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Smart Summary

Factual and Procedural Background

A third party filed an impleadment application as LA. No. 21 of 1999 in OS. No. 292 of 1983 on the file of the Sub Court, Tiruchirapalli; that third party is the revision petitioner in this matter. The respondent in the revision is the plaintiff in the original suit.

It is alleged by the petitioner that the 7th defendant in the suit sold Plot No. 6 with buildings to the petitioner on 23-12-1991. The petitioner states that the 7th defendant had earlier purchased the property by a registered sale deed dated 4-7-1983 from the original owner S.R. Krishnasamy Iyangar (the first defendant in the suit), and that after purchase she put up further constructions. The petitioner says she was not aware of the pending litigation at the time of her purchase and that her vendors did not inform her of an alleged grant of patta in favour of the plaintiff-Temple under Tamil Nadu Act 30 of 1963. The petitioner claims to be a bona fide purchaser for value without notice during the pendency of the suit and seeks to be impleaded.

A counter affidavit was filed contending that the sale deeds in favour of both Marudhachalam and the petitioner are hit by the principle of lis pendens and that the petitioner is not a necessary party to the suit. The lower Court dismissed the impleadment application on the grounds that it was belated and that the sale in favour of the petitioner was hit by lis pendens. The revision was heard by consent for final disposal.

Legal Issues Presented

  1. Whether a transferee pendente lite (purchaser during the pendency of a suit) who applies to be impleaded is entitled to be added as a party so as to enable the Court to effectively and completely adjudicate the questions involved in the suit (i.e., application of Order I, Rule 10 CPC / related provisions cited).
  2. Whether the sale in favour of the petitioner is barred from impleadment on the ground of lis pendens, and whether that ground prevents impleading the petitioner in the existing suit.
  3. Whether the lower Court erred in dismissing the impleadment application as belated and on the ground of lis pendens.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner purchased Plot No. 6 with buildings on 23-12-1991 from the 7th defendant (who had earlier purchased on 4-7-1983 from the original owner S.R. Krishnasamy Iyangar).
  • The petitioner put up further constructions after purchase and was unaware of the pending litigation at the time of purchase.
  • The vendors did not inform the petitioner of an alleged grant of patta in favour of the plaintiff-Temple under Tamil Nadu Act 30 of 1963.
  • The petitioner claims to be a bona fide purchaser for value without notice during the pendency of the suit and seeks to be impleaded as a party to the suit.

