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2024 Supreme(All) 453

IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
Saral Srivastava, J.
M/S Shri Bankhandi Nath Developers Pvt. Ltd. - Appellant
Vs.
Dharmendra Kumar Rathore And Others - Opposite Party
Civil Revision No. - 61 of 2022
Decided On : 31-01-2024

Advocates Appeared:
For the Appellant : Shreya Gupta,Ravi Anand Agarwal
For the Opposite Party : Arvind Srivastava Iii, Sushil Kumar Shukla

The court ruled that a party cannot be impleaded unless their presence is necessary for the effective adjudication of the suit, emphasizing the plaintiff's right as dominus litis.

Headnote:(A) Civil Procedure Code, 1908 - Order 1 Rule 10 - Impleadment of parties - The plaintiff/revisionist challenged the trial court's order allowing the impleadment of a director as a defendant in a suit for specific performance of an agreement to sell. The court found that the director was neither a necessary nor proper party, as the suit's issues could be resolved without his presence. The trial court failed to consider the essential conditions for impleadment under Order 1 Rule 10. (Paras 1, 24, 76, 78)

(B) Dominus Litis - The plaintiff, as dominus litis, cannot be compelled to include parties against whom no relief is claimed. (Paras 24, 76)

(C) Jurisdictional Error - The trial court committed a material irregularity by allowing the impleadment without proper consideration of the necessary conditions. (Paras 24, 78)

Facts of the case:
The plaintiff, a private limited company, sought specific performance of an agreement to sell land executed by a director. Disputes arose among directors, leading to the impleadment application by one director, which was contested by the plaintiff.

Findings of Court:
The court ruled that the impleadment was not justified as the director's presence was not necessary for adjudicating the suit.

Issues: Whether the director was a necessary and proper party for the suit's effective adjudication.

Ratio Decidendi: The court emphasized that the presence of a party is essential only if it is necessary to resolve the issues in the suit, which was not the case here.

Result: The revision was allowed, and the trial court's order was quashed.

JUDGMENT :

Saral Srivastava, J.

1. Heard Ms Shreya Gupta, learned counsel for the plaintiff/revisionist and Sri Navin Sinha, learned Senior Advocate assisted by Sri Arvind Srivastava, learned counsel for the respondents.

2. By means of the present civil revision, the plaintiff/revisionist has assailed the order dated 11.05.2022 passed by the Civil Judge (Senior Division), Bareilly by which he has allowed the application 151Ka and application 227Ga of Dharmendra Kumar Rathore-respondent no.1 for impleading him as 'defendant' in Original Suit No.530 of 2017.

3. The facts in brief are that the plaintiff/revisionist is a private limited company duly registered with the Registrar of Companies Uttar Pradesh and Uttarakhand, Kanpur on 07.07.2011. The plaintiff-revisionist has instituted the Original Suit No.530 of 2017 praying for a decree of specific performance of agreement to sale dated 12.07.2011 executed by respondent no.2 (defendant no.1 in original suit) in favour of plaintiff/revisionist registered in the office of Sub-Registrar-II, Bareilly on 12.07.2011, and a direction to the respondent no.2 to execute the sale deed of the land described in the plaint and in the agreement to sale dated 12.07.2011 (hereinafter referred to as 'suit property') in favour of plaintiff/revisionist after taking the balance sale consideration of Rs.2 crore & 28 lacs from the plaintiff/revisionist. It is further prayed that respondent no.3 (defendant no.2 in the original suit) and respondent no.5 (defendant no.4 in the original suit) be also directed to join with defendant no.1 as sellers in the said sale deed. The plaintiff/revisionist further prayed for a decree declaring the two sale deeds dated 11.11.2011 registered on 15.11.2011 and the sale deed dated 29.11.2012 registered on 01.12.2012 as null and void.

4. The case of the plaintiff/revisionist is that respondent no.2 agreed to sell the plaintiff/revisionist his Bhumidhari land detailed in paragraph 4 of the plaint situated at village Bilwa, Tehsil and District Bareilly. Respondent no.2 for the said purpose executed a registered agreement to sale dated 12.07.2011 registered in the office of Sub-Registrar II, Bareilly on 12.07.2011 (hereinafter referred to as 'agreement') in favour of the plaintiff/revisionist through its two Directors namely, Dharmendra Kumar Rathore and Smt. Neetu Sahu. The total amount of sale consideration for the suit property under the agreement was Rs.3,28,00,000/- (Rs.3 crores & 28 lac) out of which, an amount of Rs.1 crore was paid to respondent no.2 by plaintiff/revisionist as part of sale consideration and balance amount of sale consideration was agreed to be paid at the time of execution of sale deed.

5. Under the agreement, six months was stipulated for the execution of the sale deed, and it was also agreed between the plaintiff/revisionist and respondent no.2 that the plaintiff/revisionist as prospective purchaser shall be at liberty to get the sale deed executed in its name or the name of other person or persons, firm or company of its choice and may also get the sale deed executed in one go or in parts as may be permissible under the relevant revenue law. It is also agreed that all the costs and expenses of registration, stamp duty etc. shall be borne by the plaintiff/revisionist.

6. Initially, on 07.07.2011 at the time of incorporation of the plaintiff/revisionist's company, Dharmendra Kumar Rathore and Smt. Neetu Sahu were promoters and first Directors of the company. Thereafter, Bharat Kumar Agarwal and Smt. Smita Agarwal became shareholders of the plaintiff/revisionist's company by purchasing 25% shares of the company by each of them w.e.f. 11.07.2011. Thus, Dharmendra Kumar Rathore, Smt. Neetu Sahu, Bharat Kumar Agarwal and Smt. Smita Agarwal became the shareholder of the plaintiff/revisionist's company each having 25% shares in the company. Bharat Kumar Agarwal and Smt. Smita Agarwal were also appointed Directors of the plaintiff/revisionist's company on 18.07.2

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