Supreme Court Dismisses Appeal of Third-Party Purchaser Seeking Impleadment in Suit for Specific Performance — Plaintiff Cannot Be Compelled to Implead Stranger Against Wish Under Order 1 Rule 10 CPC. The Court held that a third party claiming independent title cannot be added in a suit for specific performance as it would enlarge the scope of the suit.

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Case Note & Summary

The appellant, Gurmit Singh Bhatia, purchased a suit property during the pendency of a suit for specific performance filed by the original plaintiffs (respondent nos. 2 & 3) against the original owner (respondent no. 1). The sale deed was executed despite an injunction restraining the owner from alienating the property. The appellant filed an application under Order 1 Rule 10 of the Code of Civil Procedure, 1908 (CPC) for impleadment as a defendant, claiming interest based on the sale deed and an alleged prior agreement to sell. The trial court allowed the application, but the High Court of Chhattisgarh quashed that order, holding that the appellant was neither a necessary nor a proper party. The Supreme Court upheld the High Court's decision, emphasizing that the plaintiff is the dominus litis and cannot be forced to implead a person against whom no relief is claimed. The Court relied on Kasturi v. Iyyamperumal, (2005) 6 SCC 733, which held that a third party or stranger to the contract cannot be added in a suit for specific performance unless they have a direct and legal interest in the controversy. The Court distinguished the cases of Robin Ramjibhai Patel v. Anandibai Rama @ Rajaram Pawar, (2018) 15 SCC 614 and Shri Swastik Developers v. Saket Kumar Jain, 2014 (2) Mh. L.J 968, as those involved applications by the plaintiff to implead subsequent purchasers, not by a third party against the plaintiff's wish. The appeals were dismissed, and the High Court's orders were affirmed.

Headnote

A) Civil Procedure - Impleadment of Third Party - Order 1 Rule 10 CPC - Dominus Litis - In a suit for specific performance of an agreement to sell, the plaintiff is the dominus litis and cannot be compelled to implead a third party who is not a party to the contract and against whom no relief is claimed. The court's jurisdiction to add a party under Order 1 Rule 10 CPC does not arise unless the proposed party has a direct and legal interest in the controversy involved in the suit. (Paras 5.1-5.2)

B) Civil Procedure - Necessary Party - Tests - Order 1 Rule 10 CPC - Two tests must be satisfied for a person to be a necessary party: (1) there must be a right to some relief against such party in respect of the controversies involved in the proceedings; (2) no effective decree can be passed in the absence of such party. In a suit for specific performance, a party claiming independent title and possession adverse to the vendor's title is not a proper party. (Paras 5.2)

C) Civil Procedure - Proper Party - Scope of Suit - Order 1 Rule 10 CPC - A third party or stranger to the contract cannot be added in a suit for specific performance merely to find out possession or avoid multiplicity of suits, as it would convert the suit of one character into a suit of a different character. (Paras 5.2)

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Issue of Consideration

Whether the plaintiffs can be compelled to implead a person in a suit for specific performance, against their wish, and more particularly with respect to a person against whom no relief has been claimed by them?

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Final Decision

The Supreme Court dismissed the appeals, upholding the High Court's orders dated 3.7.2013 and 5.8.2013, which quashed the trial court's order allowing impleadment of the appellant.

Law Points

  • Dominus litis
  • Necessary party
  • Proper party
  • Order 1 Rule 10 CPC
  • Specific performance
  • Impleadment of third party
  • Independent title
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Case Details

2019 LawText (SC) (7) 99

Civil Appeal Nos. 5522-5523 of 2019

2019-07-17

M.R. Shah

Prashanto Chandra Sen (for appellant), M. Shoeb Alam (for original plaintiffs)

Gurmit Singh Bhatia

Kiran Kant Robinson and others

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Nature of Litigation

Civil appeal against High Court order quashing impleadment of a third-party purchaser in a suit for specific performance.

Remedy Sought

The appellant sought impleadment as a defendant in the suit for specific performance filed by the original plaintiffs.

Filing Reason

The appellant purchased the suit property during the pendency of the suit and claimed to have a direct interest in the property.

Previous Decisions

The trial court allowed the impleadment application; the High Court quashed that order; the review petition was dismissed.

Issues

Whether the plaintiffs can be compelled to implead a person in a suit for specific performance against their wish? Whether a third-party purchaser who is not a party to the agreement to sell can be impleaded as a defendant under Order 1 Rule 10 CPC?

Submissions/Arguments

Appellant: The trial court rightly allowed impleadment as the appellant is a necessary and proper party having purchased the suit property; the High Court ought not to have interfered under Article 227. Original plaintiffs: The appellant purchased the property in violation of an injunction; the plaintiff is dominus litis and cannot be forced to implead a stranger; the issue is covered by Kasturi v. Iyyamperumal.

Ratio Decidendi

In a suit for specific performance, the plaintiff is the dominus litis and cannot be compelled to implead a third party who is not a party to the contract and against whom no relief is claimed. A third party claiming independent title is not a necessary or proper party under Order 1 Rule 10 CPC, as their presence would enlarge the scope of the suit.

Judgment Excerpts

The short question which is posed for consideration before this Court is, whether the plaintiffs can be compelled to implead a person in the suit for specific performance, against his wish and more particularly with respect to a person against whom no relief has been claimed by him? A third party or a stranger to a contract cannot be added so as to convert a suit of one character into a suit of different character.

Procedural History

Original plaintiffs filed a suit for specific performance in the Court of learned 4th Additional District Judge, Bilaspur. During pendency, the appellant purchased the suit property and filed an application under Order 1 Rule 10 CPC for impleadment. The trial court allowed the application on 5.11.2012. The original plaintiffs filed a writ petition (No. 856/2012) before the High Court of Chhattisgarh, which allowed it on 3.7.2013, quashing the trial court's order. The appellant's review petition (No. 169/2013) was dismissed on 5.8.2013. The appellant then filed special leave petitions, which were converted into civil appeals.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 1 Rule 10
  • Constitution of India: Article 227
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