Definition
Claim against outsider.
Application by defendant against third party.
Statutory Definition
Order VIII-A CPC.
Etymology & Origin
Derived from the concept that the dispute extends beyond the first party (plaintiff) and second party (defendant) to involve a 'third party' who is ultimately liable.
Full Legal Analysis
A Third Party Claim is a procedural mechanism that allows a defendant in an ongoing civil suit to bring a new, external party (a 'third party') into the litigation. The defendant does this by claiming that if they (the defendant) are found liable to pay the plaintiff, the third party is legally bound to indemnify (reimburse) or contribute to that payment.
For example, if a car owner is sued for a crash caused by brake failure, the owner (defendant) might file a third-party claim against the car manufacturer, arguing that the manufacturer must indemnify them for any damages awarded to the plaintiff.
This procedure is designed to prevent a multiplicity of suits. Instead of the defendant losing the first suit and then having to file a completely new suit against the third party, the court resolves the entire chain of liability in one go.
A third party joined in this manner effectively becomes a defendant to the original defendant. They are entitled to file their own written statement and cross-examine the plaintiff's witnesses to defeat the original claim.
Advocates representing insurance companies or guarantors frequently find themselves dragged into litigation via third-party notices when the primary debtor defaults or is sued.
