Purchaser During Pending Suit Is Necessary Party in Tenancy Declaration Case: Supreme Court

The Supreme Court has held that purchasers who acquire the suit property from an existing defendant during the pendency of litigation are necessary parties where the plaintiff seeks a declaration of tenancy rights over that property.

Property dispute before the Court

The plaintiff had instituted a civil suit seeking a declaration that his occupation of part of the premises was as a tenant, along with permanent injunctive relief. A co-owner of the property was already a defendant. During the suit, the appellants purchased the property from the earlier owners through a registered sale deed.

The purchasers sought impleadment, arguing that the relief claimed could directly affect their ownership rights. The trial court and Gujarat High Court refused the request.

Legal issue and reasoning

The Supreme Court disagreed. It noted that the appellants had acquired the interest of a person who was already before the court and therefore stepped into the transferor's legal position. Since the principal relief was a declaration of tenancy over the property, the presence of the current owners was necessary for an effective adjudication.

The Bench also clarified that rejection of an earlier impleadment application for non-prosecution did not decide the issue on merits and therefore did not bar a later application.

Result

The Court set aside the orders below and directed that the purchasers be added as defendants. The trial court was asked to decide the tenancy dispute independently on the evidence.