When Can Stranger To Suit Seek Leave To Appeal Against Decree? Supreme Court Lays Down Principles

In a judgment delivered on January 29, the Supreme Court discussed the circumstances under which a third party to a suit can seek leave to appeal against the decree.A bench comprising Justice JB Pardiwala and Justice R Mahadevan made this discussion while considering an appeal filed by a lis pendens transferee, who was aggrieved by the High Court's refusal of leave to appeal against a decree for specific performance of sale agreement.After discussing a plethora of precedents, the bench summarised the principles governing the grant of leave to appeal as follows :i. Sections 96 and 100 of the CPC respectively provide for preferring an appeal from an original decree or decree in appeal respectively;ii. The said provisions do not enumerate the categories of persons who can file an appeal;iii. However, it a settled legal proposition that a stranger cannot be permitted to file an appeal in any proceedings unless he satisfies the court that he falls within the category of an aggrieved person;iv. It is only where a judgment and decree prejudicially affects a person who is not a party to the proceedings, he can prefer an appeal with the leave of the court;v. A person aggrieved, to file an appeal, must be one whose right is affected by reason of the judgment and decree sought to be impugned;vi. The expression “person aggrieved” does not include a person who suffers from a psychological or an imaginary injury;vii. It would be improper to grant leave to appeal to every person who may in some remote or indirect way be prejudicially affected by a decree or judgment; andviii. Ordinarily leave to appeal should be granted to persons who, though not parties to the proceedings, would be bound by the decree or judgment in that proceeding and who would be precluded from attacking its correctness in other proceedings.The Court also observed that a lis pendens transferee though not brought on record under Order XXII Rule 10 CPC, is entitled to seek leave to appeal against the final decree passed against this transferor, the defendant in the suit. However, whether to grant such leave or not is within the discretion of the court and such discretion should be exercised judiciously in the facts and circumstances of each case.Also from the judgment - Transferee Pendente Lite Not Entitled To Get Impleaded In Suit As A Matter Of Right : Supreme Court Summarises PrinciplesCase Title: H. ANJANAPPA & ORS. VERSUS A. PRABHAKAR & ORS. Citation : 2025 LiveLaw (SC) 123Click here to read/download the judgment

When Can Stranger To Suit Seek Leave To Appeal Against Decree? Supreme Court Lays Down Principles

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