IMPORTANT POINT
More than one suit arising out of same cause of action are barred.

JUDGMENT

Pinaki Chandra Ghose, J. –

1. Leave granted.

2. This appeal is preferred against the judgment and order dated December 19, 2011 passed by the High Court of Karnataka at Bangalore in Regular First Appeal No.1033 of 2005 partly allowing the appeal filed by the respondent herein and partly decreeing the Original Suit being O.S. No. 4763 of 1986 filed by the respondent being the original plaintiff. The said original suit was dismissed by a judgment and decree dated March 17, 2005.

3. Pre-liberalization, till 1996 all the coffee grown in India was pooled with the appellant-Board which is a statutory body under the Coffee Act, 1942. The appellant-Board (hereinafter referred to as "Board") marketed the pooled coffee and distributed the net realization to the growers in proportion the quantity pooled by them. The Board marketed the pooled coffee by means of auctions and separate auctions were held for export and domestic market. Only registered exporters are allowed to participate in the said auctions and the successful bidders amongst them enter into contracts with the Board for the purchase of the coffee.

The Board is a member of the International Coffee Organization (hereinafter referred to as "ICO") which is the main intergovernmental organization controlling and regulating the global coffee export and import. Majority of the coffee growing and consuming countries are members of the ICO. The import and export of coffee is regulated by ICO by fixing quotas on the member countries in accordance with the quantum produced. As per the then International Coffee Agreement of 1983 the export quota system was supported by an obligatory system of controls. Each export by a Member was covered by a Certificate of Origin. Importing Members did not admit coffee from Members unless the Certificate was validated by coffee export stamps issued by the Organization. When quotas were in effect importing Members were required to limit their imports from non-members and exports to non-members were closely monitored.

4. Accordingly, India being a member of ICO through the Board was subject to the same agreement and as per the fixed quota for exporting coffee the Board received stamps from ICO for each quarter through State Bank of India. Thus, the Board subject to ICO rules and regulations regulated the coffee production and marketing in India by accordingly distributing stamps to the exporters who had successfully purchased coffee from the auctions. The respondent M/s. Ramesh Exports Pvt. Ltd. being the original plaintiff was registered with the Board as an exporter during the coffee year October 1, 1981 to September 30, 1982.

5. In this backdrop, the facts leading to the present appeal are as under:

1. On August 24, 1980, the appellant Board sent the 'Terms and Conditions of Sale of Coffee in the Course of Export', after amendment of certain clauses, to all the registered exporters of coffee. On October 9, 1980 the appellant Board issued a Circular regarding introduction of Coffee Export stamp system for export of coffee to member importing countries of ICO from November 1, 1980. The respondent purchased coffee at the export auction. The respondent shipped 230.4 tonnes of coffee to USA and Germany who were members of ICO, on 1st, 2nd and 3rd September, 1982 without valid ICO certificate of origin.

On September 22, 1982, the respondent wrote to the appellant Board requesting for ICO stamps for export of 230.4 tonnes of coffee and on September 29, 1982, the respondent wrote to the appellant Board for issue of necessary permit/authority to re-import 230.4 tonnes of coffee into India. The appellant Board issued a show cause notice to the respondent alleging that the respondent has committed breach of terms of ICO Agreement by making false statement. The respondent replied to the show cause notice. Thereafter, the respondent filed two suits against the appellant Board in the Court of City Civil Judge, Bangalore, one being O.S. No.3150 of 1985 praying for a