Supreme CourtDivision Bench

M/s Chopra Hotels Private Limited vs Harbinder Singh Sekhon & Ors

Supreme Court Of India · Decided on 8 April 2026 · Citation: (2026) 04 SC CK 0460

HON’BLE JUDGES
Vikram Nath, J · Sandeep Mehta, J
ACTS & SECTIONS REFERRED
Constitution of India, 1950 — Article 226 · Code of Civil Procedure, 1908 — Order 1 Rule 10 · Punjab Municipal Corporation Act, 1976 — Section 269
RESULT
Allowed
CASE NUMBER
Civil Appeal Nos. 4318, 4319 Of 2026 (Arising Out Of Special Leave Petition (Civil) No(S). 9321-9322 Of 2026)
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Judgment

41 paragraphs · 4,166 words

Vikram Nath, J

1.

Leave granted.

2.

The  present  appeals  arise  from  the  judgment  and  order dated 26.02.2026 passed by the High Court of Punjab and Haryana at Chandigarh ‘High Court’ in C.M. No. 2967-CWP- 2026 and C.M. No. 2968-CWP-2026 in CWP No. 38742 of 2025, whereby the High Court dismissed the applications filed by the Appellant seeking impleadment in the writ proceedings  as  well  as clarification  / modification  of the interim  order  dated  24.12.2025  passed  in  the  said  writ petition.

3.

The facts giving rise to the present appeals are as follows:

3.1. The Appellant is the owner of property bearing No. B-XIII-294, Police Lines Road, Jalandhar. Change of land use from residential to commercial was granted in respect of the said property on 09.10.2006. Thereafter, on 28.04.2011, the Municipal Corporation, Jalandhar approved the building plan for construction of a hotel on the said property. On 31.07.2024, the Appellant applied for issuance of a completion certificate. During that process,  a  discrepancy  relating  to  the  front  setback  was pointed out. According to the Appellant, the discrepancy arose because the plot on site was trapezium shaped, whereas the sanctioned plan depicted it as rectangular.

3.2. On  15.12.2025,  the  State  of  Punjab  notified  the  Punjab Unified Building Rules, 2025 ‘2025 Rules’. According to the Appellant, under the 2025 Rules the minimum front setback requirement for commercial buildings stood reduced to 10 per cent, and the building of the Appellant, which is stated  to maintain a  front setback of 15.37 per cent,  became  compliant  with  the  said  regime.  The  2025 Rules were thereafter challenged before the High Court in CWP No. 38742 of 2025. By interim order dated 24.12.2025, the High Court directed that those provisions of the notification dated 15.12.2025 which were inconsistent with the earlier Rules and Regulations be kept in abeyance. The High Court further directed that violations which were qualified as violations under the previous Rules and Regulations be not regularized.

3.3. According to the Appellant, the interim order dated 24.12.2025 thereafter came to be relied upon by the municipal authorities while proceeding against its building. On 05.02.2026, the premises on the said property were sealed. On 06.02.2026, a demolition order was issued by the MunicipalCorporation,Jalandhar. The Appellant challenged the said action by filing CWP No. 4023 of 2026 before the High Court. By order dated 10.02.2026, the High Court declined to entertain the writ petition and relegated the Appellant to the statutory remedy available under Section 269 of the Punjab Municipal Corporation Act, 1976 ‘1976 Act’. The Appellant then carried the matter in LPA No. 415 of 2026. By order dated 12.02.2026, the Division Bench disposed of the appeal while relegating the Appellant to the statutory remedy before the competent appellate forum and granted limited protection  against  precipitative  action  till  16.02.2026  or till the filing of the appropriate plea, whichever was earlier.

3.4. On 12.02.2026, the Appellant submitted a representation to the Municipal  Corporation,  Jalandhar asserting  that the property stood on commercial land, that the building maintained a front setback of 15.37 per cent, and that it was compliant with the 2025 Rules. On 13.02.2026, the Appellant  also  submitted  revised  building  plans  seeking approval for use of the building as a commercial complex in terms of the 2025 Rules. The said requests came to be rejected by orders dated 13.02.2026 and 14.02.2026, which were communicated on 16.02.2026.

