Supreme Court Upholds High Court's Rejection of Order II Rule 2 and Res Judicata Pleas in Land Possession Suit. Subsequent Suit for Possession Based on Title Not Barred as Cause of Action Differed from Earlier Suit for Sale Price Under Code of Civil Procedure, 1908.

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Case Note & Summary

The litigation concerned agricultural land comprising Khata Khatauni No.45/63, Khasra No.348, area 34.9 bighas, situated in Village Chuling, District Kinnaur, Himachal Pradesh. The appellants initially initiated proceedings before the Compensation Officer, Pooh, but withdrew their application on August 24, 1971. Thereafter, the father of the respondents, Padam Ram, filed a suit for recovery of Rs.6,300 as sale price against the appellants, alleging that by a document dated September 1, 1976 (also referred to as September 2, 1976), the land was transferred to the appellants, who promised to pay the amount by November 11, 1976 but failed to do so. The appellants contested the suit, claiming they were tenants in possession since Samvat 2005 and that the document was obtained by fraud and was void under the Himachal Pradesh Tenancy and Land Reforms Act. The trial court dismissed the suit on January 15, 1981, holding the agreement without consideration and hit by Section 91 of the Himachal Pradesh Tenancy and Land Reforms Act, and also found that the defendants were tenants since Samvat 2005. On appeal, the Additional District Judge, Shimla, upheld the dismissal but observed the document was only an agreement for sale, not a sale deed, and reversed the finding on tenancy, holding the defendants failed to prove tenancy. The plaintiffs then filed Suit No. 91/1/1982 for possession on the basis of title, pleading ownership and that the defendants had been held not to be tenants. The defendants resisted, arguing the suit was barred by Order II Rule 2 CPC and by limitation, and claimed adverse possession since Samvat 2005. The trial court dismissed the suit on April 21, 1984, accepting the Order II Rule 2 and limitation pleas. In appeal, the District Judge, Shimla, reversed that decision on March 31, 1986, holding the suit was neither barred by Order II Rule 2 nor beyond time, and decreed the suit. The appellants' second appeal was dismissed by the High Court of Himachal Pradesh on July 8, 1994. Before the Supreme Court, the appellants raised two contentions: first, that the suit was barred by Order II Rule 2 CPC because the plaintiffs omitted to claim possession in the earlier suit; second, that the trial court's finding of tenancy in the earlier suit should still operate in their favour despite its reversal by the lower appellate court, because they were the successful party and could not appeal the finding. The Court examined Order II Rule 2 and the principles in Palaniappa Chettiar v. Alagan Chettiar, Arun Lal Gupta v. Mriganka Mohan Sur, State of Madhya Pradesh v. State of Maharashtra, Kewal Singh v. Mt. Lajwanti, Sidramappa v. Rajashetty, and Gurbux Singh v. Bhura Lal. It held that Order II Rule 2 bars a subsequent suit only when the cause of action is identical and the plaintiff omitted to seek a relief without leave of the court. Here, the earlier suit was for recovery of sale price, where the plaintiffs had pleaded transfer of title; thus they could not have claimed possession. The subsequent suit was based on title, constituting a different cause of action. Therefore, Order II Rule 2 did not bar it. On the second contention, the Court noted that in the subsequent suit the defendants did not plead res judicata or tenancy; their defence was adverse possession and limitation. No issue was framed on tenancy, so the earlier finding could not be relied upon. The Court referred to Section 11 CPC and its explanations, but observed that the rule of res judicata was not invoked. The Court's reasoning indicated that the High Court and District Judge were correct and the appeal was without merit; the final operative order is not included in the excerpt but the reasoning supports affirmance of the High Court.

Headnote

A) Civil Procedure - Suit to Include Whole Claim - Bar of Subsequent Suit - Order II Rule 2 Code of Civil Procedure, 1908 - The previous suit was for recovery of sale price based on an agreement for sale; the subsequent suit was for possession based on title. The causes of action were distinct because in the earlier suit the plaintiffs had pleaded transfer of title to the defendants, so they could not have claimed possession. Held that the subsequent suit was not barred by Order II Rule 2 CPC. (Paras Not mentioned)

B) Civil Procedure - Res Judicata - Effect of Reversal of Finding When Appeal Decided in Favour of Party - Section 11 Code of Civil Procedure, 1908 - The defendants did not plead res judicata or tenancy in the subsequent suit; their defence was adverse possession and limitation. Held that the rule of res judicata was not available as the issue was not raised, and the earlier finding of tenancy, even if reversed, could not be used to defeat the possession suit. (Paras Not mentioned)

