Created byFuzzy Cloud

Supreme Court of India

NAK ENGINEERING COMPANY PVT. LTD.versusTARUN KESHRICHAND SHAH AND ORS.

Citation
2026 INSC 8
Decided
5 January 2026
Disposal
Dismissed

Holding

The appellant is neither a necessary nor a proper party to the suit, and the High Court's order setting aside its impleadment is affirmed.

Summary

The suit was filed by the heirs of a property owner to recover service charges from a sub-tenant, respondent No.3, who failed to appear, leading to an ex‑parte decree. The appellant, NAK Engineering Company Pvt. Ltd., later sought to be impleaded, claiming it was the successor of respondent No.3 under the Companies Act, 1956. The trial court allowed the impleadment, but the High Court, exercising supervisory jurisdiction under Article 227, set aside that order, holding the appellant was neither a necessary nor a proper party. On appeal, the Supreme Court examined the criteria for necessary and proper parties, the evidentiary requirement to prove successorship, and the effect of the appellant’s nine‑year delay in seeking impleadment. It concluded that the appellant had not established a direct legal interest in the controversy and that the suit could proceed without it. Consequently, the Court dismissed the appeals and affirmed that the decree would not be enforced against the appellant.

Issues considered

  • Whether the appellant is a necessary party to the suit for recovery of service charges.
  • Whether the appellant is a proper party to be impleaded despite not being a necessary party.
  • Whether the Certificate of Incorporation under the Companies Act, 1956, establishes the appellant as the successor of respondent No.3.
  • Whether the High Court had jurisdiction under Article 227 to set aside the trial court's order of impleadment.
  • Whether the appellant's delay of nine years in seeking impleadment bars its inclusion.

Legislation cited

Headnote

Issue for Consideration Under challenge in these appeals is the judgment and order of the High Court dated 21.02.2022 setting aside the order of the court of first instance permitting impleadment of the appellant as one of the defendants to the suit. Headnotes† Suit – charges – A suit was instituted by respondent nos.1 and 2 against respondent no.3 for the recovery of service charges – Notice was served upon sole defendant i.e., respondent no.3 but no one appeared – The Court proceeded ex-parte – Thereafter, the appellant filed an

Subjects

Dominus LitisNecessary PartyProper PartyPrivity of ContractSuccessor-in-InterestImpleadmentInordinate DelayEx-Parte

Judgment

                   [2026] 1 S.C.R. 504 : 2026 INSC 8

                NAK Engineering Company Pvt. Ltd.
                                v.
                 Tarun Keshrichand Shah and Ors.
                     (Civil Appeal No(s). 46-47 of 2026)
                                05 January 2026
           [Pankaj Mithal* and Prasanna B. Varale, JJ.]


                            Issue for Consideration
       Under challenge in these appeals is the judgment and order of the
       High Court dated 21.02.2022 setting aside the order of the court
       of first instance permitting impleadment of the appellant as one
       of the defendants to the suit.

                                   Headnotes†
       Suit – Recovery of service charges – A suit was instituted
       by respondent nos.1 and 2 against respondent no.3 for the
       recovery of service charges – Notice was served upon sole
       defendant i.e., respondent no.3 but no one appeared – The
       Court proceeded ex-parte – Thereafter, the appellant filed an
       application for being impleaded as the defendant in this suit
       contending that it is a successor of respondent no.3 – The
       court of first instance vide order dated 05.10.2018 allowed
       the motion to add the appellant as one of the defendants –
       However, the impleadment of the appellant was revoked by
       the High Court on the ground that it is not a proper or a
       necessary party to the suit – Correctness:
       Held: The appellant has relied upon the Certificate of Incorporation
       dated 22.02.1988 to claim that it has succeeded the respondent
       no.3 – Its incorporation or its Certificate of Incorporation in no way
       conclusively proves that it has come into existence as a successor
       of respondent no.3 – In such circumstances, appellant cannot be
       accepted to be the successor of respondent no.3 so as to permit it
       to be impleaded and to defend the suit for the recovery of service
       charges – The appellant has nowhere established its independent
       right to be impleaded to defend the suit except for claiming to be
       the successor of respondent no.3 which, in opinion of this Court,