3.5. The Appellant also preferred an appeal under Section 269 of the 1976 Act before the Additional District Judge, Jalandhar against the demolition order dated 06.02.2026. By order dated 17.02.2026, notice was issued in the appeal, but interim protectionwas declined. Aggrieved thereby, the Appellant approached the High Court by filing CR No. 1728 of 2026. By order dated 18.02.2026, the High Court directed that till the decision of the statutory appeal no coercive action shall be taken against the Appellant in the matter.

3.6. Since the Appellant’s case was that the interim order dated 24.12.2025 passed in CWP No. 38742 of 2025 was being relied upon to deny to it the benefit of the 2025 Rules,  the  Appellant  moved  two  applications  in  the  said writ petition on 20.02.2026. By the first application, being C.M. No. 2967-CWP-2026, the Appellant sought impleadment in the writ petition. By the second application, being C.M. No. 2968-CWP-2026, the Appellant sought clarification/modification of the interim order dated 24.12.2025. It is also material to note that on 05.02.2026, the High Court had allowed an impleadment application filed by one KCB Infra LLP in the said writ petition.

3.7. The aforesaid applications filed by the Appellant in CWP No. 38742 of 2025 came to be dismissed by the High Court by the impugned order dated 26.02.2026. The High Court observed that the Appellant had no lis before that Court, that it was at liberty to agitate its grievance before the  proper  forum,  and  that it was not  a necessary  party to the case. On that reasoning, the application for impleadment was dismissed and the prayer for clarification of the order dated 24.12.2025 was also declined.

3.8. Aggrieved  by  the  order  dated  26.02.2026,  the  Appellant approached  this  Court  by  way  of  Special  Leave  Petition (Civil) Nos. 9321-9322 of 2026, out of which the present appeals  arise.  The  matter  was  listed  on  13.03.2026.  On that date, this  Court  issued  notice, and  further directed that until further orders, the further proceedings in question pending before the High Court shall remain stayed.

3.9. In the meantime, since the Appellant’s request for treatment of the building as a commercial building under the 2025 Rules had been rejected, the Appellant filed CWP  No.  5839  of  2026  before  the  High  Court  assailing the rejection of its representation and the refusal to consider the revised building plan under the 2025 Rules. By order dated 16.03.2026, the learned Single Judge dismissed the said writ petition. While doing so, the learned Single Judge held that once the operation of the 2025  Rules  had been ordered  to be  kept  in  abeyance  by the Division Bench by order dated 24.12.2025 passed in CWP  No.  38742  of  2025,  there  was  no  occasion  at  that stage for consideration of the revised building plan dated 13.02.2026 submitted by the Appellant in accordance with the 2025 Rules seeking change of usage from a hotel building to a commercial building.

3.10. The Appellant assailed the order dated 16.03.2026 by filing LPA No. 760 of 2026 before the High Court. The later record shows that the said Letters Patent Appeal was listed before the Division Bench and stood adjourned to 24.03.2026.

3.11.Insofar as the statutory appeal under Section 269 of the 1976 Act is concerned, the said appeal came to be dismissed by the Additional District Judge, Jalandhar on 17.03.2026. The Appellant then approached the High Court  by  filing CR  No. 2579  of 2026.  In  the proceedings of the said  revision petition, the High Court recorded on 17.03.2026 that the order of the appellate court had been pronounced at 05:00 PM and that demolition had commenced at 05:30 PM. The High Court further recorded the statement of the learned Advocate General, on instructions from the Commissioner, Municipal Corporation, Jalandhar, that the demolition would be stopped immediately to await the hearing of the revision petition  on  the  next  day.  The  High  Court  made  it  clear that the State would remain bound by the said statement and  that  any  demolition  after  10:10  PM  on  17.03.2026 would be in violation of its order passed on the same date.