Respondent's / Counter-affidavit Arguments

  • The sale deed in favour of the petitioner (and in favour of Marudhachalam) is contended to be hit by the principle of lis pendens.
  • The petitioner is said not to be a necessary party, because the suit has already been instituted against proper and necessary parties.
  • On those bases, the impleadment application should be dismissed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
(1999) 2 SCC 577 1999 3 L.W. 277 (Savitri Devi v. District Judge, Gprakhpur and others) That "Order I, Rule 10, CPC, enables the Court to add any person as a party at any stage of the proceedings if the person whose presence before the Court is necessary in order to enable the Court to effectively and completely adjudicate upon and settle all the questions involved in the suit" and that avoidance of multiplicity of proceedings is an object of the provision. The court relied on this decision to hold that the lower Court's order was not correct and to support the proposition that the Court can and should add necessary parties to avoid multiplicity and to adjudicate effectively.
Khimchand Shankar Choudhari v. Vishnu Hari Patil That a transferee pendente lite of an interest in immovable property which is the subject-matter of a suit is a representative-in-interest of the party from whom he acquired the interest and has a right to be impleaded; reference to Section 52 of the Transfer of Property Act and Rule 10 of Order 13, CPC (as noted in the opinion). The court took note of this authority to support the rule that a transferee who applies to be impleaded must be so impleaded and heard, reinforcing the petitioner's entitlement to impleadment.
Ramesh Hirachand Kumdammal v. Municipal Corporation of Greater Bombay The Court discussed that although the plaintiff is dominus litis and not bound to sue every possible adverse claimant, the Court may at any stage direct addition of parties; adding parties is generally a matter of judicial discretion governed by the facts and circumstances. The court cited this authority to emphasize that addition of parties is discretionary and may be directed where appropriate, supporting impleadment in the circumstances of this case.
Razia Begum v. Sahebeadi Anwar Begum The test for impleading parties that the person concerned must have a direct "interest in the action." The court referred to the test from this case to observe that a direct interest is required for impleading, and applied this standard in assessing the petitioner's claim to be impleaded.
(1983) 3 SCC 18 — Khimchand Shankar Choudhari v. Vishnu N. Patil Quotation of paragraph: Section 52 of the Transfer of Property Act binds a transferee pendente lite; a transferee is representative-in-interest and Rule 10 of Order 22 of the Code recognises the transferee's right to be impleaded and heard before any order is made; if he applies to be impleaded he must be so impleaded and heard; he is bound by prior orders and may appeal with leave where not on record. The court used this authority to explain the nature of transferee-rights, to hold that a transferee who seeks impleadment cannot be turned out and that such a transferee is bound by existing orders — justifying impleadment while preserving prior orders.
AIR 1920 Madras 391 (Veera Raghava v. Subba Reddi) That under Order 22, Rules 10 and 11, a transferee pendente lite is entitled to come on record and conduct all proceedings from the date he is added, though he is bound by all orders passed up to that date and cannot raise defences not open to his transferor. The court relied on this principle to state that the petitioner, once impleaded, may participate from that stage but is bound by prior orders and cannot raise defences unavailable to the transferor.
A.I.R. 1975 Punjab and Haryana 448 (Bakshawar Singh v. Nirmal Singh) That the assumption that impleading a transferee will create further complications is incorrect because the transferee cannot raise defences not open to the transferor and will be bound by earlier orders. The court cited this authority to reject the argument that impleading the petitioner would cause additional complications, supporting the decision to implead the petitioner while preserving existing orders.

Court's Reasoning and Analysis

The court examined the law on impleadment of transferees pendente lite and the scope of the relevant rules and statutory provision(s) cited in the authorities. It accepted the proposition from Savitri Devi that Order I, Rule 10 CPC permits addition of persons whose presence is necessary for the Court to effectively and completely adjudicate and to avoid multiplicity of proceedings.

The court relied on earlier authoritative decisions (including Khimchand Shankar Choudhari and its citations to Section 52 of the Transfer of Property Act and the relevant Order/Rule of the CPC) which hold that a transferee pendente lite is a representative-in-interest of the transferor and has a right to be impleaded and heard. The court noted authorities which emphasize:

  • A transferee who applies for impleadment must be impleaded and heard, and is bound by orders made before he is brought on record.
  • The court has discretion to add parties where necessary to adjudicate all questions and to avoid multiplicity, even though a plaintiff is dominus litis.
  • The transferee cannot raise defences not available to his transferor and will be bound by earlier orders, so fears of additional complications are unfounded.

Applying these principles to the facts, the court concluded that the lower Court's dismissal of the impleadment application as belated and on the ground of lis pendens was incorrect. The court observed that the right to impleadment of a transferee pendente lite arises from the transferee's representative-in-interest status and the applicable rules; the petitioner's request to be impleaded fell within that ambit.

Holding and Implications

Holding: The order of the lower Court is set aside and the petitioner is directed to be impleaded as an additional defendant; the Civil Revision Petition is allowed.

Implications and immediate consequences as stated by the court:

  • All orders passed in the suit up to the date of impleadment remain binding on the petitioner and are not liable to be reopened.
  • The petitioner is entitled to participate in the proceedings from the stage at which she is impleaded.
  • No costs were awarded. The connected C.P. No. 11732 of 1999 is closed.
  • The court directed the lower Court to take expeditious steps to dispose of the suit and specifically directed disposal on or before 31-12-1999 with a report of compliance.

