Rule 1 of CPC : Rule 1: Parties to suits for foreclosure, sale and redemption.

Explanation using Example

Example 1:

Ravi took a loan from Bank A and mortgaged his house as security. Later, he took another loan from Bank B using the same house as security. Ravi failed to repay the loan to Bank B, and Bank B decided to file a suit for foreclosure to recover the loan amount. According to Rule 1 of Order XXXIV of the Code of Civil Procedure 1908, Bank B can file the suit for foreclosure without making Bank A (the prior mortgagee) a party to the suit. This means Bank B can proceed with the foreclosure process independently of Bank A.

Example 2:

Sita mortgaged her property to Lender X and later took another loan from Lender Y using the same property as collateral. Sita defaulted on her loan to Lender Y, and Lender Y decided to file a suit for the sale of the property to recover the loan amount. According to Rule 1 of Order XXXIV of the Code of Civil Procedure 1908, Lender Y can file the suit for sale without including Lender X (the prior mortgagee) as a party to the suit. This allows Lender Y to proceed with the sale of the property without involving Lender X in the legal proceedings.