* Author
[2026] 1 S.C.R.                                                               505

                    NAK Engineering Company Pvt. Ltd. v.
                      Tarun Keshrichand Shah and Ors.

     has no legs to stand – In the case at hand, the respondent nos.1
     and 2 are not claiming any relief against the appellant – There is
     no iota of material to indicate that the relief, as claimed in the suit
     against respondent no.3, if granted, would be implemented against
     the appellant – Therefore, the appellant is not a necessary party
     to the suit – The appellant cannot also be construed as a proper
     party once it has failed to establish that it is a successor to the
     respondent no.3 – In the absence of any evidence to prove that
     respondent no.3 has ceased to exist or cannot be represented in the
     suit on its own to contest it on merits – This apart, the respondent
     nos.1 and 2 who have instituted the suit are dominus litis and it
     is for them to choose their adversaries – If they do not array the
     proper and necessary parties to the suit, they do it at their own
     risk – They cannot be compelled to add a party to defend a suit –
     Besides, the summons issued in the suit meant to be served upon
     respondent no.3, were served in the year 2008 – The seal and
     signatures on the acknowledgement on the said summons is of the
     appellant – However, the appellant kept silent – The impleadment
     application was filed almost after nine years of the knowledge –
     Thus, the impleadment has been rightly refused to the appellant
     by the High Court. [Paras 30, 31, 37, 38, 39, 42]

                               Case Law Cited
     Ramesh Hirachand Kundanmal v. Municipal Corporation of
     Greater Bombay [1992] 2 SCR 1 : (1992) 2 SCC 524; Kasturi v.
     Iyyamperumal [2005] 3 SCR 864 : (2005) 6 SCC 733; Mumbai
     International Airport (P) Ltd. v. Regency Convention Centre &
     Hotels (P) Ltd. [2010] 7 SCR 790 : (2010) 7 SCC 417; Vidur
     Impex & Traders (P) Ltd. v. Tosh Apartments (P) Ltd. [2012] 10
     SCR 307 : (2012) 8 SCC 384; Kanaklata Das v. Naba Kumar Das
     [2018] 1 SCR 806 : (2018) 2 SCC 352 – relied on.

                                 List of Acts
     Constitution of India; Companies Act, 1956.

                              List of Keywords
     Dominus Litis; Necessary Party; Proper Party; Privity of
     Contract; Successor-in-Interest; Impleadment; Inordinate Delay;
     Ex-Parte.
506                                                           [2026] 1 S.C.R.

                                     Supreme Court Reports


                                         Case Arising From
       CIVIL APPELLATE JURISDICTION: Civil Appeal No(s). 46-47 of
       2026
       From the Judgment and Order dated 21.02.2022 of the High Court
       of Judicature at Bombay in WP Nos. 3455 and 3456 of 2019

                                    Appearances for Parties
       Advs. for the Appellant(s):
       Chander Uday Singh, Sr. Adv., Amarjit Singh Bedi, Ms. Surekha
       Raman, Harshit Singh, Sidharth Nair, Shreyash Kumar, M/s K J
       John And Co.
       Advs. for the Respondent(s):
       Abhinav Chandrachud, Surjendu Sankar Das, Ms. Annie Mittal,
       Janay Jain, Ms. Yugandhara Pawar Jha, Siddharth Dharmadhikari,
       Aaditya Aniruddha Pande.

                       Judgment / Order of the Supreme Court

                                              Judgment

       Pankaj Mithal, J.

