Friday, 31 January 2025

Supreme Court Summarises Principles regarding rights of Transferee Pendente Lite To Get Impleaded In Suit As A Matter Of Right

 58. From a conspectus of all the aforesaid judgments, touching upon the present aspect, broadly, the following would emerge:


i. First, for the purpose of impleading a transferee pendente lite, the facts and circumstances should be gone into and basing on the necessary facts, the Court can permit such a party to come on record, either Under Order I Rule 10 Code of Civil Procedure or Under Order XXII Rule 10 Code of Civil Procedure, as a general principle;


ii. Secondly, a transferee pendente lite is not entitled to come on record as a matter of right;


iii. Thirdly, there is no absolute Rule that such a transferee pendente lite, with the leave of the Court should, in all cases, be allowed to come on record as a party;


iv. Fourthly, the impleadment of a transferee pendente lite would depend upon the nature of the suit and appreciation of the material available on record;


v. Fifthly, where a transferee pendente lite does not ask for leave to come on record, that would obviously be at his peril, and the suit may be improperly conducted by the Plaintiff on record;


vi. Sixthly, merely because such transferee pendente lite does not come on record, the concept of him (transferee pendente lite) not being bound by the judgment does not arise and consequently he would be bound by the result of the litigation, though he remains unrepresented;


vii. Seventhly, the sale transaction pendente lite is hit by the provisions of Section 52 of the Transfer of Property Act; and,


viii. Eighthly, a transferee pendente lite, being an assignee of interest in the property, as envisaged Under Order XXII Rule 10 Code of Civil Procedure, can seek leave of the Court to come record on his own or at the instance of either party to the suit.

61. If the Respondent Nos. 1 & 2 feel that they have been duped or cheated by the Respondent No. 7/Defendant No. 3, then it shall be open for them to avail appropriate legal remedy before the appropriate forum in accordance with law for the purpose of recovery of the amount towards sale consideration paid at the time of execution of the sale deed.

 IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 1180-1181 of 2025.

Decided On: 29.01.2025

H. Anjanappa and Ors. Vs. A. Prabhakar and Ors.

Hon'ble Judges/Coram:

J.B. Pardiwala and R. Mahadevan, JJ.

Author: J.B. Pardiwala, J.

Citation:  MANU/SC/0118/2025.

Read full Judgment here: Click here.

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