Saturday, 15 June 2013

O 2 R 2 of Civil procedure code and principle of res judicata

Neither Order 2
Rule 2 nor Section 11 Explanation IV cast duty on the plaintiff to sue in one
suit for various causes of action.  What is essential is that the party is bound
to put forward his whole case as plaintiff or defendant in respect of the same
subject matter of the suit.   If the plaintiff omits to raise certain ground in
respect  of  his  claim,  he will not  subsequently  be  permitted  to  raise  such
ground in  respect  of  his  claim.    If  the  subject matters  are  separate  and
distinct, the second suit for such distinct subject matter would not attract bar
of Section 11 Explanation IVThere may be situation where the incidental issues like nature of
ownership   of   the   property   i.e.   whether   it   was   joint   family   property   or
self­acquired property of Tikaram may arise in both suits.  In such an event,
the findings recorded on such incidental issues may operate as res judicata in
the subsequent suit but to say that the entire suit filed subsequently is barred
either under Order 2 Rule 2 or under Section 11  Explanation IV will be de
hors  the legal position

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
Second Appeal No.5/1995
1. Zalaksingh s/o Tikarambhau Bisen, 

..V/s..
1. Pramodkumar s/o Prahaladrai Agrawal, 

CORAM : M.N. GILANI, J.

Pronounced on : 31/8/2012.



1. This second appeal is directed against the judgment and decree
dated 3rd  September 1994 passed by Additional District Judge, Gondia in
Regular   Civil   Appeal   No.74/1994   whereby   judgment   and   decree   dated
31/7/1992   passed   by   the   trial   court   in   Regular   Civil   Suit   no.34/1971
dismissing the suit was confirmed. 
2. One   Tikaram   died   leaving   behind   him   three   sons   who   are
original plaintiffs 1  to 3  –  appellants 1  to 3 herein and  a widow who is
original plaintiff no.4 – appellant no.4 herein.   Plaintiffs pleaded  that  the
land Khasra No.189, area 8.22 acres, situated at village Gondia (Buzruk.)
was  their ancestral property. During his life  time Tikaram was addicted to
vices. On 21/1/1959 Tikaram sold the land area 3.20 aces out of Kh.      No.
189 to the defendants by executing sale deed. Plaintiffs filed Regular Civil
Suit no.131/1963 against the defendants for setting aside the said sale deed.
The judgment and decree passed in  that suit was challenged in an appeal
and  now  it   has   reached  to   finality.    Again   Tikaram   had  sold  remaining
portion   of   4.82   acres   of   land   out   of   same   khasra   number   to   the   same
defendants vide registered sale deed  dated 11/2/1959.  To challenge second
alienation plaintiffs  filed second suit being Regular Civil Suit No.34/1971.

