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Issues:
- Whether the contesting respondents are necessary or proper parties in a suit for perpetual injunction against the Municipal Corporation? - Whether the landlord is a necessary or proper party in a suit against the Municipal Corporation for demolition of a building? - Determining the criteria for a necessary or proper party in a legal dispute. Analysis: The judgment revolves around the issue of determining the necessity of parties in a suit for perpetual injunction against the Municipal Corporation. The appellant-lessee filed a suit seeking injunction against the Municipal Corporation to prevent the demolition of a building due to unauthorized structures. The contesting respondents sought to be added as parties, claiming a direct interest in the property. The High Court upheld their addition, leading to the appeal before the Supreme Court. The primary contention raised was whether the contesting respondents, who only had commercial interest in the property, were necessary or proper parties in the suit. The appellant argued that the real question was whether the appellant had constructed the building facing demolition, making the landlords necessary parties. Reference was made to a previous case law to support the argument that the contesting respondents were not necessary or proper parties. However, the Supreme Court disagreed, emphasizing the importance of complete adjudication in disputes. The judgment delves into the distinction between necessary and proper parties in legal proceedings. It establishes that a necessary party is crucial for effective adjudication and relief granting, even if no specific relief is sought against them. In this case, the landlord's substantial interest in the demised building, which would be affected by its demolition, warranted their inclusion as a proper party. The Court highlighted that the landlord's rights, title, and interest in the property could be jeopardized by the demolition, regardless of their involvement in the construction. Furthermore, the judgment references various precedents to elucidate the principles governing necessary parties. It cites cases where entities with direct interest or bearing the burden of compensation were deemed necessary parties. The Court rejected the argument that commercial interest alone could exclude someone from being a necessary party, emphasizing the need for parties whose rights could be significantly impacted by the outcome. Ultimately, the Supreme Court upheld the High Court's decision to include the landlords as parties in the suit, despite no relief being sought against them. The judgment concludes by dismissing the appeal and affirming the landlord's status as a proper party in the dispute, given the direct impact on their rights in the event of the building's demolition.
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