Supreme Court Allows Appeal in Civil Suit for Declaration of Title Over Immovable Property—Purchasers Pendente Lite Not Necessary or Proper Parties Under Order 1 Rule 10 CPC and Section 52 Transfer of Property Act. Alienations made during the pendency of the suit without leave of the court are hit by doctrine of lis pendens, and the purchasers cannot be impleaded because their title derives from a party bound by a previous decree upholding a registered Will, and they cannot challenge the Will's validity.

In Favour of Prosecution
  • 3
Judgement Image
Font size:
Print

Case Note & Summary

The dispute concerned a civil suit for declaration of ownership over immovable property based on a registered Will. The appellant had filed Suit Case No. 253-1 before the Sub-Judge, Ferozepur, claiming exclusive title on the strength of a registered Will dated May 26, 1952 executed by his mother Smt. Hira Devi. He relied on an earlier decree dated March 29, 1974, which had already declared his ownership. During the pendency of the second suit, the defendants alienated the suit lands by registered sale deeds dated December 2, 1991 and December 12, 1991 in favour of the respondents. The respondents then applied under Order 1 Rule 10 CPC to be impleaded as defendants. The trial court dismissed their application, holding that they were neither necessary nor proper parties. On revision, the High Court in C.R. No.323/93 dated May 13, 1993 directed their impleadment. The appellant challenged this order by special leave before the Supreme Court. The core legal issue was whether the purchasers pendente lite were necessary or proper parties to the suit. The appellant argued that the suit was founded on a registered Will already upheld in a previous decree, and that alienations during the pendency of the suit were hit by the doctrine of lis pendens under Section 52 of the Transfer of Property Act. He contended that the respondents could not challenge the Will and were not necessary or proper parties, relying on New Redbank Tea Co. Pvt. Ltd. v. Kumkum Mittal & Ors. The respondents argued that as purchasers of immovable property, they were proper parties to defend the title of their predecessor, relying on Ramesh H. Kundanmal v. Municipal Corporation of Greater Bombay. The Supreme Court held that the foundation of the suit was the registered Will which had been upheld in an earlier decree between the appellant and his sisters, including Rajender Kaur, whose sons were the defendants. The respondents, claiming through the defendants, could not challenge the legality or validity of the Will. The Court defined a necessary party as one whose presence is absolutely necessary for effectual and complete adjudication, and a proper party as one whose presence would be necessary to effectually and completely adjudicate the disputes. Since the alienations were made during the pendency of the suit without the authority of the court, they were hit by Section 52 of the Transfer of Property Act. The Court observed that Section 52 prohibits transfer of immovable property in a pending suit so as to affect the rights of any party, unless authorised by the court. Therefore, the respondents could not be considered either necessary or proper parties under Order 1 Rule 10 CPC. The appeal was allowed, the High Court's order was set aside, and the respondents' impleadment petition was dismissed without costs.

Headnote

A) Civil Procedure - Necessary and Proper Parties - Order 1 Rule 10 of Code of Civil Procedure, 1908 - A necessary party is one whose presence is absolutely necessary and without whose presence the issue cannot effectually and completely be adjudicated upon and decided between the parties; a proper party is one whose presence would be necessary to effectually and completely adjudicate upon the disputes. Purchasers pendente lite whose title depends on alienations hit by Section 52 of Transfer of Property Act, 1882 cannot be said to be necessary or proper parties to a suit for declaration based on a registered Will which was already upheld in an earlier decree; their impleadment application was dismissed. Held that the respondents cannot challenge the legality or validity of the Will and therefore are not necessary or proper parties. (Para 1)

B) Transfer of Property - Doctrine of Lis Pendens - Section 52 of Transfer of Property Act, 1882 - During the pendency of a suit in which any right to immovable property is directly and specifically in question, the property cannot be transferred or otherwise dealt with by any party to the suit so as to affect the rights of any other party thereunder except under the authority of the court. Alienations made pending suit without such authority are hit by the doctrine of lis pendens and cannot confer any right on the alienee to be impleaded as a party. Held that the sale deeds executed during the pendency of the suit were in violation of Section 52 and therefore the purchasers acquired no right to be impleaded under Order 1 Rule 10 CPC. (Para 1)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the respondents who purchased the suit property during the pendency of the suit are necessary or proper parties to the suit under Order 1 Rule 10 CPC, given Section 52 of Transfer of Property Act and the previous decree validating the Will?

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The appeal was allowed. The petition under Order 1 Rule 10 CPC was dismissed. The High Court's order directing impleadment was set aside. No costs were awarded.