The defendants filed written statement at Exh.16 and resisted the suit inter
alia on the grounds that the plaintiffs omitted to include the claim in respect
of land covered under second sale deed when they had filed first suit being
R.C.S. No.131/1963 and as such second suit is barred under Order 2 Rule 2
of the Civil Procedure Code.  The learned trial court, mainly, relying upon the
decision in case of Mohammad Khalil Khan V/s. Mehbub Ali Mian reported in
AIR (36) 1949 Privy Council 78 held that the suit is barred under Order 2
Rule 2  and  also  on  the  principle  of  constructive res judicata  as explained
under section 11 Explanation IV of the  Code.   
3. The   first   appellate   court   formulated   following   point   for   its
determination :
“Whether the suit is barred by Constructive res judicata and
as per Order 2, Rule 2 of the Code ?”
4. After considering the rival submissions, the first appellate court
concluded thus :
“Hence, I conclude that the cause of action for both these suits was
identical.    On  the  same facts,  the  plaintiffs  are  claiming  different
reliefs in both the suits and such relief cannot be claimed by them in
view of Order 2 Rule 2 especially explanation and illustration given
below  Order  2  Rule  2.    The  explanation  says  that,  the  successive
claims arising under the obligation shall be deemed to constitute but
one cause of action.  In my opinion the word “And” appearing in this
explanation  to  Order  2  Rule  2  should  be  read  as  disjunctive  and
therefore, cancellation of first sale­deed and the second sale­deed are
two successive claims arising under the same obligation namely (want
of legal necessity, want of benefit of estate, and joint family nature of
the   property)   which   create   obligation   on   the   defendants   not   to
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purchase the land from Tikaram and hence, it forms identical cause of
action from both suits and  therefore,  the later suit is barred under
Order 2 Rule 2 of Civil Procedure Code.”  
5. This   Court   while   admitting   the   appeal   formulated   following
substantial questions of law :
“(1) Whether in the facts and circumstances of the case, the
courts below were justified in holding that the two sale deeds dated
22.1.59  and  11.2.59 gave  rise  to  the  single  cause  of  action  and
non­inclusion  of  challenge  of  sale  deed  dated 11.2.59 in Reg.C.S.
No.131 of 63 amounted to relinquishment of part of that claim ?
(2) Whether both  the  courts below were right in holding
that the second suit challenging second sale deed was barred by the
principles of constructive res judicata ?”
6. Before I, proceed to consider the rival submissions advanced at
the bar, for better appreciation of the facts of the case prayer clauses in both
the suits are reproduced below :
7. R.C.S. No.131/1963
“(A)     A   decree  declaring   that   the   sale   deed   Dt.21­1­1959  is   not
binding on the interest of plaintiff no.4 and for delivery of possession
to her or in  the alternative a decree for setting aside the sale deed
Dt.21­1­1959 and for delivery of possession to the plaintiffs. .....”
R.C.S. No.34/1971
(a) a decree for setting aside  the sale deed dated 11­2­59
and for possession of the suit land and, 
(b) a  decree  directing  an  enquiry  as  to  the mesne profits
from  the institution  of  the  suit  until  delivery  of  possession  to  the
plaintiffs together with interest thereon and, .....”
8. Mr.  Borkar,  the learned  counsel  appearing  for  the  appellants,

contended   that   both   the   Courts   below   adopted   wrong   approach   while
holding  that  suit is  barred  under Order  2 Rule  2  and  under  section    11
Explanation IV of the Code. He submits that the order 2 Rule 2 precludes the
party  from splitting  the claims and  splitting  the  remedies but it does not
preclude a second suit based on the distinct cause of action.  According to
him, provisions of Rule 2 being of penal nature and divesting in effect had to
be construed strictly.  It is a highly technical plea which tends to divide and
defeat justice and deprive  a party of its legitimate  right.    It is,  therefore,
necessary  for  the party raising  the plea of such a bar  to demonstrate  that
earlier and subsequent suit are based on same cause of action or there was
identity of cause of action.  He relied upon decision in case of Govind V/s.
Jankibai  and  another  reported in  A.I.R. 1930 Nagpur 3.    In  that  case  a
reversioner had filed suit for possession of one property and another suit for
possession of other property.  It was held that the cause of action was the sale
and the sales being different the causes of action are also different.  The next
decision  relied upon is in case of  Parashram Ragho Kunbi   V/s. Sadasheo
Namdeo Shimpi  reported in  A.I.R. 1936 268  wherein it was held  that the
plaintiff is not obliged to put forward in one suit other claim which may have
against the defendant as the causes of action in such cases may be different
but he must include whole claim based on a particular cause of action.  To
buttress his point learned counsel relied upon the decision in case of  Alka

