Gujarat High CourtCivil Procedure and EvidenceAdministrative and Public Law

Mortgagee Wasn’t Party To Sale Agreement, So Gujarat HC Upholds Refusal To Join Lender In Specific-Performance Suit

GHANSHYAMBHAI DAYALJIBHAI MANEKv.NEHABEN RAJNIKANT GANDESHA

Mortgagee Wasn’t Party To Sale Agreement, So Gujarat HC Upholds Refusal To Join Lender In Specific-Performance Suit. GHANSHYAMBHAI DAYALJIBHAI MANEK vs NEHABEN RAJNIKANT GANDESHA. Gujarat High Court. LawLens
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In brief

The question

Whether the mortgagee, which was not a party to the agreement to sell, was a necessary or proper party to the plaintiff’s specific-performance suit

The court held

The Court held that respondent No. 2 was not, on the facts then before it, a necessary or proper party and found no egregious error warranting intervention under Article 227.

It also directed

The petition was dismissed, without costs.

The trial court remained free to consider joinder later if required for effective implementation of a decree.

01Facts

The petitioner, plaintiff in a suit for specific performance, sought under Order I Rule 10 CPC to join Capri Global Capital Limited (respondent No. 2), a mortgagee of the suit property, as a defendant.

¶ 2–6

The plaintiff alleged that the sale consideration had been paid to respondent No. 1 and/or to respondent No. 2, and that respondent No. 2 had issued no objection to being joined.

¶ 2–6

Respondent No. 1 opposed the application.

¶ 2–6

The trial court rejected it, finding respondent No. 2 neither a necessary nor a proper party.

¶ 2–6

The petitioner challenged that order under Article 227 of the Constitution.

¶ 2–6

02Issues

i.Whether the mortgagee, which was not a party to the agreement to sell, was a necessary or proper party to the plaintiff’s specific-performance suit

¶ 3.2, 4–8

ii.Whether the trial court’s refusal to join the mortgagee warranted interference under Article 227 of the Constitution

¶ 6, 8, 10

03Law Applied

Order I Rule 10(2) CPC empowers the court to add a party whose presence is necessary for effective and complete adjudication; the plaintiff’s status as dominus litis does not entitle them to join any person they choose.

¶ 6, 8, 10

The principles in Mumbai International Airport Private Ltd. v. Regency Convention Centre and Hotels Pvt. Ltd., (2010) 7 SCC 417, require the court to assess whether a proposed party is necessary or proper.

¶ 6, 8, 10

In exercising supervisory jurisdiction under Article 227, the High Court does not interfere merely for an error of law; the judgment states that an egregious error is required.

¶ 6, 8, 10

04Reasoning

The specific-performance claim concerned an agreement made between the plaintiff and respondent No. 1, to which respondent No. 2 was not privy.

¶ 5–9

The plaintiff’s allegation that consideration had been paid to the mortgagee, and respondent No. 2’s lack of objection to joinder, did not by themselves make it a necessary or proper party.

¶ 5–9

Applying Mumbai International Airport, the Court held that the trial court had properly exercised its discretion under Order I Rule 10(2).

¶ 5–9

It added that the trial court could still join respondent No. 2 later if its presence became necessary for effective implementation of any decree.

¶ 5–9

05Holding

The Court held that respondent No. 2 was not, on the facts then before it, a necessary or proper party and found no egregious error warranting intervention under Article 227.

¶ 9–11

The petition was dismissed, without costs.

¶ 9–11

The trial court remained free to consider joinder later if required for effective implementation of a decree.

¶ 9–11
Gujarat High Court

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GHANSHYAMBHAI DAYALJIBHAI MANEKvsNEHABEN RAJNIKANT GANDESHA

Gujarat High Court · October 23, 2026

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