Supreme Court Allows Impleadment and Amendment in Mortgage Redemption Suit to Avoid Multiplicity of Litigation. Person in Actual Possession Held Necessary Party Under Order I Rule 10 CPC Despite Belated Application.

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Case Note & Summary

The appellant, Kamlesh Gupta, mortgaged a shop to Mangat Rai (first respondent) for Rs. 7 lakhs in 2009. She later filed a suit for possession by redemption. The first defendant admitted the mortgage but stated that he had permitted Rakesh Kumar (second defendant) to use the shop, who agreed to vacate upon redemption but failed. The second defendant denied the mortgage and claimed that the plaintiff's father had inducted Pawan Kumar as a tenant. After issues were framed and affidavits of four plaintiff witnesses were filed, the plaintiff applied under Order I Rule 10 and Order VI Rule 17 CPC to implead Pawan Kumar and add a paragraph alleging collusion. The trial court dismissed the application, and the High Court upheld the dismissal, holding that the amendment was barred by the proviso to Order VI Rule 17 as the facts were within the plaintiff's knowledge. The Supreme Court noted that Pawan Kumar was in actual possession of the shop, was the father of the second defendant, and the defendants were close relatives. The Court held that Pawan Kumar was a necessary party as his presence would avoid multiplicity of litigation. The Court found that the plaintiff may have been kept in the dark about the possession due to the close relations, and thus the application should be allowed in the interest of justice, albeit with costs of Rs. 10,000. The orders of the trial court and High Court were set aside, and the application was allowed. The trial court was directed to decide the case on merits uninfluenced by the observations.

Headnote

A) Civil Procedure - Impleadment of Party - Order I Rule 10 CPC - Necessary and Proper Party - A person in actual possession of suit property is a necessary party to a suit for possession by redemption of mortgage, as his presence is required for effective and complete adjudication and to avoid multiplicity of litigation. (Paras 8-10)

B) Civil Procedure - Amendment of Pleadings - Order VI Rule 17 CPC - Proviso - Due Diligence - The proviso to Order VI Rule 17 CPC bars amendment after commencement of trial unless the party could not have raised the matter earlier despite due diligence. However, where the plaintiff was kept in the dark about the possession of the suit property due to close relations between defendants and the proposed party, the amendment may be allowed in the interest of justice, even belatedly. (Paras 7, 11)

C) Civil Procedure - Impleadment and Amendment - Costs - Where an application for impleadment and amendment is allowed after commencement of trial, the court may impose costs on the applicant to compensate for the delay. (Para 11)

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Issue of Consideration

Whether the application for impleadment of a person in possession and amendment of plaint should be allowed despite being filed after commencement of trial, when the plaintiff had no knowledge of the possession due to suppression by defendants.

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Final Decision

The Supreme Court allowed the appeal, set aside the orders of the trial court and High Court, and allowed the application for impleadment and amendment of the plaint, subject to payment of Rs. 10,000 costs by the appellant within 8 weeks. The trial court was directed to decide the case on merits uninfluenced by the observations.

Law Points

  • Order I Rule 10 CPC
  • Order VI Rule 17 CPC
  • Necessary party
  • Proper party
  • Due diligence
  • Amendment after commencement of trial
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Case Details

2019 LawText (SC) (9) 22

Civil Appeal No. 7556 of 2019 (@ S.L.P. (C) No. 13980 of 2018)

2019-09-23

Mohan M. Shantanagoudar, Indira Banerjee

Kamlesh Gupta

Mangat Rai & Anr.

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Nature of Litigation

Civil appeal against dismissal of application for impleadment and amendment of plaint in a suit for possession by redemption of mortgage.

Remedy Sought

The appellant (plaintiff) sought impleadment of Pawan Kumar as a defendant and amendment of the plaint to add allegations of collusion.

Filing Reason

The plaintiff filed the application after discovering that Pawan Kumar, father of the second defendant, was in actual possession of the suit shop, which was not disclosed earlier.

Previous Decisions

The trial court dismissed the application on 20.08.2016; the High Court dismissed the revision on 17.01.2018.

Issues

Whether Pawan Kumar is a necessary or proper party to the suit. Whether the application for amendment is barred by the proviso to Order VI Rule 17 CPC. Whether the application should be allowed in the interest of justice despite being filed after commencement of trial.

Submissions/Arguments

Appellant: Pawan Kumar is in possession and is a necessary party; the plaintiff was unaware of his possession due to suppression by defendants. Respondents: The application is belated and facts were within plaintiff's knowledge; amendment is barred after trial commencement.

Ratio Decidendi

A person in actual possession of the suit property is a necessary party to a suit for possession, and impleadment should be allowed even after commencement of trial if the plaintiff was unaware of the possession due to suppression by defendants, to avoid multiplicity of litigation. The proviso to Order VI Rule 17 CPC does not bar amendment if the party could not have raised the matter earlier despite due diligence.

Judgment Excerpts

We are of the opinion that by virtue of actual possession being enjoyed by Pawan Kumar, he is a necessary party to the present suit. Even otherwise, he is a proper party for the reasons elucidated above. the interest of justice demands that the application be allowed, to ensure that in the eventuality of the suit being decreed in his favour, the plaintiff does not become vulnerable to another round of litigation at the stage of execution.

Procedural History

The plaintiff filed CS No. 950/2013 for possession by redemption. After issues were framed and affidavits of four plaintiff witnesses were filed, the plaintiff filed an application on 25.01.2016 for impleadment and amendment. The trial court dismissed it on 20.08.2016. The plaintiff filed Civil Revision No. 6019/2016 in the High Court of Punjab and Haryana, which was dismissed on 17.01.2018. The plaintiff then appealed to the Supreme Court by special leave.

Acts & Sections

  • Code of Civil Procedure, 1908: Order I Rule 10, Order VI Rule 17, Section 151
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Supreme Court Supreme Court Allows Impleadment and Amendment in Mortgage Redemption Suit to Avoid Multiplicity of Litigation. Person in Actual Possession Held Necessary Party Under Order I Rule 10 CPC Despite Belated Application.
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