1.     Leave granted.
2.     We have heard Shri Chander Uday Singh, senior counsel assisted
       by Shri Amarjit Singh Bedi, Advocate-on-Record for the appellant-
       NAK Engineering Company Pvt. Ltd.1 and Dr. Abhinav Chandrachud,
       learned counsel assisted by Shri Surjendu Sankar Das, Advocate-
       on-Record for the respondent No.1- Tarun Keshrichand Shah2.
3.     Respondent No.2- Priyalata Keshrichand Shah3 is reported to be
       dead and her interest is represented by respondent No.1.
4.     Respondent No.3- M/s Kishore Engineering Company4 has not
       appeared. It had not even appeared in the Trial Court or the High


1    Hereinafter referred to as ‘appellant’
2    Hereinafter referred to as ‘respondent No.1’
3    Hereinafter referred to as ‘respondent No.2’
4    Hereinafter referred to as ‘respondent No.3’
[2026] 1 S.C.R.                                                         507

                    NAK Engineering Company Pvt. Ltd. v.
                      Tarun Keshrichand Shah and Ors.

     Court. It has not even filed any written statement, despite service
     of notice.
5.   In a Suit No.6117 of 2007 filed by respondent No.1 and respondent
     No.2 against respondent No.3, a Notice of Motion No.1346 of 2018
     was moved to add the appellant as the party defendant to participate
     and contest the aforesaid suit. Earlier, a Notice of Motion No. 1925
     of 2017 was also moved by the appellant seeking to set aside the
     order to proceed in the said suit ex-parte. Both the said motions
     were allowed by the court of first instance vide a common Order
     dated 05.10.2018. However, the said order was set aside by the
     High Court by the impugned judgment and order dated 21.02.2022
     in exercise of its power under Article 227 of the Constitution of India.
6.   Under challenge in these appeals is thus the above judgment and
     order of the High Court dated 21.02.2022 setting aside the order of
     the court of first instance permitting impleadment of the appellant as
     one of the defendants to the suit meaning thereby that the motion
     of addition of the appellant as one of the defendants to the suit
     stands rejected.
7.   One Keshrichand Shah was the original owner of the commercial
     premises admeasuring 1700 sq. feet existing on the third floor of
     the Churchgate House, Mumbai. He was the sole proprietor of M/s
     Union Commercial Corporation. The aforesaid Keshrichand Shah
     through its proprietorship firm M/s Union Commercial Corporation
     let out an area of 525 square feet of the above premises having five
     cabins to one M/s Modern Products Pvt. Ltd. The said M/s Modern
     Products Pvt. Ltd. licensed or sublet the same to the respondent
     no.3. In addition to the rent of Rs.400/- per month payable to M/s
     Modern Products Pvt. Ltd., the respondent No.3 also used to pay
     service charges at the rate of Rs.2,100/- per month for the use of
     furniture and fixtures therein to the owner, Keshrichand Shah. On
     the death of Kesharichand Shah, the said service charges were
     realized by his heirs, i.e., respondent nos.1 and 2.
8.   The respondent Nos.1 and 2 instituted a Suit No.3319 of 2007 on
     the original civil side of the Bombay High Court but on account of
     pecuniary jurisdiction it was later transferred to the Bombay City Civil
     Court and re-numbered as Suit No.6117 of 2017.
508                                                       [2026] 1 S.C.R.

