AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Order 22 Rule 10 of the Code of Civil Procedure
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 52 of the Transfer of Property Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Order 22 Rule 10 of the Code of Civil Procedure
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 52 of the Transfer of Property Act
Smart Summary

Factual and Procedural Background

The petitioners approached the Supreme Court by way of a Special Leave Petition challenging a judgment of the Rajasthan High Court. The High Court had affirmed an order of a learned Single Judge permitting Respondent 1 Society to be impleaded under Order 22 Rule 10 of the Code of Civil Procedure (CPC) after an alleged long delay. The petitioners contended that the impleadment application should have been rejected on grounds of laches, whereas the High Court held that the discretion conferred by Order 22 Rule 10 had been properly exercised. The Supreme Court’s order under review decides whether that conclusion warrants interference.

Legal Issues Presented

  1. Whether the High Court correctly upheld the learned Single Judge’s decision allowing Respondent 1 Society to come on record under Order 22 Rule 10 CPC despite the application being filed after a substantial lapse of time.

Arguments of the Parties

Petitioners’ Arguments

  • The application under Order 22 Rule 10 was made after an inordinate and unexplained delay and should have been dismissed.
  • They relied on Raj Kumar v. Sardari Lal (2004) 2 SCC 601, Amit Kumar Shaw v. Farida Khatoon (2005) 11 SCC 403, Vidur Impex & Traders P Ltd. v. Tosh Apartments P Ltd. (2012) 8 SCC 384, Bibi Zubaida Khatoon v. Nabi Hassan Saheb (2004) 1 SCC 191 and Thomson Press (India) Ltd. v. Nanak Builders & Investors P Ltd. (2013) 5 SCC 397 to contend that delay defeats a claim for impleadment and that the court’s discretion should be exercised sparingly.

Respondent 1 Society’s Arguments

  • Order 22 Rule 10 prescribes no limitation period; the right to apply is a “continuous right” exercisable at any time during pendency of the suit.
  • Delay or laches considerations and the concept of abatement are relevant to Rules 3 and 4, not to Rule 10.
  • The court’s discretion is the controlling factor, and a prima facie satisfaction suffices at the leave-granting stage.
  • Relied on State of Orissa v. Ashok Transport Agency (2005) 1 SCC 536, Dhurandhar Prasad Singh v. Jai Prakash University (2001) 6 SCC 534 and Baijnath Ram v. Tunkowati Kuer, 1962 SCC OnLine Pat 5, AIR 1962 Pat 285 to support these propositions.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Raj Kumar v. Sardari Lal (2004) 2 SCC 601 Impleadment of a lis pendens transferee is discretionary under Order 22 Rule 10. Court noted the discretionary nature of impleadment but found the decision did not assist the petitioners’ objection to delay.
Amit Kumar Shaw v. Farida Khatoon (2005) 11 SCC 403 No detailed enquiry is needed at the leave stage; only prima facie satisfaction is required. Supported the view that the High Court could grant leave without exhaustive examination, undermining the petitioners’ delay argument.
Vidur Impex & Traders (P) Ltd. v. Tosh Apartments (P) Ltd. (2012) 8 SCC 384 Concerned impleadment under Order 22 Rule 10 and Section 52 TPA. Court found the facts distinguishable; precedent not determinative of present dispute.
Bibi Zubaida Khatoon v. Nabi Hassan Saheb (2004) 1 SCC 191 Similar context of impleadment and lis pendens. Held inapplicable to the specific facts at hand.
Thomson Press (India) Ltd. v. Nanak Builders & Investors (P) Ltd. (2013) 5 SCC 397 Addresses Order 22 Rule 10 and Section 52 TPA. Likewise distinguished; did not aid the petitioners.
State of Orissa v. Ashok Transport Agency (2005) 1 SCC 536 Assignee’s right to continue proceedings; discretion under Order 22 Rule 10. Cited by respondent; supports view that the assignee may seek impleadment at any stage while proceedings are pending.
Dhurandhar Prasad Singh v. Jai Prakash University (2001) 6 SCC 534 Continuous right to apply; no abatement under Rule 10. Bolstered respondent’s contention that limitation principles of Rules 3/4 do not apply.
Baijnath Ram v. Tunkowati Kuer, 1962 SCC OnLine Pat 5, AIR 1962 Pat 285 (FB) No limitation for applications under Order 22 Rule 10; application may be made any time; discretion of court. Quoted with approval; reinforced that delay alone is not fatal to an Order 22 Rule 10 application.

Court's Reasoning and Analysis

The Supreme Court examined each precedent cited by the petitioners and concluded that, although those judgments recognise judicial discretion in bringing a transferee on record, they do not mandate dismissal solely because of delay. The Court emphasised:

  • Order 22 Rule 10 vests the trial court with discretion; impleadment is not a matter of right but neither is it barred by lapse of time.
  • As held in Amit Kumar Shaw, only a prima facie inquiry is necessary at the leave-granting stage; questions regarding the validity of the transfer can be dealt with at final hearing.
  • Limitation concepts that govern substitution under Rules 3 and 4 do not apply to Rule 10, a view fortified by the Full Bench decision in Baijnath Ram.
  • The precedents invoked by the petitioners concerning Section 52 of the Transfer of Property Act or differing factual matrices were distinguishable and therefore inapposite.

Finding that the High Court correctly appreciated these principles and exercised its discretion judicially, the Supreme Court saw no ground to interfere under Article 136.

Holding and Implications

The Special Leave Petition is dismissed.

