When Buyers Knock: Reopening the Door of Justice for Pendente Lite Purchasers

 


Introduction
The Patna High Court, in its judgment dated 22nd October 2024 in Civil Miscellaneous Jurisdiction No. 1097 of 2017, delivered by Justice Arun Kumar Jha, addressed a significant procedural dispute under Order I Rule 10(2) of the Code of Civil Procedure, 1908 (CPC). The case revolved around whether purchasers of property during the pendency of litigation (i.e., pendente lite) could be impleaded as parties to an ongoing suit. This judgment reaffirms the discretionary power of courts to allow such impleadment, balancing technical legal principles with equitable considerations.


Backdrop of the Case

The petitioners in this case were purchasers of suit land involved in Title Suit No. 68 of 2001, pending before the Sub-Judge IV, Rohtas. These purchasers sought to be impleaded as defendants under Order I Rule 10(2) CPC. Their applications, dated 16.11.2016, were rejected by the trial court primarily because:

  1. The purchase had been made during the pendency of the suit.
  2. The trial was already at the evidence stage, and impleading new parties could delay adjudication.
  3. Allowing such applications might open the floodgates for numerous similar claims.

This rejection led the petitioners to invoke Article 227 of the Constitution of India, which empowers the High Court to supervise and correct jurisdictional errors by subordinate courts.


Arguments Raised by the Petitioners

The petitioners argued that:

  • They were bonafide purchasers, unaware of the pending litigation.
  • As purchasers, they had acquired a legitimate interest in the suit property.
  • The trial court failed to appreciate that, even as pendente lite purchasers, they could still qualify as necessary or proper parties under Order I Rule 10(2).
  • The rejection amounted to a failure to exercise jurisdiction vested in the trial court.

Stance of the Respondents

Interestingly, the plaintiffs/respondents did not object to the impleadment. This became a pivotal factor in the High Court's reasoning, as their willingness diluted the adversarial intensity usually associated with such applications.


Legal Framework: Order I Rule 10(2) CPC

This provision grants the court the authority to:

"Add any person as plaintiff or defendant whose presence before the court is necessary to enable it to adjudicate effectively and completely all questions involved in the suit."

Thus, the provision grants wide judicial discretion to ensure complete justice.


Judicial Interpretation and Precedents

Justice Arun Kumar Jha built his reasoning on the strong foundation of Supreme Court jurisprudence, especially four landmark cases:


1. Mumbai International Airport v. Regency Convention Centre (2010) 7 SCC 417

This judgment clarified that:

  • A necessary party is one without whom no effective decree can be passed.
  • A proper party is one whose presence is required to adjudicate the dispute completely.

It held that the court has the discretion to implead proper parties, even against the wishes of the plaintiff, if their presence aids adjudication.


2. Kasturi v. Iyyamperumal (2005) 6 SCC 733

This case emphasized that a party is necessary if:

  • No relief can be granted without them.
  • Their presence is essential to settle the questions involved.

It stressed that impleadment should not be allowed merely because a party has some interest unless it directly affects the outcome of the suit.


3. Sumtibai v. Paras Finance Co. (2007) 10 SCC 82

Here, the Supreme Court allowed impleadment even where the party had only a "semblance of interest" in the property. This marked a more inclusive approach and expanded the scope of "proper party" beyond rigid technicalities.


4. Amit Kumar Shaw v. Farida Khatoon (AIR 2005 SC 2209)

This judgment was critical in the present case. It held that:

  • A transferee pendente lite (a person who acquires interest in a property during litigation) is a representative-in-interest of the transferor.
  • They may be impleaded to defend their interest, especially if the transferor might not adequately represent them due to loss of interest or potential collusion.

This doctrine harmonizes the doctrine of lis pendens (which makes transfers during litigation subject to the outcome) with procedural fairness.


High Court’s Observations and Analysis

Justice Jha observed that the trial court's reasoning suffered from jurisdictional error on multiple counts:

  1. Failure to Recognize Discretionary Power: The trial court treated pendente lite purchasers as automatically disqualified, which is incorrect in law. Courts can permit such impleadment to avoid multiplicity of litigation and ensure comprehensive adjudication.
  2. Ignoring Respondents’ No-Objection: Since the plaintiffs had no objection, denying impleadment lacked justification, especially when no prejudice was demonstrated.
  3. Overemphasis on Stage of Trial: While late-stage impleadment might cause inconvenience, it is not a bar when the interests involved are substantial. Moreover, no alternative was provided to protect the petitioners' interest.
  4. Multiplicity of Proceedings: Denial of impleadment would force the petitioners to file fresh suits to protect their interests—something the legal system aims to avoid.
  5. Misinterpretation of “Floodgate” Concern: Apprehensions about multiple similar petitions are speculative. The court's role is to assess each case on its merits.

Final Verdict

The Patna High Court set aside the trial court’s order dated 13.04.2017 and allowed both the impleadment applications dated 16.11.2016 filed by the petitioners under Order I Rule 10(2).

The Court firmly concluded that:

“The learned trial court committed error of jurisdiction when it dismissed the petitions of the petitioners.”

Thus, the petitioners were permitted to be impleaded as defendants in the ongoing suit.


Key Takeaways and Implications

1. Justice over Technicality

The judgment reiterates that substantive justice must prevail over procedural rigidity, especially when parties have acquired a real interest during litigation.

2. Court’s Discretion is Paramount

Order I Rule 10(2) CPC is not merely procedural; it is a tool for justice. Courts must exercise discretion judiciously, especially when omitting a party would result in fragmented litigation.

3. Protection of Pendente Lite Purchasers

Though such purchasers buy property at their own risk (because of the doctrine of lis pendens), the law does not bar them from being heard. This judgment protects their right to defend their interest.

4. No Blanket Rule Against Late Impleadment

The stage of the trial is a factor, not a deciding principle. Even during evidence recording, a party with a genuine interest may be impleaded.

5. Respect for Plaintiff’s Will – But Not Absolute

Although the plaintiff is dominus litis, courts can override their preference if justice demands so—especially when the party seeking impleadment has substantial interest.


Conclusion

The Patna High Court’s decision in this case is a significant reaffirmation of the inclusive and equitable spirit of civil procedural law. It emphasizes that litigation is not a private fiefdom of the plaintiff but a public process that must serve justice for all interested parties. The court’s approach balances the plaintiff's autonomy, the rights of subsequent purchasers, and the need for judicial efficiency.

By allowing the petitioners to be impleaded, the Court not only corrected a procedural wrong but also reinstated the confidence of property purchasers that the judiciary remains accessible, fair, and responsive—even when they enter the legal fray after the battle has already begun.

Read the full judgement Below;

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