"Supreme Court Upholds Restoration of Suit for Specific Performance Despite Initial Procedural Dismissal: Cause of Action Distinction Under Order II Rule 2 CPC Clarified" "Procedural bars must yield to substantive justice when causes of action in separate suits are distinct."


Summary of Judgement

1. Delay Condonation and Leave Granted

  • The Supreme Court condoned the delay in filing the Special Leave Petitions (SLPs) and granted leave to appeal, enabling a detailed examination of the issues.

2. Genesis of the Case

  • Originating from two suits in the trial court, the appeals pertain to disputes over property transactions, alleged breaches, and procedural bars under Order II Rule 2 CPC.

3. Initial Agreements and Subsequent Disputes

  • Sale Agreement (2007): Respondent (M/s Chemplast Cuddalore Vinyls Limited) entered into a sale agreement with Respondent 2 (Mrs. Senthamizh Selvi), paying the full amount and taking possession.
  • Conflict: Revocation of Power of Attorney by Respondent 2 led to disputes over possession, prompting a suit (O.S. No. 28 of 2008) for injunction.
  • Discovery: A subsequent sale deed in favor of the appellant (Cuddalore Powergen Corporation Ltd.) led to a second suit (O.S. No. 122 of 2008) seeking specific performance and nullification of the sale deed.

4. Trial Court and High Court Rulings

  • Trial Court: Dismissed the second suit under Order II Rule 2 CPC, stating that specific performance relief should have been sought in the first suit.
  • High Court: Restored the second suit, holding that the causes of action in the two suits were distinct.

5. Appellant and Respondent Arguments

  • Appellant: Asserted that the second suit was barred under Order II Rule 2 CPC, citing the deliberate omission of specific performance relief in the first suit.
  • Respondent: Claimed the causes of action were distinct, with the second suit addressing contractual rights post-discovery of the subsequent sale deed.

Key Legal Issues

1. Whether the Second Suit Was Barred Under Order II Rule 2 CPC

  • Primary Test: Whether the claims in both suits arose from the same cause of action and whether specific performance relief was deliberately omitted earlier.

2. Applicability of Order II Rule 2 When Reliefs Are Split Across Multiple Suits

  • The Court emphasized analyzing the evidence and whether identical facts substantiated the reliefs in both suits.

Court's Observations and Analysis

1. Distinct Causes of Action

  • The first suit sought possession protection, while the second aimed to enforce contractual rights based on a later-discovered transaction. These were deemed distinct causes of action.

2. Principles from Precedents

  • The Court referred to Mohammad Khalil Khan v. Mahbub Ali Mian and Gurbux Singh v. Bhooralal to establish the criteria for applying Order II Rule 2 CPC, including:
    • Same cause of action in both suits.
    • Evidence required to prove both claims.
    • Deliberate omission of relief in the first suit without leave.

3. Evidence and Burden of Proof

  • The burden lies on the appellant to prove:
    • Identity of causes of action.
    • Intentional omission of relief.
    • No clear evidence established these conditions in the present case.

4. Substance Over Technicalities

  • Emphasis on substantive justice over procedural rigidity, ensuring litigants are not unjustly deprived of their rights.

5. Rejection of Plaint Under Order VII Rule 11 CPC

  • The trial court’s dismissal of the second suit lacked merit, as ambiguities in facts and mixed evidence require full adjudication.

Final Judgment

  • The Supreme Court upheld the High Court's decision to restore the second suit.
  • Directed adjudication of both suits on merits, ensuring fairness and resolution of disputes based on substantive justice principles.

The Judgement

Case Title: CUDDALORE POWERGEN CORPORATION LTD M/S CHEMPLAST CUDDALORE VERSUS VINYLS LIMITED AND ANR

Citation: 2025 LawText (SC) (1) 152

Case Number: CIVIL APPEAL NOS. 372-373 OF 2025 (@SLP (C) NOS. 1297-1298 OF 2025) (@ SLP(C) D. No.13548 of 2017)

Date of Decision: 2025-01-15