SKS POWER GENERATION (CHATTISGARH) LTD Vs. INDIAN BANK

JUDGEMENT

(1.) This application is preferred to implead the applicant as a party defendant no.2, under the provisions of order I Rule 10(2) of the Code of Civil Procedure, 1908.

(2.) The plaintiff - respondent has instituted this summary suit for recovery of a sum of Rs.57,30,00,000/- against the defendant Bank on the basis of a Bank guarantee issued on 3rd February, 2012.

(3.) The applicant averred that the aforesaid Bank guarantee has been issued by the defendant on behalf of the Cethar Ltd., a company under liquidation. Since the Bank guarantee, which is the basis of the money claim, has been issued on behalf of the applicant by the defendant Bank, the applicant would be visited with all the consequences which the decree will entail. In law, the applicant would be enjoined to recompense the defendant Bank. The applicant would thus suffer grave prejudice if the suit is decreed without impleading the applicant as a party defendant. In any event, if not a necessary party, the applicant is unquestionably a proper party to the suit. It is, therefore, necessary to implead the applicant as a party defendant.