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2026 Supreme(AP) 1189

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI CHEEMALAPATI, J.
Perumalla Bhanu Kumari, Wife Of Murali Krishna – Petitioner 
Versus 
Bandaru Veera Venkata Satya Surya Narayana, S/o.Suryanarayana – Respondent 
Civil Revision Petition No: 1668 Of 2023
Decided On : 31-03-2026

Advocates Appeared:
For the Petitioner: Gundapu Rajesh Kumar
For the Respondent: Kotha Naga Surya Rao, T V Jaggi Reddy

A third party can be impleaded in a suit if their presence is necessary for efficacious adjudication and to prevent the multiplicity of litigation, particularly when the applicant's legal rights are at stake due to the subject matter of the dispute.

Headnote:(A) Civil Procedure Code, 1908 - Order I Rule 10 - Addition of parties - Suit for partition - Final decree proceedings - Insolvent defendants - Applicability of impleadment - A creditor of declared insolvents filed an application to be added as a party in final decree proceedings of a partition suit - Trial court allowed the impleadment finding the presence necessary to avoid multiplicity of proceedings - High Court affirmed the order noting that the creditor’s legal rights over the share of the insolvents could be curtailed if not represented, and affirmed that procedural rules are handmaid of justice intended to avoid piecemeal litigation. (Paras 14, 15, 16)

Facts of the case:
The petitioner (plaintiff) filed a partition suit which was decreed. During final decree proceedings initiated in 2017, the 1st respondent (a creditor of the original defendants) sought impleadment under Order I Rule 10 CPC, claiming that the suit property was the subject of insolvency proceedings where the defendants were declared insolvent. The trial court allowed the impleadment, which the petitioner challenged in this revision.

Findings of Court:
The court upheld the trial court's order, noting that while the creditor was not a necessary party, their presence was proper and necessary to ensure efficacious adjudication and prevent multiplicity of litigation, as their rights were tied to the share of the insolvent defendants.

Issues: Whether a creditor of a defendant, who has been declared insolvent, can be impleaded as a party to final decree proceedings in a partition suit under Order I Rule 10 of the CPC.

Ratio Decidendi: An application for impleadment under Order I Rule 10 CPC should be granted if the presence of the party is required for efficacious adjudication and to prevent multiplicity of litigation, provided their legal rights are directly impacted, as procedure is a handmaid of justice.

Result: Civil Revision Petition dismissed.

Table of Content
1. overview of the petition assailing the trial court's order in partition proceedings. (Para 1 , 2 , 3)
2. arguments regarding the maintainability of impleadment under order i rule 10 in final decree proceedings. (Para 4 , 5 , 6 , 7 , 8)
3. court's analysis on the necessity of adding creditors to avoid multiplicity of litigation. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
4. final order dismissing the revision and directing expedited completion of proceedings. (Para 17)

ORDER :

RAVI CHEEMALAPATI, J.

Assailing the correctness and legality of the orders passed in I.A.No.822 of 2022 in F.D.I.A.No.843 of 2017 in O.S.No.37 of 2003 by the Senior Civil Judge, Pithapuram, dated 27.01.2023, the present Civil Revision Petition is filed.

2. The facts that led to filing of this Civil Revision Petition are that the petitioner who is the plaintiff got filed a suit in O.S.No.37 of 2003 on the file of Senior Civil Judge, Kakinada, for partition of the plaint schedule properties. The respondent Nos.2 to 5 herein are the defendants in the suit. Pursuant to passing of the preliminary decree, the petitioner/plaintiff filed final decree application vide F.D.I.A.No.843 of 2017 for appointment of an advocate commissioner for partition of the suit schedule property in terms of the preliminary decree. In the said final decree application, the 1st respondent herein filed I.A.No.822 of 2022 under Order I Rule 10 duly praying the Court below for adding him being creditor of respondent Nos.2 to 5 herein in the said proceedings. The said application has been opposed by the revision petitioner/plaintiff denying the allegations and prayed to dismiss the I.A. After hearing the parties, the Court below allowed the said I.A and thereby permitted the 1st respondent herein to come on record as respondent No.5 in the main final decree proceedings. Assailing the said order, the present Civil Revision Petition is filed.

3. Heard Sri Gundapu Rajesh Kumar, learned counsel for the petitioner, Sri T.V.Jaggi Reddy, learned counsel for the 1st respondent and Sri Kotha Naga Surya Rao, learned counsel for respondent No.3.

4. Learned counsel for the petitioner while reiterating the contents of the counter filed before the Court below and the grounds of revision submitted that the proposed party/intervener is not proper and necessary party in a suit for partition that too in a final decree proceedings. The insolvency petition filed by the creditors against the respondent Nos.2 to 5 herein is allowed which was confirmed and thereby the Official Receiver has been appointed. If at all, the Official Receiver has to come on record, he can come as party respondent but not the proposed party/intervener. He further contended that inasmuch as 32 creditors are there in the said I.P. proceedings. If every individual creditor is impleaded, the nature of final decree proceedings will be changed and the final adjudication will not see the light of the day. He further submitted that the 1st respondent ought to have approached the receiver instead he has filed the present application praying the Court to permit him to come on record as respondent No.5 to the final decree proceedings. The Court below failed to take into consideration Order I Rule 10 in a right perspective. When the 1st respondent herein is not proper and necessary party, he cannot be brought on record. The Court below erroneously allowed the said application, as such, prayed to allow the revision and set aside the orders impugned.

5. In support of his contention, learned counsel for the petitioner relied on the judgement of the Hon’ble Apex Court in Mumbai International Airport Private Limited v. Regency Convention Centre & Hotels Private Limited & Others, (2010) 7 Supreme Court Cases 417 and prayed to pass orders.

6. On the other hand, Sri T.V.Jaggi Reddy, learned counsel contended that respondent Nos.2 to 5 are declared as insolvents and it has attained finality and the subject property of the said I.P. proceedings i

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