PRINCIPLE STATEMENT

A necessary party is someone whose presence is required so that he may be bound by the result of the action and because there is a question in the action that cannot be effectually and completely settled unless he is a party.

RATIO DECIDENDI (SOURCE)

Per Ogwuegbu, JSC, in Ajayi & Ors v. Yemi (2001) NLC-51997(SC) at pp. 19–20; Paras D–A.
"The principle guiding joinder of parties as provided in our various rules of court has received judicial interpretations in our courts and in courts of other common law jurisdictions. The purpose of the rules is to allow a plaintiff to proceed in the same action against all defendants against whom he alleges to be entitled to any relief whether his claim is brought against the defendants jointly, severally or in the alternative. The person to be joined must be someone whose presence is necessary as a party and the only reason which makes him a necessary party to an action is that he should be bound by the result of the action and the question to be settled. There must be a question in the action which cannot be effectually and completely settled unless he is a party."
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EXPLANATION / SCOPE

A necessary party is one whose presence is required for the court to effectually and completely adjudicate on all questions in the suit. The test is whether the question in the action cannot be settled without that party. A necessary party must be bound by the result. If a party is not necessary, non-joinder does not defeat the action. The distinction between necessary and desirable parties is crucial. A desirable party is one whose presence is convenient but not essential. The court may order joinder of a necessary party. Non-joinder of a necessary party may be fatal. The principle ensures that all parties with a direct interest in the outcome are before the court.

CASES APPLYING THIS PRINCIPLE