0% found this document useful (0 votes)
12 views15 pages

2013 4 1501 15075 Judgement 17-Jul-2019

The Supreme Court of India is reviewing appeals regarding the High Court's decision to quash the trial court's order allowing Gurmit Singh Bhatia to be impleaded as a defendant in a suit for specific performance of a contract. The High Court ruled that Bhatia, who purchased the property during the suit's pendency, is not a necessary party as no relief is claimed against him. The court is considering whether plaintiffs can be compelled to include a third party in their suit against their wishes, particularly when that party has no direct interest in the original agreement.

Uploaded by

harry pandey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
12 views15 pages

2013 4 1501 15075 Judgement 17-Jul-2019

The Supreme Court of India is reviewing appeals regarding the High Court's decision to quash the trial court's order allowing Gurmit Singh Bhatia to be impleaded as a defendant in a suit for specific performance of a contract. The High Court ruled that Bhatia, who purchased the property during the suit's pendency, is not a necessary party as no relief is claimed against him. The court is considering whether plaintiffs can be compelled to include a third party in their suit against their wishes, particularly when that party has no direct interest in the original agreement.

Uploaded by

harry pandey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 15

REPORTABLE

IN THE SUPREME COURT OF INDIA


CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS. 5522­5523 OF 2019

Gurmit Singh Bhatia …Appellant

Versus

Kiran Kant Robinson and others …Respondents

JUDGMENT

M.R. SHAH , J.

Feeling aggrieved and dissatisfied with the impugned judgment

and order dated 3.7.2013 passed in Writ Petition No. 856/2012 and

order dated 5.8.2013 passed in Review Petition No. 169/2013 in Writ

Petition No. 856/2012 by the High Court of Chhattisgarh at Bilaspur,

by which the High Court has allowed the said writ petition preferred

by the original plaintiffs and has quashed and set aside the order

passed by the learned trial Court allowing the application preferred by

the appellant herein for impleading him as a necessary party to the

suit filed by respondent nos. 2 & 3 herein – the original plaintiffs, the
Signature Not Verified

Digitally signed by
JAYANT KUMAR ARORA
Date: 2019.07.25
13:06:50 IST

original applicant – appellant has preferred the present appeals.


Reason:

1
2. The facts of the case leading to these appeals in nutshell are as

follows:

Respondent nos. 2 & 3 herein – the original plaintiffs filed a suit

against respondent no.1 herein – original defendant no.1 for specific

performance of the agreement to sell/contract dated 3.5.2005

executed by respondent no.1 – original defendant no.1 in the Court of

learned 4th Additional District Judge, Bilaspur. That during the

pendency of the aforesaid suit and despite the injunction against

respondent no.1 herein – original defendant no.1 – original owner not

to alienate or transfer the suit property, respondent no.1 herein –

original defendant no.1 executed a sale deed in favour of the appellant

herein vide sale deed dated 10.07.2008. The appellant herein –

purchaser who purchased the suit property during the pendency of

the suit filed an application in the pending suit under Order 1 Rule 10

of the CPC for impleadment as a defendant in the suit. It was the case

on behalf of the appellant herein that he has purchased the suit

property and is a necessary and proper party to the suit as he has a

direct interest in the suit property. That by an order dated 5.11.2012,

the learned trial Court allowed the said application and directed the

original plaintiffs to join the appellant as a defendant in the suit.

2.1 Feeling aggrieved and dissatisfied with the order passed by the

2
learned trial Court dated 5.11.2012 allowing the application and

permitting the appellant herein to be joined as a party defendant in

the suit filed by the original plaintiffs – respondent nos. 2 & 3 herein,

respondent nos. 2 & 3 herein filed writ petition No. 856/2012 before

the High Court of Chhattisgarh. By the impugned judgment and order

dated 3.7.2013, the High Court has allowed the said writ petition and

has quashed and set aside the order passed by the learned trial Court

allowing the impleadment application preferred by the appellant

herein by holding that as regards the relief claimed against the original

defendants and as no relief has been claimed against the appellant

herein, the appellant cannot be said to be a necessary or formal party.

That thereafter the appellant preferred a review application which

came to be dismissed. Hence, the present appeals by way of special

leave petitions.

3. Shri Prashanto Chandra Sen, learned Senior Advocate has

appeared on behalf of the appellant and Shri M. Shoeb Alam, learned

Advocate has appeared on behalf of the original plaintiffs.

3.1 Learned Senior Advocate appearing on behalf of the appellant has

vehemently submitted that once the learned trial Court allowed the

impleadment application submitted by the appellant herein under

Order 1 Rule 10 of the CPC holding that the appellant is a necessary

3
and proper party, the High Court, in exercise of powers under Article

227 of the Constitution of India, ought not to have interfered with the

same.

