Impleadment in insolvency proceedings depends on necessity for adjudication, not an unregistered agreement for sale.

In a Section 7 insolvency proceeding, a third party claiming only under an unregistered agreement for sale does not acquire an independent right to be impleaded merely because it is a proposed flat purchaser. The right to intervene depends on whether the applicant is necessary for effective adjudication, with Order I Rule 10 of the CPC serving only as a guiding principle and the dominus litis doctrine preserving the creditor's choice of parties. Where no legal interest has crystallised by conveyance and the applicant is neither the financial creditor nor the corporate debtor, compulsory impleadment is not warranted.

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Issues: Whether the appellant, claiming under an unregistered agreement for sale as a proposed flat purchaser, was a necessary or proper party entitled to intervene in proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The right to implead or intervene depends on whether the applicant is necessary for effective adjudication, with Order I Rule 10 of the Code of Civil Procedure serving as a guiding principle and the doctrine of dominus litis recognising the applicant's control over the choice of parties. A proceeding under Section 7 of the Insolvency and Bankruptcy Code, 2016 is directed against the corporate debtor on a financial debt owed to the financial creditor. A person who is neither the financial debtor nor the corporate debtor, and who has no legally vested interest arising from a completed conveyance, does not acquire an independent right to insist on being made a party merely because of an unregistered agreement for sale.

Conclusion: The appellant was neither a necessary nor a proper party to the Section 7 proceedings, and the rejection of the intervention application was in law. The appeal was liable to be dismissed.

Ratio Decidendi: In a Section 7 insolvency proceeding, a third party claiming only under an unregistered agreement for sale has no enforceable right to compulsory impleadment if its presence is not necessary for effective adjudication and no legal interest in the subject-matter has crystallised by conveyance.

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