The High Court’s order permitting Respondent 1 Society to be impleaded under Order 22 Rule 10 CPC stands affirmed. The ruling re-affirms that applications under Rule 10 are not time-barred and that the question of delay is subsumed within the court’s broad discretion. No new legal precedent is created, but the decision underscores existing jurisprudence on the non-applicability of limitation to Rule 10 applications and the limited scope of Supreme Court interference with discretionary orders.

    Chandra Bai (Dead) Through Legal Representatives v. Khandalwal Vipra Vidyalaya Samiti And Others

    Order

    1. The only question raised before this Court is whether the High Court has correctly upheld 2007 SCC OnLine Raj 52, AIR 2008 Raj 1 the order of the learned Single Judge allowing the application filed under Order 22 Rule 10 of the Code of Civil Procedure by Respondent 1 Society.

    2. Mr Puneet Jain, learned counsel appearing on behalf of the petitioners submitted that the High Court ought to have dismissed the application since the application had been filed before the Court after long delay. In support of his submissions he relied upon the following decisions of this Court: Raj Kumar v. Sardari Lal (2004) 2 SCC 601, Amit Kumar Shaw v. Farida Khatoon (2005) 11 SCC 403, Vidur Impex & Traders (P) Ltd. v. Tosh Apartments (P) Ltd. (2012) 8 SCC 384, Bibi Zubaida Khatoon v. Nabi Hassan Saheb (2004) 1 SCC 191 and Thomson Press (India) Ltd. v. Nanak Builders & Investors (P) Ltd. (2013) 5 SCC 397

    3. We have duly taken note of these decisions and it appears to us that in Raj Kumar v. Sardari Lal (2004) 2 SCC 601 this Court has held that in case of an assignment, creation or devolution of any interest during the pendency of any suit, Order 22 Rule 10 CPC confers a discretion on the court hearing the suit to grant leave to the person in or upon whom such interest has come to vest or devolve to be brought on record. Bringing of a lis pendens transferee on record is not as of right but is the discretion of the court.

    4. We have also noticed that in Amit Kumar Shaw v. Farida Khatoon (2005) 11 SCC 403 this Court has held that it is not necessary to make a detailed enquiry at the stage of granting leave under Order 22 Rule 10 CPC. The Court at that point of time has to be prima facie satisfied for exercising its discretion in granting leave for continuing the suit by or against the person on whom the interest has devolved by assignment or devolution. The question about the existence and validity of the assignment or devolution can be considered at the final hearing of the proceedings.

    5. In Vidur Impex & Traders (P) Ltd. (2012) 8 SCC 384, Bibi Zubaida Khatoon (2004) 1 SCC 191 and Thomson Press (India) Ltd. (2013) 5 SCC 397 this Court though dealt with impleadment under Order 22 Rule 10 CPC and Section 52 of the Transfer of Property Act the said decisions do not apply to the facts of this case. Therefore, the judgments cited by Mr Jain, in our opinion, cannot help him in the attendant facts and circumstances.

    6. Mr Sanjib Sen, learned Senior Counsel appearing for Respondent 1 Society submitted that in a case under Order 22 Rule 10 CPC, where rights are derived by an assignee or a successor-in-interest pending litigation, it is for that assignee or transferee to come on record if he so chooses and to defend the suit. In support of his submission he relied on the decisions of this Court in State of Orissa v. Ashok Transport Agency (2005) 1 SCC 536 and Dhurandhar Prasad Singh v. Jai Prakash University (2001) 6 SCC 534 and pointed out that under Order 22 Rule 10, the right of the assignee and/or the successor-in-interest will continue when there has been a devolution of interest during the pendency of a suit. The suit can, by leave of the Court, be continued by or against the persons upon whom such interest has devolved and this entitles the person who has acquired interest in the subject-matter of a litigation by assignment or creation or devolution of interest pendente lite or any other person in interest, to apply to the Court for leave to continue the suit.

    7. Mr Sanjib Sen further contended that no period of limitation is prescribed under Order 22 Rule 10 CPC. In fact the right to apply under this Rule is a continuous right and application can therefore be made at any time till the proceedings are pending. He further contended that the question of delay/laches or setting aside abatement of suit arises only where the case falls under Order 22 Rule 3 or Rule 4 and not where the case is covered by Rule 10. According to him, it is the discretion of the Court and if the Court is prima facie satisfied with the facts so pleaded before the Court, it can allow such application.

    8. We have further noticed that in Baijnath Ram v. Tunkowati Kuer 1962 SCC OnLine Pat 5, AIR 1962 Pat 285 the Full Bench of the Patna High Court has held: (SCC OnLine Pat para 15)

    “15. … Another thing to notice in connection with this rule is that a party on whom the interest of the deceased plaintiff or defendant devolves is not entitled to continue the suit or appeal as a matter of right, it is essential to obtain the leave of the Court. The granting of leave is within the discretion of the Court. The Court, however, is to exercise its discretion judicially and according to well-established principles. Further, unlike Rules 3 and 4, no limitation is prescribed for presentation of an application under this rule and no penalty is laid down for failure to substitute the person on whom the interest of the deceased plaintiff or defendant was devolved. Therefore, the right to make an application under this rule is a right which accrues from day to day and can be made at any time during the pendency of a suit. There is no abatement under this rule.”
    (emphasis supplied)

    9. Accordingly, we find that the High Court, after considering the facts and circumstances of this case, has correctly come to the conclusion in the matter and we do not have any room to interfere with the order so passed by the High Court. Accordingly, the special leave petition is dismissed.

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    Comments

    Chandra Bai (Dead) Through Legal Representatives v. Khandalwal Vipra Vidyalaya Samiti And Others
    (Jan 11, 2016)