CIVIL PROCEDURE — Joinder of Parties — When a Party Is Necessary for Effective and Complete Settlement
Ratio Decidendi
Per Tobi, JSC, in Rinco Construction Co. Ltd. v. Veepee Industries Ltd. & Anor (2005) NLC-2952001(SC) at p. 8; Paras B–C:
"The only reason which makes it necessary to make a person a party to an action is so that he should be bound by the result of the action and the question to be settled therefore must be a question in the action which cannot be effectively and completely settled unless he is a party."
Explanation / Scope
A necessary party is one whose presence is required for effective and complete settlement of all questions in the action. The party must be bound by the result. The principle applies to civil procedure. The rule prevents multiplicity of actions. Absence of a necessary party may render the proceedings incompetent. The court may order joinder or strike out the suit.