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2025 Supreme(SC) 1696

SUPREME COURT OF INDIA
K. VINOD CHANDRAN, N.V. ANJARIA, JJ.
Smt. Arifa & Ors. – Petitioners
VERSUS
Abhiman Apartment Co-operative Housing Society Ltd. & Ors. – Respondents
Special Leave Petition (C) 18180 of 2025 @ Diary No. 14976 of 2024
Decided On : 14-07-2025

Advocates appeared:
For the Petitioner(s): Mr. Raghavendra Srivatsa, Sr. Adv. Mr. Prashant Gouder, Adv. Mr. D.L. Chidananda, AOR
For the Respondent(s): Mr. Sharanagouda Patil,Adv. Ms. Supreeta Sharanagouda,AOR.

IMPORTANT POINT
Liberty granted to file a fresh suit by High Court would not enable the party to revive a cause of action and save limitation.

Headnote:

Civil Procedure Code, 1908 – Section 11 – Limitation Act, 1963 – Section 14 – Whether liberty granted to file a fresh suit by High Court would enable the party to revive a cause of action and save limitation – In impugned judgment reversing judgment and decree of trial Court, High Court has categorically found that suit was barred by limitation – In earlier suit defendant in written statement had specifically pleaded about conveyances and plaintiff admitted his knowledge of all conveyances while verifying ‘record of rights’ – No cause of action can be claimed on liberty reserved, which is only on just exceptions including limitation, which has to go by period prescribed in statute of limitation – Issue now agitated was substantially in issue in earlier suit and decided against plaintiff, bringing in rigor of Section 11 of CPC – Liberty granted by High Court in second appeal was akin to flogging a dead horse, which cannot give a fresh lease of life to either cause of action; to save limitation or grounds on which declaration and consequential relief has been prayed for in present suit; which grounds were already adjudicated in earlier suit and found against plaintiff by three Courts – High Court has further observed that suit is barred for reason of non-joinder of necessary parties – Well-considered judgment of High Court upheld. (Paras 7, 9, 10, 11, 12 and 13)

Facts of the case:

Question arising in this case is as to whether the liberty granted to file a fresh suit by the High Court would enable the party to revive a cause of action and save limitation, so as to enable raking up all grounds earlier raised and rejected by concurrent findings of the trial Court and the first appellate Court, affirmed by the High Court in Second Appeal.

Findings of Court:

Additional relief prayed through an amendment for declaration of title and recovery of possession was hence rightly rejected by the High Court.

Result : Special Leave Petition rejected.

Judgement Key Points

Based on the provided legal document, here are the key points regarding the case:

  • Core Legal Principle: Liberty granted to file a fresh suit by a High Court does not enable a party to revive a cause of action or save limitation, especially when the grounds were already adjudicated against them in earlier proceedings. (!) (!)
  • Limitation Bar: The suit was barred by limitation because the cause of action dates back to the execution of agreements in 1998, and the plaintiff admitted knowledge of conveyances during the earlier suit. The High Court correctly found that the liberty reserved only applies to exceptions like limitation, which must strictly follow the statutory period. (!) (!)
  • Res Judicata Application: The issue was substantially in issue in a previous suit where three courts (Trial, First Appeal, and High Court) found against the plaintiff regarding the coercion/misrepresentation of the Power of Attorney (PoA). Reviving this ground violates Section 11 of the Civil Procedure Code. (!) (!)
  • Ineffectiveness of Reserved Liberty: The Supreme Court described the liberty granted in the second appeal as "akin to flogging a dead horse," stating it cannot give a fresh lease of life to the cause of action or save grounds already rejected. (!)
  • Section 14 of Limitation Act: The Court held that Section 14 of the Limitation Act does not apply here because the earlier suit was not filed in a wrong forum; it was simply not properly framed. (!)
  • Order 23 Rule 1 & Limitation: Even if a suit is withdrawn with leave to file a fresh suit, the Limitation Act applies with full force as per Rule 2 of Order 23 of the CPC. (!)
  • Non-Joinder of Parties: The suit was also barred due to the non-joinder of necessary parties, specifically the Belgaum Urban Development Authority and the Badminton Association, which the Supreme Court agreed with. (!)
  • Outcome: The Special Leave Petition was rejected, and the well-considered judgment of the High Court was affirmed. (!)
  • Factual Background: The plaintiff entered into an agreement for sale with a Cooperative Society; a PoA was executed in favor of the Society's Secretary, which was allegedly cancelled via notice that was never properly served. The plaintiff previously sought permanent injunction, which was dismissed, leading to the current dispute. (!) (!)
  • Procedural History: The matter involved a chain of proceedings: Trial Court (dismissed injunction), First Appellate Court (confirmed dismissal), High Court (dismissed second appeal but granted liberty to file fresh suit), and finally this Supreme Court (rejected SLP). (!) (!)

