IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Rohit B. Deo, J.
Jagannath Khanderao Kedar & Ors. – Appellants
Versus
Gopinath Bhimaji Kedar & Ors. – Respondents
Writ Petition No. 6355 of 2019
Decided On : 06-06-2022
Agreement of Sale - Partition and Separate Possession - Civil Procedure Code, 1908, Order I Rule 10 - Transfer of Property Act, 1882, Section 54 - Shrikrishna Purushottam Gaidhani Vs. Gajanan Mahadev Gaidhani & Ors. - Gurmit Singh Bhatia Vs. Kiran Kant Robinson & Ors. - Ramesh Hirachand Kundanmal Vs. Municipal Corporation of Greater Bombay & Ors. - Rama Bapu Khakal and Anr. Vs. Narayan Govinda Khakal & Ors.
Fact of the Case:
The petition arises from a suit for partition and separate possession where third parties sought to be added as defendants based on an Agreement of Sale executed in their favor by one of the defendants. The trial Judge allowed the application, but the petitioners challenged the decision.
Finding of the Court:
The court found that the Agreement of Sale did not create any interest in the property as per Section 54 of the Transfer of Property Act, and the third parties were not necessary or proper parties to the suit for partition and separate possession.
Issues: The main issue was whether the third parties claiming rights under an Agreement of Sale could be added as defendants in a suit for partition and separate possession.
Ratio Decidendi: The court held that an Agreement of Sale does not create any interest in the property and that the plaintiff is the master of the suit, and cannot be compelled to include third parties as defendants. The court also emphasized the distinction between the plaintiff seeking addition of third parties and third parties or defendants invoking the provisions of Order I Rule 10(2) of the Civil Procedure Code.
Final Decision: The court quashed the order allowing the application to add the third parties as defendants and rejected the application. The trial Court was requested to decide the suit expeditiously within the next twelve months.
JUDGMENT
1. This petition emanates from Special Civil Suit 574 of 2015 which is brought by the petitioners/plaintiffs for partition and separate possession.
2. In the suit for partition and separate possession, the respondents 1 to 14 are arrayed as the defendants. Respondents 15 and 16, who are not parties to the suit preferred an application dated 26.10.2018 invoking the provisions of Order I Rule 10 of the Civil Procedure Code, 1908 ('Code') on the premise that the defendant Shri Gopinath Bhimaji Kedar had entered into an Agreement of Sale dated 15.7.2013 in their favour qua agricultural land admeasuring 4.67 H.R. assigned Gat 48 at Mouje Waghad, Taluka Dindori, District Nashik. Respondents 15 and16 claimed to be necessary parties to the suit.
3. The learned trial Judge allowed the application preferred under Order 1 Rule 10 of the Code vide order dated 11.1.2019 on the premise that respondents 15 and 16 have interest in the suit property in view of the Agreement of Sale dated 15.7.2013 executed in their favour by defendant 1, and such interest shall be affected by adjudication in the suit. It is this order which is impugned herein.
4. I have heard the learned counsel Mr.Girish Agrawal on behalf of the plaintiffs and the learned counsel Mr.Ajinkya Jaibhave on behalf of respondents 15 and 16-third parties.
5. It would not be necessary to make an elaborate reference to pleadings. Suffice it to note, that it is common ground that the Agreement of Sale dated 15.7.2013 which is purportedly executed by defendant 1 in favour of the third parties prior to institution of the suit for partition has not fructified into conveyance.
6. The learned trial Judge has assumed that the third parties have share or interest in the suit property. The learned trial Judge clearly erred in labouring under such assumption.
7. Section 54 of the Transfer of Property Act, 1882 clearly spells out that the Agreement of Sale per se does not create any interest in the property which is the subject matter of the agreement. Axiomatically, a person in whose favour, there is an agreement of sale purportedly executed by a party to the suit cannot be heard claiming right to participate in the suit on the premise that the Agreement for Sale creates interest in the property.
8. An identical situation fell for consideration in Shrikrishna Purushottam Gaidhani Vs. Gajanan Mahadev Gaidhani & Ors. Writ Petition 6159 of 2008 which is decided by a learned Single Judge by judgment dated 3.8.2009. In the suit for partition and separate possession, third parties invoked the provisions of Order I Rule 10(2) of the Code on the basis of the Agreement of Sale executed in his favour by some of the defendants. It would be apposite to note the articulation in paragraph 7 of the said decision which reads thus :-
''7. I have carefully considered the submissions. As stated earlier, the suit filed by the petitioner is for partition and separate possession of the alleged share of the petitioner in the suit immoveable properties. The respondent no.14 is claiming on the basis of the agreement for sale executed in his favour by some of the defendants. Admittedly,there is no conveyance executed in favour of the respondent no.14. In view of section 54of the Transfer of Property Act,1882, as of today, the respondent no.14 has no interest in the suit property as agreement for sale does not create any interest in the property subject matter of the agreement. Assuming that there is an agreement for sale executed by some of the defendants in favour of the 14th respondent and assuming that he is entitled to enforce the said agreement, at the most he will be entitled to claim the property which maybe allotted to the share of his vendors at the time of effecting partition. The learned Trial Judge, however,observed that in absence of the respondent no.14 an executable decree cannot be passed. The learned trial Judge has completely ignored that there is no sale deed executed in favour of the respondent no.14
Ramesh Hirachand Kundanmal Vs. Municipal Corporation of Greater Bombay & Ors.
An Agreement of Sale does not create any interest in the property, and the plaintiff has the discretion to decide the parties involved in the suit.
An agreement to sell does not create any interest in property; thus, a party claiming rights based on such an agreement cannot be joined in a partition suit without a legal interest.
Parties holding agreements of sale may join partition suits to assert equitable claims, even if earlier applications regarding those sales were dismissed.
No right is created under agreement for sale in respect of schedule property, except right to seek specific performance of contract.
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 sui....
The prior purchasers of the property are necessary and proper parties to a suit for specific performance.
A purchaser of undivided interest lacks locus standi in preliminary decree proceedings of a partition suit; rights must be asserted in final decree proceedings.
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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