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Sadhu Behera And Others v. Krishna Chandra Sutar And Another

Orissa High Court
Oct 22, 1984
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Structured Summary of the Opinion

Factual and Procedural Background

The suit underlying this revision was Title Suit No. 64 of 1981, instituted by two purchasers (opposite parties 1 and 2) seeking a decree for specific performance of an agreement for sale of certain lands described in the plaint. The plaintiffs alleged that opposite parties 3 to 5 (defendants 1 to 3) constituted a joint family with opposite party No. 3 as Karta, and that in his capacity as Karta defendant No. 1 executed an agreement for sale on 15-4-1978. The plaint also stated the land had originally been transferred by Pyran Bibi in 1944 in favour of opposite party No. 3 and his cousins (the petitioners in the revision) by a permanent lease deed; the cousins were shown as joint purchasers though none actually possessed the property. Plaintiff No. 1 had been inducted as a monthly tenant, contracted to purchase the house and was in peaceful possession; after the vendor (defendant No.1) failed to complete the sale, plaintiffs sued for specific performance.

During pendency of that suit the petitioners (cousins) applied to be impleaded as defendants, asserting co-ownership of the suit property, stating they had instituted proceedings under the Orissa House Rent Control Act because the plaintiff defaulted in rent, and alleging collusion between plaintiff and defendant No. 1 to deprive them of their rights. The trial court rejected the application to implead them; the interveners filed the present revision petition challenging that order.

Legal Issues Presented

  1. Whether a stranger to a contract (who claims the contracted property as joint family property and as a co-owner) can be added as a party to a suit for specific performance instituted by the purchaser against the vendor.
  2. In particular, whether such a person is a "necessary party" or a "proper party" under Order I, Rule 10(2), Civil Procedure Code (C.P.C.), for the purposes of joining in a suit for specific performance.

Arguments of the Parties

Interveners / Petitioners' Arguments

  • The petitioners asserted they were co-owners of the suit property (on the plaintiffs' own allegations) and thus had an interest warranting their impleadment as defendants.
  • They had initiated proceedings under the Orissa House Rent Control Act against the plaintiff for default in rent and required the house for their own occupation.
  • They alleged collusion between the plaintiff and defendant No.1 aimed at depriving the petitioners of their legitimate rights.
  • To avoid multiplicity of proceedings and to protect their rights, they pleaded to be added as defendants in the specific performance suit.

The opinion does not contain a detailed account of opposing parties' specific arguments in response to the impleadment application.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Panne Khushali v. Jeewanlal Mathoo Khatik, AIR 1976 Madh Pra 148 (Full Bench) Held that a third party to a contract sought to be specifically enforced is neither a necessary party nor a proper party to the suit for specific performance. The court cited this decision as supporting the conclusion that interveners who are third parties to the contract are not proper or necessary parties and therefore need not be impleaded.
Rasiklal Shankerlal Soni v. Natverlal Shankerlal Upadhyaya, AIR 1975 Guj 178 When plaintiff seeks specific performance and does not claim possession, and no relief is claimed against third-party applicants, they cannot be joined as parties; their presence is not necessary to adjudicate the case. The court relied on this authority to support the view that third parties not involved in the contract need not be added where no relief against them is sought and possession is not claimed.
N.T. Palanisamy Chettiar v. Komara Chettiar, AIR 1950 Mad 91 In an O.1, R.10 application, the court should consider whether proposed parties are necessary to adjudicate the questions in the suit; parties should not be added merely to avoid multiplicity of suits. Example: sons of vendors were not necessary parties where the plaint did not allege the agreement was binding on them. Used to underscore that addition of parties is governed by necessity to decide questions in suit and not merely by avoiding multiplicity; supports refusal to add petitioners who were not necessary to adjudicate the contract claim.
Kshetra Mohan Nath Sarma v. Mohamad Sadir, AIR 1964 Tripura 16 To a suit for specific performance (under S.27, Specific Relief Act) where only execution/registration of sale deed is sought and not possession, persons claiming anterior title are neither necessary nor proper parties. The court cited this ruling to reinforce that claimants of antecedent title cannot compel their addition in an action limited to specific performance and registration.
Mt. Bindru v. Sada Ram, AIR 1960 J. & K. 67 A party cannot be added under O.1, R.10, C.P.C. to import an altogether new cause of action; addition must be consistent with the scope and setting of the pending litigation. The court applied this principle to conclude that adding petitioners would alter the nature and character of the suit (into a title suit), which is impermissible.
E. Ajay Kumar v. Smt. Tulsabai, AIR 1973 Bom 330 If a stranger to the agreement claims the property, such a stranger cannot be a necessary or proper party to a suit for specific performance where the defendant's title (though possibly defective) is sought to be enforced inter partes. Quoted to show that a stranger's rights are not affected by an inter partes decree and hence their addition is unnecessary; the court used this to support rejecting impleadment to avoid widening the suit.
Mt. Nagi v. Damodhar Jagobaji Tidke, AIR 1948 Nag 181 The scope of a suit for specific performance (even with a prayer for possession) cannot be enlarged into a title suit; strangers asserting independent title are not proper parties to a specific performance action. Applied to hold that petitioners asserting independent title are not proper parties and that plaintiffs can, after obtaining specific performance, bring a fresh action against anyone obstructing possession.