3.12. On 18.03.2026, the High Court in CR No. 2579 of 2026 observed that the question of the Appellant’s impleadment in the writ petition challenging the 2025 Rules rested upon its right to be considered under the 2025 Rules. The High Court further observed that the issue  with  respect  to  the  operation  of  the  2025  Rules  to the building in question, as decided by the learned Single Judge,  was  the  subject  matter  of  challenge  in  the  intra court appeal. On that basis, the High Court held that the revision petition required adjudication only after the rights  of  the  Appellant  to  be  considered  under  the  2025 Rules had been determined. The High Court also recorded the submission of the learned Advocate General that no demolition shall be carried out till the intra court appeal, i.e., LPA No. 760 of 2026 is finally decided. Thereafter, the High Court ordered CR No. 2579 of 2026 to be listed along with LPA No. 760 of 2026.

3.13. On 24.03.2026, LPA No. 760 of 2026 and CR No. 2579 of 2026 were taken up together by the High Court. On that date,  a  request  for  adjournment  was  made  on  behalf  of the Appellant. The High Court accepted the said request, though  opposing  submissions  were  advanced  on  behalf of the State, and adjourned both matters to 01.04.2026. The High Court also recorded the submission of the learned Advocate General, Punjab that the statement recorded in CR No. 2579 of 2026 in the order dated 18.03.2026 would operate only till the next date of hearing  01.04.2026,  as  he  had  specific  instructions  not to continue with such statement in relation to demolition of the property in question.

3.14. Meanwhile, the Appellant filed an interlocutory application,  being  I.A.  No.  90210  of  2026,  for  directions before this Court placing on record the subsequent developments,  including  the  dismissal  of  CWP  No.  5839 of 2026, the filing of LPA No. 760 of 2026, the dismissal of  the  statutory  appeal,  and  the  later  proceedings  in  CR No. 2579 of 2026. By the said application, the Appellant prayed that CWP No. 38742 of 2025 and LPA No. 760 of 2026 pending before the High Court be taken up together after disposal of the present matter and that the hearing of LPA No. 760 of 2026 be deferred to await the outcome of the present proceedings before this Court.

4.

It is in the backdrop of this sequence of proceedings, namely  the  interim  order  dated  24.12.2025  in  CWP  No. 38742 of 2025, the rejection of the Appellant’s request to avail the benefit of the 2025 Rules, the dismissal of CWP No. 5839 of 2026, the pendency of LPA No. 760 of 2026, the later proceedings in CR No. 2579 of 2026 arising out of the demolition order, the orders dated 17.03.2026, 18.03.2026 and 24.03.2026 passed by the High Court in the said matters, and the order dated 13.03.2026 passed by this Court, that the present appeals fall for consideration. On 01.04.2026 while reserving orders, this Court had passed the following order:

“We have heard learned senior counsel of the parties.

Mr. Shadan Farasat, learned senior counsel appearing for the State of Punjab, has made a statement that no demolition will take place till this Court passes the orders. Orders reserved.”

List the matters on 08.04.2026 for delivery of orders.”

5.

We  have  heard  Dr.  A.M.  Singhvi,  learned  senior  counsel for the Appellant and Mr. Shadan Farasat, Mr. Gopal Shankarnarayanan and Mr. Balbir Singh, learned senior counsels for the Respondents.

6.

Having perused the submissions advanced by the parties and  the  material  on  record,  we  are  of  the  view  that  the controversy in the present appeals is limited, though the subsequent  developments  are  relevant  for  moulding  the relief. The present appeals arise from the order dated 26.02.2026, whereby the High Court declined the prayer of the Appellant to be impleaded in CWP No. 38742 of 2025 and also declined the prayer for clarification / modification  of  the  interim  order  dated  24.12.2025.  The question that therefore falls for consideration is whether the High Court was justified in holding that the Appellant had  no  lis  before  it  and  was  not  entitled  to  be  heard  in the said proceedings, and, if not, what consequential directions ought to follow in relation to the Appellant’s participation in CWP No. 38742 of 2025 and the further course  to  be  adopted  in  respect  of  LPA  No.  760  of  2026 and CR No. 2579 of 2026.