                         Supreme Court Reports


9.     The aforesaid suit was instituted by respondent Nos.1 and 2 against
       respondent No.3 for the recovery of service charges at the rate
       of Rs.2,100/- per month, amounting to Rs.75,600/- for the period
       November 2004 to October 2007.
10. In the aforesaid suit, notice was served upon sole defendant i.e.,
    respondent no.3 but no one appeared on its behalf and filed any
    written statement. Thus, after closing the evidence on 11.02.2014, the
    court vide order dated 12.11.2014 proceeded ex-parte in the matter.
11. It was much thereafter on 02.04.2018 that the appellant filed
    an application for being impleaded as the defendant in this suit
    contending that it is a successor of respondent No.3 under Part IX
    of the Companies Act, 1956. The appellant is actually running the
    business of respondent No.3. Therefore, it is a necessary party to
    the suit.
12. The appellant contended that it had acquired knowledge of the suit
    only on 02.10.2012 and that it has proceeded ex-parte against the
    respondent No.3. There was no proper service of the notice upon
    the respondent No.3 or upon the appellant. It was contended that the
    appellant has drawn separate proceedings for getting the ex-parte
    order set aside. The appellant had no knowledge of the transfer of
    the suit from the Bombay High Court to the City Civil Court as no
    notice in this regard was received or served upon it.
13. It may be not out of context to mention here that the respondent
    Nos.1 and 2 apart from instituting the above suit had also filed a
    suit for the eviction of the respondent No.3 and the appellant and its
    Directors from the premises in dispute in the Small Causes Court.
    This apart, a criminal complaint was also lodged against the appellant
    and its Director–Himanshu Patwa on account of dishonour of two
    cheques of Rs.2,100/- and Rs.400/- issued by them in respect of
    the monthly service charges and the rent respectively in connection
    with the demised premises.
14. It is in the above background that the court of first instance vide
    order dated 05.10.2018 allowed the motion to add the appellant as
    one of the defendants to the suit observing that there is no dispute
    to the fact that the appellant is in occupation of the suit premises.
    The suit premises was initially let out to the respondent No.3 and
[2026] 1 S.C.R.                                                       509

                    NAK Engineering Company Pvt. Ltd. v.
                      Tarun Keshrichand Shah and Ors.

     is now in possession of appellant, who claims to be the successor
     company that has taken over the business of respondent No.3.
     The certificate of incorporation relied upon by the appellant along
     with the Memorandum of Association prima facie reveals that the
     appellant has taken over and acquired the business interest of the
     respondent No.3. The court accepted the said certificate issued by
     the Registrar of the companies opining that it lacked jurisdiction to
     rule on the validity of the said certificate.
15. The aforesaid order of the court of first instance on being taken up
    before the High Court under Article 227 of the Constitution has been
    reversed and the impleadment of the appellant has been revoked
    on the ground that it is not a proper or a necessary party to the suit.
    The suit will not fail for want of its presence.
16. The High Court proceeded to pass the impugned order on the
    premise that no relationship of tenant and landlord existed between
    the parties and that the appellant is the unauthorized occupant that
    need not be joined as a defendant to the suit.
17. The High Court further held that the issue of recovery of arrears of
    service charges can be decided even in the absence of the appellant
    as the respondent No.3 had no legal sanctity of law to authorize the
    use of furniture and fixtures to a third party.
18. It is alleged that the High Court completely ignored the fact that the
    appellant is the successor company of the tenant– respondent No.3
    whose complete business has been taken over by it. The appellant has
    stepped into the shoes of respondent No.3 and was in possession of
    the premises in that capacity and was not an unauthorized occupant.
19. It is in this background that we have been called upon to consider
    to decide whether the appellant is a necessary and proper party to
    be impleaded in the suit No.6117 of 2007 for the recovery of service
    charges in respect of the premises in dispute which was admittedly
    sublet to the respondent No.3 to whose business the appellant
    happens to be a successor.
20. The first and the foremost argument of Shri Chander Uday Singh,
    senior counsel appearing for the appellant is that the High Court
    exceeded its jurisdiction under Article 227 of the Constitution in
    setting aside the judgment and order of the court of first instance
510                                                            [2026] 1 S.C.R.

