In Brief
Asian Hotels (North) Ltd, a hotel licensor, had revoked licenses of shopkeepers. The licensees sued for declaration that their licenses were irrevocable. Later, they sought to amend the suits to challenge mortgages the licensor had created with banks since 1982, and to implead the mortgagee banks as defendants. The High Court allowed these amendments. On appeal, the Supreme Court held that licensees cannot amend suits about license revocation to challenge the licensor's mortgages or join mortgagee banks as defendants. The mortgages were created before or contemporaneously with the licenses and were contemplated in the license agreement. Allowing such amendments would fundamentally alter the suit's nature and cause misjoinder. The Court distinguished Kasturi and held that the principle of dominus litis applies only where proposed defendants are necessary and proper parties, which mortgagees are not in licensor-licensee disputes. The appeal was allowed.
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