Gupta V/s. Narender Kumar Gupta reported in (2010) 10 S.C.C. 141.  
9. Repelling the submissions advanced on behalf of the appellants,
Mr. Mundra, the learned counsel for the respondents, laid emphasis on Rule
2 (3) of Order 2. and contended that the cause of action to challenge the
alienation of  the part of  the suit land under second sale deed which was
executed just after 20 days of  the  first sale deed had already been arisen
when first suit was filed; omission on the part of the plaintiffs to claim relief
in respect of second sale deed squarely attracts the bar of Order 2 Rule 2.
According  to him, merely because  there were  two sale deeds  that did not
give rise to two causes of action.  This is for the reasons that the cause of
action in both the suits are identical, nature and character of relief is also
same and the evidence necessary to establish the case of the plaintiffs is also
the same.   He relied upon the decision in case of  Mohammad Khalil Khan
V/s. Mehbub Ali Mian (supra).  The facts of that case in brief were : One Rani
Barkatunnissa died leaving properties at various places. First suit was filed
for possession in respect of all properties except situated at Shahjahanpur
and the second suit was filed in respect of Shahjahanpur’s property.  Before
filing both the suits Rani Barkatunnissa had died.  It was observed by Their
Lordships  that  the causes of action  for  filing both  the suits accrued when
Rani Barkatunnissa died and laid down the following principles :
“The correct test in cases falling under O.2, R.2, is whether

the claim in the new suit is in fact founded upon a cause of action
distinct from that which was the foundation for the former suit.
The   cause   of   action   means   every   fact   which   will   be
necessary for the plaintiff to prove if traversed in order to support his
right to the judgment.
If the evidence to support the two claims is different, then
the causes of action are also different.
The causes of action in the two suits may be considered to
be the same if in substance they are identical.
The cause of action has no relation whatever to the defence
that may be set up by the defendant nor does it depend upon the
character of  the relief prayed for by  the plaintiff.    It refers  to  the
media   upon   which   the   plaintiff   asks   the   Court   to   arrive   at   a
conclusion in his favour.
Where the facts which would entitle the plaintiffs, in their
new   suit   to   recover   property   Y,   to   establish   their   title   are
substantially the same as those alleged in their former suit to recover
property X, the causes of action in the two suits are identical and the
plaintiffs are barred by reason of O.2, R.2 from maintaining the new
suit.”
10. Next decision relied upon is in case of Dwarkadas Nathmal V/s.
Vimal    alias Yamuna wife  of Rajeshwar  and  others    reported in  AIR 1964
Bombay 42  wherein it was held that the causes of action in the two suits
must be the same if in substance they are identical.  In that case the first suit
was filed for recovery of mesne profits for one year. The second suit was filed
for recovery of mesne profits of subsequent years.  It was held that second
suit for recovery of mesne profits of subsequent years is barred.  In Kunjan
Nair Sivaraman Nair V/s. Narayanan Nair and others  reported in AIR 2004
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SC  1761  two  suits  came  to  be  filed.      In  an earlier  suit  the  decree  for
declaration  of  right  and  title  to  the  suit was  sought  along with  relief  of
injunction. The prayer for injunction was rejected as plaintiff was not found
in possession of the suit.  Plaintiff filed second suit for recovery of possession.
Their Lordships held that second suit was not barred as causes of action in
both suits were not  the same.    In case of  Shankar Sitaram Sontakke and
another  V/s. Balkrishna Sitaram Sontakke and others reported in AIR 1954
SC 352 the question of applicability of Order 2 Rule of the Code was cropped
up  under  the  following  facts  : There was  a joint  family  consisting  of  six
brothers.  They were in­charge of different businesses. Then they went for
partition suit which was compromised. Confining relief to the share of the
profits and assets of other business (motor business) second suit was filed.
In that premise, it was held that first suit was the desire of the plaintiff to
separate from his brothers and divide the joint family property.  The first suit
embraced entire property without any reservation and it was compromised.
Therefore, his subsequent suit to enforce part of the claim was found on the
same cause of action which deliberately was relinquished.
11. In Budhu V/s. Nahru and others reported in 1956 HIM. PRA. 50
(AIR 43 C 24 Nov.)  the plaintiff  had omitted  to claim possession of  the
entire area which defendants were allegedly in occupation but filed suit for
part of the area.  Subsequently the suit for remaining part was filed.  It was
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held  that  there was only one cause of action because defendants were in
possession over the entire area.
12. The legal position that emerges may be stated thus : 
The plaintiff is to include whole of his claim in respect of a cause
of action.  It, however, allows him to give up, abandon any part of his claim.
When he omits to sue or relinquishes any part of his claim, he is not allowed
afterwards to sue for the portion so omitted.  Where the plaintiff is entitled
to more than one relief in respect of same cause of action and omits without
the leave of the Court any relief, he cannot thereafter sue for the relief so
omitted.   All successive claims arising under  the same obligation shall be
deemed  to constitute one cause of action.   The provision is based on  the
principle that the defendants should not be vexed twice for one and the same
cause by  allowing  the  plaintiff  to  split  up  the claims  and  to  split up  the
remedies.   Unless there is identity between the cause of action on which the
earlier suit was filed and that on which the claim in the later suit is based,
there would be no  scope  for  application of Order  2 Rule 2.   Even when
several causes of action arise from one transaction plaintiff is not obliged to
sue for all of them in one suit.  What the rule lays down is that if there is one
entire cause of action, the plaintiff cannot split up the same into parts so as
to bring separate suits in respect of those parts.  When the subsequent suit is
based on cause of action different from that in first suit, the subsequent suit

