Impleadment requires a direct legal interest; mere usefulness as a witness is not enough, and IDBI was excluded.

Impleadment under Order 1 Rule 10 CPC is justified only where the proposed party has a direct, subsisting and legally recognisable interest in the subject matter and its presence is necessary for effective adjudication of the real controversy. Mere commercial interest, indirect impact, or usefulness as a witness is insufficient, and the plaintiff's dominus litis cannot be used to expand the suit beyond those parties essential to decide the claims on record. Applying that principle, IDBI was held neither a necessary nor a proper party, so its impleadment was refused and the suit continued without it.

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Issues: Whether IDBI was a necessary or proper party to the suit and whether its impleadment was required for effectual and complete adjudication of the controversy.

Analysis: A party may be impleaded only if it has a direct, subsisting and legally recognisable interest in the subject matter, and its presence is necessary to resolve the real controversy and avoid multiplicity of proceedings. Mere commercial interest, or the fact that the proposed party may be useful as a witness or may be affected indirectly, is not enough. The plaintiff's dominus litis cannot be used to enlarge the suit by adding a party whose role is limited to proving an alleged admission or whose presence is not essential to adjudicate the claims on record.

Conclusion: IDBI was neither a necessary nor a proper party, and its impleadment was not warranted.

Final Conclusion: The application for impleadment failed, and the suit proceeded without adding IDBI as a party.

Ratio Decidendi: Under Order 1 Rule 10 of the Code of Civil Procedure, 1908, impleadment is justified only where the proposed party has a direct legal interest in the subject matter and its presence is necessary to adjudicate the real controversy effectively.

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