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2022 Supreme(Online)(Bom) 268

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
For the Respondents: Mr. Ankit Lohia, Arun Mehta

The court established that a third party's impleadment in a civil suit requires the party to be necessary for the dispute's resolution, which was not the case.

Headnote:(A) Code of Civil Procedure - Order 1 Rule 10 - Writ Jurisdiction under Articles 226 and 227 of the Constitution - Challenge to two orders allowing the impleadment of a third party and setting aside ex-parte proceedings in a civil suit - The High Court found that the applicant was neither a necessary nor a proper party for adjudication of the dispute regarding service charges, emphasizing the principle that impleadment should not disrupt the lawsuit pursued by the plaintiffs, leading to a dismissal of the motions. (Paras 4, 21, 27, 42)

(B) Writ jurisdiction — The Court affirmed that the Trial Court’s decision lacked judicial scrutiny, failing to address the need for the applicant’s inclusion or the claims made by the original defendant. (Paras 19, 26)

Facts of the case:
The plaintiffs sought recovery of service charges from the defendant, who failed to appear before the Court, leading the trial to proceed ex-parte. The applicant sought to intervene, claiming to be a successor entity without any direct obligation to the plaintiffs.

Findings of Court:
The Trial Court erroneously allowed the impleadment of the applicant without legal basis, and the High Court determined that the service charge issue could be resolved in the original defendant's absence.

Issues: Whether the applicant was a proper or necessary party and if the ex-parte order could be revoked by a third party.

Ratio Decidendi: The High Court ruled that the presence of the applicant was unnecessary for the resolution of this civil dispute and that ex-parte proceedings could stand without prejudice to the hearing.

Result: Both writ petitions are allowed.

Table of Content
1. writ petitions challenge orders for impleadment and ex-parte proceedings. (Para 1 , 2 , 3 , 4)
2. plaintiffs seek recovery of service charges from non-appearing defendant. (Para 9 , 10 , 11)
3. court emphasizes limits of jurisdiction in civil suit context. (Para 18 , 26)
4. determined applicant's absence as non-prejudicial to case outcome. (Para 27 , 42)

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 registrati

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