Court's Reasoning and Analysis

The court began by recalling the established distinction between a "necessary party" and a "proper party" under Order I, Rule 10(2), C.P.C. It quoted the rule that the Court may add persons "who ought to have been joined" or "whose presence before the Court may be necessary" to effectually and completely adjudicate the suit.

It was conceded (and the court accepted) that the interveners were not "necessary parties"—that is, their absence would not preclude an effective decree in the suit. The analysis therefore shifted to whether they were "proper parties": whether their presence was necessary to enable the Court to adjudicate and settle all questions in the suit.

The court examined the scope of the pending suit: the plaintiffs sought only a decree for specific performance of the contract and its execution/registration by the court; there was no prayer for possession or a direct adjudication of title. The dispute before the court was therefore limited to the enforceability of the contract between plaintiffs and defendants, and not a general determination of title against third parties.

Because the interveners were third parties to the contract, their rights and claims lay outside the subject-matter of the contract enforcement claim. Introducing them would enlarge the scope of the suit (turning it into a title suit) and import matters extraneous to the relief sought. The court emphasized that avoiding multiplicity of proceedings, by itself, does not suffice to convert a stranger into a "proper party"—the test must be whether their presence is necessary to decide the real questions involved in the suit.

The court noted the plaintiff's role as dominus litis (master of the suit) and explained that plaintiffs cannot be compelled to add parties against whom they do not wish to litigate unless required by law. The court, however, recognized that this right is subject to the court's discretion under O. 1, R. 10, C.P.C., exercised on the proper legal test.

To reinforce these conclusions the court relied on several precedents (discussed above) which consistently held that strangers to a contract for which specific performance is sought are neither necessary nor proper parties, particularly where possession or a title judgment in rem is not sought. Applying those authorities, the court found no fault in the trial court's refusal to implead the petitioners.

Holding and Implications

Holding: The revision petition is dismissed. The court upheld the order of the Court below rejecting the application to implead the interveners/petitioners as parties to the suit for specific performance.

Implications:

  • The direct effect is that the interveners (petitioners who claimed co-ownership) will not be added as parties to the pending suit for specific performance; the suit will proceed inter partes between the plaintiffs and the defendants originally impleaded.
  • The court declined to convert or enlarge the pending suit into a title suit by adding third parties whose presence was not necessary for adjudicating the contract enforcement claim.
  • No costs were ordered in the revision proceeding (the court explicitly stated there will be no order as to costs).
  • The opinion does not purport to lay down a new legal precedent; it applies and follows established authorities on the necessary/proper party distinction in specific performance suits.

Petition dismissed.
Show all summary ...

1. The short question for decision in this case is whether in a suit for a specific performance of a contract for sale, instituted by a purchaser against the vendor, a stranger to the contract, who contending that the contracted property is a joint family property, of which he is also the co-owner, wants to intervene in the suit, is entitled to be added as a party. The question having been answered in the negative by the Court below, the interveners have filed this revision petition challenging the order.