                           Supreme Court Reports


       as if it is sitting in appeal. The order of the Trial Court allowing the
       impleadment was an interlocutory order which required no interference
       by the High Court in exercise of its supervisory power. The High Court
       incorrectly concluded that the appellant is not a necessary party
       to the suit, completely ignoring the fact that the respondent Nos.1
       and 2 themselves had arrayed it as one of the defendants in a suit
       for eviction from the premises filed before the Small Causes Court.
       The High Court also erred in not appreciating that the appellant is
       a successor to respondent No.3 under the Companies Act and that
       the validity of the certificate of registration issued by the Registrar of
       Companies in favour of the appellant could not have been adjudicated
       while exercising powers under Article 227 of the Constitution.
21. It is further contended that the appellant has been paying service
    charges through cheque since 1991 and the respondent nos.1 and 2
    were aware of it. Rather, the service charges from 2004 were received
    by the respondent Nos.1 and 2, implying an admission on their part that
    the appellant is the person liable to pay the same. Even the furniture
    and telephone lines in the premises, which existed, have been used
    by the appellant since 1991 with the knowledge of the respondent
    No.1. Therefore, the High Court was not right in holding that since
    there is no relationship of tenant and landlord between the parties,
    the appellant is not a necessary party. The relationship of tenant and
    landlord in the matter was not relevant and material, as it was not a
    suit for eviction rather a suit for recovery of service charges.
22. He further argued that, in fact, any decree that may be passed in
    the suit in question against the respondent No.3 that is practically
    defunct, would lead to execution of the decree against the appellant
    and as such the appellant is a necessary and proper party to the suit.
23. Dr. Abhinav Chandrachud, learned counsel appearing for the
    respondent No.1 in defense submits that the appellant has not come
    up before the court with clean hands rather with an ulterior motive
    to legitimize its illegal occupation over the premises in dispute. The
    summons in the suit were served upon the respondent No.3 way
    back in the year 2008. The acknowledgement bears the signature
    and the stamp of the appellant which clearly proves that the appellant
    was aware of the institution of the suit but even then, remained silent
    for over nine years before seeking impleadment. The appellant is
[2026] 1 S.C.R.                                                         511

                    NAK Engineering Company Pvt. Ltd. v.
                      Tarun Keshrichand Shah and Ors.

     an unauthorized occupant of the premises in dispute and therefore,
     in the suit for eviction, was made one of the defendants so that the
     eviction decree if any may be effectively executed. However, this
     does not mean that it is also a necessary and proper party to the
     present suit for the recovery of arrears of service charges.
24. Further, the certificate of incorporation of the appellant is not a proof
    of successorship to the respondent No.3 and that the certificate
    annexed with the appeal is a new and different document which was
    not part of the record before the courts below. The respondent No.3
    still continues to be a registered company and is still in existence
    and therefore, the appellant cannot be accepted to be its successor
    more particularly when it is only a firm and not even a company.
25. Lastly, it has been submitted that the respondent Nos.1 and 2 who
    instituted the suit are dominus litis in the matter and cannot be
    compelled to add a defendant against their wishes if they do not
    desire to seek any relief against such a person.
26. Undisputedly, the suit in question has been filed by the owners of the
    property to recover service charges for the use of furniture and fixtures
    from the respondent No.3 that was inducted as a sub-tenant in the
    premises in dispute by M/s Modern Products Pvt. Ltd. The dispute
    is not regarding recovery of rent or arrears of rent. Therefore, the
    relationship of landlord and tenant between the parties is completely
    alien to the controversy in question.
27. The dispute is essentially with regard to payment of service charges
    between the owners of the property and its user i.e. respondent No.3.
    Therefore, no other person has any right to be impleaded so as to
    defend the suit regarding payment of service charges.
28. The appellant claims to be the successor of respondent No.3 and as
    such, wants to defend the suit on its behalf or as its representative.
29. The respondent No.3, though stated to be a private limited company,
    is only a partnership firm having only four members. There is no
    authentic proof on record that the above partnership firm was ever
    converted into a company. The conversion of a partnership firm into a
    company as under Part IX of Companies Act, 1956 requires fulfilment
    of strict conditions such as having at least seven partners/members
    and execution of certain deeds. The respondent No.3 was having
512                                                         [2026] 1 S.C.R.

