Sudhir Agarwal, J.@mdashHeard Sri Manish Nigam, Advocate, for petitioner. None has put in appearance on behalf of respondents No. 3 and 4, despite notice. Therefore, this writ petition was heard ex parte and judgment was reserved. The writ petition is directed against order dated 7.9.2010 passed by Additional Civil Judge (Junior Division), Court No. 12, Deoria, rejecting application No. 111KA2 filed by plaintiff under Order VI, Rule 17 C.P.C. for seeking impleadment of Sri Vijay Pratap, Ram Pravesh and Ajay, as defendants No. 5, 6 and 7, and for addition of certain paragraphs in the plaint, bringing on record subsequent facts of transfer of property in dispute by defendants No. 3 and 4 in favour of respondents No. 5 to 7 vide sale-deed dated 10.12.1999. The writ petition is also directed against revisional order dated 25.1.2012 passed by Additional District Judge, Court No. 15, Deoria, dismissing petitioner''s Revision and confirming Trial Court''s order dated 7.9.2010.
2. The facts in brief, giving rise to present dispute, are as under.
3. Petitioner, Ram Naresh, instituted Original Suit No. 1697 of 1983, for specific performance of contract, by enforcing agreement dated 19.11.1974 relating to Plots No. 604 M, 605M, 606M, 607M, 608M and 609M measuring a total area of 2 acres which was executed by Sri Kishun, predecessor of respondents No. 3 and 4 for a total consideration of Rs. 10,000/- out of which it was alleged that Rs. 4,000/- was paid by petitioner to respondents No. 3 and 4 in advance and rest Rs. 6000/- was payable at the time of execution of sale-deed. It was mentioned in the agreement that since consolidation proceedings are going on, permission of consolidation authorities is necessary before transfer and after obtaining permission the sale-deed would be executed.
4. The suit was contested by defendants by filing written statement. During pendency of suit, respondents 3 and 4 allegedly executed a registered sale-deed dated 10.12.1999 of 2/3 portion of Chak No. 506 including plots in dispute, in Original Suit No. 1697 of 1983, in favour of Vijay Pratap, Ram Pravesh and Ajay, all sons of Ram Nagina Yadav. Petitioner claimed that the said information came to his notice in the second week of December, 1999 and after getting information of the said sale-deed, plaintiff, i.e., petitioner, filed an amendment application for impleadment of subsequent purchaser as also to incorporate certain paragraphs in the plaint to bring on record subsequent events and also for addition of a relief, i.e., cancellation of sale-deed dated 10.12.1999. The said amendment application was contested by defendants by filing their objection. The aforesaid amendment application. Paper No. 73-Ka2, dated 14.8.2000 was rejected vide Trial Court by order dated 10.11.2009. It held that under section 52 of Transfer of Property Act, 1882 (hereinafter referred to as "Act, 1882") the transactions ''lis pendens'' would also be subject to result of suit and, therefore, amendment sought by plaintiff was unnecessary.
5. Again another application, i.e., paper No. 110-Ka2 dated 12.1.2010 was filed by petitioner for impleadment of subsequent purchasers of property in dispute and also for addition of paragraph 10-A in the plaint so as to bring on record subsequent events. This application was also opposed by defendant vide objection dated 15.2.2010. Trial Court vide order dated 7.9.2010 rejected this application holding that once application has been rejected earlier, no second application for the same purpose would lie and that is also barred by principles of constructive res judicata. Petitioner preferred Civil Revision No. 161 of 2010 challenging order dated 7.9.2010 before District Judge, Deoria. Revisional Court, however, rejected the said revision confirming order of Trial Court holding that neither impleadment of subsequent purchasers is necessary nor they are otherwise necessary or proper party to be impleaded in a suit for specific performance of the contract for sale in which they were not party.
6. Sri Manish Nigam, learned Counsel for petitioner, contended that it is true that subsequent purchasers may be bound by ''lis pendens'' transactions, but it cannot be said that the plaintiff, if intend to bring those purchasers on record, the same can be declined by observing that they are neither necessary nor proper party. He placed reliance on decisions of Apex Court in
7. I have heard learned Counsel for the petitioner and perused the record.
8. The application of petitioner, a copy whereof has been placed on record as Annexure-4 to the writ petition, mention Order VI, Rule 17 C.P.C., whereunder the said application was filed. The petitioner also prayed for impleadment of three persons namely Vijay Pratap, Ram Pravesh and Ajay, sons of Ram Nagina as defendants No. 5, 6 and 7. The said application was rejected by Trial Court only on the ground that similar amendment application was filed earlier, which was already rejected and, therefore, another application to the same effect is not maintainable and that the transaction of alleged sale having taken place during pendency of suit the result of suit would be binding on transferee also, therefore, amendment is wholly unnecessary and that proposed defendants are neither necessary nor proper party.
9. It is true that by virtue of section 52 of Transfer of Property Act, 1882 (hereinafter referred to as "Act, 1882") a transfer lis pendens shall bind subsequent transferee (s) also with the result of suit even if he is not a party thereto.
