Supreme Court Upholds Transposition of Defendants as Plaintiffs in Suit for Cancellation of Sale Deed — Subsequent Purchasers Pendente Lite Allowed to Continue Suit Despite Withdrawal by Original Plaintiffs. The Court Held That Defendants Who Were Originally Plaintiffs and Had Identity of Interest Could Be Transposed Under Order XXIII Rule 1-A CPC to Protect Their Rights and Avoid Bar of Limitation.

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Case Note & Summary

The case involves a civil suit originally filed in 1989 by A.C. Nataraja Mudaliar against A.V. Manoharan (defendant No.1) and R. Dhanasundari @ R. Rajeshwari (defendant No.2, appellant) for cancellation of a sale deed dated 23.03.1985 executed by defendant No.1 in favour of defendant No.2. The original plaintiff died, and his legal representatives were impleaded as plaintiffs 2 to 8. One of the sons, A.N. Umakanth (plaintiff No.5), held a power of attorney and sold the suit property to three persons (Ramasamy, Dhanam Ramasamy, Venkatasubramanian) via a registered sale deed dated 04.07.1995. These purchasers were impleaded as plaintiffs 9 to 11. Later, the other plaintiffs revoked the power of attorney and got plaintiff No.5 and plaintiffs 9 to 11 transposed as defendants 3 to 6. The suit was transferred and renumbered as O.S. No. 219 of 2004. During trial, when cross-examination of a defence witness was pending, the plaintiffs filed a memo seeking withdrawal of the suit, claiming settlement with defendant Nos. 1 and 2. Defendant Nos. 3 to 6 objected and filed an application under Order XXIII Rule 1-A read with Order I Rule 10 CPC to be transposed as plaintiffs. The Trial Court allowed the application, observing that the defendants had an interest in the outcome, a fresh suit would be barred by limitation, and the withdrawal was not consented to by all defendants. The High Court upheld this order. The Supreme Court dismissed the appeal, holding that the defendants had an identity of interest with the plaintiffs and were entitled to be transposed to continue the suit. The court emphasized that the right of the plaintiff to withdraw is not absolute when other parties have a substantial interest, and the transposition was necessary to avoid multiplicity of proceedings and to do complete justice.

Headnote

A) Civil Procedure - Transposition of Parties - Order XXIII Rule 1-A read with Order I Rule 10 CPC - Subsequent Purchasers Pendente Lite - The defendants, who were originally plaintiffs and were transposed as defendants due to conflict of interest, sought transposition as plaintiffs when the existing plaintiffs sought withdrawal of the suit. The court held that such defendants have an identity of interest with the plaintiffs and can be transposed to continue the suit, as they would otherwise be left without remedy and a fresh suit would be barred by limitation. (Paras 7-10)

B) Civil Procedure - Right of Dominus Litis - Order XXIII Rule 1 CPC - Withdrawal of Suit - The right of the plaintiff to withdraw the suit is not absolute when other parties have a substantial interest in the outcome. The court may permit transposition of defendants as plaintiffs to protect their rights, especially when the withdrawal is not consented to by all defendants and the suit is at an advanced stage. (Paras 7-10)

C) Civil Procedure - Identity of Interest - Order I Rule 10 CPC - The court found that the defendants seeking transposition had an identity of interest with the plaintiffs as they were subsequent purchasers pendente lite and would benefit from a decree in favour of the plaintiffs. Therefore, they were entitled to be transposed as plaintiffs to pursue the suit. (Paras 8-10)

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Issue of Consideration

Whether defendants who were originally plaintiffs and were transposed as defendants can be transposed back as plaintiffs under Order XXIII Rule 1-A read with Order I Rule 10 CPC when the existing plaintiffs seek to withdraw the suit.

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Final Decision

The Supreme Court dismissed the appeal and upheld the orders of the Trial Court and High Court, allowing the transposition of defendant Nos. 3 to 6 as plaintiffs under Order XXIII Rule 1-A read with Order I Rule 10 CPC to continue the suit against defendant Nos. 1 and 2.

Law Points

  • Transposition of parties
  • Order XXIII Rule 1-A CPC
  • Order I Rule 10 CPC
  • Right of dominus litis
  • Subsequent purchasers pendente lite
  • Identity of interest
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Case Details

2019 LawText (SC) (3) 95

Civil Appeal No. 7292 of 2009

2019-03-06

Dinesh Maheshwari

R. Dhanasundari @ R. Rajeswari

A.N. Umakanth & Ors.

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Nature of Litigation

Civil suit for cancellation of sale deed

Remedy Sought

Defendants 3 to 6 sought transposition as plaintiffs to continue the suit after existing plaintiffs sought withdrawal

Filing Reason

The original plaintiff sought cancellation of a sale deed executed by defendant No.1 in favour of defendant No.2; subsequent purchasers pendente lite sought to protect their interest when plaintiffs attempted to withdraw

Previous Decisions

Trial Court allowed transposition; High Court upheld the order

Issues

Whether defendants who were originally plaintiffs and were transposed as defendants can be transposed back as plaintiffs under Order XXIII Rule 1-A read with Order I Rule 10 CPC when the existing plaintiffs seek to withdraw the suit.

Submissions/Arguments

Appellant argued that defendants 3 to 6 have no cause of action against defendants 1 and 2 as their transaction occurred after suit institution; the right of dominus litis to withdraw cannot be curtailed; subsequent purchasers should file a separate suit. Respondent argued that defendants 3 to 6 have identical interest to seek cancellation of the sale deed; they would be left without remedy if withdrawal is allowed; transposition is necessary to avoid multiplicity of proceedings.

Ratio Decidendi

Under Order XXIII Rule 1-A read with Order I Rule 10 CPC, where a plaintiff seeks to withdraw a suit, a defendant who has an identity of interest with the plaintiff and would be adversely affected by the withdrawal may be transposed as a plaintiff to continue the suit. This is particularly applicable when the defendant was originally a plaintiff and the withdrawal would leave them without remedy, and a fresh suit would be barred by limitation.

Judgment Excerpts

Upon the existing plaintiffs seeking permission to withdraw under Order XXIII Rule 1 CPC, the defendant Nos. 3 to 6 have rightly been allowed to be transposed as plaintiffs under Order XXIII Rule 1-A read with Order I Rule 10 CPC and to continue with the suit, as originally filed against the defendant Nos. 1 and 2. The defendants 3 to 6 can be said to have an identity of interest with the plaintiffs.

Procedural History

Original suit filed in 1989; original plaintiff died; legal representatives impleaded; ex parte decree set aside; suit restored; subsequent purchasers impleaded as plaintiffs; later transposed as defendants; plaintiffs sought withdrawal; defendants 3 to 6 applied for transposition; Trial Court allowed; High Court upheld; appeal to Supreme Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXIII Rule 1-A, Order I Rule 10, Order XXIII Rule 1
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