2026 Supreme(P&H) 35
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
YASHVIR SINGH RATHOR, J.
Rattan Singh - Petitioner
Versus
HDFC Bank Ltd And Ors. - Respondent
CR-1934-2026
Decided On : 07-04-2026
Advocate Appeared:
For the Petitioner:Mr. Rajeshwar Singh Thakur, Advocate
Employees acting in their official capacity for a corporate entity are neither necessary nor proper parties in a suit challenging employment termination, provided no personal relief is claimed against them and no privity of contract exists between the plaintiff and the employees.
Headnote:(A) Civil Procedure Code, 1908 - Order 1 Rule 10 - Striking out of parties - Suit for reinstatement - Employees of a corporate entity impleaded in personal capacity - Whether necessary or proper parties - Held, where no relief is claimed against employees and no privity of contract exists, they are neither necessary nor proper parties - Mere performance of official duties in accordance with service rules does not render employees personally liable or essential for adjudication. (Paras 2, 8, 9, 10)
(B) Civil Procedure Code, 1908 - Order 1 Rule 10(2) - Scope of judicial discretion - Power to strike out parties is a matter of judicial discretion to be exercised based on facts and circumstances - A party is necessary if no effective decree can be passed in their absence, and proper if their presence is required for complete adjudication. (Paras 6, 8)
Facts of the case:
A former employee filed a suit challenging the termination of their services by a corporate entity. The plaintiff impleaded several officials of the entity as defendants in their personal capacity, alleging conspiracy and misuse of authority. The trial court allowed an application to delete these officials from the array of defendants, leading to the present revision petition.
Findings of Court:
The court found that the officials were not the appointing or removing authority and that the dispute regarding the employment contract was solely between the plaintiff and the corporate entity. No relief was sought against the officials personally, and their presence was not required for an effective decree.
Issues: Whether the officials of the corporate entity were necessary or proper parties to the suit challenging the termination of employment.
Ratio Decidendi: A party is only necessary if an effective decree cannot be passed without them, or proper if their presence is essential for complete adjudication. Since the officials acted in their official capacity and no relief was claimed against them, they were neither necessary nor proper parties.
Result: Revision petition dismissed.
| Table of Content |
|---|
| 1. procedural history and nature of the challenge to the trial court's order. (Para 1 , 4 , 5) |
| 2. conflicting contentions regarding the necessity of impleading individual employees in an employment termination dispute. (Para 2 , 3) |
| 3. criteria for impleading necessary and proper parties under order 1 rule 10 cpc. (Para 6 , 7 , 8) |
| 4. absence of privity of contract excludes employees from being necessary parties in corporate termination suits. (Para 9 , 10) |
| 5. final order dismissing the revision petition. (Para 11 , 12) |
JUDGMENT :
YASHVIR SINGH RATHOR , J.
1. This revision petition is directed against the order dated 12.09.2025 (Annexure P-4) vide which an application under Order 1 Rule 10 of Civil Procedure Code (for short ‘CPC’) moved by the respondents No.2 to 5 for deleting their names from the array of defendants in Civil Suit No.CS CJ 1846 of 2023 titled as ‘Rattan Singh Vs. HDFC Bank Ltd. & others’, pending in the Court of learned Civil Judge (Junior Division), Chandigarh, has been allowed.
2. It is submitted that plaintiff has impleaded defendants No.2, 3, 4 & 5 as a party in their capacity as the employees of the defendant No.1/company solely on the ground that the said defendants acted in accordance with the applicable service rules of defendant No.1 in performance of their duties. A perusal of the suit clearly reveals that no relief has been claimed by the plaintiff against defendants No.2 to 5. Further, the dispute being raised by the plaintiff pertains to a private employment contract which has been executed between the plaintiff and defendant No.1 in their individual capacity. Thus no privity of contract exists between the plaintiff and defendant No.2 or defendant No.3 or defendant No.4 and 5 respectively. It is further submitted that defendants No.2 to 5 are neither a necessary nor property party in the present suit as no lis exists between the plaintiff and defendants No.2 to 5 in their individual capacity. By way of present suit, plaintiff has challenged the termination of his employment by defendant No.1 who alone has the authority to appoint or terminate any employee. As defendants No.2 to 5 are not employers of the plaintiff, no purpose shall be served by retaining the said defendants in the array of defendants in the present proceedings. Thus, the present suit is not maintainable against defendants No.2 to 5 and a prayer has been made for striking of the names of defendants No.2 to 5 from the array of the defendants.
3. Plaintiff in his reply to the application has submitted that present application has been filed by the defendants/applicants with the sole motive to cause delay and harassment. The applicants-defendants are necessary parties to the suit and their role has been well explained in the suit. The plaintiff has sufficient evidence against the applicants- defendants to establish their role and misuse of authority by them in ruining the career of the plaintiff. Defendants No.2 to 5 are in gainful employment of defendant No.1 but their acts against the plaintiff were with common intent to remove the plaintiff from job. They had not acted in accordance with service rules of defendant No.1. Applicants in collusion with each other framed the plaintiff in the misconduct which plaintiff never committed and same has never been proved on record but despite that the applicants misused their official position to settle their scores and grudges against the plaintiff. The role of the applicants has been well explained and the same needs to be proved on record during examination of the applicants-defendants. There may not be any privity of contract between the plaintiff and applicants directly but they being senior officials acted beyond jurisdiction to prove the alleged misconduct which the plaintiff never committed and as such, they are a necessary party to the suit. Defendant No.1 is a bank which is managed and controlled by its officials and amongst them are the defendants who misused their powers and