Supreme Court Dismisses Appeal in Specific Performance Suit Barred by Order 2 Rule 2 CPC. Plaintiff's Omission to Seek Leave for Subsequent Suit for Specific Performance After Earlier Injunction Suit Results in Bar.

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Case Note & Summary

The appeal arises from a judgment of the Bombay High Court (Nagpur Bench) in a Second Appeal, which upheld the concurrent findings of the Trial Court and the First Appellate Court that the suit for specific performance was barred by Order 2 Rule 2 of the Code of Civil Procedure, 1908 (CPC). The dispute pertains to agricultural land Gat.No.111 admeasuring 3 H 05 R at Mauje Nayegaon, Taluka Nandura, District Buldhana. On 26 October 1995, the defendant entered into an agreement to sell the land to the plaintiff for Rs 1,80,000, with Rs 1,50,000 paid as earnest money. The sale deed was to be executed by 25 October 1996. The plaintiff issued a notice on 11 October 1996 for performance, but the defendant refused. On 16 October 1996, the defendant allegedly obstructed the plaintiff's possession, leading the plaintiff to file a suit for injunction (RCS No. 216/1997) on 30 October 1996. The plaint in that suit mentioned the agreement to sell and stated that the plaintiff would file a separate suit for specific performance. No leave under Order 2 Rule 2(3) CPC was sought. The injunction suit was dismissed in default on 16 September 2005. Meanwhile, on 30 April 1997, the plaintiff filed a suit for specific performance (Special Suit No. 61/1997). The defendant raised the bar under Order 2 Rule 2 CPC. The Trial Court dismissed the suit, holding that the plaintiff had omitted to sue for specific performance when the cause of action accrued. The First Appellate Court initially reversed, but on remand, it upheld the bar. The High Court in Second Appeal affirmed. The Supreme Court considered whether the bar under Order 2 Rule 2 CPC applied. The Court noted that the cause of action for both suits was the same: the agreement to sell and the defendant's refusal to perform. The plaintiff, aware of the breach, chose to sue only for injunction and expressly reserved the right to sue for specific performance but did not seek leave of the court. The Court held that the bar under Order 2 Rule 2 is attracted when the plaintiff omits to sue for a relief available on the same cause of action without leave. The plaintiff's omission amounted to relinquishment of the claim for specific performance. The Court dismissed the appeal, affirming the concurrent findings.

Headnote

A) Civil Procedure - Order 2 Rule 2 CPC - Bar to Subsequent Suit - Cause of Action - The bar under Order 2 Rule 2 applies when the subsequent suit is based on the same cause of action as the earlier suit and the plaintiff omitted to sue for the relief available in the earlier suit without leave of the court. In the present case, the plaintiff's earlier suit for injunction and the subsequent suit for specific performance were based on the same cause of action arising from the agreement to sell. The plaintiff, having knowledge of the breach, omitted to claim specific performance in the earlier suit and did not seek leave under Order 2 Rule 2(3) CPC. Held that the suit for specific performance is barred. (Paras 2-10)

B) Civil Procedure - Order 2 Rule 2 CPC - Relinquishment of Claim - The plaintiff's failure to seek the relief of specific performance in the earlier suit, despite the cause of action having accrued, amounts to relinquishment of that claim. The plaint in the earlier suit expressly stated that the plaintiff would file a separate suit for specific performance, but no leave was obtained. Held that the omission without leave bars the subsequent suit. (Paras 4-10)

C) Civil Procedure - Order 2 Rule 2 CPC - Proof of Cause of Action - The certified copy of the plaint in the earlier suit, marked as Exhibit 137, sufficiently proved the identity of cause of action. The plaintiff's objection that the plaint was not shown during his examination was rejected as the document was admitted without objection. Held that the bar under Order 2 Rule 2 was properly applied. (Paras 7-10)

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Issue of Consideration

Whether the suit for specific performance is barred by Order 2 Rule 2 of the Code of Civil Procedure, 1908, when the plaintiff had instituted an earlier suit for injunction based on the same cause of action without seeking leave to file a subsequent suit for specific performance.

