"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."
CASE NOTE & SUMMARY
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.
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
Case Title: CUDDALORE POWERGEN CORPORATION LTD M/S CHEMPLAST CUDDALORE VERSUS VINYLS LIMITED AND ANR
Before Judge: (J.B. Pardiwala J. , R. Mahadevan J.)
Appellant: CUDDALORE POWERGEN CORPORATION LTD M/S CHEMPLAST CUDDALORE
Respondent: VINYLS LIMITED AND ANR