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1990 Supreme(Del) 268

High Court Of Delhi
GOSHALA MARG RESIDENTS ASSOCIATION (REGD.) - Appellant
Versus
D.C.M.LIMITED - Respondent
Interim Application 4255 of 1989
Decided On : 08/30/1990

Advocates Appeared:
MUKUL ROHTAGI, Rajiv Sawhney, Sanjay Karol, SANJIV ANAND

Persons with a common grievance and a common interest in the subject matter of a suit can sue on behalf of all similarly situated persons under Order 1, Rule 8 of the Code of Civil Procedure.

Headnote:

ORDER I RULE 8 OF THE CODE OF CIVIL PROCEDURE - REPRESENTATIVE SUIT - SECTION 14 OF THE DELHI RENT CONTROL ACT - TENANCY RIGHTS - COMMON GRIEVANCE - COMMON INTEREST - PUBLIC INTEREST - AVOIDANCE OF MULTIPLICITY OF LITIGATION - EXPLANATION INTRODUCED BY THE CODE OF CIVIL PROCEDURE (AMENDMENT) ACT, 1976.

Fact of the Case:

The plaintiffs, a residents' association and one of its members, filed a suit for a declaration that they were tenants of the defendant company and sought an injunction restraining the defendant from dispossessing them from the tenanted premises. They also filed an application under Order 1, Rule 8 of the Code of Civil Procedure, seeking permission to sue on behalf of all 185 members of the association who were similarly situated.

Finding of the Court:

The court held that the plaintiffs had a common grievance and a common interest in the subject matter of the suit, and that they could therefore sue on behalf of all the members of the association under Order 1, Rule 8 of the Code of Civil Procedure. The court also held that the Explanation introduced by the Code of Civil Procedure (Amendment) Act, 1976 clarified that it was not necessary for the persons suing on behalf of others to have the same cause of action as those they represented.

Issues: 1. Whether the plaintiffs had a common grievance and a common interest in the subject matter of the suit. 2. Whether the plaintiffs could sue on behalf of all the members of the association under Order 1, Rule 8 of the Code of Civil Procedure.

Ratio Decidendi: The court relied on the Supreme Court decision in The Chairman Tamil Nadu Housing Board. Madras vs. T. N. Ganapathy JT 1990 (1) SC 172, which held that the provisions of Order 1, Rule 8 of the Code of Civil Procedure were included in the public interest to avoid multiplicity of litigation. The court also relied on the Explanation introduced by the Code of Civil Procedure (Amendment) Act, 1976, which clarified that it was not necessary for the persons suing on behalf of others to have the same cause of action as those they represented.

Final Decision: The court granted the plaintiffs permission to sue on behalf of all the members of the association, excluding the 7 persons who had disassociated themselves from the suit.

R. L. Gupta, J.

( 1 ) PLAINTIFF No. 1 is Goshala Marg Residents Association (regd.), Kishan Ganj, Delhi and plaintiff No. 2 is Mr. Jyoti Prasad Sharma, who is one or the members of the Association. These two plaintiffs have filed a suit tor a declaration that members of the plaintiff association and plaintiff No. 2 are tenants of the defendant with regard to residential accommodation allotted to them and, therefore, have prayed for permanent injunction restraining the defendants, its employees and agents from dispossessing them from the tenanted premises othsrwise than by dve precess of law. Alongwith the suit, this application has been moved under Order 1, Rule 8 of the Code of Civil Procedure (hereinafter called the Code) with the allegations that there are 185 members of the plaintiff association who are all tenants in different premises allotted to them. They are all employees of the defendant company and the facts pertaining to all these employees are identical in nature. They have she same interest in the subject matter of the suit and being workmen with limited income andresently out of employment, they would be subjected to high costs and inconvenience if they were to pursue separate suits. Therefore, both the plaintiffs seek permission of the Court to sue the defendant for the benefit of all its 185 member whose names and addresses are contained in the list annexed with the application.

( 2 ) THE defendant contested the suit as well as this application. In reply it has been alleged that even the suit as such is not maintainable because it is false and frivolous. It was also denied that any member of the plaintiff association is a tenant in the premises as alleged. It is also denied that the facts pertaining to all the emcolovees are identical in nature. The causes of action, if any, with regard to each of the plaintiffs were different, distinct and separate and, therefore, provisions of Order I, Rule 8 of the Code were not applicable.

( 3 ) I have heard the arguments advanced by learned counsel for the partics and same given my careful consideration to the controversy envolved between them. On behalf of the plaintiffs some authorities have been cited. The most relevant authority is The Chairman Tamil Nadu Housing Board. Madras vs. T. N. Ganapathy JT 1990 (1) SC 172. (1) It was held by the Supreme Court:-

"the provisions of Order 1 of Rule 8 have been included in the Code in the public interest so as to avoid multiplicity of litigation. The condition necessary for application of the provisions is that the persons on whose behalf the suit is being brought must have the same interest. In other words either the interest must be common or they must have a common grievance which they seek to get redressed. "

( 4 ) IN this case the appellant Board had settled a targe number of residential plots to different groups of applicants, including one described as low income group. The defendant. one of the allottees, filed a suit for permanent injunction, against the appellant in respresentative capacity restraining it from demanding or collecting from the allottees any additional amount for settlement of lands with buildings in the colony known as Ashok Nagar. There was an allegation in the plaint that the case of all the allottees in low income group of Ashok Nagar under the Lease Deeds were identical and the plaintiff was representing them in asking for permanent injunction restraining the Board from enforcing the belated supplemematry demands. It was in the background of the aforesaid facts, that the Supreme Court laid down the law cited earlier. The Supreme Court further observed that earlier there was some doubt about the applicability of Order 1, Rule 8 which now stands clarified by the Explanation introduced by the Code of Civil Procedure (Amendment) Act. 19"6. In the case in hand the callegation by the plaintiffs is that all the 185 employees have the same interest in the subject matter of the suit. Plaintiff No. 2. it is all




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