IN THE HIGH COURT OF JUDICATURE AT BOMBAY
MILIND N. JADHAV, J.
Suresh Vamanrao Gaikwad - Petitioner
Versus
M/s. Karva Developers, through Shri Devkisan Brijlaal Karwa & Ors. - Respondents
Writ Petition No. 6872 of 2024
Decided On : 10-09-2024
Impleadment - Writ Petition - CPC Order I Rule 10, Order XXII Rule 10 - The court interpreted the provisions regarding the impleadment of third parties in ongoing litigation, emphasizing the necessity of a direct interest in the case and the discretion of the court in allowing such applications.
Fact of the Case:
The Writ Petition challenged an order rejecting a third party's application to be impleaded in an ongoing appeal concerning a specific performance suit. The third party claimed to be a bona fide purchaser but was aware of the ongoing litigation and had a cancelled power of attorney.
Finding of the Court:
The court found that the third party had no direct interest in the original agreement for specific performance and that allowing his impleadment would unnecessarily complicate the proceedings and enlarge the scope of the suit.
Issues: Whether the third party could be impleaded in the appeal as a necessary party despite having no direct interest in the original agreement for specific performance.
Ratio Decidendi: The court held that a third party must have a direct legal interest in the controversy to be impleaded, and the discretion to allow such applications must consider the facts of each case.
Result: The Writ Petition is dismissed.
JUDGMENT :
Milind N. Jadhav, J.
1. Heard Mr. Limaye, learned counsel for the Petitioner, Mr. Kulkarni, learned counsel for Respondent No.1 and Ms. Joshi, learned counsel for Respondent Nos.2 to 5.
2. The present Writ Petition impugns order dated 11.01.2024 passed in Application filed below Exhibit-17 in Regular Civil Appeal No.448 of 2016 (for short 'RCA') by the Writ Petitioner - a third party, whose name is Suresh Waman Gaikwad seeking his impleadment as co-Appellant in the RCA as well as Defendant in the Suit proceeding which is decreed by the trial Court. Suit is originally instituted as Special Civil Suit No.121 of 1997 seeking specific performance of contract against Appellants in RCA by Respondents therein. For the sake of convenience parties shall be referred to as ‘Plaintiff, Defendants and third Party (Petitioner before me)’. Suit is filed by Plaintiff in the year 1997, seeking specific performance of Agreement against Defendants, who are nomenclatured as Respondent Nos.2 to 5 before me in the Writ Petition, in respect of land admeasuring 8649 sq. mtrs. out of 9982 sq.mtrs., situated within the jurisdiction of Nashik Municipal Corporation/Limits at Deolali. After a full length trial, Suit is decreed in favour of Plaintiff vide Judgment and Order dated 04.07.2008. Defendants being aggrieved filed RCA No.448 of 2016. Though RCA is filed immediately after the decree was passed, the filing number of the RCA gives a different impression, but it is not so. RCA No.448 of 2016 is the registration number, which has been given after it was transferred to the current designated Court. There is no delay in filing the RCA. Respondent No.1 is the Plaintiff represented by Mr. Kulkarni. Respondent Nos.2 to 5 are the Defendants, represented by Ms. Joshi before me. Mr. Limaye, represents the third party - Petitioner.
3. During pendency of RCA, third party i.e. Petitioner made Application below Exhibit-17, seeking his impleadment. Application is made on the premise that it is the third party himself, who contested the original Suit and it is he himself who filed RCA in the year 2008 on behalf of Defendants. This fact itself proves one thing at the outset itself and i.e. the third party who contested the Suit and filed RCA was clearly knowledgeable about the pending litigation between the parties. The reason for mentioning this, at the outset, is only because, reason of having knowledge of the litigation between parties has to be held against the third party primarily because of the timeline in the present case and the principal argument advanced by Mr. Limaye that the third party is a bonafide Purchaser for value and is a transferee pendente lite. Application seeking impleadment by the third party is filed on 24.02.2023. This is also a notable fact. That Application is appended at page No.147 of the petition. It is stated in the Application, rather cursorily that, Defendants executed a registered Power of Attorney dated 17.09.2004 in favour of third party and the same is still in subsistence and force. At this juncture, it needs to be noted that subsistence of the Power of Attorney is refuted by Defendants by informing the Court that it was cancelled by them in 2012 and this fact of cancellation is duly known and even acknowledged in correspondence between the parties.
4. Be that as it may, Application further states that the landowners i.e. Defendants agreed to sell the Suit property to the third party and they have received Rs. 50,00,000/- as consideration under a registered sale deed dated 04.11.2015 executed in favour of the third party by those Defendants. Once again at this juncture itself, it needs to be clarified that the alleged registered sale deed dated 04.11.2015 to which reference is made in the Application and is appended at page at page No.94 of the Writ Petition reveals two startling facts; one, viz. that adjudication of valuation of the Suit property on the face of record by the adjudication officer i.e. the market value of
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The decision to allow subsequent purchasers as parties in specific performance suits is justified when they demonstrate a semblance of title or interest to the property, supporting effective judicial....
The court affirmed the principle that parties with substantial interest must be joined for effective adjudication in specific performance suits, emphasizing judicial discretion under Order 1 Rule 10.
The court ruled that third parties may be necessary in specific performance suits to avoid multiplicity of litigation, allowing their impleadment and amendment of the suit.
Agreement to Sell – There is no absolute proposition that whenever a suit for specific performance is filed, no third person can be impleaded as party to suit – In order to avoid multiplicity of proc....
In specific performance actions, a power of attorney holder does not automatically constitute a necessary party unless there is evidence of property interest; late amendments are permissible only wit....
An applicant seeking impleadment must demonstrate a direct legal interest and right to relief concerning the controversy in a suit; absence of such a link renders the request for impleadment invalid.
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....
Point of Law : Presence of the transferee pendent lite is necessary for complete and effective adjudication of the suit and issues involved therein and the court below has exercised its discretion in....
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