Difference Between Necessary Party and Proper Party

In civil litigation, determining the correct parties to be included in a lawsuit is essential for ensuring that the case progresses efficiently and results in an effective and enforceable decree. The Civil Procedure Code, 1908 (CPC), provides detailed guidelines regarding who can be made a party to a suit, focusing on the terms “necessary parties” and “proper parties.” 

Understanding the difference between necessary party and proper party is crucial for legal practitioners, as errors in joining parties can lead to procedural issues, delays, and even the dismissal of a case.

Definition of Necessary Party

A necessary party is a party whose presence is indispensable for the court to adjudicate a matter. Without the presence of a necessary party, the court cannot pass a complete or effective decree, and the suit would not be competent.

Tests for a Necessary Party

In Hardeva v. Ismail (AIR 1970 Raj 167), the Rajasthan High Court laid down two critical tests for determining whether a party is necessary:

1. Right to Relief: There must be a right to relief against the party in respect of the matter involved in the suit.
2. Indispensability: It must be impossible to pass an effective decree without that party’s presence.

These two conditions are cumulative, meaning both must be satisfied to deem a party as necessary.

Illustrations of Necessary Parties

1. Property Dispute: In a suit for the recovery of possession of a property, if the defendant claims title to the property, the person holding the legal title must be made a party to the suit. Without that person’s presence, the decree would not bind them and would be ineffective.
2. Joint Debtors: In cases involving multiple joint debtors, if a creditor sues one debtor, the other co-debtors are necessary parties. The court cannot pass an effective decree without considering the rights and liabilities of all debtors.

Case Law on Necessary Parties

• Union of India v. Surendra Pal (AIR 1999 SC 2940): The Supreme Court held that the municipal corporation was a necessary party to a suit where the tax liability of an individual was challenged, as the municipal corporation was the body imposing the tax.
• P. Venkatarama Reddy v. State of Andhra Pradesh (AIR 2005 SC 899): The court held that when a challenge was made to the validity of a statute, the government was a necessary party, and its absence would render the proceedings incomplete.
  

Definition of Proper Party

A proper party is a party who is not essential for the court to pass a decree, but whose presence would ensure that the suit is disposed of completely and effectively. A proper party’s absence does not render the suit incompetent; however, their presence ensures that the decision is more comprehensive.

Characteristics of a Proper Party

1. Should be joined: While the suit can continue without them, their inclusion will result in a more complete adjudication.
2. No adverse effect on the suit’s competence: Unlike necessary parties, the absence of a proper party does not affect the validity or competence of the suit.

Illustrations of Proper Parties

1. Guarantee Contracts: In a suit where the creditor sues a guarantor for a debt, the principal debtor is a proper party. The suit can proceed without them, but their presence would ensure that all claims are addressed in one go.
2. Co-owners of Property: In a suit to partition a property, all co-owners are proper parties. The suit can proceed without the other co-owners, but joining them ensures that the court’s order will be final and binding on all co-owners.

Case Law on Proper Parties

• Bhupendra Singh Babera v. Municipal Council (AIR 2002 Chh 7): The court held that a person who shares the same interest as the plaintiff but does not affect the effectiveness of the decree is a proper party. In this case, a person with a shared interest in the municipal matter was considered a proper party.
• State of Maharashtra v. Hariprasad (AIR 1968 SC 1043): The court ruled that the absence of a proper party does not invalidate the proceedings. The decree would still be binding on those parties who are before the court.

Key Differences Between Necessary and Proper Parties

Conclusion

The distinction between necessary and proper parties is crucial in civil litigation. A necessary party is indispensable for the suit to proceed effectively, while a proper party is not essential but may be included for a more complete resolution. Understanding these concepts helps ensure that suits are not only competent but also result in comprehensive and enforceable decrees. By identifying and including the right parties at the right time, litigators can avoid procedural delays and strengthen their cases.