A necessary party is one without whom no effective decree can be passed, while a proper party is one in whose absence an effective decree can still be passed, but whose presence helps the court completely and effectively decide the dispute.
30-second answer
A necessary party is a person without whom no effective order or decree can be passed by the court. If a necessary party is not joined, the suit may fail for non-joinder. A proper party, on the other hand, is not essential for passing an effective decree, but his presence enables the court to completely and finally adjudicate all issues involved. Therefore, absence of a proper party does not make the suit incompetent, though his joinder may avoid multiplicity of proceedings. ”
Easy memory line
“Necessary party: no effective decree without him; proper party: effective decree possible without him, but complete adjudication is better with him.
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