INDISPENSABLE PARTIES:

Section 7, Rule 3 of the 1997 Rules of Civil Procedure provides:

SEC. 7 – Compulsory joinder of indispensable parties. - Parties in interest without whom no final determination can be had of an action shall be joined as plaintiffs or defendants.

                The test to determine if a party is an indispensable party is as follows:

An indispensable party is a party who has an interest in the controversy or subject matter that a final adjudication cannot be made, in his absence, without injuring or affecting that interest, a party who has not only an interest in the subject matter of the controversy, but also has an interest of such nature that a final decree cannot be made without affecting his interest or leaving the controversy in such a condition that its final determination may be wholly inconsistent with equity and good conscience. It has also been considered that an indispensable party is a person in whose absence there cannot be a determination between the parties already before the court which is effective, complete or equitable. Further, an indispensable party is one who must be included in an action before it may properly go forward.

            A person who is not an indispensable party, however, if his interest in the controversy or subject matter is separable from the interest of the other parties, so that it will not necessarily be directly or injuriously affected by a decree which does complete justice between them. Also, a person is not an indispensable party if his presence would merely permit a complete relief between him and those already parties to the action, or if he has no interest in the subject matter of the action. It is not a sufficient reason to declare a person to be an indispensable party that his presence will avoid multiple litigation.( Lagunilla v. Velasco, G.R. No. 169276, 16 June 2009, 589 SCRA 224, 232-233 citing Regner v. Logarta, G.R. No. 168747, 19 October 2007, 537 SCRA 277 and Arcelona v. Court of Appeals, 345 Phil. 250 (1997). (Aquilino R. Pimentel, Jr.  et al. vs. Senate Committee of the Whole, G.R. No. 187714, March 8, 2011, CARPIO, J.).