Bombay High Court Quashes Impleadment of Third Party in Specific Performance Suit — Consent Party Without Independent Right or Liability Not Necessary or Proper Party Under Order I Rule 10 CPC. The court held that a third party who is merely a consenting party to an agreement for sale, without any independent right or liability, is neither a necessary nor a proper party to a suit for specific performance, and the plaintiff as dominus litis cannot be compelled to litigate against such a party.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioners, as plaintiffs in Special Civil Suit No. 16 of 2018, sought specific performance of an agreement dated 16.02.2015 for the sale of land Gat No. 47/3 in Sawantwadi, Sindhudurg. The defendants were the vendors. Respondent No. 1, a third party, filed an application under Order I Rule 10 of the Code of Civil Procedure, 1908 (CPC) seeking impleadment, claiming to be a consenting party to the agreement. The trial court allowed the application on 25.03.2019, holding that the third party was a consenting party with a right and interest in the suit property. The petitioners challenged this order before the Bombay High Court. The core legal issue was whether a third party who is merely a consenting party to an agreement for sale, without any independent right or liability, is a necessary or proper party to a suit for specific performance. The petitioners argued that the agreement neither created any right in favor of the third party nor imposed any obligation, and as dominus litis, they could not be compelled to litigate against an unwilling party. The respondent relied on Kasturi v. Iyyamperumal (2005) 6 SCC 733, contending that being a consenting party was sufficient to make the third party a proper party. The High Court analyzed the agreement and found that the third party had no independent right, title, or interest in the property and was not bound by any obligation. The court held that the trial court's finding was erroneous and that the third party was neither a necessary nor a proper party. The court emphasized that the plaintiff is dominus litis and cannot be forced to implead a party against its wish unless such party is necessary for the complete adjudication. The impugned order was quashed, and the application for impleadment was dismissed.

Headnote

A) Civil Procedure Code - Impleadment of Third Party - Order I Rule 10 CPC - Necessary or Proper Party - In a suit for specific performance of an agreement for sale, a third party who is merely a consenting party to the agreement but has no independent right, title, interest, or liability under the agreement is neither a necessary nor a proper party. The plaintiff as dominus litis cannot be compelled to litigate against such a third party. (Paras 7-13)

B) Specific Performance - Consenting Party - Right or Interest - A consenting party to an agreement for sale, without any independent right or liability, does not acquire any right or interest in the suit property merely by consenting. The trial court's finding that such a party has a right and interest is erroneous. (Paras 9-12)

C) Civil Procedure Code - Dominus Litis - Plaintiff's Choice - The plaintiff in a suit is dominus litis and has the right to choose the parties against whom to proceed. A third party cannot be forced upon the plaintiff unless the third party is necessary for the complete and effective adjudication of the dispute. (Para 9)

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Issue of Consideration

Whether a third party who is a consenting party to an agreement for sale but has no independent right or liability under the agreement is a necessary or proper party to a suit for specific performance of that agreement.

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Final Decision

The impugned order dated 25.03.2019 passed by the learned trial Judge allowing the application under Order I Rule 10 CPC is quashed and set aside. The application for impleadment stands dismissed.

Law Points

  • Order I Rule 10 CPC
  • necessary party
  • proper party
  • dominus litis
  • specific performance
  • consenting party
  • right or interest in suit property
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Case Details

2022 LawText (BOM) (07) 83

Writ Petition 9969 of 2019

2022-07-14

Rohit B. Deo

Mr. Sandesh Patil i/b. Mr. Kiran Bhagat & Ms Divya Pawar for the Petitioners, Mr. Chetan Patil for the Respondents

Kalpana Vijaysinh Savant & anr.

Barkha Amir Haldive @ Barkha & ors.

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Nature of Litigation

Civil writ petition challenging an order allowing impleadment of a third party in a suit for specific performance.

Remedy Sought

The petitioners (plaintiffs) sought to quash the trial court's order dated 25.03.2019 allowing the third party's application under Order I Rule 10 CPC for impleadment.

Filing Reason

The trial court allowed the third party to be impleaded in the suit for specific performance, which the petitioners contended was erroneous as the third party had no independent right or liability under the agreement.

Previous Decisions

The trial court allowed the application for impleadment vide order dated 25.03.2019.

Issues

Whether a third party who is a consenting party to an agreement for sale but has no independent right or liability is a necessary or proper party to a suit for specific performance of that agreement.

Submissions/Arguments

Petitioners: The third party has no right or interest in the suit property; the agreement neither creates any right in favor of the third party nor imposes any obligation; the plaintiffs as dominus litis cannot be compelled to litigate against the third party. Respondent: Relying on Kasturi v. Iyyamperumal, the third party being a consenting party is sufficient to make it a proper party, if not necessary.

Ratio Decidendi

A third party who is merely a consenting party to an agreement for sale, without any independent right, title, interest, or liability under the agreement, is neither a necessary nor a proper party to a suit for specific performance. The plaintiff as dominus litis cannot be compelled to implead such a party against its wish.

Judgment Excerpts

The short question involved in the Petition is whether the Third Party is necessary or proper party to the suit for specific performance of the Agreement. The learned trial Judge reasons that the Third Party is a consenting party and has right and interest in the suit property. Mr. Sandesh Patil would submit that the learned trial Judge has committed a serious error in holding that the Third Party has right and interest in the suit property. In rebuttal, Mr. Chetan Patil, who represents the Third Party would submit, relying on the decision of the Apex Court in Kasturi Vs. Iyyamperumal And Ors., reported in (2005) 6 Supreme Court Cases 733, that the fact that the Third Party is a consenting party to the suit Agreement is sufficient to clothe the Third Party with the status of proper party, if not necessary party.

Procedural History

The petitioners filed Special Civil Suit No. 16 of 2018 for specific performance of an agreement dated 16.02.2015. Respondent No. 1 filed an application under Order I Rule 10 CPC for impleadment. The trial court allowed the application on 25.03.2019. The petitioners challenged this order by filing Writ Petition 9969 of 2019 before the Bombay High Court, which was heard and disposed of on 14.07.2022.

Acts & Sections

  • Code of Civil Procedure, 1908: Order I Rule 10
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