IN THE HIGH COURT OF KERALA AT ERNAKULAM
SATHISH NINAN, SHOBA ANNAMMA EAPEN, JJ
N. Rajamony S/o. Nallathampi - Appellant
Versus
Saradamma, W/o. Ramakrishna Panicker - Respondent
RFA NO. 189 OF 2016
Decided On : 10-03-2025
(A) Code of Civil Procedure, 1908 - Order II Rule 2 - Order XXIII Rule 1(3) - Specific performance - Appeal against dismissal of suit for specific performance - Trial court found suit barred under Order II Rule 2 CPC due to earlier suit for injunction - Court held that withdrawal of earlier suit with leave to file fresh suit removes the bar under Order II Rule 2 - The execution of the agreement was not disputed; plaintiff entitled to return of advance sale consideration of ₹ 17 lakhs with interest. (Paras 24, 25, 26)
(B) Legal principles - The bar under Order II Rule 2 does not apply if the earlier suit was withdrawn with permission to file a fresh suit on the same cause of action - The term 'subject-matter' includes cause of action and relief claimed. (Paras 12, 18)
Facts of the case:
The plaintiff entered into an agreement for sale of property with defendants, paid an advance, but defendants failed to perform the agreement. The plaintiff filed a suit for injunction to prevent alienation, later withdrew it and filed for specific performance.
Findings of Court:
The trial court erred in dismissing the suit as barred; withdrawal of the earlier suit allowed the subsequent suit. Defendants liable to return ₹ 17 lakhs with interest.
Issues: Whether the suit for specific performance is barred under Order II Rule 2 CPC due to earlier suit for injunction.
Ratio Decidendi: Withdrawal of a suit with leave to file a fresh suit under Order XXIII Rule 1(3) negates the bar under Order II Rule 2, allowing the plaintiff to seek other reliefs on the same cause of action.
Result: Appeal allowed; decree for ₹ 17 lakhs granted with interest.
JUDGMENT :
Sathish Ninan, J.
The suit for specific performance, with an alternate prayer for return of advance sale consideration, was dismissed by the trial court. The plaintiff is in appeal.
2. Ext.A1 agreement dated 31.05.2010 was entered into between the plaintiffs and defendants 1 to 3 for the sale of the plaint schedule property to the plaintiff. The total sale consideration fixed was Rs.135 lakhs. An amount of Rs.40 lakhs was paid on the date of Ext.A1, towards advance sale consideration. The period fixed for performance was four months. The plaint schedule property belonged jointly to defendants 1 to 4; the first defendant is the mother, and she is entitled to 70%, and defendants 2 to 4, who are her sons, are entitled to 10% shares each. The 4th defendant was not a party to Ext.A1 agreement. It was the term of the agreement that defendants 1 to 3 would cause a partition deed to be executed along with the 4th defendant, whereunder, the plaint schedule property would be got allotted exclusively to defendants 1 to 3. According to the plaintiff, defendants 1 to 3 failed to honour the agreement. Though defendants 1 to 4 entered into a partition deed, in contravention of the terms of Ext.A1, a portion of the property was allotted to the 4th defendant. He conveyed a portion of such property to defendants 5 and 6. The first defendant-mother conveyed her share under the partition to her another son, the 7th defendant.
3. On 11.11.2010, defendants 2 and 3 conveyed a portion of the property to the plaintiff. On coming to know about the attempt of the defendants to alienate the remaining property in breach of the agreement, the plaintiff filed a suit as OS 677/2010 for a prohibitory injunction not to alienate the property to strangers. Subsequently, after the expiry of the period for performance fixed under Ext.A1, the present suit was filed seeking specific performance, with an alternate prayer for return of the advance sale consideration. It was alleged that, after the conveyances in his favour by defendants 2 and 3, the balance advance consideration with defendants 1 to 3 is Rs.17 lakhs. The suit OS 677/2010 was withdrawn, with leave of the Court, to prosecute the suit for specific performance.
4. Defendants 1 to 3 contended that the suit is barred under Order II Rule 2 of the Code of Civil Procedure (CPC). It was further contended that the plaintiff was not ready and willing to perform the agreement. The 4th defendant contended that the agreement for sale would not bind him or his interest over the property. Defendants 5 and 6 claimed to be bona fide purchasers for value.
5. The trial court found that the plaintiff failed to prove his readiness to perform the agreement and held that he is not entitled for the relief of specific performance. Regarding the alternate prayer for return of advance sale consideration, it was found that an amount of Rs.17 lakhs, being part of the advance sale consideration, is liable to be returned. However, it was held that the suit is barred under Order II Rule 2 CPC. Accordingly, the suit was dismissed.
6. We have heard the learned counsel on either side.
7. Before this Court, the parties confined their arguments to the finding of the trial court on the bar of the suit under Order II Rule 2 CPC.
8. The suit for specific performance is barred under Order II Rule 2 CPC, in the light of the earlier suit for prohibitory injunction, is the contention. Order II Rule 2 reads thus: -
“2. Suit to include the whole claim.-(1) Every suit shall include the whole of the claim which the plaintiff is entitled to make in respect of the cause of action; but a plaintiff may relinquish any portion of his claim in order to bring the suit within the jurisdiction of any Court.
(2) Relinquishment of part of claim.- Where a plaintiff omits to sue in respect of, or intentionally relinquishes, any portion of his claim, he shall not afterwards sue in respect of the portion so omitted or relinquished.
(3) Omission to sue for one of seve
Withdrawal of a suit with permission to file a fresh suit negates the bar under Order II Rule 2, allowing claims for specific performance on the same cause of action.
The plea of bar under Order II Rule 2 CPC prohibits a second suit for specific performance if based on the same cause of action previously omitted, and the suit is also barred by limitation under Art....
Subsequent suit barred under Order II Rule 2(3) CPC if on same cause of action as withdrawn prior suit, omitting reliefs without leave; plaint rejectable under Order VII Rule 11 if averments disclose....
The court held that specific performance is a discretionary relief and denied it due to the plaintiff's delay and lack of demonstrated readiness to perform the contract, resulting in inequity to the ....
Subsequent suits based on the same cause of action are barred under Order II Rule 2 of the CPC, thus limiting the relief for specific performance in favor of return of advance.
The bar under Order II Rule 2 CPC does not apply when a second suit is based on a distinct cause of action arising from subsequent events, such as the lifting of a government ban on property registra....
A plaintiff must include all claims arising from the same cause of action in one suit; failure to do so bars subsequent suits under Order II Rule 2 of the CPC.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.