VidhiSangh

Supreme Court of India · 16/12/2021

IL AND FS ENGINEERING AND CONSTRUCTIONS COMPANY LTD. versus M/S. BHARGAVARAMA CONSTRUCTIONS & ORS.

[2021] 9 S.C.R. 484 · 2021 INSC 904

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Summary

The Court held that allowing impleadment in a first appeal did not automatically justify setting aside the trial decree and ordering a fresh trial. The High Court had supplied neither reasons for adding the party nor an adjudication of the appeal on facts and law. Its impleadment and remand orders were set aside. Both the impleadment application and first appeal were returned to the High Court for decision, including the application’s maintainability and statutory basis. The defendants were directed to deposit Rs.25,000 exemplary costs with the State Legal Services Authority within four weeks.

Issues

  1. Whether impleadment alone justified reversal of the trial decree and remand without examining the first appeal on merits.
  2. Whether the High Court had to decide the maintainability and statutory basis of the defendants’ appellate impleadment application.

Provisions considered

Held

Result

Appeal allowed; impleadment and consequential remand orders set aside; application and first appeal remitted to High Court, with Rs.25,000 exemplary costs payable within four weeks.

Judgment PDF: Supreme Court of India, [2021] 9 S.C.R. 484.