is not barred. 
13. In  Deva   Ram     and   another   V/s.   Ishwar   Chand   and   another
reported in (1995) 6 SCC 733 earlier suit was for recovery of sale price of
land which was dismissed on the ground that the document relied upon was
not sale deed but an agreement  for sale.   Subsequent suit  for recovery of
possession on the basis of title was held not barred as causes of action in the
two suits were not identical.  According to Their Lordships Order 2 Rule 2
requires unity of claims based on the same cause of action in suit but it does
not contemplate unity of distinct and separate causes of action. 
14. Now, adverting to the facts of the present case; the alienation of
3.20   acres   made   by   Tikaram   by   executing   registered   sale   deed   dated
21/1/1959 was challenged.  On 11/2/1959 Tikaram repeated the similar act
by executing another sale deed for the remaining piece of land i.e.4.82 acres.
Certainly, plaintiffs could have challenged both  these  alienations which is
permissible under Order 2 Rule 3.  It specifically provides that the plaintiff or
plaintiffs  can  unite in  same  suit  other  causes  of  action  against  the  same
defendant or defendants jointly in which the plaintiff or plaintiffs are jointly
interested.  By no means omission to unite different causes of action can be
interpreted as splitting up the claims or splitting up the remedies  arising out
of   the   same   cause   of   action.     The   crux   of   the   matter   is   whether   two
alienations of separate area of the lands on different dates although in favour

of the same parties would give rise to only one cause of action and cast a
duty on a party to challenge the said alienations in one suit. Thus, question
that arises is what is the “cause of action”.
15. In  Muhammad   Hafiz   and   another   V/s.   Mirza   Muhammad
Zakariya   and   others  reported   in  A.I.R.   1922   Privy   Council   23  Their
Lordships held that  : “the cause of action which gives occasion to, and forms
the foundation of, the suit, and if that cause enables a man to seek for larger
and wider relief than that to which he limits his claim, he cannot afterwards
seek  to  recover  the  balance  by independent  proceedings.”      In  Kunjan Nair
Sivaraman   Nair   V/s.   Narayanan   Nair   and   others  (supra)  it   is   held
that  : “.....One great criterion is, when the question arises as to whether the
cause of action in  the  subsequent suit is identical with  that in  the first  suit
whether the same evidence will maintain both actions.”
16. When first alienation of the land area 3.20 acres on 21/1/1959
was made by executing a registered sale deed cause of action arose to the
plaintiffs to challenge the same.  Ignoring the second alienation, they filed
the suit.  Can it be said that by splitting the claims or remedies they sought
declaration  and  possession  of  the  suit land  area 3.20 of  sale  deed  dated
21/1/1959.     To   put   it   differently,   whether   by   restricting   suit   to   first
alienation, the plaintiffs split up the claims or split up the remedies?  This is
to  be  answered in  negative.    The execution  of  the  second  sale  deed  for