7.

The principles governing impleadment are well settled. Though proceedings under Article 226 of the Constitution of  India  are  not  to  be  controlled  by  the  technicalities  of pleadings as in an ordinary civil suit, the principles underlying Order I Rule 10 of the Code of Civil Procedure, 1908 continue to furnish sound guidance. In Mumbai International Airport Private Limited v. Regency Convention Centre and Hotels Private Limited (2010) 7 SCC 417, this Court explained the distinction between a necessary party and a proper party. A necessary party is one without whom no effective order can be passed. A proper party is one whose presence enables the Court to completely, effectively and adequately adjudicate upon the questions involved. In writ proceedings, where the Court is called upon to interpret the scope and operation of an interim order already passed by it, a person who is shown  to  be  directly  and  demonstrably  affected  by  that order cannot be shut out merely because such person was not an original party to the principal challenge.

8.

Tested on the aforesaid principles, we are unable to sustain the view taken by the High Court that the Appellant had no lis before it. The record before us shows that the interim order dated 24.12.2025 in CWP No. 38742 of 2025 did not remain confined to an abstract challenge  to  the  2025  Rules.  The  said  order  was  in  fact relied upon by the municipal authorities while dealing with  the  case  of  the  Appellant.  The  representations  and revised plans submitted by the Appellant for availing the benefit of the 2025 Rules came to be rejected on the footing  that the  provisions  of  the  2025  Rules  stood  kept in abeyance by the order dated 24.12.2025. The learned Single Judge, while dismissing CWP No. 5839 of 2026 on 16.03.2026, also proceeded on the same basis and expressly held that, since the operation of the 2025 Rules had been kept in abeyance by the Division Bench in CWP No. 38742 of 2025, there was no occasion to consider the revised building plan dated 13.02.2026 submitted by the Appellant in accordance with the 2025 Rules. The subsequent proceedings therefore place the matter beyond doubt that the order dated 24.12.2025 had direct and immediate consequences for the Appellant.

9.

Once that position emerges from the record, the conclusion that the Appellant had no lis before the High Court  cannot  be  accepted.  The  Appellant  may  not  have been an original party to the broader challenge laid in CWP No. 38742 of 2025. It may also be that no final determination on the merits of the 2025 Rules was called for at the instance of the Appellant in those proceedings. Yet,  when the Appellant  demonstrated that  the interim order passed  in the said writ petition was being invoked to its detriment and was materially affecting the treatment of its property by the authorities, the Appellant could not be regarded as a stranger to the controversy. At the very least,  the Appellant  was  a proper  party whose presence would enable the High Court to deal in a fuller and fairer manner with the consequences of its own interim order. It is also of some significance that the High Court had earlier permitted impleadment of another party in the same writ petition. That circumstance shows that the  proceedings  were  not  viewed  by  the  High  Court itself as impervious to the participation of persons other than the original parties, where the facts so warranted.

10.

We are equally of the view that the manner in which the prayer for clarification/modification was rejected cannot be sustained.  Once the High  Court  was shown  that  its interim  order  dated  24.12.2025  was  being  employed  by the authorities in relation to the Appellant’s building, the request could not have been disposed of merely by observing that the Appellant was free to pursue another remedy. The grievance of the Appellant was not detached from the writ proceedings. It arose precisely from the operation attributed by the authorities and by the learned Single Judge to the order dated 24.12.2025 passed in CWP No. 38742 of 2025. Whether the Appellant was ultimately  entitled  to  the  benefit  of  the  2025  Rules  was, no doubt, a matter requiring adjudication in appropriate proceedings. But the High Court could not, while declining  impleadment,  altogether deny  to  the Appellant an opportunity of being heard in the very proceedings from which the prejudice was asserted to arise.