The facts material for the purpose of the present proceeding are that the opposite parties 1 and 2 filed Title Suit No. 64 of 1981 for a decree of specific performance of a contract for sale of the lands described in the schedule to the plaint. In the plaint they alleged inter alia that opposite parties 3 to 5 (defendants 1 to 3) constituted a joint family with the opposite party No. 3 (defendant No. 1) as Karta. In his capacity as Karta of the family the said defendant executed an agreement for sale of the case land in favour of the plaintiffs on 15-4-1978. They further alleged that the case land originally belonged to one Pyran Bibi who transferred the same in favour of opposite party No. 3 and his cousins, Sadhu, Radhu and Jadu, the petitioners in the revision petition, by a permanent lease deed dated 30-6-1944. Though the cousins of opposite party No. 3 were shown to be the joint purchasers yet none of them actually possessed the property. The plaintiff No. 1 who was originally inducted as a monthly tenant in respect of the case house contracted with defendant No. 1 for purchase of the same and continued to be in peaceful possession of the property on the basis of the agreement and delivery of possession. The said defendant No. 1 having failed to complete the sale, the suit for specific performance of a contract for sale was filed.

2. During the pendency of the suit, the petitioners filed an application for being impleaded as defendants in the suit alleging inter alia that on the plaintiffs' own showing they are the co-owners in respect of the suit property. A proceeding under the Orissa House Rent Control Act was instituted by them since the plaintiff defaulted in payment of rent and the petitioners require the case house for their own occupation. In the meanwhile, the plaintiff has managed to win over the defendant No. 1 and the two in collusion with each other are trying to deprive the petitioners of their legitimate rights in order to avoid multiplicity of proceeding the petitioners pleaded that they should be impleaded as defendants in the suit. As already stated the Court below rejected the application.

3. The position is well settled that a person is a necessary party if in his absence, no effective decree can be passed. He is a proper party if his presence is necessary for effectual and complete adjudication. This is the principle embodied in O. 1, R. 10(2), C.P.C which runs as follows:—

“Court may strike out or add parties:—(2) The Court may at any stage of the proceedings, either upon or without the application of either party, and on such terms as may appear to the Court to be just, order that the name of any party improperly joined, whether as plaintiff or defendant, be struck out, and that the name of any person who ought to have been joined, whether as plaintiff or defendant, or whose presence before the Court may be necessary in order to enable the Court effectually and completely to adjudicate upon and settle all the questions involved in the suit.”

In the present case it is conceded that the interveners-petitioners are not necessary parties since it cannot be said that no effective decree can be passed in the suit in their absence. Therefore, the question that remains to be considered is whether they are proper parties. For this the test that is to be applied is whether the presence of the absentee parties shall be necessary in order to enable the Court to effectually adjudicate upon and settle all questions involved in the suit. As already noticed the sole prayer in the suit is to pass a decree for specific performance of a contract for sale of the lands described in the schedule within the time fixed by the Court against the defendants, failing which the same be executed by the Court in favour of the plaintiffs. There is no prayer for possession in the suit. Hence, the subject matter for consideration in the suit relates to the enforceability or otherwise of the contract said to have been entered into between the plaintiffs and defendants. The interveners who are admittedly third parties to the contract are not concerned with the subject matter of the suit. The question of proper parties has to be decided bearing in mind the scope of the suit. If the applicants are introduced as parties in the suit, the scope of the suit would be enlarged and it would be turned into a suit for title. For effectually and completely adjudicating upon the rights between the parties to the suit, based on the contract, the presence of the petitioners is not at all necessary. It is pertinent to note here that the judgment in the suit would be a judgment inter parties and not judgment in rem and as such, it would be operative only between the parties. The argument that to avoid multiplicity of proceedings, it would be proper to join these petitioners as parties has no substance since merely on this ground, a party which does not fall within the scope of the expression which governs the question of determining as to who is a proper party cannot be joined as proper party to the suit. If this is taken as the only test, in any litigation, no party can be termed as an ‘improper party’ even if its addition in effect is to compel the plaintiff to enlarge or change the nature of his suit. To this extent it has to be recognised that the plaintiff is the dominus litus and cannot be forced to add parties against whom he does not want to fight unless it is a compulsion of the rule of law. This is, however, not to say that the right of the plaintiff is absolute in all circumstances since the principle is well accepted that it is subject to the Court's discretion vested under O. 1, R. 10, C.P.C

4. The observations made above gain support from several decisions some of which are discussed hereunder:

An identical question came up for consideration of a Full Bench of Madhya Pradesh High Court in the case of Panne Khushali v. Jeewanlal Mathoo Khatik, AIR 1976 Madh Pra 148, where the court had a reference to several decisions held that the third party to the contract sought to be specifically enforced is neither a necessary party nor a proper party to the suit.