The opinion does not identify any broader precedential change beyond applying settled authorities on transferees pendente lite and impleadment; it confines its ruling to ordering impleadment and preserving prior orders as binding on the petitioner.

    S. Sengamalam. v. The Idol Of Arulmighu Ranganathaswami, Srirangam, Rep. By Its Executive Officer.

    Third Party who filed an impleadment application as LA. No. 21 of 1999 in OS. No. 292 of 1983 on the file of Sub Court, Tiruchirapalli, is the revision petitioner. Respondent herein is the plaintiff in that suit.

    2. 7th defendant in the suit sold the property Plot No. 6 with buildings to the petitioner on 23-12-1991. It is the case of the petitioner herein that 7th defendant purchased the property under registered sale deed dated 4-7-1983 from its original owner S.R. Krishnasamy Iyangar (first defendant in the suit). After purchase, petitioner herein | has put up further constructions. It is her case that at the time when she purchased the property, she was not aware of the litigation. It is said that her vendors did not inform her about the alleged grant of patta in favour of plaintiff-Temple under Tamil Nadu Act 30 of 1963 She beings a bona fide purchaser for value without notice during the pendency of the suit, she should be impleaded in the suit.

    3. Counter affidavit was filed contending that the sale deed in favour of both Marudhachalam and petitioner herein are hit by the principle of lis pendens and, therefore, petitioner herein is not a necessary party, and she need not be impleaded. The suit has already been instituted against proper and necessary parties. Therefore, the presence of the petitioner herein is not necessary.

    4. By the impugned order, the lower Court dismissed the application holding that the application is belated, and also on the ground that the sale in favour of petitioner herein is hit by the principle of lis pendens.

    5. Respondent had also entered appearance through Counsel, and, therefore, by consent of learned Counsel on both sides, I heard the Revision itself for final disposal, at the time when it came up for admission.

    6. According to me, the order of the lower Court is not correct in view of a recent decision of the Honourable Supreme Court reported in (1999) 2 SCC 577 1999 3 L.W. 277 ( Savitri Devi v. District Judge, Gprakhpur and others ), wherein a similar question has been considered by their Lordships. Paragraphs 9 to 11 of the judgment are relevant for our purpose and they read thus:—

    "Order I, Rule 10, CPC, enables the Court to add any person as a party at any stage of the proceedings if the person whose presence before the Court is necessary in order to enable the Court to effectively and completely adjudicate upon and settle all the questions involved in the suit. Avoidance of a multiplicity of proceedings is also one of the objects of the said provision in the Code."

    In Khimchand Shankar Choudhari v. Vishnu Hari Patil this Court held that a transferee pendente lite of an interest in an immovable property which is the subject-matter of a suit is a representative in the interest of the party from whom he has acquired that interest and has a right to be impleaded as a party to the proceedings. The Court has taken note of the provisions of Section 52 of the Transfer of Property Act, 1882 and as well as the provisions of Rule 10 of Order 13, CPC. The Court said: (SCC p. 21, Para 6)

    "It may be that if he does not apply to be impleaded, he may suffer by default on account of any order passed in the proceedings. But if he applies to be impleaded as a party and to be heard, he has got to be so impleaded and heard."

    In Ramesh Hirachand Kumdammal v. Municipal Corporation of Greater Bombay this Court discussed the matter at length and held that though the plaintiff is a “dominus litus” and not bound to sue every possible adverse claimant in the same suit, the Court may at any stage of the suit direct addition of parties and generally it is a matter of judicial discretion which is to be exercised in “view of the facts and circumstances of a particular case. The Court said: (SCC p. 529, Para 8)”

    7. The case really turns on the true construction of the rule in particular the meaning of the words

    "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:"

    "The Court is empowered to join a person whose presence is necessary for the prescribed purpose and cannot under the sale direct the addition of a person whose presence is not necessary for that purpose. If the intervenor has a cause of action against the plaintiff relating to the subject-matter of the existing action, the Court has power to join the intervenor so as to give effect to the primary object of the Order which is to avoid multiplicity of actions."