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Final Decision

The Supreme Court dismissed the appeals, affirming the judgment of the High Court and the concurrent findings that the suit for specific performance was barred by Order 2 Rule 2 of the Code of Civil Procedure, 1908.

Law Points

  • Order 2 Rule 2 CPC
  • Cause of Action
  • Bar to Subsequent Suit
  • Leave of Court
  • Relinquishment of Claim
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Case Details

2019 LawText (SC) (11) 14

Civil Appeal No. 9065 of 2019 (Arising out of SLP (C) No. 11811/2017) with Civil Appeal No. 9066 of 2019 (Arising out of SLP (C) No. 12210/2017)

2019-11-27

Dr Dhananjaya Y Chandrachud

Vurimi Pullarao

Vemari Vyankata Radharani & Anr

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Nature of Litigation

Civil appeal against judgment in Second Appeal upholding bar under Order 2 Rule 2 CPC on suit for specific performance.

Remedy Sought

Appellant sought to set aside the High Court judgment and decree specific performance of agreement to sell.

Filing Reason

Appellant challenged the concurrent findings that the suit for specific performance was barred by Order 2 Rule 2 CPC due to omission to seek leave in earlier injunction suit.

Previous Decisions

Trial Court dismissed suit for specific performance; First Appellate Court initially decreed it but on remand upheld bar; High Court in Second Appeal affirmed bar.

Issues

Whether the suit for specific performance is barred by Order 2 Rule 2 CPC when the plaintiff had instituted an earlier suit for injunction based on the same cause of action without seeking leave to file a subsequent suit for specific performance.

Submissions/Arguments

Appellant argued that the cause of action for the injunction suit and the specific performance suit were different; the earlier suit was for possession and injunction, while the later was for specific performance. Respondent contended that the plaint in the earlier suit clearly showed the same cause of action and the plaintiff omitted to sue for specific performance without leave, attracting the bar.

Ratio Decidendi

The bar under Order 2 Rule 2 CPC applies when the subsequent suit is based on the same cause of action as the earlier suit and the plaintiff omitted to sue for a relief available in the earlier suit without leave of the court. The plaintiff's omission to seek specific performance in the earlier injunction suit, despite the cause of action having accrued, amounts to relinquishment of that claim, barring the subsequent suit.

Judgment Excerpts

The High Court came to the conclusion that the suit for specific performance instituted by the appellant was barred by Order 2 Rule 2 of the Code of Civil Procedure, 1908 since the appellant had instituted an earlier suit for injunction. The plaint in the earlier suit made specific reference to the fact that the plaintiff would file a suit on the basis of the agreement to sell for claiming specific performance. Since the plaintiff omitted to seek the relief of specific performance which was available when the earlier suit for injunction was instituted, the Court inferred that the plaintiff had relinquished the claim for specific performance.

Procedural History

The plaintiff filed a suit for injunction (RCS No. 216/1997) on 30 October 1996 without seeking leave under Order 2 Rule 2(3) CPC. Subsequently, on 30 April 1997, the plaintiff filed a suit for specific performance (Special Suit No. 61/1997). The Trial Court dismissed the specific performance suit on 13 October 2005, holding it barred by Order 2 Rule 2 CPC. The First Appellate Court initially reversed on 6 January 2012, but on remand by the High Court on 2 April 2013, the First Appellate Court again upheld the bar. The High Court in Second Appeal affirmed on 6 January 2017. The Supreme Court granted leave and dismissed the appeals.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 2 Rule 2, Order 2 Rule 2(3), Order XLI Rule 23
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Supreme Court Supreme Court Dismisses Appeal in Specific Performance Suit Barred by Order 2 Rule 2 CPC. Plaintiff's Omission to Seek Leave for Subsequent Suit for Specific Performance After Earlier Injunction Suit Results in Bar.
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