In a significant ruling on January 29, the Supreme Court laid down key principles determining when a third party—one not originally involved in a legal dispute—can seek permission to challenge a court’s decree.
A bench comprising Justice JB Pardiwala and Justice R. Mahadevan addressed the issue while reviewing an appeal filed by a lis pendens transferee—a person who acquired property during ongoing litigation. The individual challenged a High Court decision denying them the right to appeal against a decree enforcing a sale agreement.
After analyzing various legal precedents, the Supreme Court outlined crucial guidelines on granting leave to appeal:
- The Code of Civil Procedure (CPC) allows appeals against original and appellate decrees but does not specify who can file them.
- As a general rule, a third party cannot appeal unless they qualify as an “aggrieved person.”
- A person may appeal only if the judgment directly harms their legal rights—not merely causing indirect or psychological distress.
- Only those bound by a decree, and unable to challenge it in separate proceedings, should be granted leave to appeal.
- A lis pendens transferee—though not formally added to the case—may seek leave to appeal, but granting such permission is at the discretion of the court.
The Court clarified that while a person acquiring rights during a pending case may have an interest, they do not have an automatic right to join the legal battle. Instead, each request for leave to appeal must be weighed based on the unique circumstances of the case.