Law Points

  • Order 1 Rule 10 CPC necessary and proper parties
  • Section 52 Transfer of Property Act lis pendens
  • doctrine of lis pendens bars alienation affecting rights
  • purchasers pendente lite not necessary or proper parties
  • previous decree on Will binding on successors
Subscribe to unlock Law Points Subscribe Now

Case Details

1996 LawText (SC) (08) 14

1996-08-02

K. Ramaswamy, G.B. Pattanaik

1996 SCALE (6)59

R.K. Kapoor, P. Verma, S.K. Srivastava, B.R. Kapoor, S.C. Patel, Mrs. Rekha Palli

Sarvinder Singh

Dalip Singh & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil suit for declaration of ownership based on a registered Will; appeal against High Court order directing impleadment of purchasers pendente lite under Order 1 Rule 10 CPC.

Remedy Sought

The appellant (plaintiff) sought to set aside the High Court order directing impleadment of the respondents as party defendants and to dismiss their application under Order 1 Rule 10 CPC.

Filing Reason

The respondents purchased the suit property during the pendency of the suit and applied to be impleaded as defendants; the trial court dismissed the application but the High Court allowed it, prompting the appeal.

Previous Decisions

Trial court dismissed the impleadment application holding that the purchasers were neither necessary nor proper parties. High Court in C.R. No.323/93 dated May 13, 1993 directed impleadment of the respondents as party defendants. An earlier suit decree dated March 29, 1974 had declared the appellant owner on the basis of the registered Will.

Issues

Whether the respondents/purchasers pendente lite are necessary or proper parties to the suit under Order 1 Rule 10 CPC. Whether alienation during pendency of the suit is hit by the doctrine of lis pendens under Section 52 Transfer of Property Act, and its effect on the right of the alienee to be impleaded.

Submissions/Arguments

Appellant: The suit is founded on a registered Will upheld in an earlier decree; the alienations pending suit are hit by lis pendens; respondents are not necessary or proper parties; relied on New Redbank Tea Co. Pvt. Ltd. v. Kumkum Mittal & Ors. Respondents: They purchased immovable property; they are proper parties to defend the title of their predecessor in interest; relied on Ramesh H. Kundanmal v. Municipal Corporation of Greater Bombay.

Ratio Decidendi

A necessary party is one whose presence is absolutely necessary and without whose presence the issue cannot effectually and completely be adjudicated upon and decided between the parties; a proper party is one whose presence would be necessary to effectually and completely adjudicate upon the disputes. Purchasers pendente lite who acquired title via alienations made in violation of Section 52 of the Transfer of Property Act cannot be said to be necessary or proper parties because their title is subject to the outcome of the suit and they cannot challenge the basis of the plaintiff's claim (a registered Will already upheld). Thus impleadment under Order 1 Rule 10 CPC should be refused.

Judgment Excerpts

A necessary party is one whose presence is absolutely necessary and without whose presence the issue cannot effectually and completely be adjudicated upon and decided between the parties. A proper party is one whose presence would be necessary to effectually and completely adjudicate upon the disputes. during the pendency in any Court having authority within the limits of India of any suit or proceeding which is not collusive and in which any right to immovable property is directly and specifically in question, the property cannot be transferred or otherwise dealt with by any party to the suit or proceeding so as to affect the right of any other party thereto under the decree or order which may be made therein, except under the authority of the court and on such terms as it may impose. the alienation obviously would be hit by the doctrine of lie pendens by operation of Section 52. Under these circumstances, the respondents cannot be considered to be either necessary or proper parties to the suit.

Procedural History

The appellant filed Suit Case No. 253-1 before the Sub-Judge, Ferozepur for declaration of ownership based on a registered Will dated May 26, 1952 and an earlier decree dated March 29, 1974. He applied under Order 39 Rule 11 CPC for ad interim injunction; injunction granted on June 14, 1991, vacated on December 2, 1991. The defendants alienated lands by registered sale deeds dated December 2, 1991 and December 12, 1991 in favour of the respondents. The respondents applied under Order 1 Rule 10 CPC for impleadment. The trial court dismissed the application. The High Court in C.R. No.323/93 dated May 13, 1993 directed impleadment. The appellant filed a special leave petition in the Supreme Court, which granted leave and ultimately allowed the appeal, dismissing the impleadment petition without costs.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 1 Rule 10, Order 39 Rule 11
  • Transfer of Property Act, 1882: Section 52
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Directs Release of Pensionary Benefits to Retired Employee Despite Pending Criminal Appeal Against Acquittal. Pension is a right in property under Article 300A of the Constitution of India, and no provision of law permits withholdin...
Related Judgement
Supreme Court Supreme Court Allows Appeal in Arbitration Execution Matter — Post-Award Interest Calculation Must Follow Hyder Consulting Principle. Court holds that post-award interest under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 is payab...