IN THE HIGH COURT OF GAUHATI (AGARTALA BENCH)
IQBAL AHMED ANSARI, J.
Indian Oil Corporation Ltd. – Appellant
Vs.
Amit Roy Choudhury and Ors. – Respondent
W.P. (C) No. 265 of 2005
Decided On: 21.06.2006
Article 227 - Specific Performance of Contract - Order 1 Rule 10(2), Section 151 of the Code of Civil Procedure - Durga Prasad and Anr. v. Deep Chand and Ors. AIR 1954 SC 75 - Kasturi v. Iyyamperumal AIR 2005 SC 2813 - Vijay Pratap v. Sambhu Saran Sinha (1996) 10 SCC 53 - Anil Kumar Singh v. Shivnath Mishra (1995) 3 SCC 147 - J.J. Lal Pvt. Ltd. v. M.R. Murali AIR 2002 SC 1061 - Jamna Das v. Ramautar Pande and Ors. 31 All. 352 : 2 IC 460 - Pishu Vaswani v. Kishan Chand Vaswani (2005) 3 GLR 230 - Aliji Momonji and Co. v. Lalji Mavji (1996) 5 SCC 379
Fact of the Case:
The Plaintiff sought to set aside an order allowing the addition of a party in a suit for specific performance of a contract for sale of immovable property. The Plaintiff also sought a declaration that a transaction creating equitable mortgage of the property was void, illegal, and inoperative.
Finding of the Court:
The Court found that the added party, a bank, was a necessary party to the suit due to the relief sought by the Plaintiff. The Court also held that the suit was no longer a simple specific performance suit but also involved a declaration regarding the transaction with the bank.
Issues: Whether the added party was necessary to the suit and whether the suit involved a declaration regarding the transaction with the bank.
Ratio Decidendi: The necessary parties to a suit for specific performance of a contract for sale of immovable property are the parties to the contract, their legal representatives, and subsequent purchasers. A person who sets up a claim adverse to the title of a vendor is not a necessary party in such a suit. However, if the suit involves a declaration regarding a transaction, the parties to the transaction become necessary parties.
Final Decision: The Court dismissed the writ petition, upholding the addition of the bank as a party to the suit.
I.A. Ansari, J.
1. By making this application under Article 227 of the Constitution of India, the Petitioner, who, as Plaintiff, instituted Title Suit No. 59 of 2003, in the Court of Civil Judge, Senior Division, Court No. 1, West Tripura, Agartala, has sought to get set aside the order, dated 04.06.2005, passed in the said suit, allowing thereby the Respondent No. 9 herein to be added as Defendant No. 9 in the suit.
2. The material facts and various stages leading to the present writ application may, in brief, be set out as follows:
(i) The Petitioner herein instituted Title Suit No. 59 of 2003 aforementioned, his case being, in brief, thus : Late Akshoy Roy Choudhury, predecessor-in-interest of Defendant Nos. 1 to 7, was the sole and absolute owner of the suit land and he also owned a Petrol Pump standing on the suit land, the petrol pump being run under the name and style of "M/s. A.K. Roy Choudhury". After the death of Akshoy Kumar Roy Choudhury, his four sons, namely, Defendant Nos. 1 to 4, his widow, namely, Defendant No. 5, and daughters, namely, Defendant Nos. 6 and 7, became joint owners of the suit land. By a letter, dated 04.07.1998, Defendant Nos. 1 to 7 expressed their desire to sell the suit land in favour of the Plaintiff. Following some negotiations with the Defendants aforementioned, an agreement was reached between the Defendants aforementioned, on the one hand, and the Plaintiff, on the other, for sale of the suit land, with the structures standing thereon, in consideration of a sum of Rs. 62,70,000/-. While the Plaintiff was ready and willing to perform and discharge its obligation under the said agreement for sale, it, suddenly, received a notice, dated 09.06.2003, from the Defendant Nos. 1 to 7 revoking the said concluded contract for sale. While the Plaintiff continued to persuade the Defendants aforementioned to execute the sale deed in terms of the concluded contract, which the parties concerned had entered into, the Plaintiff came to learn that the Defendants aforementioned were trying to transfer the suit land to someone other than the Plaintiff. In these circumstances, the Plaintiff instituted the suit aforementioned seeking, inter alia, a decree for specific performance of contract, in question, and also sought for an order of perpetual injunction restraining the Defendants aforementioned from transferring and/or alienating the suit land, in any manner, to any one other than the Plaintiff.
(ii) During the pendency of the suit, the Defendant Nos. 1 to 7 sold, on 15.09.2003, the suit land in favour of the Defendant No. 8 by executing three registered sale deeds. The Plaintiff, then, amended its plaint and sought for, besides what it had already sought for, a decree declaring, inter alia, the three registered sale deeds, dated 15.09.2003, executed, in favour of the Defendant No. 8, by the Defendant Nos. 1 to 7, as illegal, void and not binding on the Plaintiff. However, at the stage of hearing of the suit, UCO Bank, Agartala Branch, filed a petition, in the suit, under Order 1 Rule 10(2) read with Section 151 of the Code of Civil Procedure seeking to be impleaded as one of the Defendants in the suit, the case of the said Bank (which, now, stands impleaded, in the present writ petition, as Respondent No. 9) being that the Defendant No. 8 had approached the Bank seeking financial help to set up a market complex and restaurant on the suit land, the Bank sanctioned a term loan for Rs. 1,05,00,000/- in favour of the Defendant No. 8. In terms of the agreement reached, the Defendant Nos. 1 to 7 executed, on 15.09.2003, three sale deeds in favour of the Defendant No. 8 in respect of the suit land and following execution of the said sale deed, the Bank disbursed, in terms of the agreement, a sum of Rs. 70,00,000/- for purchase of the suit land for the project, the payment of the said sum of Rs. 70,00,000/- having been made by the Bank, on 29.09.2003, directly to the sellers of the suit land, i.e., Defendan
Aliji Momonji and Co. v. Lalji Mavji and Ors. (1996) 5 SCC 379
Anil Kumar Singh v. Shivnath Mishra (1995) 3 SCC 147
Durga Prasad and Anr. v. Deep Chand and Ors. AIR 1954 SC 75
J.J. Lal Pvt. Ltd. and Ors. v. M.R. Murali and Anr. AIR 2002 SC 1061
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