To qualify for joinder as a party to proceedings under Rule 32(12)(b), a party must demonstrate: (a) a direct and substantial interest in the issues raised in the proceedings involving matters in dispute; and (b) that its rights may be affected by the judgment of the court. Where a party is bound by a tripartite agreement creating conditions precedent to transfer of property (such as payment of development fees), and court proceedings seek relief that would circumvent those conditions precedent, that party has sufficient direct and substantial interest to warrant joinder as a defendant, even where no claim is made directly against them. Joinder in such circumstances is appropriate to avoid multiplicity of suits, promote finality of litigation, and prevent prejudice to the party seeking joinder.