10. Privy Council in
"...The broad purpose of section 52 is to maintain the status quo unaffected by the act of any party to the litigation pending its determination. The applicability of the section cannot depend on matters of proof or the strength or weakness of the case on one side or the other in bona fide proceedings."
11. In
12. In
13. However, this is one aspect of the matter. That by itself does not mean that such transferee is neither necessary nor proper party at all and, therefore, cannot be impleaded at all as a defendant under any provision of law. This understanding on the part of Courts below, in my view, does not appear to be correct.
14. The Courts below have totally ignored the provisions of Order XXII, Rule 10 C.P.C., which read as under :
"10. Procedure in case of assignment before final order in suit.--(1) In other cases of an assignment, creation or devolution of any interest during the pendency of a suit, the suit may, by leave of the Court, be continued by or against the person to or upon whom such interest has come or devolved.
(2) The attachment of a decree pending an appeal therefrom shall be deemed to be an interest entitling the person who procured such attachment to the benefit of sub-rule (1)."
15. The plaintiff though without amendment and bringing subsequent transferee on record as a party, may have proceed to prosecute the suit. But that is one aspect of the matter. If he wants to bring on record subsequent transferee also, there is no bar in law from doing so. It can be done by taking recourse to Order XXII, Rule 10 C.P.C.
16. Order XXII, Rule 10 C.P.C. contemplates continuation of suit where person against whom proceedings were initiated, by way of assignment, creation or devolution of interest, has given effect to a transfer in respect to the property, to someone else. For example, where suit is filed in respect to Company ''A'' and during pendency thereof this Company ''A'' is taken over by a new Company ''B'', the suit can continue by new Company ''B''.
17. Order XXII, Rule 10 contemplates a situation arising in the cases of assignment, creation and devolution of interest during pendency of a suit, other than those referred to in earlier Rules. It is based on the principle that trial of a suit cannot be brought to an end merely on account of interest of a party, subject-matter of a suit, is devolved upon another, during its pendency. Such a suit may be continued with the leave of Court, by or against the person upon whom such interest has devolved. But, if no such step is taken, and transferee of interest is not brought on record and impleaded, that would not mean that suit cannot proceed. It may be continued with original party. The person upon whom interest has devolved, will be bound by and can have the benefit of decree, as the case may be, unless it is shown in a properly constituted proceeding that the original party being no longer interested in the proceeding did not vigorously prosecute, or colluded with the adversary, resulting in a decision, adverse to the party upon whom interest had devolved.
18. Under Order XXII, Rule 10, C.P.C, Legislature has intended that proceedings would continue by or against the original party, although he ceased to have any interest in the subject of dispute, despite the failure to apply for leave, to continue by or against the person upon whom the interest has devolved, for bringing him on record.
19. It is also plain inference drawn from the aforesaid provision that the person who has acquired an interest by devolution, if obtains leave to carry on suit, the suit in his hands is not a new suit. A cause of action is not prolonged by mere transfer of title. It is the old suit carried on at his instance and he is bound by all proceedings up to the stage when he obtains leave to carry on the proceedings. This is what was held by Lord Kingsdown of Judicial Committee in Prannath v. Rookea Begum. (1851) 7 M.I.A. 323 the Apex Court in
20. In
21. The word ''interest'' in Order XXII, Rule 10 means interest in the property i.e., the subject-matter of the suit. The "interest" is not the interest of the person who was party to the suit.
22. In
"In other words it is a case of devolution of interest and the case falls under Order XXII, Rule 10 C.P.C. and there will be no question of abatement. We, therefore, direct that the transferee be brought on the record."
23. In
"Admittedly, before their deaths, they sold their respective shares by registered sale-deeds in favour of other respondents. So, by operation of Order XXII, Rule 10 C.P.C., their respective interest devolved by transfer of the respondents who are already on record. Therefore, there is no need to bring the L.Rs. of the deceased on record or to transpose them as legal representatives."
(Emphasis added)
24. In
"Plain language of Rule 10 referred to above does not suggest that leave can be sought by that person alone upon whom the interest has devolved. It simply says that the suit may be continued by the person upon whom such an interest has devolved and this applies in a case where the interest of plaintiff has devolved. Likewise, in a case where interest of defendant has devolved, the suit may be continued against such a person upon whom interest has devolved, but in either eventuality, for continuance of the suit against the persons upon whom the interest has devolved during the pendency of the suit, leave of the Court has to be obtained. If it is laid down that leave can be obtained by that person alone upon whom interest of party to the suit has devolved during its pendency, then there may be preposterous results as such a party might not be knowing about the litigation and consequently not feasible for him to apply for leave and if a duty is cast upon him then in such an eventuality he would be bound by the decree even in cases of failure to apply for leave. As a rule of prudence, initial duty lies upon the plaintiff to apply for leave in case the factum of devolution was within his knowledge or with due diligence could have been known by him. The person upon whom the interest has devolved may also apply for such a leave so that his interest may be properly represented as the original party, if it ceased to have an interest in the subject-matter of dispute by virtue of devolution of interest upon another person, may not take interest therein, in ordinary course, which is but natural, or by colluding with the other side. If the submission of Shri Mishra is accepted, a party upon whom interest has devolved, upon his failure to apply for leave, would be deprived from challenging correctness of the decree by filing a properly constituted suit on the ground that the original party having lost interest in the subject of dispute, did not properly prosecute or defend the litigation or, in doing so, colluded with the adversary. Any other party, in our view, may also seek leave as, for example, where plaintiff filed a suit for partition and during its pendency he gifted away his undivided interest in the Mitakshara Coparcenary in favour of the contesting defendant, in that event the contesting defendant upon whom the interest of the original plaintiff has devolved has no cause of action to prosecute the suit, but if there is any other co-sharer who is supporting the plaintiff, may have a cause of action to continue with the suit by getting himself transposed to the category of plaintiff as it is well settled that in a partition suit every defendant is plaintiff, provided he has cause of action for seeking partition. Thus, we do not find any substance in this submission of learned Counsel appearing on behalf of the appellant and hold that prayer for leave can be made not only by the person upon whom interest has devolved, but also by the plaintiff or any other party or person interested."