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Issue of Consideration

Whether the subsequent suit for possession was barred by Order II Rule 2 of CPC due to omission to claim possession in earlier suit for recovery of sale price; Whether the finding of tenancy recorded by the trial court in the earlier suit, though reversed by the lower appellate court while deciding the appeal in favour of the defendants, could operate as res judicata or bind the plaintiffs in the subsequent suit

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Law Points

  • Order II Rule 2 CPC bars subsequent suit only if same cause of action
  • Res judicata under Section 11 CPC requires pleading and identity of issues
  • Reversal of finding in appeal decided in favour of party does not revive trial court finding if not challenged
  • Subsequent suit for possession based on title has distinct cause of action from suit for sale price
  • Tenant status not relevant if not pleaded
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Case Details

1995 LawText (SC) (10) 55

1995-10-16

S. Saghir Ahmad, Kuldip Singh

1996 AIR 378, 1995 SCC (6) 733, JT 1995 (7) 641, 1995 SCALE (6)18

Deva Ram and Another

Ishwar Chand and Another

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Nature of Litigation

Civil suit for recovery of possession of agricultural land, preceded by an earlier suit for recovery of sale price, involving questions of Order II Rule 2 CPC, res judicata, and tenancy.

Remedy Sought

Appellants sought setting aside of the High Court judgment affirming the decree for possession; respondents sought possession of the suit land on the basis of title.

Filing Reason

Dispute arose after earlier suit for sale price was dismissed and lower appellate court held defendants were not tenants; plaintiffs then filed suit for possession as owners, which was resisted by defendants on grounds of Order II Rule 2, limitation, and adverse possession.

Previous Decisions

Trial court dismissed earlier suit on 15-01-1981; Additional District Judge, Shimla, dismissed appeal but reversed tenancy finding; subsequent possession suit dismissed by trial court on 21-04-1984; District Judge, Shimla, reversed and decreed suit on 31-03-1986; High Court of Himachal Pradesh dismissed second appeal on 08-07-1994.

Issues

Whether the subsequent suit for possession was barred by Order II Rule 2 CPC due to omission to claim possession in earlier suit for recovery of sale price. Whether the finding of tenancy recorded by the trial court in the earlier suit, though reversed by the lower appellate court, could operate as res judicata or bind the plaintiffs in the subsequent suit.

Submissions/Arguments

Appellants contended that the District Judge's finding that the suit was not barred by Order II Rule 2 was erroneous, as the earlier trial court had held them to be tenants, making the possession suit not maintainable. Appellants contended that the trial court's tenancy finding should still hold field despite reversal by the lower appellate court, because they were the successful party and had no occasion to appeal the finding.

Ratio Decidendi

Order II Rule 2 CPC bars a subsequent suit only when the cause of action is identical and the plaintiff omitted to seek a relief without leave of the court; a subsequent suit based on a different cause of action is not barred. Res judicata under Section 11 CPC requires that the plea be raised and the issue be directly and substantially in issue; if not pleaded in the subsequent suit, the earlier finding cannot operate as res judicata. The reversal of a finding in an appeal decided in favour of a party does not automatically revive the trial court's finding when that finding was not challenged in a higher forum.

Judgment Excerpts

the plaintiff cannot be permitted to draw the defendant to court twice for the same cause by splitting up the claim and suing, in the first instance, in respect of a part of claim only. In view of the above, what is to be seen in the instant case is whether the cause of action on the basis of which the previous suit was filed, is identical to the cause of action on which the subsequent suit giving rise to the present appeal, was filed. In the subsequent suit, the appellants in their capacity as defendants did not plead the rule of res judicata.

Procedural History

Initial proceedings before Compensation Officer, Pooh, withdrawn on 24-08-1971; earlier suit for recovery of Rs.6,300 as sale price filed by plaintiff Padam Ram; trial court dismissed suit on 15-01-1981, finding agreement void and defendants tenants; Additional District Judge, Shimla, dismissed appeal but reversed tenancy finding, holding document was agreement for sale; subsequent Suit No. 91/1/1982 for possession filed by plaintiffs; trial court dismissed suit on 21-04-1984 on Order II Rule 2 and limitation; District Judge, Shimla, reversed and decreed suit on 31-03-1986; High Court of Himachal Pradesh dismissed second appeal on 08-07-1994; matter came before Supreme Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Order II Rule 2, Section 11, Section 96, Section 100
  • Himachal Pradesh Tenancy and Land Reforms Act: Section 91
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