11.

At the same time, we do not consider it either necessary or appropriate in the present appeals to ourselves pronounce upon the exact ambit of the interim order dated  24.12.2025  or  upon  the  applicability  of  the  2025 Rules to the Appellant’s building. Any such pronouncement would travel beyond the contours of the present  appeals  and  trench  upon  issues  which  arise  in the parent writ proceedings as well as in the independent proceedings instituted by the Appellant. The proper course, in our view, is to set right the procedural exclusion occasioned to the Appellant and to leave all substantive questions open for consideration by the High Court in the proceedings where they properly arise.

12.

This brings us to the subsequent developments, particularly LPA No. 760 of 2026 and CR No. 2579 of 2026. The order dated 16.03.2026 passed in CWP No. 5839 of 2026 makes it clear that the learned Single Judge declined relief to the Appellant on the ground that the operation of the 2025 Rules had already been kept in abeyance by the Division Bench order dated 24.12.2025 passed in CWP No. 38742 of 2025. The orders dated 18.03.2026 and 24.03.2026 further show that the question regarding the Appellant’s right to be considered under the 2025 Rules, the maintainability of its claim to be  heard  in  the  writ  proceedings,  the  challenge  pending in LPA No. 760 of 2026, and the revision proceedings arising from the demolition action were all being treated as closely interlinked. It cannot therefore be denied that there is a clear and substantial overlap between the present appeals, the proceedings in CWP No. 38742 of 2025, LPA No. 760 of 2026, and CR No. 2579 of 2026.

13.

At the same time, overlap is not the same thing as identity. The present appeals arise out of the order dated 26.02.2026 refusing impleadment and refusing clarification/modificationin CWP No. 38742 of 2025. LPA No.  760  of  2026  arises  out  of  the  dismissal  of  CWP  No.5839 of 2026, which was an independent writ petition instituted by the Appellant against the rejection of its representation  and  revised  plans.  CR  No.  2579  of  2026, in turn, arises out of the dismissal of the statutory appeal under Section 269 of the 1976  Act. Both the intra court appeal and the civil revision are thus separate proceedings arising from distinct causes, even though each is affected,  in part,  by the effect attributed to  the order dated 24.12.2025. The mere circumstancethat one proceeding may furnish part of the legal backdrop of another does not, by itself, require that the latter proceedings be kept in abeyance until the former attains finality. Unless there is a statutory interdict, or unless the nature of the controversy is such that the later proceeding cannot at all be meaningfully adjudicated without first deciding the former, the Court must be slow to  render  otherwise  maintainable  remedies  dormant  for an indefinite period.

14.

We find no such compelling reason in the present case to direct that LPA No. 760 of 2026 and CR No. 2579 of 2026 should  remain  suspended  until  the  final  disposal  of  the broader  challenge  in  CWP  No.  38742  of  2025.  The  High Court, while hearing the said proceedings, would remain fully competent to examine the correctness of the orders under challenge therein in the light of the pleadings before it, the rejection orders and demolition proceedings impugned therein, the effect of the order dated 24.12.2025, and any other contention available to the parties in law. The fact that the High Court itself has been taking  up the said matters together  also indicates  that their joint hearing would conduce to orderly and effective adjudication. We may also note that one of the principal submissions urged before us on behalf of the Learned Senior Counsel Mr. Shadan Farasat for the Respondents was  that,  even  assuming  the  2025  Rules  were  to  apply, and  the  challenge  to  the  same  would  fail,  the  Appellant would still not be entitled to succeed since, according to the  Respondents,  the  building  of  the  Appellant  does  not conform even to that regime. We express no opinion whatsoever on the correctness of that submission. However, the very nature of that submission shows that the  Respondents  themselves  do  not  place  the  matter  on the footing that the fate of CWP No. 38742 of 2025 is inseparably dependent upon the outcome of LPA No. 760 of 2026 or CR No. 2579 of 2026. In other words, the pendency of the parent writ does not denude the High Court  of  jurisdiction  to  take  up  and  decide  LPA  No.  760 of 2026 and CR No. 2579 of 2026. Nor does it follow that such adjudication would necessarily prejudice the determination in the parent writ, so long as the limits of each proceeding are kept in view.

