In Brief
The Life Insurance Corporation sued Sanjeev Builders for specific performance of a 1979 property sale agreement. In 2014, after 27 years, a third party (claiming to be an assignee of rights under an 1987 agreement) sought to be impleaded as a plaintiff. The High Court allowed this application. The Supreme Court held that such impleadment after an inordinate 27-year delay constitutes a 'judgment' maintainable by Letters Patent Appeal. The Court found the delay unreasonable and the lack of timely application unjustified. Critically, allowing the impleadment would deprive the defendant of substantial accrued rights of defence. The Court set aside the High Court's order and dismissed the impleadment application, emphasizing that in commercial disputes, the discretion under Order XXII Rule 10 CPC must be exercised judiciously, balancing the assignee's rights against the defendant's accrued defences."
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