3.2 It is vehemently submitted by the learned Senior Advocate

appearing on behalf of the appellant that as such the appellant has

purchased the suit property from the same vendor and, in fact, the

appellant was prior agreement to sell holder and to protect the interest

of the appellant the appellant is a necessary and proper party. It is

submitted that therefore the learned trial Court rightly allowed the

impleadment application submitted by the appellant.

3.3 Making the above submissions and relying upon the decision of

this Court in the case of Robin Ramjibhai Patel v. Anandibai Rama @

Rajaram Pawar, reported in (2018) 15 SCC 614 and the decision of the

Bombay High Court in the case of Shri Swastik Developers vs. Saket

Kumar Jain, reported in 2014 (2) Mh. L.J 968, it is prayed to allow the

present appeals and quash and set aside the impugned judgments

and orders passed by the High Court and restore the order passed by

the learned trial Court.

4. The present appeals are vehemently opposed by Shri M. Shoeb

Alam, learned Advocate appearing on behalf of the original plaintiffs.

It is vehemently submitted that in fact the appellant purchased the

4
suit property during the pendency of the suit and that too in violation

of the injunction granted by the learned trial Court. It is submitted

that as such the prior agreement to sell upon which reliance has been

placed by the appellant is a concocted and forged one. It is submitted

that in any case the appellant cannot be impleaded as a defendant in

a suit filed by the original plaintiffs for specific performance of the

agreement to sell/contract to which the appellant is not a party. It is

submitted that the original plaintiffs are the dominus litis and without

their consent nobody can be permitted to be impleaded as defendant.

4.1 It is vehemently submitted that as such the issue involved in the

present case is squarely covered against the appellant in view of the

decision of this Court in the case of Kasturi v. Iyyamperumal, reported

in (2005) 6 SCC 733.

4.2 Insofar as the reliance placed upon the decision of this Court in

the case of Robin Ramjibhai Patel (supra) as well as the decision of the

Bombay High Court in the case of Shri Swastik Developers

(supra) by the learned Senior Advocate appearing on behalf of the

appellant, it is vehemently submitted by Shri M. Shoeb Alam, learned

Advocate appearing on behalf of the original plaintiffs that the said

decisions shall not be applicable to the facts of the case on hand. It is

submitted that in the aforesaid two cases, it was an application by the

5
original plaintiff to implead the subsequent purchaser who purchased

the property during the pendency of the suits. It is submitted that as

held by this Court in the case of Kasturi(supra), it is for the

plaintiff/plaintiffs to implead a particular person/persons as

defendant/defendants and if he/they does not/do not join then it will

be at the risk of the plaintiff/plaintiffs. It is further submitted that the

plaintiff cannot be forced to implead any other person, more

particularly who is not a party to the contract, against the wish of the

plaintiff. It is submitted that therefore the aforesaid two decisions,

upon which reliance has been placed by the learned Senior Advocate

appearing on behalf of the appellant, shall not be applicable to the

facts of the case on hand. It is submitted that as such the decision of

this Court in the case of Kasturi (supra) clinches the issue and shall be

squarely applicable to the facts of the case on hand.

4.3 Making the above submissions and relying upon the decision of

this Court in the case of Kasturi(supra), it is prayed to dismiss the

present appeals.

5. We have heard the learned counsel for the respective parties at

length.

5.1 At the outset, it is required to be noted that the original plaintiffs

filed the suit against the original owner – vendor – original defendant

6
no.1 for specific performance of the agreement to sell with respect to

suit property dated 3.5.2005. It is an admitted position that so far as

agreement to sell dated 3.5.2005 of which the specific performance is

sought, the appellant is not a party to the said agreement to sell. It

appears that during the pendency of the aforesaid suit and though

there was an injunction against the original owner – vendor

restraining him from transferring and alienating the suit property, the

vendor executed the sale deed in favour of the appellant by sale deed

dated 10.07.2008. After a period of approximately four years, the

appellant filed an application before the learned trial Court under

Order 1 Rule 10 of the CPC for his impleadment as a defendant. The

appellant claimed the right on the basis of the said sale deed as well

as the agreement to sell dated 31.3.2003 alleged to have been

executed by the original vendor. The said application was opposed by

the original plaintiffs. The learned trial Court despite the opposition

by the original plaintiffs allowed the said application which has been

set aside by the High Court by the impugned judgment and order.

Thus, it was an application under Order 1 Rule 10 of the CPC by a

third party to the agreement to sell between the original plaintiffs and

original defendant no.1 (vendor) and the said application for

impleadment is/was opposed by the original plaintiffs. Therefore, the

7
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?