ORDER

1. The question arising in the above case is as to whether the liberty granted to file a fresh suit by the High Court would enable the party to revive a cause of action and save limitation, so as to enable raking up all grounds earlier raised and rejected by concurrent findings of the trial court and the first appellate court, affirmed by the High Court in Second Appeal.

2. We heard Mr. Raghavendra Srivatsa, Senior Advocate appearing for the petitioners and Mr. Sharanagouda Patil, Advocate appearing for respondent No.1.

3. The original plaintiff, the predecessor-in-interest of the petitioners herein admittedly entered into an agreement for sale of the suit scheduled property to the first defendant, a Cooperative Society. It is also admitted that a Power of Attorney (PoA) was executed in favour of the second defendant, the Secretary of the first defendant. It is alleged that the PoA was executed on coercion and misrepresentation, which also stood cancelled before the execution of the sale deed in favour of the first defendant by the second defendant, by virtue of the PoA. Admittedly, the plaintiff first filed a suit for permanent injunction against the second defendant, impleaded in his capacity as the Secretary of the Society, for a permanent injunction from alienating or disposing off the plots comprised in the suit scheduled property and from making any constructions thereon. The said suit was dismissed by the trial court confirmed by the First Appellate Court against which the plaintiff approached the High Court in the second appeal. The second appeal stood allowed upon which the Society filed an SLP before this Court in which leave was granted and the Civil Appeal was allowed as per Annexure P/9, remanding the matter to the High Court by Annexure P/10.

4. The High Court on remand, dismissed the second appeal finding no substantial question of law and also rejected an amendment application to incorporate additional reliefs of declaration of title and recovery of possession, which applications were filed in the second appeal. The High Court having agreed with the concurrent findings, while dismissing the Second Appeal granted liberty to file a comprehensive suit for the reliefs sought for, including the proposed amendment.

5. Relying on the liberty granted, the plaintiff filed a fresh suit for declaration of two sale deeds executed by second defendant in favour of the first defendant as void ab initio and declaration of the further sale of plots comprised in the scheduled land by the first defendant in favour of the defendant nos. 2-120 as illegal and invalid. The plaintiff also sought possession of the property from defendant nos. 1-120 and a permanent injunction restraining them from interfering with the actual physical and peaceful possession of the scheduled property by the plaintiff. The said suit was decreed by the trial court and in first appeal the judgment and decree were set aside, and the suit was dismissed on the grounds of resjudicata, limitation and non-joinder of necessary parties.

6. On the ground of resjudicata, we cannot but notice that the High Court in the earlier round in Annexure P/10 judgment found that the plaintiff had executed two sale agreements in favour of the first defendant and had put the first defendant in possession of the scheduled land, the conveyance having been effected subsequently by the Secretary of the Society to the Society on the strength of a PoA. The High Court approved the concurrent finding that the notice of cancellation of the PoA was never served on the Secretary of the Society. The acknowledgement produced to prove its service was not with respect to the notice of cancellation, since it was four months later to the date in the notice of cancellation. It was also found by all the three courts that sale deeds were executed in favour of the allottees of the Society in whose possession the plots were, who had constructed residential buildings in the said lands: not impleaded i

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