                          Supreme Court Reports


       only four partners and as such was ineligible for conversion under the
       relevant law. Further, there is nothing on record to indicate that the
       aforesaid firm respondent No.3 has ceased to exist or has become
       extinct. The extract of respondent No.3 firm dated 20.09.2016 from
       the office of the Registrar of Firms reveals that respondent No.3
       continues to exist as a partnership firm even though appellant may
       have been incorporated as a new company.
30. The appellant has relied upon the Certificate of Incorporation dated
    22.02.1988 to claim that it has succeeded the respondent No.3. No
    doubt, a company comes into existence as a body corporate from the
    date of its incorporation having perpetual succession and a common
    seal. However, its incorporation or its Certificate of Incorporation
    in no way conclusively proves that it has come into existence as
    a successor of respondent No.3. In such circumstances, appellant
    cannot be accepted to be the successor of respondent No.3 so as
    to permit it to be impleaded and to defend the suit for the recovery
    of service charges.
31. The appellant has nowhere established its independent right to be
    impleaded to defend the suit except for claiming to be the successor
    of respondent No.3 which, in our opinion, has no legs to stand.
32. The above discussion takes us to another aspect of the matter as to
    whether the appellant is a necessary or a proper party to be impleaded.
    The governing principles and law in this regard are well-settled.
33. The fundamental distinction between a “necessary party” and a
    “proper party” was succinctly explained in Ramesh Hirachand
    Kundanmal v. Municipal Corporation of Greater Bombay5, wherein
    this Court held:
            “6… A necessary party is one without whom no order can
            be made effectively. A proper party is one in whose absence
            an effective order can be made but whose presence is
            necessary for a complete and final decision on the question
            involved in the proceeding.”




5   (1992) 2 SCC 524
[2026] 1 S.C.R.                                                            513

                       NAK Engineering Company Pvt. Ltd. v.
                         Tarun Keshrichand Shah and Ors.

34. In Kasturi v. Iyyamperumal 6, this Court crystallized the twin tests
    for a necessary party:
            “…the question of jurisdiction of the court to invoke Order 1
            Rule 10 CPC to add a party who is not made a party in the
            suit by the plaintiff shall not arise unless a party proposed
            to be added has direct and legal interest in the controversy
            involved in the suit. … two tests are to be satisfied for
            determining the question as to who is a necessary party.
            The tests are: (1) there must be a right to some relief
            against such party in respect of the controversies involved
            in the proceedings; (2) no effective decree can be passed
            in the absence of such party.”
35. This principle has been consistently reiterated. In Mumbai
    International Airport (P) Ltd. v. Regency Convention Centre &
    Hotels (P) Ltd.7, this Court reiterated:
            “15. A “necessary party” is a person who ought to have been
            joined as a party and in whose absence no effective decree
            could be passed at all by the court. If a “necessary party”
            is not impleaded, the suit itself is liable to be dismissed.
            A “proper party” is a party who, though not a necessary
            party, is a person whose presence would enable the court
            to completely, effectively and adequately adjudicate upon
            all matters in dispute in the suit, though he need not be a
            person in favour of or against whom the decree is to be
            made. If a person is not found to be a proper or necessary
            party, the court has no jurisdiction to implead him, against
            the wishes of the plaintiff. The fact that a person is likely
            to secure a right/interest in a suit property, after the suit
            is decided against the plaintiff, will not make such person
            a necessary party or a proper party to the suit for specific
            performance.”
36. Thereafter, in Vidur Impex & Traders (P) Ltd. v. Tosh Apartments (P)
    Ltd.8, the broad principles governing impleadment were summarized:


6   (2005) 6 SCC 733
7   (2010) 7 SCC 417
8   (2012) 8 SCC 384
514                                                          [2026] 1 S.C.R.

