Case Note & Summary
The case involves appeals by third-party purchasers (appellants) who purchased sites from the General Power of Attorney holders of the original owners of certain lands in Bengaluru. The respondents (plaintiffs) filed suits seeking declarations that the agreements of sale executed in favor of a housing society were barred by limitation and for permanent injunction against interference with their possession. The trial court decreed the suits, declaring the agreements of sale as barred by limitation and granting a permanent injunction against the society and others. The appellants, who were not parties to the suit, sought leave to appeal against the decree, claiming that their ownership and possession were affected. The High Court dismissed their application, holding that they had an independent right and could file separate suits. The Supreme Court considered whether the appellants were 'persons aggrieved' entitled to appeal with leave. The Court held that the appellants' interests were directly and prejudicially affected by the decree, as they were in possession and claimed ownership based on sale deeds. The Court emphasized that the expression 'person aggrieved' includes those whose rights or interests are adversely affected, and the decree in question impacted the appellants' possession and title. The Court set aside the High Court's order and granted leave to appeal, directing the High Court to hear the appeals on merits. The judgment clarifies that third-party purchasers whose rights are affected by a decree can seek leave to appeal under Section 96 CPC.
Headnote
A) Civil Procedure - Locus Standi - Person Aggrieved - Leave to Appeal - Sections 96, 100, Code of Civil Procedure, 1908 - The appellants, who were not parties to the suit but claimed ownership and possession of suit property based on sale deeds executed by General Power of Attorney holders of the original owners, were held to be 'persons aggrieved' as the trial court's decree declaring the agreements of sale as barred by limitation and granting permanent injunction directly affected their interests. The High Court erred in rejecting their application for leave to appeal, as the decree prejudicially affected their rights. (Paras 14-22) B) Civil Procedure - Appeal by Third Party - Prejudicial Effect - Sections 96, 100, Code of Civil Procedure, 1908 - A person who is not a party to a suit may prefer an appeal with the leave of the appellate court if he is prejudicially affected by the judgment and decree. The test is whether the decree binds the person or affects his interests. In this case, the appellants' possession and ownership were directly impacted by the decree, and they were entitled to challenge it. (Paras 15-20) C) Civil Procedure - Impleadment - Order 1 Rule 10, Code of Civil Procedure, 1908 - The appellants' application for impleadment under Order 1 Rule 10 CPC was dismissed by the trial court, and the writ petition challenging that order was dismissed as infructuous after the suit was decided. However, the dismissal of the impleadment application did not bar the appellants from seeking leave to appeal as aggrieved persons. (Paras 7, 22)
Issue of Consideration
Whether the appellants, who were not parties to the suit but claimed ownership and possession based on sale deeds executed by the General Power of Attorney holders of the original owners, have locus to file an appeal against the trial court's decree declaring the agreements of sale as barred by limitation and granting permanent injunction, and whether the High Court was justified in rejecting their application for leave to appeal.
Final Decision
The Supreme Court allowed the appeals, set aside the High Court's common judgment dated 21.02.2019, and granted leave to the appellants to file appeals against the trial court's judgment and decree. The High Court was directed to hear the appeals on merits in accordance with law.
Law Points
- Person aggrieved
- Leave to appeal
- Third-party appeal
- Section 96 CPC
- Section 100 CPC
- Order 1 Rule 10 CPC
- Prejudicially affected
- Locus standi