(Emphasis added)
25. In
"In case of an assignment creation or devolution of any interest during the pendency of any suit to grant leave for 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 in the discretion of the Court. Though not brought on record the lis pendens transferee remains bound by the decree."
(Emphasis added)
26. Similar issue also came up for consideration in
27. In
"16.....Further pending the suit, the transferee is not entitled as of right to be made a party to the suit, though the Court has a discretion to make him a party. But the transferee pendente lite can be added as a proper party if his interest in the subject-matter of the suit is substantial and not just peripheral. A transferee pendente lite to the extent he has acquired interest from the defendant is vitally interested in the litigation, where the transfer is of the entire interest of the defendant; the latter having no more interest in the property may not properly defend the suit. He may collude with the plaintiff. Hence, though the plaintiff is under no obligation to make a lis pendens transferee a party, under Order XXII, Rule 10 an alienee pendente lite may be joined as party. As already noticed, the Court has discretion in the matter which must be judicially exercised and an alienee would ordinarily be joined as a party to enable him to protect his interests. The Court has held that a transferee pendente lite of an interest in immovable property is a representative-in-interest of the party from whom he has acquired that interest. He is entitled to be impleaded in the suit or other proceedings where his predecessor-in-interest is made a party to the litigation; he is entitled to be heard in the matter on the merits of the case."
(Emphasis added)
28. Referring to the aforesaid observations in Amit Kumar shaw (supra), the Court in A. Nawab John (supra) in para 22 said as under :
"22. The preponderance of opinion of this Court is that a pendente lite purchaser''s application for impleadment should normally be allowed or "considered liberally"."
29. Recently in
30. The Court in Thomson Press (India) Limited (supra) also referred to section 19 of Specific Relief Act, 1963 (hereinafter referred to as Act 1963") and Order I, Rule 10. With reference to Order I, Rule 10, the Court referred to its earlier decision in
"A simple reading of the above provision would show that in cases of assignment, creation or devolution of any interest during the pendency of a suit, the suit may, by leave of the Court, be continued by or against the person to or upon whom such interest has come or devolved. What has troubled us is whether independent of Order I, Rule 10 C.P.C. the prayer for addition made by the appellant could be considered in the light of the above provisions and, if so, whether the appellant could be added as a party-defendant to the suit. Our answer is in the affirmative. It is true that the application which the appellant made was only under Order I, Rule 10 C.P.C. but the enabling provision of Order XXII, Rule 10 C.P.C. could always be invoked if the fact situation so demanded. It was in any case not urged by the Counsel for the respondents that Order XXII, Rule 10could not be called in aid with a view to justifying addition of the appellant as a party-defendant. Such being the position all that is required to be examined is whether a transferee pendente lite could in a suit for specific performance be added as a party- defendant and, if so, on what terms."
(Emphasis added)
31. His Lordship, in para 57, of the judgment in Thomson Press (India) Limited (supra) while summing up the matter, said as under :"57. To sum up:
57.1 The appellant is not a bona fide purchaser and is, therefore, not protected against specific performance of the contract between the plaintiffs and the defendant owners in the suit.
57.2 The transfer in favour of the appellant pendente lite is effective in transferring title to the appellant but such title shall remain subservient to the rights of the plaintiff in the suit and subject to any direction which the Court may eventually pass therein.
57.3 Since the appellant has purchased the entire estate that forms the subject-matter of the suit, the appellant is entitled to be added as a party-defendant to the suit.
57.4 The appellant shall as a result of his addition raise and pursue only such defences as were available and taken by the original defendants and none other."
32. The aforesaid decisions make it very clear that subsequent transferee can be impleaded as party in the suit where plaintiff is seeking enforcement of an agreement for sale and has come up for specific performance though it is wholly unnecessary for plaintiff to challenge conveyance/sale-deed executed by defendants during pendency of suit to the party proposed to be brought on record in the suit.
33. The writ petition, therefore, is partly allowed. The impugned orders passed by Courts below are hereby set aside to the extent they have declined to add Vijay Pratap, Ram Pravesh and Ajay as defendants No. 5, 6 and 7 in the suit in question and they are directed to allow the aforesaid persons to be brought on record as defendants in the suit. No costs.