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IN THE HIGH COURT OF DELHI
S. Muralidhar, Talwant Singh, JJ.
Jaswin Arora - Appellant
Versus
Harmeet Singh Sood - Respondent
FAO (OS) 157 of 2018
Decided On : 04-02-2020




A purchaser deriving title from the same vendor as another party can be impleaded in a suit for specific performance to ensure effective adjudication and prevent multiplicity of litigation.

Headnote:(A) Specific Relief Act, 1963 - Section 19 - Code of Civil Procedure, 1908 - Order XXXIX Rules 1 and 2 - Appellant sought specific performance of an Agreement to Sell but faced opposition from bona fide third-party purchasers claiming ignorance of pending litigation and rights overlapping between transactions. Court held that impleading was necessary to prevent multiplicity of litigation and ensure effective adjudication. (Paras 19.1, 20, 21)

(B) Impleadment of necessary parties - A party claiming under a vendor can be added as a co-Defendant for complete justice, especially if overlapping title is claimed. (Paras 20, 21)

(C) Withdrawal of notice requirement - Court removed the requirement for a board on property, with defendants agreeing to maintain status quo. (Paras 22, 23)

Table of Content
1. the ownership and agreements regarding the disputed property. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. appeal against the dismissal of impleadment application. (Para 10)
3. court's analysis on rights of additional parties. (Para 11 , 15)
4. court confirms the requirement for status quo on properties. (Para 12 , 14 , 20 , 22)
5. final decision dismissing the appeal. (Para 21 , 23)

ORDER

S. Muralidhar, J. This appeal is directed against two impugned interim orders of the learned Single Judge dated 13th September, 2018 in OA No.8 of 2018 in CS (OS) 3056 of 2014 and I.A. No.19555 of 2014 in the same suit.

2. The Appellant is the Plaintiff in the aforesaid suit. He is seeking specific performance of an Agreement to Sell/Memorandum of Understanding (`MoU`) dated 19th May, 2012 and 22nd May, 2012 in respect of the basement (front and rear portion), ground floor and terrace along with the proportionate rights of the property at No. D-16, Greater Kailash Enclave-I, New Delhi (hereafter, `the property in question') entered into between him and Defendant Nos.1 and 2 in the suit who have been impleaded in the present appeal as Respondent Nos.1 and 2.

3. On 30th April 2014, the original owner of the property in question Mr. Joginder Kapoor (impleaded as Respondent No.4 herein) entered into an Agreement to Sell (ATS) in respect of some portions of the suit property with Defendant/Respondent Nos.1 and 2. It is the case of the Plaintiff that the above ATS/MoU was entered into by the Plaintiff with Defendant Nos.1 and 2 as attorney of Defendant No.3.

4. The case of the Plaintiff is that since entering into the above MoU/ATS, Defendant No.4 Mr. Joginder Kapoor had unauthorizedly trespassed to the rear half ground floor portion of the property in question. Defendant No.1 had applied for getting the leasehold property converted into freehold with the office of the Delhi Development Authority (`DDA`), i.e. Defendant No.5 in the suit (Respondent No.5 herein).

5. The Plaintiff/Appellant filed CS (OS) 3056/2014 on 23rd September, 2014 seeking the above reliefs. Along with the suit he filed IA No.19555 of 2014 under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (`CPC`) for interim injunction. Notice on this application was issued to the Respondents/Defendants on 9th October, 2014.

6. An interim order was passed on 9th October, 2014 by the learned Single Judge, restraining the Defendants/Respondents from selling, alienating, transferring or parting with possession or creating any third-party rights and interests in the property in question.

7. On 5th May, 2016 Respondent Nos. 6 and 7 herein (Ms. Janki Devi and Ms. Sapna Yadav respectively) filed an application being I.A. No.6500 of 2016 under Order I Rule 10 CPC in which they claimed to have purchased the rear portion of the ground floor and rear portion of the lower ground floor of the property in question from Respondent Nos.2 and 4 respectively, who had in turn allegedly purchased the rear ground floor portion from Respondent No.1 (Mr. Harmeet Singh Sood). Respondent Nos.6 and 7 also claimed to be in possession of the property in question.

8. The case of Respondent Nos. 6 and 7 was that they were not aware of the interim order passed by the Court on 9th October, 2014 and that in the meanwhile, on 20th October, 2014 two separate sale deeds were registered in favour of Respondent Nos. 6 and 7 in respect of the rear portion of the ground floor and rear portion of the lower ground floor respectively of the property in question. They accordingly claimed that they were bona fide third-party purchasers without the knowledge of the pendency of the suit or the stay order. They explained that on 23rd November, 2015, the learned Single Judge permitted the Plaintiff to affix a signboard on the property in question, mentioning the fact of the pendency of the litigation. Pursuant thereto, the signboard was fixed. According to Respondent Nos. 6 and 7, it is only then

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