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M/S.Medhika Infrastructures vs Mrs.Santhakumari
2021 Latest Caselaw 5742 Mad

Citation : 2021 Latest Caselaw 5742 Mad
Judgement Date : 4 March, 2021

Madras High Court
M/S.Medhika Infrastructures vs Mrs.Santhakumari on 4 March, 2021
                                                                        C.M.S.A.No.33 of 2021

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED: 04.03.2021

                                                      CORAM :

                                      The Honourable Mr.Justice T.S.SIVAGNANAM
                                                          and
                                       The Honourable Ms.Justice R.N.MANJULA

                                                C.M.S.A.No.33 of 2021
                                                        and
                                                C.M.P.No.3459 of 2021

                     M/s.Medhika Infrastructures,
                     Represented by its Sole Proprietor
                     Mrs.S.Tamilselvi                                       ...Appellant

                                                           Vs

                     1. Mrs.Santhakumari

                     2. Crescentz Homes and
                        Infrastructures Private Limited,
                        Represented by its Director
                        Mr.Zubair Ahmed Thajudeen

                     3. Altimiz Infrastructures Limited,
                        Represented by its Director
                        Mr.Zubair Ahmed Thajudeen

                     4. M/s.Crescentz Square,
                        Represented by its Partner
                        Mr.Jalal Ahmed                                      ...Respondents




                     1/8
https://www.mhc.tn.gov.in/judis/
                                                                                C.M.S.A.No.33 of 2021




                             Appeal filed under Section 100 of Civil Procedure Code read with
                     Section 58 of the Real Estate (Regulation and Development) Act, 2016 to
                     set aside the order in Appeal No.51 of 2020 dated 17.12.2020 on the file of
                     Hon'ble Tamil Nadu Real Estate Appellate Tribunal (TNRERA), confirming
                     the order in I.A.No.105 of 2019 in C.C.P.No.261 of 2019 dated 20.03.2020
                     on the file of the Adjudication Officer, TNRERA, Chennai.

                                           For Appellant:       Mr.K.M.Vijayan, Sr. Counsel
                                                                for M/s.K.M.Vijayan Associates


                                                       JUDGMENT

(Delivered by T.S.Sivagnanam,J)

This appeal has been filed challenging the order dated 17.12.2020

passed in Appeal No.51 of 2020 by the Tamil Nadu Real Estate Appellate

Tribunal confirming the order dated 20.03.2020 passed in I.A.No.105 of

2019 in C.C.P.No.261 of 2019 on the file of the Tamil Nadu Real Estate

Regulatory Authority, Chennai ('RERA' for brevity).

2. We have elaborately heard Mr.K.M.Vijayan, learned Senior

Counsel appearing for the appellant.

https://www.mhc.tn.gov.in/judis/ C.M.S.A.No.33 of 2021

3. In the array of parties before the RERA in C.C.P.No.261 of

2019, initially there were two respondents, namely Crescentz Homes and

Infrastructure Private Limited and Altimiz Infrastructure Limited.

Subsequently, on account of the order passed by the RERA, the complaint

was not pressed against the aforementioned two parties and M/s.Crescentz

Square was impleaded as a respondent. The first respondent before us,

namely Mrs.Santhakumari, had filed I.A.No.105 of 2019 in C.C.P.No.261 of

2019 seeking to implead the appellant herein as well as M/s.Crescentz

Square as respondents 3 and 4.

4. This interlocutory application was resisted by the appellant

herein by filing a counter affidavit stating as to how there is no privity

between the appellant and the first respondent herein and there was an

earlier memorandum of understanding between the three parties, to which

the first respondent was not a signatory and several other matters touching

upon the factual issue.

5. In sum and substance, the appellant before us vehemently

objected the impleaded and sought for dismissal.

https://www.mhc.tn.gov.in/judis/ C.M.S.A.No.33 of 2021

6. The RERA, by order dated 20.03.2020, after considering the

facts, allowed the application, wherein it has observed as to whether the

appellant before us along with the other respondents are liable for the reliefs

claimed by the first respondent/petitioner in the complaint, will have to be

decided after giving an opportunity of being heard to both sides and on the

merits of the case. Consequent to such order, the appellant and

M/s.Crescentz Square, fourth respondent before us, were impleaded as

parties in C.C.P.No.261 of 2019. Aggrieved by such order passed by the

RERA, the appellant preferred appeal before the Tribunal. The Tribunal

considered the case and agreed with the authority stating that the appellant

before us would be a necessary party to the proceedings, so as to have a

binding adjudication. Aggrieved by the order of the Tribunal, the appellant

is before us.