15.

There is another aspect of the matter. To require the Appellant to wait for the final decision in CWP No. 38742 of 2025 before LPA No. 760 of 2026 and CR No. 2579 of 2026 can even be heard would, in effect, postpone adjudication  of  the  Appellant’s  independent  remedies  to an uncertain stage. That course would not be justified on the facts before us. The orders under challenge in those proceedings have immediate civil consequences for the Appellant because they concern, on the one hand, the refusal  to  consider  the  Appellant’s  case  under  the  2025 Rules and, on the other hand, the legality and continuanceof the demolition action. If such proceedings are  kept  pending merely  because  a broader  challenge  to the 2025 Rules is also pending, the result may well be to make  the  available  remedies  illusory  in  practical  terms. Courts must ordinarily lean in favour of preserving, and not stultifying, a remedy otherwise available in law, particularly where the controversy is still live and the consequences asserted by the party are continuing.

16.

We are therefore of the view that the proper balance is to recognize the interconnection of the proceedings without collapsing  them  into  one  another.  The  Appellant  cannot be denied participation in CWP No. 38742 of 2025 when the order passed therein has already produced demonstrable civil consequences for it. At the same time, it  is  neither  necessary  nor  proper  to  hold  that  LPA  No. 760 of  2026 and  CR No.  2579 of  2026 must await  the final adjudication of the entire challenge in the parent writ.  Equally,  there  is  no  reason  why  CWP No.  38742  of 2025 itself should be held back merely because the Appellant has independently instituted the said proceedings. The ends of justice would be met by permitting the Appellant to be impleaded in CWP No.38742 of 2025, by permitting the  High Court to proceed with  CWP  No.  38742  of  2025  independently  of  LPA  No. 760 of 2026 and CR No. 2579 of 2026, by directing that the  said  matters  be  taken  up  together,  and  by  directing that they be decided independently of CWP No. 38742 of 2025 on their own merits and in accordance with law, uninfluenced by the reasons contained in the impugned order dated 26.02.2026.

17.

In view of the above, the appeals are allowed in the aforesaid terms.

18.

The judgment and order dated 26.02.2026 passed by the High Court in C.M. No. 2967-CWP-2026 and C.M. No. 2968-CWP-2026 in CWP No. 38742 of 2025 is set aside. C.M. No. 2967-CWP-2026 filed by the Appellant for impleadment in CWP No. 38742 of 2025 shall stand allowed. The Appellant shall be impleaded as a party respondent in CWP No. 38742 of 2025. In view of the order passed herein there is no need to pass any specific order in C.M. No. 2968-CWP-2026. The same stands disposed off.

19.

The  High  Court  shall  be  at  liberty  to  proceed  with  CWP No. 38742 of 2025 independently of LPA No. 760 of 2026 and CR No. 2579 of 2026.

20.

LPA  No.  760  of  2026  and  CR  No.  2579  of  2026  shall  be heard together and disposed of by the High Court independently  of  CWP  No.  38742  of  2025,  on  their  own merits and in accordance with law.

21.

The parties shall maintain status quo with respect to the property in question until the disposal of LPA No. 760 of 2026 and CR No. 2579 of 2026 by the High Court.

22.

It is made clear that this Court has not expressed any opinion on the merits of the rival claims in CWP No. 38742 of 2025, LPA No. 760 of 2026, CR No. 2579 of 2026, or any other proceedings arising out of the demolition action or the applicability of the 2025 Rules to the building of the Appellant. All questions in that regard are kept open.

23.

Pending application(s), if any, shall stand disposed of.