Pre-Suit Assignee Cannot Be Added as Co-Plaintiff Under Order I Rule 10 CPC

Impleadment of an assignee where the original plaintiff had transferred all development-agreement rights before instituting the suit

Manjari Projects sought specific performance of 2006 and 2007 development agreements and challenged their 2009 termination. It had assigned the relevant rights before filing. The trial judge treated the assignee as a necessary party that had purchased the litigation.

Issue and applicable law

The central question was impleadment of an assignee where the original plaintiff had transferred all development-agreement rights before instituting the suit.

Order XXII Rule 10 addresses devolution of interest during a pending suit, not a transfer completed before institution. The High Court held that the assignee could not bypass the legal consequences of the original plaintiff's lack of subsisting rights.

Court's reasoning

The Court held that a pre-suit assignment does not permit addition of the assignee as co-plaintiff under Order I Rule 10 merely because rights were transferred. Its principal reason was that the provision corrects a bona fide mistake in naming the plaintiff, but no such mistake existed after the transferor knowingly filed despite having divested its rights.

Decision and practical effect

The trial court's impleadment order was quashed because it prejudiced the defendants' maintainability objection.

The ruling is significant because it clarifies how the stated legal standard should be applied to comparable disputes without extending the decision beyond the facts reported by the source.

Case details

• Case: Savita Arun Zambre v. Manjari Projects Private Limited
• Court: Bombay High Court
• Case number or citation: Writ Petition No. 1227 of 2015
• Judges: Justice Gauri Godse
• Source: https://www.livelaw.in/high-court/bombay-high-court/assignee-under-deed-prior-filing-suit-cannot-impleaded-co-plaintiff-549191