different area of the land i.e. 4.82 acres on 11/2/1959 although in favour of
the same party is a distinct and separate cause of action.  Even it cannot be
said  to be  two causes of action arising out of  the same  transaction.   The
expressions “in respect  of the cause of action” occurring under Rule 2(1), “in
respect   of”   in   Rule   2(2)   and   “in   respect   of   the   same   cause   of   action”
occurring under Rule 2(3) amply connote that what is barred is splitting up
the claims and splitting up  the remedies  arising out of  the same cause of
action.  Two sets of bundle of facts arising out of two different transactions
and between similar parties would give rise to distinct causes of action and
not   one.     This   can   be   well   explained   by   quoting   an   illustration   to
Order 2 which runs thus : 
       “A lets a house to B at a yearly rent of Rs.1,200.  The rent for the
whole of the years 1905, 1906 and 1907 is due and unpaid.  A sues B
in 1908 only for the rent due for 1906.  A shall not afterwards sue B
for the rent due for 1905 or 1907.”  
Let   us   assume   that   A   owns   two   houses.     Under   different
agreement he lets them to B.  B had fallen in arrears of rent in respect of
both  the houses.   When A  filed suit  for arrears of  rent in  respect of one
house, the rent had also became due in respect of second house.  Could it be
said that omission on the part of A to file suit for recovery of rent in respect
of second house would preclude A from filing subsequent suit for recovery of
rent in respect of second house.  Merely because defendants are the same or

relief of declaration in respect two similar nature of transactions have been
sought by filing two separate suits itself would not bar the second suit.  It is
the choice of  the plaintiffs either  to unite or not  to unite both causes of
action in one suit.  In Alka Gupta V/s. Narender Kumar Gupta (supra) Their
Lordships held that bar of Order 2 Rule 2 is not applicable where second suit
is based on a different and distinct cause of action.
17. The object that ‘the defendants should not be vexed twice for the
same cause of action’ is not defeated for the simple reason that they are the
defendants   who   entered   into   two   transactions   and   invited   two   distinct
actions. It is also not the case that while seeking relief of declaration that
alienation was not made out of legal necessity, the plaintiffs also sought relief
of partition.  It is well settled that co­owner, who challenges the alienation
made by other co­owner, has right to ask for possession of the property.  It is
for the alinee to sue for general partition and claim relief that the property
alienated be put to the share of co­sharer ­ alinee.   Since there were two
distinct alienations  for distinct areas of lands    filing of  two separate suits
questioning such alienations cannot attract bar of Order 2    Rule 2.
18. Now, I shall deal with the second substantial question of
law :  The doctrine of res judicata is conceived in larger public interest which
requires   that   all   litigations   must,   sooner   than   latter   come   to   an   end.
Litigation which has no end or finality defeats very object of justice.  Since
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the bar of Order 2 Rule 2 has also been pressed into service, it is necessary to
point out distinction i.e. how doctrine of res judicata differs from bar under
Order 2 Rule 2. The  former enjoins duty on  the plaintiff or defendant  to
bring forward all the grounds of attack in respect of his claim whereas later
requires plaintiff  to claim all reliefs flowing from the same cause of action.
The principle of res judicata governs both the parties, plaintiff as well as the
defendant, however, Order 2 Rule 2 only applies to the plaintiff and bars the
suit   (Relied   on   Alka   Gupta   V/s.   Narender   Kumar   Gupta   {supra}).
Constructive  res judicata, principle behind which is  that if  a party had an
opportunity to raise a matter in a suit, it would be considered to have been
raised and decided.  The underlined object is to cut short litigation between
the parties so that a person may not be vexed again with regard to the same
matter.    It  would  be  an   abuse  of   the   process  of   Court  to  allow  a   new
proceeding  to be started  in  respect of  the  same issue.   The  rationality of
constructive res judicata is that the party should raise all his available pleas at
the first instance and raising them at each successive stage is prohibited. 
19. The learned  trial  court  upholding   the   contention  that  suit is
barred on the principle of constructive res judicata observed thus :
“.....Here, in this case, grounds of defence and attack of plaintiffs in
previous   suit   of   1963   and   present   suit   of   1971   are   the   same.
Pleadings is also the same.  Parties are also the same.  Hence, the suit
of 1963 which was finally  decided  shall    be  deemed  to have  be  a
matter directly and substantially in issue in this suit of 1971.  Hence,

