Bombay High Court Allows Appeal in Specific Performance Suit, Sets Aside Decree for Possession Due to Non-Compliance with Order 2 Rule 2 CPC. Plaintiffs Failed to Disclose Earlier Agreement for Sale, Barring Subsequent Suit for Specific Performance.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The appellants, original defendants, challenged the judgment and decree dated 14th October 2008 passed by the learned Civil Judge, Senior Division, Karad in Special Civil Suit No.13 of 2003, which decreed the suit for specific performance and directed the appellants to deliver vacant possession of the suit property. The respondents, original plaintiffs, had filed the suit for specific performance of an agreement for sale dated 1.5.1995. The appellants contended that the suit was barred under Order 2 Rule 2 of the Code of Civil Procedure, 1908, because the respondents had earlier filed a suit for injunction (Special Civil Suit No. 14 of 1996) based on the same agreement, without seeking the relief of specific performance. The trial court had dismissed the earlier suit for injunction. The High Court examined the plaints of both suits and found that the cause of action for both suits was identical, i.e., the agreement for sale and the defendants' refusal to execute the sale deed. The court held that the respondents ought to have included the relief of specific performance in the earlier suit. Since they failed to do so, the subsequent suit for specific performance was barred under Order 2 Rule 2 CPC. The court allowed the appeal, set aside the trial court's judgment, and dismissed the suit for specific performance.

Headnote

A) Civil Procedure - Bar on Subsequent Suit - Order 2 Rule 2 CPC - The plaintiffs earlier filed a suit for injunction based on an agreement for sale without seeking specific performance. The subsequent suit for specific performance based on the same agreement is barred under Order 2 Rule 2 CPC as the cause of action for both suits is the same. The court held that the plaintiffs ought to have included the relief of specific performance in the earlier suit. (Paras 8-12)

B) Specific Performance - Agreement for Sale - Cause of Action - The agreement for sale dated 1.5.1995 was the foundation of both the earlier injunction suit and the subsequent specific performance suit. The breach of agreement and refusal to execute sale deed were known to plaintiffs at the time of earlier suit. Hence, the subsequent suit is not maintainable. (Paras 8-12)

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Issue of Consideration

Whether the suit for specific performance of an agreement for sale is barred under Order 2 Rule 2 of the Code of Civil Procedure, 1908, when the plaintiffs had earlier filed a suit for injunction based on the same agreement and did not seek the relief of specific performance.

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Final Decision

Appeal allowed. Judgment and decree dated 14th October 2008 passed by the learned Civil Judge, Senior Division, Karad in Special Civil Suit No.13 of 2003 is set aside. Suit for specific performance is dismissed. No order as to costs.

Law Points

  • Order 2 Rule 2 CPC
  • bar on subsequent suit
  • specific performance
  • cause of action
  • constructive res judicata
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Case Details

2010 LawText (BOM) (06) 77

First Appeal No.2274 of 2008

2010-06-24

R.G.Ketkar

Mr.P.S.Dani i/by Mr.R.D.Suryavanshi for the Appellants, Mr.Umesh Mankapure for Respondent Nos.1 to 5

Smt.Savitribai Vishnupant Vaske and others

Faruk Abdulrahim Patel and others

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Nature of Litigation

Civil appeal against decree for specific performance of agreement for sale.

Remedy Sought

Appellants sought setting aside of trial court decree directing delivery of possession.

Filing Reason

Appellants contended that the suit for specific performance was barred under Order 2 Rule 2 CPC as respondents had earlier filed a suit for injunction based on same agreement without seeking specific performance.

Previous Decisions

Trial court decreed suit for specific performance on 14.10.2008 in Special Civil Suit No.13 of 2003.

Issues

Whether the suit for specific performance is barred under Order 2 Rule 2 CPC due to earlier injunction suit based on same agreement.

Submissions/Arguments

Appellants argued that the respondents earlier filed Special Civil Suit No.14 of 1996 for injunction based on the same agreement for sale dated 1.5.1995, and did not seek specific performance. Hence, the subsequent suit is barred under Order 2 Rule 2 CPC. Respondents argued that the earlier suit was for injunction only and the cause of action for specific performance arose later when defendants refused to execute sale deed.

Ratio Decidendi

A subsequent suit for specific performance based on the same agreement for sale is barred under Order 2 Rule 2 CPC when the plaintiff earlier filed a suit for injunction based on the same cause of action without seeking the relief of specific performance, as the plaintiff ought to have included that relief in the earlier suit.

Judgment Excerpts

In the present case, the respondents had earlier filed Special Civil Suit No.14 of 1996 for injunction. The cause of action for that suit was the agreement for sale dated 1.5.1995 and the defendants' refusal to execute the sale deed. The same cause of action forms the basis of the present suit for specific performance. The respondents ought to have included the relief of specific performance in the earlier suit. Having failed to do so, the present suit is barred under Order 2 Rule 2 of the Code of Civil Procedure, 1908.

Procedural History

Respondents filed Special Civil Suit No.13 of 2003 for specific performance of agreement for sale dated 1.5.1995. Trial court decreed suit on 14.10.2008. Appellants (original defendants) filed First Appeal No.2274 of 2008 in Bombay High Court. High Court allowed appeal on 24.6.2010.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 2 Rule 2
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