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2021 Supreme(SC) 778

SUPREME COURT OF INDIA
(From the High Court of Karnataka at Bengaluru)
UDAY UMESH LALIT, S. RAVINDRA BHAT, JJ.
Sri Lankappa and Others – Appellants
Versus
Karnataka Industrial Corporation and Others – Respondents
Civil Appeal No. 7545 of 2021, Special Leave Petition (Civil) No. 8283 of 2020
Decided On : 08-12-2021

Advocates appeared:
For Petitioner(s):Neeraj Kishan Kaul, S. Udaya Kumar Sagar, Bina Madhavan, L.M. Chidanandayya, Akanksha Mehra, Pritha Suri, Aarzoo Aneja, Ira Mahajan, M/s. Lawyer’s Knit & Co, Advocates
For the Respondent(s) (For R-1):Kiran Suri, Haridas Bhat, Amith S.J., Rajvir Singh Bhati, Shahnaz Rahman, Harisha S.R., Advocates

IMPORTANT POINT
Plaint can be rejected at any stage – Principle of res judicata is fundamental to judicial system.

Headnote:

Civil Procedure Code, 1908 – Section 11 and Order II Rule 2 – Bar of Res Judicata – KIC sought only a permanent injunction in its first suit – However, appellants-herein consistently agitated KIC’s title – KIC was a party to those proceedings – All courts concurrently held that grant on which KIC based its possession, was deemed to be cancelled – Therefore, KIC could, by no procedure known to law, claim in another suit, that it was absolute owner by virtue of self-same grant which was deemed to have been cancelled – Trial court cannot be faulted with for holding that question of title was directly in issue in previous proceedings, and merely because it resulted in findings adverse to KIC, it could not escape being bound by those findings – Plaint can be rejected at any stage – Principle of res judicata is fundamental to judicial system – Impugned judgment in holding that despite the fact that in previous proceedings issue of title stood concluded, trial court had to proceed with suit, is clearly in error – Impugned judgment set aside. (Paras 19, 20 and 21)

Facts of the case:

Appellants are aggrieved by a judgment and order of Karnataka High Court which allowed regular first appeal filed by first respondent (Karnataka Industrial Corporation (KIC).

Findings of Court:

Impugned judgment (in holding that despite the fact that in the previous proceedings the issue of title stood concluded, the trail court had to proceed with the suit) is clearly in error.

Result : Appeal allowed.

ORDER :

1. Special leave granted. The appellants are aggrieved by a judgment and order of the Karnataka High Court1 [Dated 22.01.2020 by the principal Bench at Bengaluru in RFA No. 14/2019] which allowed the regular first appeal filed by the first respondent (Karnataka Industrial Corporation, hereafter called “KIC”).

2. The appellants had filed a suit2 [O.S. No. 388/1995, before the Court of II Munsiff, Bangalore Rural District] seeking declaration of title and injunction in respect of suit properties as stipulated in the schedule3 [Sy. No. 30, measuring 11 acres 16 guntas situated in Talaghattapura Village, Uttarahalli Hobli, Kanakapura Main Road, Bangalore South Taluk] (hereafter called “Suit Schedule Property”) which were 11 acres and 16 guntas of agricultural land. Muninarayana Gowda, Putta S/o Ramanna, Sampath S/o Hanumantharayappa, Raja S/o Mangamma and KIC were impleaded as respondents. The appellant’s case was that Chowdappa, their grandfather, was granted the Suit Schedule Property by order dated 22.10.1929 passed by the Amaldar, Bangalore South Taluk and that after his death, his heirs and the appellants were owners in possession of the Suit Schedule Property. It was alleged by KIC (the fifth respondent), a partnership firm, that by order dated 25.03.1968, the Karnataka Government had granted the Suit Schedule Property to it, for non-agricultural use, and the appellants sought to interfere with KIC’s possession. KIC resisted the suit alleging, inter-alia, that it was the absolute owner in possession of “Khatha No. 290 formerly Sy. No. 30 measuring 11 acres 16 guntas in extent situated at Thalaghattapura village, Uttarahalli Hobli, Bangalore South Taluk and it is the suit schedule property.”

3. During pendency of the appellant’s suit [hereafter called the “1995 Suit”] KIC filed O.S. No. 21/1996 (hereafter called “KIC Suit-I”) claiming injunction to restrain the appellant from disturbing its possession of the Suit Schedule Property. In its suit, it was alleged inter-alia, that:

“3. The plaintiff is the owner in possession of Sy. No. 30 measuring 11 acres 16 guntas in extent, situate at Talaghattapura village, Uttarahalli Hobli, Bangalore South Taluk.

4. It has been converted for non-agricultural use for the purpose of establishing a Table Moulded Brick Factory. DOCUMENT NO. 2 (two) and DOCUMENT NO. 3 (Three) is the certified copy of the Index of Lands. The plaintiff is in exclusive possession of the property mentioned above, hereinafter called 'Suit Schedule Property'. After conversion, the Katha number of the schedule property is 290 and it has been assessed to payment of tax to Talaghattapura Orama Panchayat, Uttarahalli Hobli, Bangalore South Taluk. Up-to-date taxes have been paid in respect of the suit schedule property.

1. *** *** ***

In view of the aforesaid orders in the other suits, the defendants are trying to dispossess the plaintiff-firm from the possession of the land in question and are trying to trespass on the suit schedule property. Defendants have no right, title and interest in the suit schedule property and they are not the owners of the suit schedule property and they are not and were not in possession of the suit schedule property at any point of time.

10. The aforesaid documents completely establish that the plaintiff is the owner in possession of the suit schedule property. As the land in question is converted for non-agricultural use and katha number is given by the Panchayath, RTC is not being written in respect of the suit property.....”

4. Both suits, i.e. the 1995 Suit and KIC Suit-I were tried together and disposed of by common judgment4 [Dated 31.01.1998, Ld. First Add. Civil Judge (Junior) at Bangalore]. It was held by the trial court that the appellants herein could establish “their continued, unhindered and unhampered possession, cultivation and enjoyment of the suit schedule property since 1929” till date of judgment and that they had perfected title against the Karnataka Government in 1963. It

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