BALURAM VERSUS CHELLATHANGAM

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS. 10940-10941 OF 2014

(ARISING OUT OF SLP (C) NOS.996-997 of 2013)

BALURAM … APPELLANT

VERSUS

CHELLATHANGAM & ORS. ..RESPONDENTS

The question raised for our consideration is whether the High Court was justified in reversing the Order of the trial Court allowing the prayer of the appellant to be added as a party in a suit for specific performance filed by Respondent No.1-plaintiff. Case of the plaintiff in O.S. No.3 of 2007 filed in the Court of District Judge, Kanyakumari, is that K. Jagathees and R. Subbaram Babu @ Subbaram, Respondent Nos.2 and 3 respectively (original defendants in the suit) acting as trustees of “Subbaiah Paniker Family Welfare Trust” (for short “the Trust”) entered into the agreement dated 9th December,2003 to sell the suit property in favour of the plaintiff. The price of the property was settled at Rs.22,000/- per cent. A sum of Rs.1 lakh was received as advance. The plaintiff was ready and willing to perform his part of the contract but the defendants failed to execute the sale deed even in extended time. When called upon to do so, they took the stand that the sale deed could be executed only if the beneficiaries of the Trust agreed to the sale which was not a valid ground. During pendency of the suit, the appellant filed I.A.No.584 of 2008 in O.S. No.3 of 2007 in the Court of District Judge, Kanyakumari at Nager coil, for being impleaded as defendant, pleading that he will suffer prejudice being beneficiary of the Trust if the sale is effected at a throw away price. According to him, the value of the property was more than Rs.50,000/- per cent while the proposed sale was for Rs.22,000/- per cent. The application was opposed by the plaintiff submitting that the beneficiary was a stranger to the agreement and was not a necessary or proper party….read more