The parties are indispensable category of persons in a suit. All the persons who are essential for the merits of the case are to be joined in the suit. Such type of parties are called necessary parties.
In short the necessary parties are those parties whose presence is necessary for adjudication of the suit. The decree obtained by not adding the necessary or proper parties may fail to get executed in a proper way. For the full and final decision of the suit the necessary parties are to be added.
But there is a distinction between the necessary and proper party. A necessary party as stated above is an indispensable person to the suit without whom an effective order cannot be passed.
A proper party is those person in whose absence, an effective order can be passed. But he need to be present in the suit for its full and final decision. The decision rendered will be more effective and complete if a proper party is added.
In land acquisition case, the beneficiary is a proper party whereas the Government and the claimant are necessary parties.