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Sharadamma v. Mohammed Pyrejan (D) through LRs.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 7889 of 2015)Decided 23 Sept 2015
Civil Appeal No. 7889 of 2015
Justice Arun Mishra · Justice Kurian Joseph

Background

Sharadamma had filed a suit in 1998 seeking a declaration of title and restoration of possession of certain property. After the trial court dismissed her suit and she filed a first appeal, she released her interest in the property to her daughter during the appeal's pendency, who in turn sold it to a third party. The Karnataka High Court dismissed her appeal on the sole ground that she had lost her right to continue it because of this transfer, without examining the appeal on its merits.

Decision Breakdown

The Supreme Court held that the High Court's approach was patently illegal. Under Order XXII Rules 10 and 11 CPC, a transfer or assignment of interest during the pendency of a suit or appeal does not, by itself, extinguish the original party's right to continue the proceedings: the assignee merely has the option to seek impleadment, but there is no penalty of automatic dismissal if they do not. Relying on its earlier decisions in Dhurandhar Prasad Singh and Jaskirat Datwani, the Court held the original appellant could lawfully continue the appeal for the benefit of the assignee even after parting with her interest. It therefore set aside the High Court's order and remitted the appeal back to the High Court to be decided afresh on its actual merits.

Lesson Learnt

Transferring or giving away your interest in disputed property while a court case about it is still pending does not automatically end your right to keep fighting that case: courts cannot throw out an appeal merely because the original party no longer personally owns the property in dispute.

Official source (sci.gov.in)View Judgment (PDF)

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