2011 Supreme(Cal) 1067
High Court Of Calcutta
Dipankar Datta, J.
Amber Tours And Travels (P) Ltd – Appellant
Versus
Padmavati Investment Limited – Respondent
C.O. 1002 of 2011
Decided on : Aug 10, 2011
S.P.Roychowdhury, Arindam Banerjee, Pooja Das Chaudhary, Anjan Kumar Banerjee, Bhudeb Chatterjee, Basudeb Ghosh
A contingent interest is not enforceable, and a party seeking impleadment in a suit must have a substantial interest in the subject matter of the suit.
Headnote:
IMPLEADMENT - ORDER I RULE 10, CIVIL PROCEDURE CODE - SUIT FOR DECLARATION AND INJUNCTION - PETITIONERS' APPLICATION FOR IMPLEADMENT AS ADDITIONAL DEFENDANTS - REJECTION - VALIDITY - TRANSFER OF PROPERTY ACT, 1882 - SECTIONS 40 AND 54 - APPLICABILITY - CONTINGENT INTEREST - ENFORCEABILITY.
Fact of the Case:
Petitioners sought impleadment as additional defendants in a suit for declaration and injunction, claiming interest in the suit property based on an agreement for sale with the defendants. The trial court rejected their application, and the petitioners challenged this order in a revisional application under Article 227 of the Constitution.
Finding of the Court:
The court held that the petitioners did not have a sufficient interest in the suit property to warrant their impleadment as additional defendants. The agreement for sale was subject to the outcome of the suit, and the petitioners were aware of the pending litigation and the order of injunction passed in connection therewith. The petitioners' interest was contingent and not enforceable, and they were not transferees 'pendente lite'.
Issues: 1. Whether the petitioners had a sufficient interest in the suit property to warrant their impleadment as additional defendants? 2. Whether the petitioners' interest was contingent and not enforceable?
Ratio Decidendi: 1. A non-party may be impleaded in a suit on an application being made by him if he satisfies that he is either a necessary party or a proper party. 2. A necessary party is one who should have been joined as a party and without whose presence the Court would be disabled to pass an effective decree. 3. A proper party is one whose presence would enable the Court to effectually and completely adjudicate upon all matters in dispute in the suit. 4. The petitioners' interest in the suit property was contingent and not enforceable, as it was subject to the outcome of the suit and the order of injunction passed in connection therewith. 5. The petitioners were not transferees 'pendente lite' and could not therefore claim any right.
Final Decision: The court upheld the trial court's order rejecting the petitioners' application for impleadment and dismissed the revisional application.
1. REJECTION of an application under Order I Rule 10, Civil Procedure Code (hereafter the Code) filed by the petitioners, seeking their impleadment as additional defendants in T.S. No.94 of 2000, by the learned Civil Judge (Senior Division) 8th Court at Alipore is questioned in this application under Article 227 of the Constitution.
2. T.S. No.94 of 2000 is a suit for declaration and injunction instituted by the opposite party no.1 against the opposite parties 2 to 13 in respect of a property situate on 37/1 Diamond Harbour Road, Kolkata " 700027 (hereafter the suit property).
The antecedent facts leading to filing of the application under Order I Rule 10 of the Code may be noted. There has been a long standing dispute between the parties to the suit, the origin whereof relates back to the times of their respective predecessor-in-interest during the fifties of the earlier century. It is unnecessary for a decision on this application to trace as to how right, title and interest in respect of the suit property, if at all, devolved on the opposite parties. Suffice it to note that a suit was instituted by the opposite parties 2 to 13 against the opposite party no.1 in respect of the self-same suit property seeking declaration and injunction, being T.S.No.33 of 1999. The suit was dismissed for non-prosecution by an order dated January 17, 2000 and consequently the rights claimed by the opposite parties 2 to 13 against the opposite party no.1 in respect of the suit property were not declared. After such dismissal, the opposite party no.1 instituted T.S.No.94 of 2000. On an application under Order XXXIX Rules 1 and 2 of the Code, an order of status quo was passed by the trial Court in respect of nature, character and possession of/over the suit property. Sometime thereafter, the opposite parties 2 to 13 entered into a development agreement in respect of the suit property with a certain M/s. Chaman Projects Pvt. Ltd. (hereafter Chaman). The terms of the development agreement not having been adhered to by the opposite parties 2 to 13, T.S. No.101 of 2000 was instituted by Chaman against them for specific performance of contract. An order of status quo was passed on an application under Order XXXIX Rules 1 and 2 of the Code filed by Chaman. During pendency of the said suit, Chaman filed an application under Order I Rule 10 of the Code seeking its impleadment as additional defendant in T.S. No.94 of 2000. By order no. 28 dated July 10, 2002, the said application was rejected.
3. WHILE the interim orders of injunction passed in connection with the suits referred to above were subsisting, on September 19, 2005, the opposite parties 2 to 13 entered into an agreement for sale with the petitioners in respect of the suit property. The fact of execution of the agreement for development dated April 5, 2000 in favour of Chaman and that an order of injunction has been passed on February 21, 2002 by the trial Court in T.S. No.101 of 2000 finds place therein. The agreement further proceeds to record that "this Agreement for Sale is strictly subject to the vacating of the status quo order passed by the Learned Court and in case such status quo order is not vacated, the vendor shall not be entitled to transfer or convey the property to the Purchasers herein but in case if the same is vacated, the Vendor shall be entitled to sell and transfer the property at the agreed consideration only to the Purchasers herein and none else and the Purchasers have accepted such contention of the Vendor that the Purchasers would not be bound to purchase the said premises unless and until the Learned Court vacate the status quo order and on the aforesaid basis the parties are desirous to enter into this Agreement". The parties to the agreement agreed that although the obligation to contest and to obtain a favourable adjudication and/or dismissal of T.S. No.94 of 2000 and other pending proceedings is that of the vendor, nevertheless cost and expenditure for cont