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2014 Supreme(Guj) 22

Gujarat High Court
Hon’ble Mr. Justice R.D. Kothari
Parul Jaykantbhai Shal Poa Snehalbhai Jaykantbhai Shah
Versus
New India Industries Ltd. & Ors.
Special Civil Application No. 8246 of 2009—Decided on 21/01/2014

Advocates:
Appearance :
Mr. Parthiv B. Shah, Advocate for the Petitioner No. 1.
Mr. R.D. Dave, Advocate for the Respondent Nos. 1 – 2.
Mr. K.B. Naik for M/s. Trivedi & Gupta, Advocate for the Respondent No. 3.

Point in Issue :
Whether in the facts case order of Court below ONGC a party in the impugned suit just and proper.

Headnote:Head Note :

       Constitution of India, 1950 — Article 226 — Impleadment of party in suit — Claim by third party to have little or interest in suit property — Application allowed by Court — Petition against — Scope of — Sustainability — In a suit instituted in pursuance to an agreement to sell between defendant No. 1 and petitioner, Respondent No. 3 ONGC filed an application to implead as party and it was allowed by Court — It is against said order that petitioner has filed application contending that Respondent No. 3 is neither necessary nor proper party hence can not be implead as party to the present suit — Facts show that prior to the said suit ONGC had filed a suit against Defendant Nos. 1 and 2 where in Court has granted injunction directing defendants not to alienate sale or dispose of the property in any manner — Entering into transaction by the defendants qua the property i.e. suit property had led the ONGC to file application to join it as a party — Not allowing ONGC to join as party was likely to result in multiplicity of suit — That apart In the circumstances of the case granting specific performance which is discretionary and equitable relief necessitates the presence of ONGC — In the circumstances the impugned conclusion of trial Court is correct and legal and calls for no interference.

       Held :

       Though in the agreement to sell itself, there is a reference to the dues of the ONGC, the party has audacity not to refer about pendency of the civil suit. Such reference was expected since the suit of ONGC is instituted prior to the execution of the agreement to sell. Further, the party has not cared to apply to modify the injunction. On the face of filing of undertaking by the Respondent Nos. 1 and 2 qua suit land and operation of injunction in respect of suit property, passing of the decree by the learned trial court for specific performance would have effect of multiplicity of suit proceedings as ONGC in that case would require to proceed against the decree holder despite undertaking and injunction. That apart, in the circumstances of the case, granting of specific performance which is a discretionary and equitable relief necessitates the presence of the ONGC. It is proper party. [Para 15]

       Law Laid Down :

       The Court can at any stage of the proceedings direct impleadment of any person as party who ought to have been joined as plaintiff or defendant or where presence is necessary before the Court to effectively and completely adjudicate of the issues involved in the suit.

Judgment

R.D. Kothari, J.—In a suit for specific performance, if the third party claims to have title or interest in suit property and applies for impleading it / him as party, then whether the said third party can be impleaded as party to the suit or not, is the question arises in this petition. Seemingly simple question is fiercely litigated issue, as it would appear from more than couple of recent judgments by the Supreme Court referred and relied on at the time of hearing by the learned advocates for the parties.

2. First about facts. Relevant facts for the purpose of present discussion are thus; the petitioner is the original plaintiff in Special Civil Suit No. 514 of 2007. The petitioner has instituted the said suit before the learned Senior Civil Judge, Vadodara. The said suit came to be instituted in pursuance to the agreement to sell entered into between defendant No. 1 and the petitioner on 9.9.2004. During the pendency of the said suit, present Respondent No. 3 – Oil and Natural Gas Corporation (for short ‘ONGC’) filed an application (Exh.22) to implead it as a party in the said suit. The said application came to be allowed by the trial court by passing short order. It is this order of the learned trial court which is under challenge in this petition.

3. ONGC had earlier instituted a suit against Defendant Nos.1 and 2 i.e. Special Civil Suit No. 275 of 1994 and in the said suit, the learned trial court had granted injunction directing the defendants not to alienate, sale or dispose of the property in any manner. Entering into transaction by the defendants qua that property i.e. suit property had led the ONGC to file an application to join it as a party. Pendency of the earlier suit i.e. Special Civil Suit No. 275 of 1994 and particularly granting of injunction in favour of ONGC had led the learned trial court to hold that ONGC had interest in the suit property and holding so, the court had allowed the application, (Exh. 22), seeking impleadment as party in Civil Suit No. 504 of 2007.

4. Heard learned advocate Shri Parthiv B. Shah for the petitioner, learned advocate Shri R.D. Dave for Respondent Nos.1 and 2 and learned advocate Shri K.B. Naik for M/s. Trivedi & Gupta for the Respondent No. 3 - ONGC.

5. Learned advocate Shri Shah for the petitioner, after referring to the facts of the case and drawing attention to the impugned order, has submitted that the learned Judge has virtually given no reason in his order. Learned advocate has drawn attention to relevant case laws – Kasturi’s case [(2005) 6 SCC 733, Anil Kumar Singh’s case – [(1995) 3 SCC 147] and Mumbai International Airport Pvt. Ltd.’s case – AIR 2010 SC 3109. Relying on these case laws, it was submitted that the order of the learned trial court may be quashed and set aside.

6. On the other hand, learned advocate Shri Naik for Respondent No. 3 – ONGC, referring to the facts that had led the ONGC to file an application to implead it as party, has drawn attention to affidavit-in-reply filed by the ONGC in the present petition. It was pointed out that ONGC had filed a suit against the Respondent Nos. 1 and 2 herein to recover Rs. 1,15,41,961,72 ps. The said amount is for supply of gas by ONGC and transportation charges. It was also submitted that price rise in the gas supplied had led the Association to move the Court and the said litigation had reached upto the Supreme Court. Before the Supreme Court, different companies including the present Respondent No. 1 had filed an undertaking to the effect that without the leave of the Court, they would not create any charge or any encumbrance on any of the immovable properties and that they would not alienate the immovable asset. It is no in dispute that the undertaking includes the suit property. Learned advocate has also drawn attention to agreement to sell wherein there is a reference to dues of ONGC. Learned advocate for the ONGC has distinguished the Kasturi’s case and other cases relied upon by the petitioner and has





































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