as per this provision in the C.P.C. the present suit is also barred by the
principle of res judicata.
23.   The learned advocate of the defendants drew my attention to the
reported case of 1978 All. Page 30 between Babu Rajnarayan Singh
Vs.   Ganesh   Bind   and   others.     The   applicability   of   res­judicata   is
discussed in para (B) of this case.  It is held in paras 16 and 18 by his
Lordship as under .­
     “If a transaction of sale has been entered into on
behalf   of   a   joint   Hindu   family   selling   the   joint
family property then in case the managing members
of   the   joint   family   as   the   vendors   file   a   suit
affirming the said transaction and to such a suit the
minor members of  the joint family are impleaded
through   their   guardians,   then   it   is   open   to   the
latter  to question  the  transaction of sale.    If  they
fail  to do so  then, in my opinion,  they cannot be
allowed   to   file   a   subsequent   suit   seeking   to
repudiate the sale transaction. The subsequent suit
challenging  the aforesaid  sale must  be held  to  be
barred by the principle of res­judicata because the
minor  members  are  bound  by   the  verdict  of   the
former suit.”
Here, in this case, all the plaintiffs were joint in the former
suit for setting one sale­deed aside and again filed a subsequent suit
on the basis of another sale­deed with the same averments.  Hence, the
principle of res­judicata is now applicable to the subsequent suit.
24. It is also observed in reported case of A.I.R. 1985 S.C. page
1096 between Jaswantsingh Vs. Custodian of Evacuee Property, New
Delhi by  their Lordship that in order  that a defence of res judicata
may succeed it is necessary to show that not only the cause of action
was the same but also that the plaintiff had an opportunity of getting
the relief which he is now seeking in the former proceedings.  The test
is whether the claim in the subsequent suit or proceedings is in fact
founded upon the same cause of action which was the foundation of
the   former   suit   or   proceedings.   These   observations   are   perfectly
applicable to the facts of this case.   The present plaintiffs of former
suit in this case had an opportunity for getting relief which they are
now  seeking in  this  suit.    I have already held above  that  cause of
action of both the suits was the same which was the foundation of the
former suit.
25. The learned advocate of the defendant drew my attention to
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the reported case of A.I.R. 1931 Bombay page 114 between Anant Vs.
Mahabaleshwar Bhat.    It is held in  this  case where plaintiff  being
entitled to make a claim does not make it, he is barred from making
same   claim   in   the   subsequent   suit   under   Order   2   rule   2   C.P.C.
Subsequent suit on the ground which might have been made grounds
of attack in former suit is barred under Section 11.  Here, in this case
the ground of attack is the same which were grounds of attack in the
former suit regarding legal necessity, deceased Tikaram was addicted
to bad habit and drinks.  As notice was issued to the defendants.  They
purchased   suit   property   and   the   suit   property   was   purchased
considerably   for   low   price.     Hence,   as   per   above   rulings   and
considering  the evidence and facts of  this case and former suit, this
subsequent  suit filed is  barred  under  Section  11  explanation  4  of
C.P.C.”     
The learned trial court relied upon the decision in case of Babu
Rajnarain Singh and another   Vs. Ganesh Bind and others  reported in  AIR
1978 Allahabad 30.    It was  the case of managing members of  the joint
family as the vendors filing suit affirming the transaction of sale of the joint
family property and the minor members were impleded in that suit through
the guardians.  In that premise, it was held that subsequent suit challenging
the sale must be held to be barred by the principles of res judicata as minor
members were  bound  by  the verdict  of  the  former  suit.    It is,  therefore,
obvious that this decision cannot be applied to the facts of the present case.
Next decision relied upon is the decision in case of  Anant Subrao Nadgir Vs.
Mahableshwarbhat Gurunath Bhat Shindgi  reported in  AIR  1931 Bombay
114. The facts of the case were : the plaintiff brought suit for recovery of
possession of the property of his adoptive father and setting aside alienation
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of the same.  A brought suit against B for recovery of properties being Suvey
Nos.88 and 89.   As against Survey No.51, possession was claimed  from S
