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2025 Supreme(AP) 910

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Venuthurumalli Gopala Krishna Rao, J.
Bondada Naga Venkata Siva Nageswara Rao & Others - Petitioners
Versus
Aitha Venkata Rama Rao And Ors. - Respondent
I.A.No.1 of 2022 In Second Appeal No: 276 of 2019
Decided On : 28-02-2025

Advocates Appeared:
For the Appellant : A Satya Prasad, Senior Counsel, Representing N Bharath Simha Reddy, Harinadh Nidamanuri
For the Respondent: Raviteja Padiri

A pendente lite purchaser can be added as a party to ongoing litigation to protect substantial interests, and such applications should typically be granted without prejudice.

Headnote:(A) Civil Procedure Code, 1908 - Order I, Rule 10 - Impleadment of parties - Application by subsequent purchasers allowed; they sought inclusion in appeal as necessary parties for proper adjudication. Petitioners alleged bona fide purchase from original owners, while respondent claimed knowledge of the pending litigation from inception. The law mandates that a transferee pendente lite can be made a party if their interest is substantial. Court determined that allowing the application would not cause prejudice to either party. (Paras 2-17)

(B) Transfer of Property Act, 1882 - Section 52 - Doctrine of lis pendens - Prohibits the alienation of property during pending litigation, protecting the rights of parties involved. Subsequent purchasers' rights remain intact during litigation. (Paras 14-15)

(C) Case Law - Application of precedents from cases regarding impleadment - Court cites several cases reinforcing the principle that the rights of pendente lite purchasers are protected under the law, and such applications should be favorably considered. (Paras 10-12, 15)

Facts of the case:
Petitioners are subsequent purchasers of property from original owners during litigation involving the property. Respondent had previously filed suits and appeals without impleading the petitioners, arguing their transactions rendered the suit maintainable. (Paras 1-2)

Findings of Court:
The application for impleadment of purchasers was allowed as their interests were substantial, affirming that allowing their inclusion does not prejudice the outcome of the case. (Paras 16-17)

Issues: The key issue revolves around whether subsequent purchasers should be added as parties to the appeal, considering the principles of lis pendens and the necessity for all interested parties to be present in the litigation. (Paras 6-7)

Ratio Decidendi: The court reasoned that the rights of subsequent purchasers during ongoing litigation are protected and that their application for impleadment should generally be allowed, ensuring effective resolution of disputes. (Paras 15-16)

Result: Application allowed; petitioners impleaded as respondents in the appeal.

ORDER :

Venuthurumalli Gopala Krishna Rao, J.

This application is filed under Order I, Rule 10 of C.P.C seeking to permit the petitioners herein/proposed respondents 5 to 8 to come on record as respondents 5 to 8 in S.A.No.276 of 2019.

2. The case of the petitioners, in brief, is as follows:

(a) The 1st petitioner/proposed 5th respondent filed an affidavit in support of the present application on behalf of the petitioners 2 to 4/proposed respondents 6 to 8 also. It is pleaded that the 1st respondent/appellant knowing fully well aware that they are the bona fide purchasers and owners of the subject property, without impleading them as party respondents, filed the suit, first appeal and the present second appeal. The present application is filed seeking to implead them as respondents 5 to 8 in the above appeal as they are proper and necessary parties for proper adjudication of the lis.

(b) It is further pleaded that the mother of respondents 1 and 2 and mother-in-law and grandmother of respondents 3 and 4 is the absolute owner and possessor of G+2 RCC building constructed on 71 square yards bearing Door No.22-15-52, situated at Bhimavaram, West Godavari District. She executed a registered gift deed dated 17-01-1983 in favour of the respondents 1 and 2 in respect of the said building. By virtue of the registered gift deed, the respondents 1 and 2 became the absolute owners and possessors of the said G+2 RCC building. The respondents 1 and 2 and their family members have collectively sold the said G+2 RCC building to the petitioners/proposed respondents 5 to 8 under four different registered sale deeds by dividing the entire extent into four parts.

(c) It is further pleaded that the appellant herein filed A.S.No.5 of 2016 on the file of III Additional District Court, Bhimavaram. The learned III Additional District Judge, Bhimavaram, dismissed the said appeal on 23-3-2019 confirming the judgment and decree dated 16-12-2015 in O.S.No.19 of 2009. Though the appellant herein was unsuccessful before both the Courts below, he did not vacate the property purchased by them and instead, he filed the present second appeal. Therefore, it is prayed to permit them i.e. proposed respondents 5 to 8 to come on record as respondents 5 to 8 in the second appeal.

3. The 1st respondent/appellant (sole defendant) filed a counter affidavit denying the material averments pleaded in the affidavit of the petitioners. The brief averments are as follows:

(a) It is contended that while the suit is pending, the plaintiffs and their family members alienated the suit schedule property in favour of the proposed respondents. The proposed respondents were having full knowledge about the pendency of the original suit, first appeal as well as the second appeal. In spite of having knowledge about the pendency of the above lis, the proposed respondents have not taken any steps to get themselves impleaded. Further, it is also not the case of the proposed respondents that they are not aware of the pendency of the above lis.

(b) It is further contended that the lease of the defendant was not expired and the alleged lease agreement was executed only for the limited purpose of obtaining bank loan. Further, the lis in respect of the lease and possession has not yet decided by the High Court and as such, since the appeal is a continuing of suit, there is no such question of continuing for a long period even after expiry is not correct. The aspect of handing over of possession to the implead petitioners has to be considered as a lis between the plaintiff and the implead petitioners.

(c) It is further contended that there is no nexus between the cause of action for the suit and the present proposed petitioners have no relation. Once the parties lost their strength or interest on the schedule properties, they cannot operate or continue to contest the matter on behalf of third parties. Further, no serious prejudice will be caused to the proposed respondents if this implead petition is dis


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