A similar view was taken in the case of Rasiklal Shankerlal Soni v. Natverlal Shankerlal Upadhyaya, AIR 1975 Guj 178, wherein it was held that when the plaintiff is willing to take the title which his vendor had and no relief for possession of the suit properly was claimed, nor was there any relief claimed against the applicants. The latter could not be allowed to be joined as parties to the suit. They could not be said to be necessary parties, nor was their presence necessary to adjudicate upon all the questions involved in the case.

In AIR 1950 Mad 91 (N.T Palanisamy Chettiar v. Komara Chettiar) it was held that in an application under O. 1, R. 10, Civil P.C the Court should consider mainly whether the presence of the proposed parties would be necessary for adjudicating upon the question that are involved in the suit and an order for addition of parties should not be made merely with a view to avoid multiplicity of suits if otherwise their presence is not necessary for determining the real question involved in the suit: It was further held that where a plaintiff sues for specific performance of an agreement to sell impleading only the vendors and there is no allegation in the plaint that the agreement is binding on the sons of the vendors, the title of the vendors or the right of their sons to the properties agreed to be sold is not a question involved in the suit and therefore the sons of the vendors are not necessary parties to the suit and cannot be joined merely for avoiding multiplicity of suits.

In AIR 1964 Tripura, 16 (Kshetra Mohan Nath Sarma v. Mohamad Sadir), the Court held, that to a suit for specific performance of a contract of sale brought under S. 27 of the Specific Relief Act, 1877, against the defendant who has entered into the contract wherein the plaintiff has not prayed for possession of the property but only for the execution of the document of sale and its registration, persons who claim anterior title to the property even before the agreement for specific performance was entered into with the defendant are neither necessary nor proper parties and hence they cannot insist that the plaintiff should make them parties and thereby convert the suit for specific performance into one title and introduce matter in the suit which are quite foreign for obtaining the relief prayed for in the suit.

In the case of Mt. Bindru v. Sada Ram. AIR 1960 J. and K. 67 it was held by the Court that a party cannot be added under O. 1. R. 10, C.P.C in order to enable him to import an altogether new cause of action into the pending litigation; the addition of the new party must be consistent with the scope and the setting of the pending litigation. The nature and the character of the suit must not be sought to be altered by the addition of a new party.

The Bombay High Court in the case of E. Ajay Kumar v. Smt. Tulsabai, AIR 1973 Bom 330 the Court while considering a similar question observed that if the defendant against whom such a suit is filed has a defective title but agreement is properly enforceable, the plaintiff may choose to take even the defective title in such a suit. Similarly, there must be a title in part with the defendant and that may ultimately pass to the plaintiff. In neither of these cases a stranger to the agreement and hence to the controversy who claims to be entitled to the property as such can come before the Court either as necessary or proper party. The Court further observed that it cannot be said that the stranger is concerned with the relief sought or the defences raised. He not being a party and being a total stranger, any decision inter parties would not affect his right. It follows that there would be no prejudice to such a party. The Court is not settling any disputes between the plaintiff and the stranger and as such the presence of such a person is neither necessary nor of any aid to decide upon the controversy.

In the case of Mt. Nagi v. Damodhar Jagobaji Tidke, AIR 1948 Nag 181, Hidayatullah, J. (as he then was) held that scope of a suit for specific performance of an agreement for sale of land coupled with a prayer for possession cannot be enlarged and the suit turned also into a title suit. Hence stranger setting up an independent title to the land, the subject-matter of the contract of sale are not proper parties to the suit for specific performance. The plaintiffs after perfecting their title by obtaining specific performance against the executants of the agreement would be in a position to bring a fresh suit against anybody who stood in the way of obtaining possession.

5. In view of the principles laid down in the aforesaid decisions wherein in similar circumstances in a suit for specific contract for sale it has been held that the third parties to the contract are not necessary parties, with which I am in respectful agreement, no exception can be taken to the exercise of the jurisdiction by the Court below in rejecting the applications of the petitioners to be impleaded as parties.

6. In the result, the revision petition fails and the same is dismissed as devoid of merit. There will be no order as to costs of this proceeding.

Petition dismissed.