although said property was alienated by A and S to B by deed of gift.  Suit
between A and S was compromised, according  to which A was  to recover
possession of the suit property from S.  A separate decree was passed against
other defendants.   In execution of the decree against S, A wanted to take
possession of Survey No.51 but was obstructed  by B.  A's application under
Order 21 Rule 97 was dismissed.   A then brought suit under Order 21 Rule
103  against B  for  possession  of  Survey No.51.      It was  held  that A  had
suppressed the fact that B was in possession of Survey No.51.   It was further
held that A and B were parties to the first suit and the property in second suit
was one of the properties in the first suit although B had not been sued in
respect of that property.   It is thus obvious that at one point of time A and S
had alienated Survey No.51 to B by deed of gift.  Despite property being in
possession of B suit was compromised between A and S and on the strength
of that decree A wanted to recover possession of Survey No.51 which was in
possession of B.  This being the factual matrix of that case, the learned trial
court   was   wrong   in   applying   principle   of   that   case   to   the   facts   and
circumstances  of  the instant  case.   The learned  trial  court  further placed
reliance   upon   the   decision   in   case   of  Jaswant   Singh   and   another   V/s.
Custodian  of Evacuee Property, New Delhi  reported in  AIR 1985 S.C.1096
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which was  the case  relating  to recovery of evacuee property in execution
proceeding.   There was an ordinance 27 of 1949 which conferred new rights
on  the custodian. Their Lordships held  that “In order  that a defence of res
judicata may succeed it is necessary to show that not only the cause of action
was the same but also that the plaintiff had an opportunity of getting the relief
which he is now seeking in  the former proceedings.   The  test is whether  the
claim in the subsequent suit or proceedings is in fact founded upon the same
cause of action which was the foundation of the former suit or proceedings.”  It
is not understandable as to how learned trial court was of the view that ratio
laid down in the case supra supports the view which it has taken in the facts
and circumstances of the case.
20. However,  the discussion  about bar of  suit on  the  principle of
constructive res judicata does not find place in the judgment of the Appellate
Court.     The   learned   first   appellate   court   concluded   the   judgment   by
answering the point that the suit was barred under Order 2 Rule 2.
21. The   defendants   by   entering   into   two   sale   transactions   at
different point of  time invited  two separate actions.   Certainly, both  these
causes of action could have been joined  together and in  that event  there
would have been no mis­joinder of the causes of action, however, this does
not mean  that  the  failure on  the part of  the plaintiffs  to join both  these
distinct causes of action together invited bar of Order 2 Rule 2 or Section 11
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Explanation IV.  Justice C.K. Thakkar in his commentary on Civil Procedure
Code (2000 Edition)  (Volume 1) at pages 160 and 167 explained the true
import of Section 11 Explanation IV by giving following        illustrations :
(1) A files a suit against B for declaration that he is entitled
to certain lands as heir of C. The suit is dismissed. The subsequent
suit, claiming the same property on the ground of adverse possession,
is barred by constructive res judicata.
(2) A files  a suit against B to recover money on a pro­note.
B   contends   that   the   promissory   note   was  obtained  from   him   by
undue influence. The  objection is  overruled  and  suit is  decreed. B
cannot challenge the promissory note on the ground of coercion or
fraud in subsequent suit, inasmuch as he ought to have taken that
defence in the former suit.
Assuming  that  there  were  two  pro­notes  giving   simultaneous
causes of action to the plaintiff to file suit in respect of both the pro­notes but
the  plaintiff  filed  suit only in  respect  of one  pro­note.  First  suit is either
dismissed or decreed.   Can it be said that the second suit filed by him in
respect   of   the   other   pro­note   is   barred   only   on   the   ground   that   the
defendants were  the  same  and when  the  first  suit was  filed  the cause of
action to file the second suit had already been arisen.
(3) A sues B to recover damages for a breach of contract and obtains a
decree in his favour. B cannot afterwards sue A for recession of contract on the
