Wednesday 13 January 2021

Judgments on "State is a necessary party"

Code of Civil Procedure

Section 79. Suits by or against Government.

O1 R10 Suit in name of wrong plaintiff.

Judgments on "State is a necessary party"


(a) In Ranjeet Mal V. General Manager, Northern Railway, New Delhi & Anr., AIR 1977 SC 1701, the Supreme Court considered a case where the writ petition had been filed challenging the order of termination from service against the General Manager of the Northern Railways without impleading the Union of India. The Court held as under: - “The Union of India represents the Railway Administration. The Union carries administration through different servants. These servants all represent the Union in regard to activities whether in the matter of appointment or in the matter of removal. It cannot be denied that any order which will be passed on an application under Article 226 which will have the effect of setting aside the removal will fasten liability on the Union of India, and not on any servant of the Union. Therefore, from all points of view, the Union of India was rightly held by the High Court to be a necessary party. The petition was rightly rejected by the High Court.”

(b) In the case of The State of Kerala V. The General Manager, Southern Railway, Madras AIR 1976 SC 2538, the Supreme Court explained the purpose of requiring the impleadment of the State as a party, as follows: “According to Section 79 of the Code, in a suit by or against the Government, the authority to be named as plaintiff or defendant, as the case may be, shall be (a) in the case of a suit by or against the Central Government, the Union of India, and (b) in the case of a suit by or against a State Government, the State. This section is in accordance with Article 300 of the Constitution, according to which the Government of India may sue or be sued by the name of the Union of India and the Government of a State may sue or be sued by the name of the State. It is not disputed that Southern Railway is owned by the Union of India. As such, a suit dealing with the alleged liability of that railway should have been brought against the Union of India.”

(c) A Constitution Bench of the Supreme Court in The State of Punjab V. The Okara Grain Buyers Syndicate Ltd., Okara & Anr. AIR 1964 SC 669 held that if relief is sought against the State, suit lies only against the State, but, it may be filed against the Government if the Government acts under colour of the legal title and not as a Sovereign Authority e.g. in a case where the property comes to it under a decree of the Court.

(d) The Rajasthan High Court in Pusha Ram V. Modern Construction Co. (P) Ltd, AIR 1981 Raj 47, held that to institute a suit for seeking relief against the State, the State has to be impleaded as a party. But mis-description showing the State as Government of the State may not be fatal and the name of party may be permitted to be amended, if such an application is filed.

(e) In Kali Prasad Agarwala (Dead by L.Rs.) & Ors. V. M/s. Bharat Coking Coal Limited & Ors. AIR 1989 SC 1530, while considering an issue whether the suit lands had vested, free from encumbrance in the State consequent upon the issuance of Notification under Section 3 of the Bihar Land Reforms Act, the Supreme Court did not entertain the case observing as under :- “In our opinion, it is unnecessary to consider the first question and indeed it is not proper also to consider the question in the absence of the State which is a necessary party for adjudication of that dispute. The State of Bihar is not impleaded as a party to the suit and we, therefore, refrain from expressing any opinion on the first question.”

(f) In Sangamesh Printing Press V. Chief Executive Officer, Taluk Development Board (1999) 6 SCC 44, the State was not impleaded as a party before the Trial Court in a money recovery suit. The same was dismissed on the ground of non-impleadment of necessary party. During appeal, an application was made under O. 1 R. 10 praying for impleadment of the State, however the High Court decided the matter on merits without considering the same. The Supreme Court observed as under: “Keeping in view the facts and circumstances of the case, we are of the opinion that the High Court should have decided the appellant's application under Order 1 Rule 10 C.P.C. and, thereafter, proceeded to hear the appeal in question. Not having disposed of the application under Order 1 Rule 10 has caused serious prejudice to the appellant. We, therefore, set aside the judgment of the High Court and restore Regular First Appeal No 29 of 1987 to its file. The High Court should first deal with the application under Order 1 Rule 10 C.P.C. which is pending before it and then proceed to dispose of the appeal in accordance with law.”


Code of Civil Procedure

Section 79. Suits by or against Government.

O1 R10 Suit in name of wrong plaintiff.

Judgments on "State is a necessary party"

Reference: http://www.nja.nic.in/16%20CPC.pdf

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