Bombay High Court Allows Impleadment of Assignee in Execution Proceedings Despite Right of Pre-emption Claim. Assignee of share in suit property entitled to be brought on record under Order 1 Rule 10 CPC, independent of pre-emption rights under consent terms.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The applicant, Nipun Thakkar, filed Chamber Summons No. 524 of 2013 seeking impleadment as a party in Execution Application (L) No. 370 of 2012 in Suit No. 2471 of 1984, and also sought deletion of defendant nos. 2(a) to 2(c), 3(a) to 3(e), and 7, and permission to amend the execution application and related orders. The application was based on four deeds of assignment executed in favour of the applicant by various defendants/assignors: defendant nos. 2(a) to 2(c) on 5 July 2012, defendant no.7 on 5 July 2012, defendant nos. 3(a) to 3(e) on 16 July 2012, and defendant no.10 on 21 March 2014. The assignors were parties to the suit or had been brought on record after the demise of original defendants. The learned counsel for all assignors stated that they no longer claim any right, title, or interest in the property and abide by the deeds of assignment. The chamber summons was opposed by defendant no.5 and the plaintiff. Defendant no.5 argued that the consent terms contained a right of pre-emption, requiring the assignors to first offer their share to other parties before selling, and that the assignors could not be deleted. Additionally, defendant no.5 pointed out that by an order dated 8 May 2013, the applicant was appointed only as a contractor for construction of a compound wall, and no other rights were created. The court considered the submissions and held that the applicant, as an assignee, had acquired interest in the property and was entitled to be impleaded to protect that interest. The right of pre-emption was a separate issue that did not bar impleadment. The court also allowed the deletion of the assignors as they had no further interest. The chamber summons was allowed, and the applicant was permitted to carry out amendments to the execution application and related orders as per the schedule annexed to the chamber summons.

Headnote

A) Civil Procedure - Impleadment of Assignee - Order 1 Rule 10 CPC - Deed of Assignment - Applicant sought impleadment based on deeds of assignment from several defendants - Court allowed impleadment as applicant had acquired interest in the property - Held that an assignee is entitled to be brought on record to protect his interest (Paras 1-4).

B) Right of Pre-emption - Consent Terms - Enforcement - Defendant no.5 opposed impleadment citing right of pre-emption under consent terms - Court noted that right of pre-emption is a separate issue and does not bar impleadment of assignee - Held that the assignee's right to be impleaded is independent of any pre-emption rights (Paras 5-6).

C) Civil Procedure - Deletion of Parties - Order 1 Rule 10 CPC - Assignors sought deletion after assignment - Court allowed deletion as assignors had no further interest - Held that once interest is transferred, the assignor may be deleted from the record (Paras 3-4).

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Issue of Consideration

Whether an assignee of a share in suit property can be impleaded in execution proceedings despite a right of pre-emption clause in consent terms, and whether the assignors can be deleted from the record.

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Final Decision

Chamber summons allowed. Applicant is permitted to be impleaded as a party. Assignors (defendant nos. 2(a) to 2(c), 3(a) to 3(e), and 7) are deleted from the record. Applicant is permitted to carry out amendments to the execution application, Judges Order No.58 of 2012, and Judges Order No.59 of 2012 as per the schedule annexed to the chamber summons.

Law Points

  • Order 1 Rule 10 CPC
  • Right of pre-emption
  • Deed of assignment
  • Impleadment of assignee
  • Execution proceedings
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Case Details

2014:BHC-OS:7246

Chamber Summons No. 524 of 2013 in Execution Application (L) No. 370 of 2012 in Suit No. 2471 of 1984

2014-07-16

R.D. Dhanuka, J.

2014:BHC-OS:7246

Mr. Birendra Saraf i/b Mr. Dushyant Purekar for Applicant; Mr. Vishal Thakker i/b Mr. Vinod Thaker a/w Ms. Anjali Trivedi for Original Plaintiff; Mr. Drupad Patil for Defendant no.10; Mr. Kalpesh Mehta i/b Pravin Mehta & Mithi for Defendant nos. 2(A) to 2(C); Mr. S.C. Naidu i/b C.R. Naidu & Co. for Defendant no.5; Mr. Sanjay Jain a/w Mr. Hemang Raythatta i/b RMG Law Associates for Defendant nos. 3(A) to 3(C) and 7.

Nipun Thakkar

Jitendra Nanalal Trivedi (Plaintiff) and Ramesh Nanalal Shah and others (Defendants)

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Nature of Litigation

Application for impleadment and amendment in execution proceedings

Remedy Sought

Applicant sought impleadment as a party, deletion of certain defendants, and permission to amend execution application and related orders based on deeds of assignment.

Filing Reason

Applicant acquired interest in suit property through deeds of assignment from several defendants and sought to be brought on record to protect his interest.

Issues

Whether the applicant, as an assignee, is entitled to be impleaded in execution proceedings despite a right of pre-emption clause in consent terms. Whether the assignors can be deleted from the record after assignment.

Submissions/Arguments

Defendant no.5 argued that the consent terms contained a right of pre-emption, requiring assignors to first offer their share to other parties, and thus the deeds of assignment were invalid and assignors could not be deleted. Defendant no.5 also argued that the applicant was only appointed as a contractor by order dated 8 May 2013 and had no other rights. Plaintiff opposed the chamber summons on various grounds (not specified in text). Assignors' counsel stated that they no longer claim any right, title, or interest and abide by the deeds of assignment.

Ratio Decidendi

An assignee of a share in suit property is entitled to be impleaded in execution proceedings under Order 1 Rule 10 CPC to protect his interest, and the existence of a right of pre-emption clause does not bar such impleadment. Assignors who have transferred their interest may be deleted from the record.

Judgment Excerpts

By this chamber summons applicant seeks permission for impleadment as a party and seeks deletion of defendant nos. 2(a) to 2(c), 3(a) to 3(e) and 7 and seeks permission to carry out amendment to the execution applicatoin, Judges Order No.58 of 2012, Judges Order No.59 of 2012 as per schedule annexed to the chamber summons. In response to this chamber summons, learned counsel appearing for all these assignors have made a statement that in view of the deed of assignment executed by them in favour of the applicant, none of the assignors claim any right, title or interest in the property and they abide by the deed of assignment entered into between the parties. Statement is accepted.

Procedural History

Suit No. 2471 of 1984 was filed. Execution Application (L) No. 370 of 2012 was filed. Chamber Summons No. 524 of 2013 was filed by Nipun Thakkar for impleadment and amendment. Chamber Summons No. 525 of 2013 was also filed (not detailed). The court heard the chamber summons and passed judgment on 16 July 2014.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 1 Rule 10
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