ground that it did not fully represent the agreement between the parties, since
that ground ought to have been taken by him in the previous suit as a ground of
defence.”
Assuming that there were two contracts between A and B and
both   were   breached.   A   chose   to   file   suit   in   respect   of   one   contract.
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Subsequently,  he  files  the  second  suit  alleging  breach of  second  contract.
Can it be said that  the second suit is barred only  for  the reasons  that  the
parties were the same, both contracts were similar in nature and cause of
action in respect of second suit had already been arisen when the first suit
was filed and hence second suit is barred.   Conclusion deducible from the
above is if  properties  are  distinct, if  pro­notes  are  different  or when  the
dispute arises out of breach of different contracts, although parties are same,
the second suit  for similar property or  for other pro­note or  for breach of
other similar nature of contract cannot be held to be barred.  Neither Order 2
Rule 2 nor Section 11 Explanation IV cast duty on the plaintiff to sue in one
suit for various causes of action.  What is essential is that the party is bound
to put forward his whole case as plaintiff or defendant in respect of the same
subject matter of the suit.   If the plaintiff omits to raise certain ground in
respect  of  his  claim,  he will not  subsequently  be  permitted  to  raise  such
ground in  respect  of  his  claim.    If  the  subject matters  are  separate  and
distinct, the second suit for such distinct subject matter would not attract bar
of Section 11 Explanation IV.
22. There may be situation where the incidental issues like nature of
ownership   of   the   property   i.e.   whether   it   was   joint   family   property   or
self­acquired property of Tikaram may arise in both suits.  In such an event,
the findings recorded on such incidental issues may operate as res judicata in
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the subsequent suit but to say that the entire suit filed subsequently is barred
either under Order 2 Rule 2 or under Section 11  Explanation IV will be de
hors  the legal position.  In that view of  the matter,  I have no hesitation to
answer both the points in favour of the plaintiffs – appellants herein.   
23. Before  concluding, it is necessary  to  clarify  that  although  the
trial court answered all the issues, first appellate court formulated only single
point   for   its   determination   on   the   touchstone   of   Order   2   Rule   2   and
constructive res judicata.  It is settled principle that first appellate court being
the final court of facts has to consider all the evidence on record.  Order 41
Rule 31 of the Code requires the first appellate court to write a self­content
judgment   giving   reasons   for   its   decision   on   all   the   points   involved   for
determination.  Therefore,  there  is   no  alternative   than   to   remit   back  the
instant  appeal   to   the   first   appellate   court   for   decision   on   all   the   points
involved  therein except  those which  have  been  concluded in  this  second
appeal.  Thus, findings recorded by both the courts below on the issues of
applicability of Order 2 Rule and Explanation IV to Section 11 of the Code
will have to be set aside.    
24. The judgment and decree dated 3rd September, 1994 passed by
the first appellate court dismissing the Regular Civil  Appeal No.74/1992 is
set   aside.     Further,   findings   recorded   by   the   trial   court   on   the  issue   of
applicability of Order 2 Rule 2 and  constructive res judicata    are set aside.
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The matter is remitted back to the first appellate court for decision on merits
according to law, in the manner and as stated above. Regular Civil  Appeal
No.74/1992 shall stand restored to its original number.  The Registry shall
forthwith  transmit  the record and proceedings  to  the  first appellate court.
On receipt of the same and after giving parties an opportunity of being heard
the first appellate court shall formulate points for determination involved in
the appeal except which are concluded by this judgment and shall proceed to
dispose of the same in accordance with law and within 6 months from the
date of receipt of record. 
The parties are directed to appear before the first appellate court
on 12th October, 2012.
In the facts and circumstances of the matter, there shall be no
order as to costs.
 JUDGE
Tambaskar.                                                                               
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