Gujarat High Court
Judgename :S.D.Shah
HINDUSTAN ZINC LIMITED,udaipur - Appellant
Versus
VIJAYSINH AMARSINH AND COMPANY - Respondent
C.A.558 of 1992
Decided On : 06/18/1993
The principle of res judicata though may not apply stricto sensu to interlocutory proceedings such as for stay or temporary injunction repeated applications for the same reliefs made on the same basis should be rejected as amounting to the abuse of the process of the court. In the absence of any fresh or new material having bearing on the grant of relief, which is already refused, it is not open to a party to apply once again for the same relief and the court would be justified in rejecting such applications, though not on the principle of res judicata but on the ground that such application having been rejected earlier on merits, it would amount to an abuse of the process of the court to entertain the same.
[Para 16]
The Legislature has however now provided two exceptional circumstances, namely, change in the circumstances and resultant undue hardship to enable such party to apply to the same court for discharge, variation or setting aside of an order of injunction passed after hearing the parties is allowed only in two exceptional cases and none other, so far as the same court is concerned. The principle of finality of such an order, except in two exceptional cases is how statutorily established.
[Para 16]
Suit - Second suit on the same cause of action for same relief - Instituted to circumvent defeat or nullify the effect of the orders of the Trial Court, Single Judge of the High Court as well as of the Supreme Court - Amounts to abuse of the process of the Court - Order made directing subordinate court not to proceed further with the suit.
Prima facie, the action of the plaintiff contractor in filing the second suit on the same cause of action for same relief by omitting to implead the most vitally affected party was designed to circumvent, defeat or nullify the effect of the orders of the Trial Court, the Single Judge of the High Court as well as of the Supreme Court. However, since this court has extensive alternative powers to prevent abuse of such process by staying the proceedings of the second suit before Civil Judge, Senior Division permanently, it would be just and proper to stay Special Civil Suit No. 95 of 1992 pending in the Court of Civil Judge, Senior Division, Jamnagar, permanently. The High Court has power to make an order directing the Subordinate Court not to proceed further with the suit pending the later court with a view to preventing abouse of the process of the court. In Court opinion, it would be eminently just and proper to stay the proceedings of Special Civil Suit No. 95 of 1992 in the Court of Civil Judge, Senior Division, Jamnagar permanently.
[Para 29]
Civil Procedure Code, 1908 - Sec. 11 - Principle of res-judicata - Scope and applicability - Not confined to what is contained in sec. 11 but is of more general application - It applies to different stages of the same suit as to the findings on issues in different suits and at successive stages of the same suit or proceeding.
( 1 ) HAVING consistently failed to obtain an order of injunction against encashment of duly executed Bank Guarantee from the Court of Civil Judge, senior Division, Jamnagar, in Special Civil Suit No. 104 of 1988, from the learned single Judge of the High Court of Gujarat in Appeal From Order No. 186 of 1992 as back as 3rd of April, 1992 and also from the Supreme Court of India, in the petition for Special Leave to Appeal being No. 6356 of 1992 as back as 13/05/1992, the stubborn recalcitrant M/s. Vijaysinh Amarsinh and company has by filing second suit on the same cause of action and more or less for same reliefs in the same Court (different Judge) has succeeded in getting an order of injunction against the encashment of the Bank Guarantee. The Civil judge, Senior Division, Jamnagar (V. N. Shah) has by the impugned order dated 7/08/1992 not only rendered meaningless binding directives of the superior courts, i. e. , the High Court of Gujarat and the Supreme Court of India, but has wilfully and deliberately helped recalcitrant litigant in not obeying the orders of the Apex Court of the State and the Apex Court of the Country. It is this order of Civil Judge, Senior Division, Jamnagar, which has given rise to these two appeals From Orders, one by Hindustan Zinc Limited, in whose favour, the Bank guarantee was executed and another by Vijaya Bank, who was to encash the bank Guarantee by making over payment to Hindustan Zinc Limited.
( 2 ) IN order to appreciate questions of larger importance, which arise in appeals From Orders, relevant facts are stated hereunder : (I) M/s. Vijaysinh Amarsinh and Company (Plaintiff contractor) entered into a contract with M/s. Hindustan Zinc Limited (Appellant in Appeal From Order who has not been impleaded as party in the suit) for construction of besunda Dam situated in Udaipur District of rajasthan State after inviting tenders from general public. The tender of plaintiff was lowest and was accepted. (II) According to the plaintiff, the contract was in two parts and the work was to be completed in two stages. The work of the first stage was substantial while the work for the second stage was nominal for only rs. 30 lakhs. It was his case that he completed the first stage of the contract for Hindustan Zinc Limited, but despite his readiness and willingness to do the work for the second stage, it was not given to him. There was option in Hindustan Zinc Limited to assign the work of the second stage to the contractor by 31/12/1988, but by notice dated 8/08/1988, the plaintiff contractor withdrew from the contract. (Ill) According to the plaintiff, contract of the second stage was not assigned to the plaintiff, an agreement for that part of the contract was without any consideration and, therefore, he filed the suit for declaration and for permanent injunction restraining the defendants, both Hindustan Zinc limited and Vijaya Bank from encashing and/ or invoking the Bank guarantee given by the bank in favour of Hindustan Zinc Limited. Along with the suit he filed an application for injunction restraining hindustan Zinc Limited from invoking the Bank Guarantee during the pendency of the suit. (IV) In such Civil Suit being No. 104 of 1988, ex-parte ad interim injunction was granted by the trial Court, which came to be vacated as back as 12/03/1992 (after four years ). (V) It was the case of Hindustan Zinc Limited that the contractor committed breach of the contract and without even completing the work of the first stage, he withdrew from the contract, so as not to permit the company to exercise the option at the second stage. It was the case of the company that the contract provided for exclusive jurisdiction of udaipur Court in the State of Rajasthan. Still, however, the suit was filed in Jamnagar Court and even notice which was issued by the contractor on 8/08/1988 was received by the company after the contractor obtained ex-parte injunction from the Civil Court on 1 2/08/1988. Despit
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