A necessary party is person or entity whose interests will be affected by the outcome of a lawsuit, whose absence as a party in the suit prevents a judgment on all issues, but who cannot be joined in the lawsuit because that would deny jurisdiction to the particular court.
A ‘necessary party’ is one whose presence in a judicial proceeding is enjoined by law. In the absence of such a party the suit cannot be said to be properly constituted and no effective decision can be given. In such a case the suit is liable to be dismissed. A ‘proper party’ on the other hand, is one whose presence is not essential in the constitution of the suit but whose presence is desirable for effectively and completely adjudicating the matters in controversy. In the absence of a necessary party the suit must fail but it is not always so in the absence of a proper arty – Order I Rule 3, Code of Civil Procedure, 1908. ….. [Barada Sundari Paul and others vs. The Assistant Custodian, Enemy Property, Comilla and others, 15 BLD (AD) 95]
At any stage of the proceeding the court may order that the name of a party improperly joined be struck out and that the name of any person, whose presence is considered necessary for complete and effectual Adjudication, be added. ….. [Makbulur Rahman and others vs. Halima Textile Mills Ltd. Employees Provident Fund Trust, Comilla and ors. 14 BLD (HCD) 429]