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2022 Supreme(Online)(Bom) 267

HIGH COURT OF BOMBAY
S. M. MODAK, J
Tarun Keshrichand Shah – Appellant
Versus
M/s. Kishore Engineering Co. – Respondent
Writ Petition No. 3456 of 2019 | Writ Petition No. 3455 of 2019



Advocates:
For the Appellants/Petitioners: Dr. Abhinav Chandrachud, Mr. Naresh Ratnani i/by Ashwin Ankhad and Associates
For the Respondents: Mr. Ankit Lohia a/w Arun Mehta i/by Akshar Laws

The court ruled a third party's impleadment was unnecessary where no privity of contract existed, affirming plaintiffs' rights in litigation.

Headnote:(A) Code of Civil Procedure, 1908 - Order 1 Rule 10 - Impleadment and Ex-parte Orders - Petitioners challenged orders of City Civil Court allowing motions to add a party and continue ex-parte proceedings - Court found that presence of party was not necessary as plaintiffs had no privity of contract with them - Court emphasized that trial must focus on existing relationships for effective adjudication. (Paras 9, 18-26)

(B) Jurisdiction of High Court - Supervisory Jurisdiction under Article 227 - The parameters must be examined to determine if the lower court acted beyond its authority or violated natural justice principles, which warranted intervention. (Paras 19, 20, 26)

Facts of the case:
Petitioners, heirs of Kesharichand Shah, sued for arrears of service charges with ex-parte proceedings against a defendant that failed to appear. Notice of Motions sought to include a third-party applicant while challenging the ex-parte status.

Findings of Court:
The court ruled the applicant's inclusion was unnecessary for fair adjudication of the existing contract dispute.

Issues: Determining the necessity of the third party's involvement and the validity of the ex-parte order were central to the legal debate.

Ratio Decidendi: The court ruled that without contractual ties, the third party could not be forced into the litigation, reaffirming plaintiffs' rights to define proceedings.

Result: Both Writ Petitions are allowed, and the trial court’s Orders are set aside.

Table of Content
1. writ petitions challenge city civil court decisions. (Para 1 , 2 , 3)
2. judicial supervisory scope and relevant case law. (Para 19 , 20)
3. judgments addressing party impleadment principles. (Para 21 , 22)
4. criteria for overturning ex-parte orders. (Para 24 , 25)
5. final ruling on writ petitions and court orders. (Para 26 , 43)

JUDGMENT:-

. By these two writ petitions, the Original Plaintiffs are challenging the Orders passed by the City Civil Court in Suit No. 6117 of 2007 dated 05/10/2018. Those two Orders were passed on two Notice of Motions. They were filed by the Applicant/present Respondent No. 2 whereas present Respondent No. 1 is the sole defendant. Parties are referred to by their original status as per the Suit.

2. The details of those motions are as follows:-

(A) Notice of Motion No. 1346 of 2018 For issuing direction to add applicant as party defendant.

(B) Notice of Motion No. 1925 of 2017 Filed to set aside the Order closed evidence and defendant ex-parte.

3. By the two impugned Orders, the City Civil Court (hereinafter referred to as “Trial Court”) was pleased to allow both these two Notice of Motions. The issue involved in these petitions is :-

a) As to whether the impleadment of applicant is necessary for adjudication of the dispute involved in that suit.

b) Whether order to proceed Ex-parte need to be set aside.

4. On this background, we have heard the learned Advocate Dr. Shri Abhinav Chandrachud for the Petitioners and the learned Advocate Shri Ankit Lohia for the Applicant/Respondent No. 2. No one has appeared on behalf of Respondent No. 1-Original defendant. As both the impugned Orders are passed in two Notice of Motions arising out of two orders passed in the same suit, by consent these petitions are decided together. In support of his plea, the learned Advocate Dr. Shri Chandrachud submitted as follows:

(a) There is no privity of contract between the plaintiffs on one hand and the applicant on the other hand.

(b) The issue involved before the Trial Court is about payment of service charges and the applicant is no way concerned with those service charges.

(c) The applicant can neither be considered as necessary nor proper party.

(d) The certificate of Incorporation produced by the applicant cannot be said to be a proper certificate issued under the Part IX of the Companies Act, 1956.

(e) On bare reading of that certificate it cannot be said that provisions of Section 565 of the Companies Act were fulfilled either by erstwhile Company/sole defendant or by alleged successor/applicant.

(f) The presence of present applicant being trespasser is very much necessary before the Small Causes Court and their impleadment in that Court does not warrant their impleadment before the City Civil Court.

5. In support of his submission he relied upon the following judgments :-

(i) Tarun Keshrichand Shah & Anr. Vs. M/s Kishore Engineering Company & Ors in Criminal Appeal No. 153 of 2019.

(ii) Order dated 23/01/2019 passed in Tarun Keshrichand Shah & Anr. Vs. Kishore Engineering Co. & Anr. in Writ Petition (ST) No. 1695/2019 with Writ Petition (ST) No. 1693 of 2019 (iii) Advani Oerlikon Ltd. Vs. Machindra Govind Makasare & Ors., reported in (2011) (2) Mh. L.J..

(iv) Sandeep Ramesh Solanki and Ors. Vs. Sou. Shevanti Dadoba Nashte , reported in 2019 SCC Online Bom 1313 : (2019) 5 AIR Bom R 427 :(2019) 6 Bomb CR 752.

(v) Antonio Menezes Vs. Vithola Shamba Shetye & Ors., reported in (2015) 1 Mh. L. J..

6. As against this, the learned Advocate Shri Ankit Lohia strongly supported those impugned Orders and he made following submissions :-

(A) The presence of applicant is very much necessary because they are necessary party for deciding the controversy.

(B) The plaintiffs though aware about existence of the applicant-

Company (as Company is one of the defendant before the Small Causes Court) still Plaintiffs have not deliberately joined them as party defendant before City Civil Court.

C) Certificate of registration has got evidentiary v

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