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2013 Supreme(Raj) 1900

RAJASTHAN HIGH COURT
Vijay Bishnoi, J.
Rajendra Baheti - Appellant
Versus
M/s. Quality Conduit Pvt. Ltd. - Respondent
S.B. Civil Writ Petition No. 4293 of 2013.
Decided On : 1-10-2013

For the Petitioner:M.S. Singhvi, Sr. Advocate assisted by O.P. Mehta, Advocate.
For the Respondent:K.L. Khatri and Vinay Srivastava, Advocates.

A court can order for deletion or striking out the name of any person from the array of plaintiff or defendant without there being any application from either of the party.

Headnote:

CIVIL PROCEDURE CODE - ORDER 1 RULE 10(2) - SECTION 9 READ WITH SECTION 151 - DELETION OF PARTY - COURT'S DISCRETION - SECURED ASSETS - SUIT FOR SPECIFIC PERFORMANCE - BANK'S DELETION FROM ARRAY OF DEFENDANTS - LEGALITY.

Fact of the Case:

Petitioner filed a suit for specific performance of contract and permanent injunction on the strength of agreements to sale executed by respondents 1 to 3 in his favor, impleading respondent-Bank as defendants 4 and 5. The respondent-Bank preferred applications under Order 7, Rule 11 CPC and under section 9 read with section 151 CPC before the trial court and prayed for dismissal of the suit. The trial court rejected the applications but ordered for deletion of respondent-Bank from the array of defendants.

Finding of the Court:

The court held that the trial court did not err in deleting the respondent-Bank from the array of defendants, even though there was no specific prayer made by the respondent-Bank for deleting its name from the array of defendants. The court also held that the respondent-Bank was neither a necessary nor a proper party to the suit, as the agreements to sale were executed after the initiation of proceedings under section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Issues: 1. Whether the trial court erred in deleting the respondent-Bank from the array of defendants without there being any application from either party? 2. Whether the respondent-Bank was a necessary or proper party to the suit?

Ratio Decidendi: 1. Order 1, Rule 10 (2) CPC provides that the court may, at any stage of proceedings, either upon or without the application of either party, order for striking out the name of any person, whether as plaintiff or defendant. 2. In the present case, the agreements to sale were executed after the initiation of proceedings under section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Therefore, as per the decision of this Court in Mohan Lal v. Dwarka Prasad & Ors., the respondent-Bank was neither a necessary nor a proper party to the suit.

Final Decision: The writ petition was dismissed.

JUDGMENT

1. - This writ petition has been preferred by the petitioner against the order dated 17.04.2013 passed by Additional District Judge No. 5, Jodhpur Metropolitan (for short 'the trial court' hereinafter) in Civil Original Suit No. 224/2012, whereby the learned trial court, while rejecting the applications preferred by Central Bank of India (hereinafter referred to 'as respondent-Bank') under Order 7, Rule 11 CPC and under section 9 read with section 151 CPC, has ordered for deletion of the name of respondent-Bank from the array of defendants.

2. Brief facts of the case are that the petitioner filed a suit for specific performance of contract and permanent injunction on the strength of agreements to sale dated 16.10.2007 and 29.11.2007 executed by the respondent Nos. 1 to 3 in favour of the petitioner, while impleading the respondent-Bank as defendant Nos. 4 and 5. The respondent-Bank has preferred applications under Order 7, Rule 11 CPC and under section 9 read with section 151 CPC before the learned trial court and prayed for dismissal of the suit. The learned trial court, after considering the said applications and after hearing arguments of learned counsel for the parties, has rejected the above applications preferred by respondent-Bank, however, has ordered for deletion of respondent-Bank from array of defendants in the suit.

3. Being aggrieved with the deletion of respondent-Bank from array of defendants, the petitioner has preferred this writ petition.

4. Mr. M.S. Singhvi, Senior Advocate assisted by Mr O.P. Mehta, appearing on behalf of the petitioner, has argued that the learned trial court has erred in deleting the respondent-Bank from the array of defendant, though there was no specific prayer made by the respondent-Bank for deleting its name from the array of defendants in the suit and without there being any such prayer, the learned trial court has no jurisdiction to order for deleting the respondent-Bank from the array of defendants in the suit filed by the petitioner. It is further argued that though the respondent-Bank may not be necessary party but it is a proper party and its deletion as defendants in the suit will adversely affect the rights of the petitioner. The learned counsel for the petitioner has, therefore, prayed that the impugned order passed by the learned trial court may be set aside to the extent of ordering for deleting the respondent-Bank from the array of defendants.

5. Per contra, the learned counsel for the respondents-Bank has argued that the agreements to sale executed in favour of the petitioner are admittedly executed after initiation of the proceedings under section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act of 2002' hereinafter) and, therefore, in view of the law laid down by this Court in Mohan Lal & Anr. v. Dwarka Prasad & Ors., reported in 2007 (6) WLC (Raj.) 584 , the learned trial court has not committed any illegality in ordering for deleting the respondent-Bank from the array of defendants in the suit preferred by the petitioner for specific performance of contract against the respondent Nos. 1 to 3.

6. Heard the learned counsel for the parties, perused the impugned order as well as the material placed on record by the parties.

7. Order 1, Rule 10 (2) of the CPC reads as under:

"(2) Court may strike out or add parties.- The court may at any stage of the proceedings, either upon or without the application of either party, and on such terms as may appear to the court to be just, order that the name of any party improperly joined, whether as plaintiff or defendant, be struck out, and that the name of any person who ought to have been joined, whether as plaintiff or defendant, or whose presence before the court may be necessary in order to enable the court effectually and completely to adjudicate upon and settle all the questions involved in the suit, be added."

8. Order 1, Rule 10 (2) CPC provi
















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