VidhiSangh

Supreme Court of India · 12/07/2022

ASIAN HOTELS (NORTH) LTD. versus ALOK KUMAR LODHA & ORS

[2022] 12 S.C.R. 124 · 2022 INSC 713

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

Shop licensees in a Delhi hotel sued the licensor after their licences were revoked in 2020, claiming the licences were irrevocable and perpetual. While the licensor's Section 8 Arbitration Act application was pending, they sought under Order VI Rule 17 and Order I Rule 10 CPC to amend the plaints to declare void all mortgages created over the entire hotel since 1982 and to implead the mortgagee banks. The Delhi High Court allowed both, treating the plaintiff as dominus litis. The Supreme Court allowed the licensor's appeals: the amendment would change the nature of suits confined to revocation of licences and cause misjoinder of causes of action; licensees who had accepted in clause 13 of the licence that charges would be created could not challenge the mortgages years later; and dominus litis permits joinder only of necessary or proper parties.

Issues

  1. Whether licensees suing over revocation of their shop licences could be permitted under Order VI Rule 17 CPC to amend the plaint to seek a declaration that all mortgages created by the licensor over the entire premises since 1982 are void ab initio.
  2. Whether the mortgagee banks and financial institutions could be impleaded under Order I Rule 10 CPC on the footing that the plaintiff is dominus litis.
  3. Whether Kasturi v. Iyyamperumal, a specific performance case involving subsequent purchasers, applied to such a suit.

Provisions considered

Held

Result

Appeals allowed; the Delhi High Court's common order of 15.09.2021 allowing the applications under Order VI Rule 17 and Order I Rule 10 CPC in the respective suits quashed and set aside. No order as to costs.

Judgment PDF: Supreme Court of India, [2022] 12 S.C.R. 124.