5.2 An identical question came to be considered before this Court in

the case of Kasturi (supra) and applying the principle that the plaintiff

is the dominus litis, in the similar facts and circumstances of the case,

this Court observed and held that the question of jurisdiction of the

court to invoke Order 1 Rule 10 CPC to add a party who is not made a

party in the suit by the plaintiff shall not arise unless a party

proposed to be added has direct and legal interest in the controversy

involved in the suit. It is further observed and held by this Court that

two tests are to be satisfied for determining the question who is a

necessary party. The tests are – (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. It is further observed and held that in a suit for specific

performance the first test can be formulated is, to determine whether a

party is a necessary party there must be a right to the same relief

against the party claiming to be a necessary party, relating to the

same subject matter involved in the proceedings for specific

8
performance of contract to sell. It is further observed and held by this

Court that in a suit for specific performance of the contract, a proper

party is a party whose presence is necessary to adjudicate the

controversy involved in the suit. It is further observed and held that

the parties claiming an independent title and possession adverse to

the title of the vendor and not on the basis of the contract, are not

proper parties and if such party is impleaded in the suit, the scope of

the suit for specific performance shall be enlarged to a suit for title

and possession, which is impermissible. It is further observed and

held that a third party or a stranger cannot be added in a suit for

specific performance, merely in order to find out who is in possession

of the contracted property or to avoid multiplicity of the suits. It is

further observed and held by this Court that 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. In paragraphs 15 and 16,

this Court observed and held as under:

“15. As discussed hereinearlier, whether Respondents 1 and 4


to 11 were proper parties or not, the governing principle for
deciding the question would be that the presence of
Respondents 1 and 4 to 11 before the court would be
necessary to enable it effectually and completely to adjudicate
upon and settle all the questions involved in the suit. As noted
hereinearlier, in a suit for specific performance of a contract
for sale, the issue to be decided is the enforceability of the
contract entered into between the appellant and Respondents

9
2 and 3 and whether contract was executed by the appellant
and Respondents 2 and 3 for sale of the contracted property,
whether the plaintiffs were ready and willing to perform their
part of the contract and whether the appellant is entitled to a
decree for specific performance of a contract for sale against
Respondents 2 and 3. It is an admitted position that
Respondents 1 and 4 to 11 did not seek their addition in the
suit on the strength of the contract in respect of which the suit
for specific performance of the contract for sale has been filed.
Admittedly, they based their claim on independent title and
possession of the contracted property. It is, therefore, obvious
as noted hereinearlier that in the event, Respondents 1 and 4
to 11 are added or impleaded in the suit, the scope of the suit
for specific performance of the contract for sale shall be
enlarged from the suit for specific performance to a suit for
title and possession which is not permissible in law. In the
case of Vijay Pratap v. Sambhu Saran Sinha [(1996) 10 SCC
53] this Court had taken the same view which is being taken
by us in this judgment as discussed above. This Court in that
decision clearly held that to decide the right, title and interest
in the suit property of the stranger to the contract is beyond
the scope of the suit for specific performance of the contract
and the same cannot be turned into a regular title suit.
Therefore, in our view, a third party or a stranger to the
contract cannot be added so as to convert a suit of one
character into a suit of different character. As discussed
above, in the event any decree is passed against Respondents
2 and 3 and in favour of the appellant for specific performance
of the contract for sale in respect of the contracted property,
the decree that would be passed in the said suit, obviously,
cannot bind Respondents 1 and 4 to 11. It may also be
observed that in the event, the appellant obtains a decree for
specific performance of the contracted property against
Respondents 2 and 3, then, the Court shall direct execution of
deed of sale in favour of the appellant in the event
Respondents 2 and 3 refusing to execute the deed of sale and
to obtain possession of the contracted property he has to put
the decree in execution. As noted hereinearlier, since
Respondents 1 and 4 to 11 were not parties in the suit for
specific performance of a contract for sale of the contracted
property, a decree passed in such a suit shall not bind them
and in that case, Respondents 1 and 4 to 11 would be at

10
liberty either to obstruct execution in order to protect their
possession by taking recourse to the relevant provisions of
CPC, if they are available to them, or to file an independent
suit for declaration of title and possession against the
appellant or Respondent 3. On the other hand, if the decree is
passed in favour of the appellant and sale deed is executed,
the stranger to the contract being Respondents 1 and 4 to 11
have to be sued for taking possession if they are in possession
of the decretal property.