7. The contention of the learned Senior Counsel appearing for the

appellant is that fraud has been played by not pressing the complaint against

the second respondent, who was originally impleaded and subsequently

seeking for impleadment of the appellant and the fourth respondent by a

person, who was never a party to the earlier proceedings of the Tribunal in

https://www.mhc.tn.gov.in/judis/ C.M.S.A.No.33 of 2021

C.Nos.370 to 291, 396 and 397 of 2019 dated 21.11.2019. Further, it is

submitted that the first respondent has no locus standi to implead the

appellant herein in the proceedings and the RERA and the Tribunal

committed serious error in impleading the appellant. Further, it is contended

that the RERA and the Tribunal failed to take note of the fundamental

principles of law with regard to the impleadment of parties by taking note of

Order I Rule 10 of CPC.

8. After we have elaborately heard the learned Senior Counsel

appearing for the appellant, we are of the considered view that the appellant

cannot be said to be prejudiced on account of the order passed by the RERA

impleading them as respondent nor the order passed by the Tribunal

affirming the order passed by the RERA. We say so because the RERA has

rightly held that the question whether the appellant along with other

respondents are liable for the reliefs claimed by the first respondent in the

complaint will have to be decided after giving an opportunity of being heard

to both sides and on the merits of the case. On the same lines, the Tribunal

has also confirmed the order and also observed, for a binding adjudication,

the appellant would be a necessary party.

https://www.mhc.tn.gov.in/judis/ C.M.S.A.No.33 of 2021

9. The provisions of Order I Rule 10 of CPC are clear in the sense

that the Court may at any stage of the proceedings either upon or without

the application of either parties and on such terms as may appear to the

Court to be just, order that the name of any party improperly joined, whether

as plaintiff or defendant, be struck out, and that the name of any person who

ought to have been joined, whether as plaintiff or defendant, or whose

presence before the Court may be necessary in order to enable the Court

effectually and completely to adjudicate upon and settle all the questions

involved in the proceedings.

10. That apart, the RERA and the Tribunal have not rendered any

finding as regards the appellant's liability, but impleaded the appellant and

the fourth respondent herein, so that the matter could be effectively

adjudicated. The discretion exercised by the authority and the Tribunal

cannot be faulted.

11. We make it clear that it will be open to the appellant to file a

comprehensive counter before the RERA both as facts as well as law, which

https://www.mhc.tn.gov.in/judis/ C.M.S.A.No.33 of 2021

the authority would consider and take a decision on merits and in

accordance with law, after hearing all the parties.

12. The learned Senior Counsel submitted that a time frame may

be fixed within which the RERA may take up the matter and consider the

issue.

13. Since we are not aware as to the number of cases which are

pending before the RERA, we cannot stipulate any specific time, but we

would request the RERA to consider an earlier hearing in the matter, since

the complaint is of the year 2019.

14. With these observations, the Civil Miscellaneous Second

Appeal stands dismissed. No costs. Consequently, connected miscellaneous

petition is also dismissed.

                                                                           (T.S.S.,J.)    (R.N.M.,J.)
                                                                                  04.03.2021
                     Index: Yes/No
                     Internet:Yes/No

                     hvk


https://www.mhc.tn.gov.in/judis/
                                                     C.M.S.A.No.33 of 2021

                                                  T.S.SIVAGNANAM,J
                                                               AND
                                                      R.N.MANJULA,J

                                                                      hvk
                     To
                     The Tamil Nadu Real Estate
                     Appellate Tribunal.




                                                  C.M.S.A.No.33 of 2021
                                                                    and
                                                  C.M.P.No.3459 of 2021




                                                              04.03.2021





https://www.mhc.tn.gov.in/judis/

 
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