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2025 Supreme(Kar) 1591

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. NAGAPRASANNA, J.
 
Kotak Mahindra Bank Ltd., By Its Vice President –HR, Sri Nagendra Prasad K.V. – Petitioner
Versus
The Commercial Bank Retired Employees Association (REGN. NO. 293/01), Represented By Its Secretary V. Vasudevan, S/o G.V. Venkatraman and Ors. – Respondents
Writ Petition No.13122 of 2025 (GM – CPC)
Decided On : 05-08-2025

Advocates Appeared:
For the Petitioner:Sri Balasubrahmanya K.M., Advocate
For the Respondents:Sri P.S. Ranganathan, Advocate.

Headnote:(A) Order I Rule 8 CPC - One person may sue or defend on behalf of all in same interest.—(1) Where there are numerous persons having the same interest in one suit,— (a) one or more of such persons may, with the permission of the Court, sue or be sued, or may defend such suit, on behalf of, or for the benefit of, all persons so interested; (b) the Court may direct that one or more of such persons may sue or be sued, or may defend such suit, on behalf of, or for the benefit of, all persons so interested. (2) The Court shall, in every case where a permission or direction is given under sub-rule (1), at the plaintiff’s expense, give notice of the institution of the suit to all persons so interested, either by personal service, or, where, by reason of the number of persons or any other cause, such service is not reasonably practicable, by public advertisement, as the Court in each case may direct. (3) Any person on whose behalf, or for whose benefit, a suit is instituted, or defended, under sub-rule (1), may apply to the Court to be made a party to such suit. (4) No part of the claim in any such suit shall be abandoned under sub-rule (1), and no such suit shall be withdrawn under sub-rule (3), of Rule 1 of Order XXIII, and no agreement, compromise or satisfaction shall be recorded in any such suit under Rule 3 of that Order, unless the Court has given, at the plaintiff’s expense, notice to all persons so interested in the manner specified in sub-rule (2). (5) Where any person suing or defending in any such suit does not proceed with due diligence in the suit or defence, the Court may substitute in his place any other person having the same interest in the suit. (6) A decree passed in a suit under this rule shall be binding on all persons on whose behalf, or for whose benefit, the suit is instituted, or defended, as the case may be. Explanation. - For the purpose of determining whether the persons who sue or are sued, or defend, have the same interest in one suit, it is not necessary to establish that such persons have the same cause of action as the persons on whose behalf, or for whose benefit, they sue or are sued, or defend the suit, as the case may be. Order I Rule 8 CPC permits conversion of a suit to a representative suit on certain conditions. It mandates that one or more persons may, with the permission of the Court sue or be sued on behalf of or for the benefit of all persons so interested; the Court may direct that one or more of such persons may sue for the benefit of all the persons so interested; the Court, in every case where permission or direction is given under sub-rule (1), at the plaintiff’s expense, give notice to all persons so interested, either by personal service, or where service is not practicable, by public advertisement, as the Court in each case may direct.

(B) Constitutional and procedural framework - Article 227 of the Constitution; Civil Procedure Code, 1908; and Explanation to Order I Rule 8 CPC lay down the mandatory prerequisites for a representative suit, including common interest and public notice.

(C) Key judicial observations on maintainability and procedure - The bare reading of Order I Rule 8 CPC shows: (i) the condition for maintainability is “the persons on whose behalf the suit is instituted must have the same interest”; (ii) “Community of interest is therefore essential”; (iii) a decree under Order I Rule 8 binds all interested persons;

(D) Posture of the impugned order - The concerned Court held that the procedural defect of not obtaining permission and not issuing notice could be cured; the High Court found such view illegal and contrary to law, noting that the mandate of the statute cannot be bypassed. (E) Final adjudication on the order - Writ petition is allowed; the order dated 15-02-2025 is quashed; the application is dismissed; directions issued to conclude the suit within 4 weeks. (F) Consequential directions - The trial court is to render judgment in accordance with law within 4 weeks from receipt of the order. (G) Parties - Petitioner (the bank) and respondents (an association of retirees and individual retirees). (H) Dissenting opinions - None expressed in the text.

ORDER :

M. NAGAPRASANNA, J.

The petitioner/Kotak Mahindra Bank Limited which is the defendant in O.S.No.8105 of 2024 is at the doors of this Court calling in question an order dated 15-02-2025 passed by the XL Additional City Civil and Sessions Judge, Bengaluru City allowing I.A.No.1 of 2024 filed under Order I Rule 8 of the CPC , whereby permission is granted to convert the original suit into a representative suit after 21 years of its institution.

2. Heard K.M.Balasubrahmanya, learned counsel appearing for the petitioner and Sri P.S. Ranganathan, learned counsel appearing for caveator/respondent No.1.

3. Facts, in brief, germane are as follows: -

The respondents/plaintiffs institute a suit in O.S.No.8105 of 2004 seeking terminal benefits obtaining under the Vysya Bank (Employees’) Pension Regulations, 1995 (‘the Regulations’ for short). The erstwhile Vysya Bank is the present petitioner. 1st plaintiff is Commercial Banks Retired Employees Association(‘Association’ for short) registered under the Tamilnadu Societies Registration Act, 1975 at Chennai. It has instituted the suit claiming that it is voicing individual and collective grievances of pensioners or retirees of the Bank. The 1st plaintiff/Association also claims that it has large number of members i.e., pensioners belonging to different States as members of the Association. The suit comes to be filed on a particular premise. The premise is non-payment or short payment of terminal benefits to the plaintiffs or members of the Association, as the case would be. The trial progressed for over 20 years. In the year 2024, the Association comes up with an application in I.A.No.1 of 2024 under Order I Rule 8 of the CPC seeking conversion of the subject suit into a representative suit, on the ground that all the pensioners who are members of the Association are persons who have voluntarily retired under the Voluntary Retirement Scheme, 2002 and have the same interest. The petitioner/Bank files its objections to the said application. The concerned Court, in terms of its order dated 15-02-2025, allows application, permits conversion of the suit O.S.No.8105 of 2004 into a representative suit under Order I Rule 8 of the CPC . The Bank is before the Court calling the said order in question.

4. The learned counsel appearing for the petitioner would vehemently contend that the application under Order I Rule 8 CPC , which is preferred after 20 years of institution of the suit, is now allowed after 21 years of its filing. The learned counsel would further submit that the only common factor amongst the members of the Association is that they have retired under the Voluntary Retirement Scheme, 2002 but the grievance of every person is different. For a suit to be converted into representative suit what is necessary is a publication, calling upon interested who share common interest to join the proceedings and assist the Court in resolving the dispute. None of these have been followed by the concerned Court. He would contend that the matter was heard completely, reserved for its judgment in the year 2018 itself, without permitting the Court to pass the judgment, repeated applications are preferred and the subject application is the one, which is an abuse of the process of law.

5. Per contra, the learned counsel Sri P.S. Ranganathan appearing for the 1st respondent/plaintiff, the beneficiaries of the order impugned in the subject petition, would defend the order on the score that every pensioner should not be driven to litigation. It is, therefore, the Association in their interest has filed the application seeking conversion of the suit into a representative suit. He would admit that it is filed after a delay of 20 years. But, would submit that the core issue is to be seen and not delay in filing the application. He would seek dismissal of the petition.

6. I have given my anxious consideration to the submissions made by the respective learned counsel and have perused the material on record.

7. The a

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