IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ROHIT B. DEO, J.
Kalpana Vijaysinh Savant & Anr. - Petitioners
Versus
Barkha Amir Haldive @ Barkha Govind Valanju & Ors. - Respondents
Writ Petition No. 9970 of 2019
Decided On : 14-07-2022
Third Party - Specific Performance of Agreement - Code of Civil Procedure, 1908 - O. I, Rule 10 - [Code of Civil Procedure, 1908 - O. I, Rule 10] - The court discussed the necessity of the Third Party as a proper party in the suit for specific performance of the Agreement. The court analyzed the suit Agreement, the contentions of the parties, and the implications of the Third Party's involvement in the agreement. The court referred to the decision in Kasturi Vs. Iyyamperumal And Ors. to support the Third Party's status as a proper party. However, the court concluded that the Third Party's involvement was not necessary as the suit Agreement did not create any right or interest in the suit property in favor of the Third Party, and the Third Party had no obligation or liability under the Agreement. The court set aside the order allowing the Third Party's impleadment, dismissing the Third Party's application under O. I, Rule 10 of the CPC.
Fact of the Case:
The Petitioners sought specific performance of an Agreement for the sale of a property. The Third Party, claiming interest in the suit property, sought impleadment under O. I, Rule 10 of the CPC. The court analyzed the contentions of the parties and the suit Agreement to determine the necessity of the Third Party's involvement in the suit.
Finding of the Court:
The court found that the Third Party's involvement was not necessary as the suit Agreement did not confer any right or interest in the suit property to the Third Party, and the Third Party had no obligation or liability under the Agreement. The court set aside the order allowing the Third Party's impleadment, dismissing the Third Party's application under O. I, Rule 10 of the CPC.
Issues: The main issue was whether the Third Party was a necessary or proper party in the suit for specific performance of the Agreement.
Ratio Decidendi: The court held that a person claiming no right or interest in the subject matter of the suit Agreement, and having no obligation or liability under the Agreement, is neither a necessary party nor a proper party in a suit for specific performance. Impleadment cannot be allowed based on the assumption that the Third Party may assist the Court in arriving at the correct conclusion.
Final Decision: The court set aside the order allowing the Third Party's impleadment, dismissing the Third Party's application under O. I, Rule 10 of the CPC.
JUDGMENT :
1. Heard.
2. Rule.
3. With consent, the Petition is finally heard at the admission stage.
4. The Petitioners are the Plaintiffs in Special Civil Suit 16 of 2018 which is instituted seeking specific performance of Agreement dated 16.02.2015, whereunder Defendants 1 & 2 – Respondents 1 & 2 herein, agreed to sell the suit property to the Plaintiffs, on terms and conditions stipulated therein. The suit property is described in the plaint, as land assigned Gat 47/3 admeasuring 1-50 HR situated in Sawantwadi, District – Sindhudurg.
5. Respondent 1 is the Third Party, who preferred an application under O. I, Rule 10 of the Code of Civil Procedure, 1908 (for short ‘CPC’) seeking impleadment.
6. The learned trial Judge was pleased to allow the application preferred under O. I, Rule 10 of the CPC vide Order dated 25.03.2019, which is impugned herein.
7. The short question involved in the Petition is whether the Third Party is necessary or proper party to the suit for specific performance of the Agreement. The learned trial Judge reasons that the Third Party is a consenting party and has right and interest in the suit property.
8. I have heard Mr. Sandesh Patil, learned counsel for the Plaintiffs and Mr. Chetan Patil, learned counsel for the Third Party and with their able assistance, the relevant material inter alia recitals in the suit Agreement have been scrutinized.
9. Mr. Sandesh Patil would submit that the learned trial Judge has committed a serious error in holding that the Third Party has right and interest in the suit property. The extension of the submission is that the suit Agreement neither creates any right in favour of the Third Party nor saddles the Third Party with any obligation or liability, and the Plaintiffs as Dominus litis cannot be compelled to wage a legal battle against the Third Party against their wish.
10. In rebuttal, Mr. Chetan Patil, who represents the Third Party would submit, relying on the decision of the Apex Court in Kasturi Vs. Iyyamperumal And Ors., reported in (2005) 6 SCC 733, that the fact that the Third Party is a consenting party to the suit Agreement is sufficient to clothe the Third Party with the status of proper party, if not necessary party.
11. Both the learned counsel have invited my attention to certain decisions, which shall be considered at a later stage, to the extent that the decisions are relevant.
12. Before I consider the rival submissions, it would be opposite to note that substratum of the pleadings and the recitals the suit Agreement.
13. The Plaintiffs aver that Defendants 1 & 2 entered into Agreement dated 16.02.2015, where under the suit property was agreed to be transferred and conveyed in favour of the Plaintiffs by sale for consideration of Rs.8,25,000/- (Rs. Eight Lacs And Twenty Five Thousand). The Plaintiffs further aver that various amounts were paid to the Defendants from time to time, and the balance sale consideration which is payable is Rs.2,00,000/- (Rs. Two Lacs) which the Plaintiffs were, and are, ready and willing to pay. The rest of the averments in the suit plaint seek to demonstrate that while the Plaintiffs were and are ready and willing to perform their part of the contract by making the balance payment of the consideration, Defendants 1 & 2 are resiling from the terms and conditions of the contract. Such is broadly, the case of the Plaintiffs.
14. Defendants 1 & 2 filed their Written Statement and their version is briefy and broadly thus. Defendants 1 & 2 contend that the suit Agreement does not reflect the agreed consideration. Defendants 1 & 2 further contend that they agreed to sell the total land admeasuring 10 H 6 R to the Third Party, including the suit property, for total consideration of Rs.1,12,50,000/- (Rs. One Crore Twelve Lacs And Fifty Thousand). The Third Party in turn agreed to sell the said land including the suit property to the Plaintiffs for total consideration of Rs.2,35,25,000/- (Rs. Two Crore Thirty Five Lacs And Twenty Five Thousand)
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