Bombay High Court Upholds Impleadment of Assignee as Co-Plaintiff and Deletion of Assignor Plaintiffs in Eviction Suit. The court held that an assignee of part interest in suit property is entitled to be impleaded under Order 1 Rule 10 CPC, and assignor plaintiffs who have transferred their interest can be deleted.

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

The judgment concerns two writ petitions arising from a suit for eviction (T.E. & R. Suit No. 48/62 of 2009) pending before the Small Causes Court. The suit was originally filed by 12 plaintiffs against 6 defendants seeking eviction from suit premises. During the pendency of the suit, some plaintiffs (plaintiff Nos. 2, 7 to 10 and 12) assigned their rights in the suit premises to Gnani Investment & Trading Co. Pvt. Ltd. (GITCPL) through three separate deeds of assignment. There was a dispute whether the assignment was of the entire interest or only 75% of the interest. GITCPL filed an application (Exhibit 321) seeking to be impleaded as co-plaintiff. The trial court allowed the application and directed plaintiff Nos. 4 to 6 to implead GITCPL as co-plaintiff. Subsequently, the trial court also allowed an application (Exhibit 330) filed by plaintiff No. 4 for deletion of plaintiff Nos. 2, 7 to 10 and 12 from the suit. The petitioners in WP 13794/2016 (plaintiff Nos. 4 to 6) challenged the impleadment order, while the petitioners in WP 5917/2017 (plaintiff Nos. 2, 7 to 10 and 12) challenged the deletion order. The High Court held that the assignee GITCPL was entitled to be impleaded as co-plaintiff under Order 1 Rule 10 read with Order 22 Rule 10 CPC, as it had acquired an interest in the subject matter of the suit. The court also held that the assignor plaintiffs who had transferred their interest could be deleted from the suit, as they no longer had any subsisting interest. The court dismissed both petitions, upholding the trial court's orders.

Headnote

A) Civil Procedure Code - Impleadment of Assignee - Order 1 Rule 10, Order 22 Rule 10 CPC - Assignment of Interest - The court held that an assignee of a part of the interest in the suit property is entitled to be impleaded as a co-plaintiff to protect its rights, and the assignor plaintiffs who have transferred their interest can be deleted from the suit. (Paras 1-18)

B) Transfer of Property Act - Assignment of Interest - Section 8 - The court noted that the assignment deeds transferred the assignors' rights in the suit premises to the assignee, and the assignee stepped into the shoes of the assignors. (Paras 5-7)

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Issue of Consideration

Whether an assignee of part interest in suit property can be impleaded as co-plaintiff, and whether assignor plaintiffs who have transferred their interest can be deleted from the suit.

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Final Decision

Both writ petitions are dismissed. The orders of the trial court dated 19 October 2016 and 14 March 2017 are upheld. Rule discharged with no order as to costs.

Law Points

  • Order 1 Rule 10 CPC
  • Order 22 Rule 10 CPC
  • assignment of interest
  • impleadment of assignee
  • deletion of assignor plaintiffs
  • Transfer of Property Act
  • 1882
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Case Details

2017 LawText (BOM) (09) 121

Writ Petition No. 5917 of 2017 and Writ Petition No. 13794 of 2016

2017-09-20

M. S. Sonak, J.

Mr. G. S. Godbole with Ms Mamta Sadhi i/b. Ms Poonam Utekar for Petitioners in WP 5917 of 2017; Mr. Gautam Ankhad i/b. Ms Sushma Singh for Petitioners in WP 13794 of 2016 and for Respondent Nos. 4 to 6 in WP 5917 of 2017; Mr. P. K. Dhakephalkar – Senior Advocate with Mr. J. P. Narula i/b. Jhangiani Narula & Associates for Respondent No. 7 in WP 13794 of 2016; Aparna Devkar i/b. M. P. Vashi & Associates for Respondent No. 1 in WP 13794 of 2016

Ms Daksha Keshrichand Jhaveri & Ors. (in WP 5917/2017); Mr. Nikhilesh Keshrichand Jhaveri & Ors. (in WP 13794/2016)

Mr. Nikhilesh Keshrichand Jhaveri & Ors. (in WP 5917/2017); M/s. New Era Fabrics Ltd. & Ors. (in WP 13794/2016)

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Nature of Litigation

Civil writ petitions challenging orders of the Small Causes Court in an eviction suit regarding impleadment of an assignee as co-plaintiff and deletion of assignor plaintiffs.

Remedy Sought

Petitioners in WP 13794/2016 sought to set aside the order directing impleadment of GITCPL as co-plaintiff; petitioners in WP 5917/2017 sought to set aside the order deleting them as plaintiffs.

Filing Reason

The trial court allowed the application of GITCPL to be impleaded as co-plaintiff and subsequently allowed deletion of assignor plaintiffs, which was challenged by the respective parties.

Previous Decisions

The trial court passed orders dated 19 October 2016 (impleadment) and 14 March 2017 (deletion).

Issues

Whether the assignee of part interest in suit property is entitled to be impleaded as co-plaintiff under Order 1 Rule 10 CPC? Whether assignor plaintiffs who have transferred their interest can be deleted from the suit?

Submissions/Arguments

Petitioners in WP 13794/2016 argued that the assignment was only of 75% interest and the assignee should not be impleaded as co-plaintiff. Petitioners in WP 5917/2017 argued that they still retained some interest and should not be deleted.

Ratio Decidendi

An assignee of a part of the interest in the suit property is entitled to be impleaded as a co-plaintiff under Order 1 Rule 10 read with Order 22 Rule 10 CPC, as the assignee has acquired an interest in the subject matter of the suit. Assignor plaintiffs who have transferred their interest can be deleted from the suit as they no longer have any subsisting interest.

Judgment Excerpts

Heard learned counsel for the parties. They agree that these two petitions can be disposed of with a common order. There is no dispute that during the pendency of this suit, plaintiff Nos. 2, 7 to 10 and 12 have assigned their rights in the suit premises in favour of GITCPL.

Procedural History

The suit (T.E. & R. Suit No. 48/62 of 2009) was filed by 12 plaintiffs. During pendency, some plaintiffs assigned their rights to GITCPL. GITCPL applied for impleadment (Exhibit 321) which was allowed on 19 October 2016. Subsequently, plaintiff No. 4 applied for deletion of assignor plaintiffs (Exhibit 330) which was allowed on 14 March 2017. These orders were challenged in the present writ petitions.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 1 Rule 10, Order 22 Rule 10
  • Transfer of Property Act, 1882: Section 8
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