sub-lease agreement dated 13.07.2018 with him. He paid the advance amount, also the rent and was in possession of the leased out premises. The sub-lease agreement was in terms of the lease by the plaintiffs in favour of the defendant. So, his case was that the sublease in petitioner's favour by the tenant-defendant in the suit was in terms of the main lease, the plaintiffs were bound by the same, as the defendant in the suit had the right to sublet. Consequently, in the suit, the petitioner should have been impleaded.

6. The plaintiffs 1 to 4-respondents filed the counter. They opposed the application for impleadment. They raised various pleas. Their main contentions in opposition of application for impleadment were that the contract of lease between the plaintiffs and the defendant expired on 26.01.2021. The alleged sub-lease was neither binding on the plaintiffs nor could survive, even otherwise, after 26.01.2021 on which date main lease came to an end. The petitioner had no locus to seek his impleadment.

7. The defendant-respondent No.5 also filed the counter, not disputing the execution of the sub-lease by him with the petitioner on 13.07.2018 but denying the other material allegations. He submitted that the petitioner was in no way concerned with the suit and the application for impleadment was not maintainable which was liable to be dismissed.

8. The learned Court of IX Additional District Judge (FTC) rejected the application vide order dated 20.11.2024. It was held that the original sub-lease dated 13.07.2018 was not filed before the Court. Only a Xerox copy was filed which showed that the sub-lease was an unregistered document. Under the law, if the lease for a period of two and half years was liable to be registered, and it being unregistered and Xerox copy,

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