Counterclaim by Co-Defendants in Specific Performance Suit Held Not Maintainable

The plaintiff, Sanjay Tiwari, in the recent case before the SC, filed a suit for specific performance against the first defendant in respect of 0.93 acres of land. The plaintiff took the said action because as per him the entire sale consideration was paid and possession was also given. Thereafter, the second and third defendants were also added as parties to the suit by the plaintiff after they claimed to be part-owners of the suit property and filed a counterclaim against the first defendant for a transfer of the suit land.

The Trial Court and the High Court have allowed the counterclaim to proceed to avoid multiplicity of proceedings.

Main Issue: Whether a counterclaim by co-defendants against another defendant and not against the plaintiff is maintainable under Order VIII Rule 6A of the Code of Civil Procedure, 1908.

SC’s Order: The Hon’ble Apex Court allowed the appeal and held that a counterclaim can be filed against the plaintiff only and not against the co-defendants. Referring to Rohit Singh v. State of Bihar (2006) and Rajul Mano Shah v. Kiranbhai Shakrabhai Patel (2025), the Court explained that even if the counterclaim arises from a distinct cause of action, it must be connected with the plaintiff. The court found that the 2nd and 3rd defendants had no concrete claim, no valid agreement of sale or proof of payment, and their counterclaim, filed after the limitation had expired, could not be entertained.

Hence, it set aside the counterclaim, though their impleadment as necessary parties was upheld. The Court also refused to grant liberty for a separate suit, since such a claim was already time-barred.

To Read Full Judgment, Download PDF Given Below