    The Court also observed that though prevention of actions cannot be said to be the main object of the Rule, it is a desirable consequence of the Rule. The test for impleading parties prescribed in Razia Begum v. Sahebeadi Anwar Begum that the person concerned must be having a direct “interest in the action was reiterated by the Bench.”

    In the above said decision, Their Lordships followed an earlier decision reported in (1983) 3 SCC 18 = 1999 3 L.W. 277 Khimchand Shankar Choudhari v. Vishnu N. Patil ), wherein, in paragraph 6, it was held thus :—

    "Section 52 of the Transfer of Property Act no doubt lays down that a transferee pendente lite of an interest in an immovable property which is the subject matter of a suit from any of the parties to the suit will be bound in so far as that interest is concerned by the proceedings in the suit. Such a transferee is a representative-in-interest of the party from whom he has acquired that interest. Rule 10 of Order 22 of the Code of Civil Procedure clearly recognises the right of a transferee to be impleaded as a party to the proceedings and to be heard before any order is made . "It may be that if he does not apply to be impleaded, he may suffer by default on account of any order passed in the proceedings. But if he applies to be impleaded as a party and to be heard, he has got to be so impleaded and heard." He can also prefer an appeal against an order made in the said proceedings but with the leave of the appellate Court where he is not already brought on record. The position of a person on whom any interest has devolved on account of a transfer during the pendency of any sui t or a proceeding is somewhat similar to the position of an heir or a legatee of a party who dies during the pendency of a suit or a proceeding, or an Official Receiver who takes over the assets of such a party on his insolvency. An heir or a legatee or an Official Receiver or a transferee can participate in the execution proceedings even though their names may not have been shown in the decree, preliminary or final. If they apply to the Court to be impleaded as parties they cannot be turned out."

    In the aforesaid case, Their Lordships have also held in the same paragraph that ‘A transferee from a party of a property which is the subject-matter of partition can exercise all the rights of the transferor.’

    8. But, what are his rights? It is clear from the decision reported in (1983) 1 SCC 18 (Supra) that the transferee is a representative-in-interest of the party from whom he has acquired an interest, and the right to get impleadment is only on the basis of an assignment.

    9. In one of the earliest decisions of our High Court reported in AIR 1920 Madras 391 ( Veera Raghava v. Subba Reddi ), their Lordships of a Special Bench held thus:—

    "Under Or. 22, Rr. 10 and 11, a transferee Pendente lite is entitled to come on record and to conduct all proceedings from the date he is added as a party, though he is bound by all orders passed up to that date and cannot raise defences not open to his transferor ."

    (Emphasis)

    The said decision of our High Court was followed by the Punjab and Haryana High Court in the decision reported in A.I.R. 1975 Punjab and Haryana 448 ( Bakshawar Singh v. Nirmal Singh ). In paragraph 10 of the judgment, it has been held thus: (Head note)

    "Assumption, that if the petitioner were allowed to be added as party further complications would arise as he might raise some other pleas, is also incorrect. No complications can arise on impleading the petitioner as a party, because he cannot raise any defence not open to his transferor; besides he would be bound by all orders passed till then"
    .

    10. In view of the aforesaid settled legal position, the order of the lower Court is set aside, and petitioner herein in directed to be impleaded as additional defendant in the suit. I make it clear that all orders passed till date in the suit are binding on the petitioner herein and the same are not liable to be reopened. Petitioner is entitled to participate in the proceedings from this stage. The Civil Revision Petition is allowed as indicated above. No costs. C.P. No. 11732 of 1999 is closed.

    S.S. SUBRAMANI, J.

    Being a suit of 1983, I am sure that the lower Court will take expeditious steps in disposing of the case without any further delay. I direct the lower Court to dispose of the same on or before 31-12-1999 and report compliance.

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    Comments

    S. Sengamalam. v. The Idol Of Arulmighu Ranganathaswami, Srirangam, Rep. By Its Executive Officer.
    (Jul 30, 1999)