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2015 Supreme(Raj) 2098

RAJASTHAN HIGH COURT
P.K.Lohra, J.
Nand Kishore & ors. - Appellant
Versus
Shantilal Gokhru & ors. - Respondent
S.B.Civil Writ Petition No. 14305 of 2015.
Decided On : 17-12-2015

Advocates:
For the Petitioners:Anand Purohit, Sr.Advocate assisted by Shivani Vyas, Advocate.

In a suit for specific performance of contract, only the seller and the prospective purchaser are the necessary parties and no third party can be impleaded as a defendant.

Headnote:

IMPLEADER - SUIT FOR SPECIFIC PERFORMANCE OF CONTRACT - ORDER I RULE 10 CPC - SECTION 151 CPC - Petitioners' application for impleader as party defendants in a suit for specific performance of contract rejected by the court below - Petitioners claiming to be authorized representatives of the person who purchased the property in auction and that they are the owners of the property - Court held that petitioners are neither necessary nor proper parties to the suit and that the court below was right in rejecting their application.

Fact of the Case:

Petitioners filed an application under Order I Rule 10 read with Section 151 CPC to be impleaded as party defendants in a suit for specific performance of contract filed by the plaintiff against the defendant. Petitioners claimed that they had authorized Ratanlal Kathed to participate in an auction and purchase the suit property on their behalf, and that they were the owners of the property.

Finding of the Court:

The court found that the petitioners' application was not maintainable as they were neither necessary nor proper parties to the suit. The court held that in a suit for specific performance of contract, only the seller and the prospective purchaser are the necessary parties and that no third party can stake its claim for being impleaded as a party to the litigation.

Issues: Whether the petitioners were necessary or proper parties to the suit for specific performance of contract.

Ratio Decidendi: The court relied on the provisions of Order I Rule 10 CPC and Section 151 CPC, as well as on legal precedents, to hold that in a suit for specific performance of contract, only the seller and the prospective purchaser are the necessary parties and that no third party can be impleaded as a defendant.

Final Decision: The court dismissed the petitioners' writ petition, holding that the court below was right in rejecting their application for impleader.

JUDGMENT

1. - Petitioners have preferred this writ petition under Articles 226 & 227 of the Constitution of India to challenge the impugned order dated 17.10.2015 (Annex.6) passed by the learned Additional District Judge No.3, Bhilwara (for short 'the learned court below') whereby learned court below has rejected their application under Order I Rule 10 read with Section 151 CPC for being impleaded as party-defendants in a suit for specific performance of contract laid by the first respondent-plaintiff.

2. The bare necessary facts for the purpose of this writ petition are that respondent-plaintiff instituted a civil suit for specific performance of contract against the second respondent-defendant seeking enforcement of agreement to sale dated 24.12.2009 allegedly executed by the second respondent-defendant in favour of the respondent-plaintiff for the suit property. It is, inter alia, averred in the suit that second respondent agreed to sell the suit property to the respondent-plaintiff which was purchased by his father Ratanlal Kathed in open auction and after death of his father having derived title as sole legal heir, he was authorised to alienate the property. In the agreement to sale, the terms and conditions including the consideration amount were also mentioned.

3. Petitioners-applicants having come to know about pendency of the suit made endeavour to be impleaded as party defendants and consequently laid an application under Order I Rule 10 read with Section 151 CPC. The recitals contained in the application reveal that as per petitioners, all of them have authorised Ratanlal Kathed to participate in the auction proceedings under taken by the District Collector, Bhilwara on 01.12.1984 and, therefore, on their behalf as their authorised representative and power of attorney, he has participated in the auction proceedings. After completion of auction, the properties as such were transferred in the names of petitioners and Ratanlal Kathed has not derived any right, title or interest pertaining to suit property. With these averments, the petitioners craved for being impleaded as party defendants with the positive assertion that respondent-plaintiff was having no right to alienate the property or to enter into an agreement to sale. It is also averred that petitioners' interests are very much involved in the property and, therefore, they are not only proper parties but also necessary parties.

4. The learned court below after hearing the rival parties and analysing the legal position within the four corners of Order I Rule 10 CPC and the nature of the suit which was for specific performance of contract, declined their prayer. The learned court below in the impugned order has observed that in a suit for specific performance of contract, only the seller and the prospective purchaser are the necessary parties and no third party can stake its claim for being impleaded as a party to the litigation. In totality, while relying on some of the legal precedents, learned court below has concluded that petitioners are not proper parties to the litigation much less necessary parties.

5. I have heard learned senior counsel for the petitioners at length and perused the materials available on record.

6. The entire edifice of the application of the petitioners is special authorisation letter (Annex.3) allegedly executed by them in favour of Ratanlal Kathed for participating in the auction proceedings. The authenticity and legal sanctity of the special authorisation letter is seriously questionable, more particularly in the light of registered sale deed executed by the District Collector, Bhilwara for and on behalf of his Excellency, the Governor of Rajasthan in favour of Mr. Ratanlal Kathed. The registered sale deed (Annex.4) makes it amply clear that after accepting the highest bid of Ratanlal Kathed, the entire suit property was transferred in his name and registered deed was also executed accordingly. In the registered sale deed, there is no ment




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