16. That apart, from a plain reading of the expression used in


sub­rule (2) Order 1 Rule 10 CPC “all the questions involved in
the suit” it is abundantly clear that the legislature clearly
meant that the controversies raised as between the parties to
the litigation must be gone into only, that is to say,
controversies with regard to the right which is set up and the
relief claimed on one side and denied on the other and not the
controversies which may arise between the plaintiff­appellant
and the defendants inter se or questions between the parties
to the suit and a third party. In our view, therefore, the court
cannot allow adjudication of collateral matters so as to convert
a suit for specific performance of contract for sale into a
complicated suit for title between the plaintiff­appellant on one
hand and Respondents 2 and 3 and Respondents 1 and 4 to
11 on the other. This addition, if allowed, would lead to a
complicated litigation by which the trial and decision of
serious questions which are totally outside the scope of the
suit would have to be gone into. As the decree of a suit for
specific performance of the contract for sale, if passed, cannot,
at all, affect the right, title and interest of Respondents 1 and
4 to 11 in respect of the contracted property and in view of the
detailed discussion made hereinearlier, Respondents 1 and 4
to 11 would not, at all, be necessary to be added in the instant
suit for specific performance of the contract for sale.”

That thereafter, after observing and holding as above, this Court

further observed that in view of the principle that the plaintiff who has

filed a suit for specific performance of the contract to sell is the

11
dominus litis, he cannot be forced to add parties against whom, he

does not want to fight unless it is a compulsion of the rule of law. In

the aforesaid decision in the case of Kasturi(supra), it was contended

on behalf of the third parties that they are in possession of the suit

property on the basis of their independent title to the same and as the

plaintiff had also claimed the relief of possession in the plaint and the

issue with regard to possession is common to the parties including the

third parties, and therefore, the same can be settled in the suit itself.

It was further submitted on behalf of the third parties that to avoid the

multiplicity of the suits, it would be appropriate to join them as party

defendants. This Court did not accept the aforesaid submission by

observing that merely in order to find out who is in possession of the

contracted property, a third party or a stranger to the contract cannot

be added in a suit for specific performance of the contract to sell

because they are not necessary parties as there was no semblance of

right to some relief against the party to the contract. It is further

observed and held that in a suit for specific performance of the

contract to sell the lis between the vendor and the persons in whose

favour agreement to sell is executed shall only be gone into and it is

also not open to the Court to decide whether any other parties have

acquired any title and possession of the contracted property. It is

12
further observed and held by this Court in the aforesaid decision that

if the plaintiff who has filed a suit for specific performance of the

contract to sell, even after receiving the notice of claim of title and

possession by other persons (not parties to the suit and even not

parties to the agreement to sell for which a decree for specific

performance is sought) does not want to join them in the pending suit,

it is always done at the risk of the plaintiff because he cannot be

forced to join the third parties as party­defendants in such suit. The

aforesaid observations are made by this Court considering the

principle that plaintiff is the dominus litis and cannot be forced to add

parties against whom he does not want to fight unless there is a

compulsion of the rule of law. Therefore, considering the decision of

this Court in the case of Kasturi (supra), the appellant cannot be

impleaded as a defendant in the suit filed by the original plaintiffs for

specific performance of the contract between the original plaintiffs and

original defendant no.1 and in a suit for specific performance of the

contract to which the appellant is not a party and that too against the

wish of the plaintiffs. The plaintiffs cannot be forced to add party

against whom he does not want to fight. If he does so, in that case, it

will be at the risk of the plaintiffs.

13
6. Now so far as the reliance placed upon the decision of this Court

in the case of Robin Ramjibhai Patel (supra) and the decision of the

Bombay High Court in the case of Shri Swastik Developers (supra),

relied upon by the learned Senior Advocate for the appellant is

concerned, the aforesaid decisions shall not be applicable to the facts

of the case on hand as in both the aforesaid cases, it was the plaintiff

who submitted an application to implead the third parties/subsequent

purchasers who claimed title under the vendor of the plaintiff. Position

will be different when the plaintiff submits an application to implead

the subsequent purchaser as a party and when the plaintiff opposes

such an application for impleadment. This is the distinguishing

feature in the aforesaid two decisions and in the decision of this Court

in the case of Kasturi(supra).

7. In view of the above and for the reasons stated above, we are in

complete agreement with the view taken by the High Court. No

interference of this Court is called for. The appellant cannot be

impleaded as a defendant in the suit for specific performance of the

contract between the original plaintiffs and original defendant no.1

14
against the wish of the plaintiffs. Accordingly, the present appeals

stand dismissed. However, in the facts and circumstances of the case,

there shall be no order as to costs.

………………………………….J.
[Dr. D.Y. CHANDRACHUD]

NEW DELHI; ………………………………….J.


JULY 17, 2019. [M.R. SHAH]

15

You might also like