                          Supreme Court Reports


            “41.2. A necessary party is the person who ought to be
            joined as party to the suit and in whose absence an effective
            decree cannot be passed by the court.
            41.3. A proper party is a person whose presence would
            enable the court to completely, effectively and properly
            adjudicate upon all matters and issues, though he may
            not be a person in favour of or against whom a decree
            is to be made.
            41.4. If a person is not found to be a proper or necessary
            party, the court does not have the jurisdiction to order his
            impleadment against the wishes of the plaintiff.”
37. In the case at hand, the respondent Nos.1 and 2 are not claiming any
    relief against the appellant. There is no iota of material to indicate
    that the relief, as claimed in the suit against respondent No.3, if
    granted, would be implemented against the appellant. Therefore,
    the appellant is not a necessary party to the suit.
38. The appellant cannot also be construed as a proper party once it
    has failed to establish that it is a successor to the respondent No.3.
    In the absence of any evidence to prove that respondent No.3 has
    ceased to exist or cannot be represented in the suit on its own to
    contest it on merits, we are of the opinion that the appellant is not
    even a proper party to provide any assistance to the court in the suit.
39. This apart, the respondent Nos.1 and 2 who have instituted the suit
    are dominus litis and it is for them to choose their adversaries. If they
    do not array the proper and necessary parties to the suit, they do it
    at their own risk. However, they cannot be compelled to add a party
    to defend a suit against their wishes. The decree, if any, passed in
    the suit would be binding only between the parties to the suit and
    would not infringe upon any right of a third party, much less of the
    appellant that is not a party to the suit.
40. This conclusion is reinforced by the fundamental principle laid down
    in Kanaklata Das v. Naba Kumar Das9, wherein this Court has
    observed:


9   (2018) 2 SCC 352
[2026] 1 S.C.R.                                                          515

                    NAK Engineering Company Pvt. Ltd. v.
                      Tarun Keshrichand Shah and Ors.

           “11.4. …the plaintiff being a dominus litis cannot be
           compelled to make any third person a party to the suit, be
           that a plaintiff or the defendant, against his wish unless
           such person is able to prove that he is a necessary party to
           the suit and without his presence, the suit cannot proceed
           and nor can be decided effectively. In other words, no
           person can compel the plaintiff to allow such person to
           become the co-plaintiff or defendant in the suit. It is more
           so when such person is unable to show as to how he is a
           necessary or proper party to the suit and how without his
           presence, the suit can neither proceed and nor it can be
           decided or how his presence is necessary for the effective
           decision of the suit.
           11.5. … a necessary party is one without whom, no order
           can be made effectively, a proper party is one in whose
           absence an effective order can be made but whose
           presence is necessary for a complete and final decision
           on the question involved in the proceeding.”
41. In the above facts and circumstances, if the High Court, for one
    reason or the other, has set aside the order of impleadment passed
    by the court of first instance, we do not consider it to be illegal so
    as to set it aside and restore the order of the Trial Court.
42. There is one another reason for not interfering with the impugned
    judgment and order of the High Court. The summons issued in the
    suit meant to be served upon respondent No.3, were served in
    the year 2008. The seal and signatures on the acknowledgement
    on the said summons is of the appellant which clearly indicates
    that the appellant had acquired knowledge of the suit in the year
    2008. However, the appellant kept silent and moved the motion for
    impleadment only after the evidence was closed in the year 2014
    and the court had directed to proceed ex-parte in the matter. The
    impleadment application was filed almost after nine years of the
    knowledge of the pendency of the suit. Thus, the impleadment has
    been rightly refused to the appellant by the High Court.
43. We are conscious of the fact that the jurisdiction of the High Court
    under Article 227 is simply supervisory in nature and that the High
516                                                       [2026] 1 S.C.R.

                              Supreme Court Reports


       Court ought not to have intervened in the matter. However, once
       the order has been interfered with, and rightly so, we do not wish
       to commit another illegality by restoring an incorrect order passed
       by the court of first instance.
44. In view of the above discussion, we are of the opinion that the
    appeals lack merit and are dismissed but with the direction that the
    decree passed in the suit would not be used against the appellant
    and would not be implemented against it.
45. The appeals are dismissed with no order as to cost.
46. Pending application(s), if any, shall stand disposed of.

       Result of the case: Appeals dismissed.




       †
           Headnotes prepared by: Ankit Gyan


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Dominus Litis"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.