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2024 Supreme(P&H) 1237

IN THE HIGH COURT OF PUNJAB AND HARYANA
Deepak Gupta, J.
Som Nath – Appellant
Versus
Jaspal Kaur – Respondent
S.A.O. No. 5 of 2022
Decided On : 09-09-2024

Advocates:
Advocate Appeared:
Vaibhav Sehgal, Rajat Malhotra

A litigant cannot benefit from concealing material facts; res-judicata applies when the same issue has been previously adjudicated, and suits barred by limitation are not maintainable.

Headnote:(A) Code of Civil Procedure, 1908 - Order 7 Rule 11 - Rejection of plaint - Application for rejection accepted by trial court on grounds of res-judicata, concealment of material facts, and limitation - Appellate court reversed this decision, leading to second appeal - Court held that the plaint was liable to be rejected as it concealed previous litigation and was barred by law. (Paras 3, 39)

(B) Res-judicata - The principle applies when the same issue has been previously adjudicated between the same parties - The court emphasized that concealment of material facts undermines the integrity of the judicial process. (Paras 14, 22)

(C) Limitation - The suit was filed years after the cause of action arose, thus barred by limitation. (Paras 28, 39)

(D) Maintainability - The court ruled that issues regarding rights to property should be resolved in execution proceedings, not through separate suits. (Paras 30, 39)

Facts of the case:
The plaintiff claimed ownership of property based on a sale deed, but the name was incorrectly recorded. The defendant, who had a prior agreement to sell, contested the suit, leading to the application for rejection of the plaint. (Paras 2.1, 2.3.1)

Findings of Court:
The court found that the plaintiff's suit was barred by res-judicata, limitation, and was not maintainable as the issues should have been addressed in execution proceedings. (Paras 39)

Issues: The main issues included whether the plaint was barred by res-judicata, whether material facts were concealed, and whether the suit was maintainable. (Paras 3, 39)

Ratio Decidendi: The court ruled that a litigant cannot benefit from concealing material facts and that res-judicata applies when the same issue has been previously decided. (Paras 14, 39)

Result: The appeal was allowed, and the order of the trial court rejecting the plaint was restored. (Para 40)

Judgement Key Points

Key Points: - A litigant is required to disclose all relevant facts, including previous litigation between the same parties, in the plaint (!) (!) . - The court held that a dishonest litigant who conceals material facts should not be granted any advantage or premium (!) (!) . - The plaint was rejected because the suit was barred by res-judicata, as the issues had been previously adjudicated in a 1998 suit (!) (!) (!) . - The suit was found to be barred by the law of limitation because it was filed in 2014 regarding a sale deed executed in 1995 (!) . - Questions regarding right, title, or interest in property arising between parties in execution proceedings must be determined by the Executing Court and not by a separate suit (!) (!) . - The court has the power to summarily stop proceedings that constitute an abuse of the process of the court, such as re-litigation (!) (!) . - The appeal was allowed, and the trial court's order rejecting the plaint was restored (!) .

What is the effect of concealing material facts regarding previous litigation on the maintainability of a plaint under Order 7 Rule 11 of the Code of Civil Procedure?

What are the criteria for rejecting a plaint on the grounds of res-judicata?

What is the maintainability of an independent suit regarding property rights when execution proceedings are already pending?


JUDGMENT :

Deepak Gupta, J.

1. In civil suit N: 20 of 2014, an application under Order 7 Rule 11 CPC for rejection of the plaint, moved by the defendant No. 6 - Som Nath (appellant herein), was accepted by Ld. Civil Judge (Jr Divn), Ludhiana vide order dated 09.09.2016. However, the appeal (CA N: 88 of 2017) filed by plaintiff - Jaspal Kaur (respondent No. 1 herein), has been allowed by the Ld. Addl. District Judge, Ludhiana, by way of the impugned order dated 09.12.2021, thus, dismissing the application under Order 7 Rule 11 CPC. It is against this reversal that defendant N: 6 of the suit has approached this Court by filing the present second appeal against order.

2. The facts of the case in brief are as under:

    2.1 In the suit filed by plaintiff – Jaspal Kaur (respondent No. 1), it was claimed that she was the owner in possession of the suit property detailed in head note of the plaint; that her father Gurdial Singh had purchased the property in dispute from defendant No. 1 Balwant Singh (respondent No. 2 herein) and had paid the entire sale consideration. However, her father had gone to Amarnath Yatra and did not return, due to which, defendant No. 1 through defendant No. 2 Harchand (respondent No. 3 herein) executed and got registered sale deed bearing Vasika No. 2369 dated 19.09.1995 of the property in question in favour of the plaintiff. However, inadvertently, the name of the vendee was mentioned as Makhan Singh son of Gurdial Singh, instead of Jaspal Kaur wife of Makhan Singh. Taking undue advantage of this wrong entry in the sale deed and in the revenue record, defendant No. 3 – Makhan Singh (respondent No. 4 herein) started threatening the plaintiff to dispose of the property to somebody else. Plaintiff requested the defendants No. 1 and 2 to get the sale deed corrected by incorporating her name but they refused. Plaintiff further pleaded that cause of action in her favour arose, when her name was wrongly not mentioned in the sale deed and also later on, when defendants refused to get corrected the sale deed to incorporate her name as vendee of the suit property. This suit was filed by the plaintiff on 15.07.2014 seeking necessary declaration.

    2.2 Som Nath (present appellant), who was not impleaded as a defendant to the suit, moved an application under Order 1 Rule 10 CPC to implead him as a party. His application was allowed vide order dated 15.12.2014 (Annexure P5) and then he was impleaded as defendant N: 6.

    2.3.1 He (Somnath) then moved an application under Order 7 Rule 11 CPC (Annexure P6) for rejecting the plaint, by pleading that suit had been filed in collusion with defendants No. 1 to 3 and by concealing the material facts from the Court. Defendant No. 3 – Makhan Singh was none else than the husband of the plaintiff, who being the owner in possession of the suit property, had entered into an agreement to sell dated 02.08.1997 with the applicant- defendant- Som Nath. As said Makhan Singh failed to perform his part of contract, Civil suit No. 270 of 1998 for possession by way of specific performance was filed by said applicant. After hotly contesting, the suit was decreed on 10.08.2009 vide judgment Annexure P1. In the execution filed by the applicant - decree holder of Civil Suit No. 270 of 1998, sale deed bearing Vasika No. 24945 dated 11.03. 2013 was executed and registered in his favour and warrant of possession was issued. Police help was ordered to be provided for delivering the possession, when the applicant along with other family members started creating hindrance in delivering the possession.

    2.3.2 Applicant- defendant No. 6- Som Nath further pleaded that earlier plaintiff had filed a Civil Suit No. 308 dated 15.12.1998, against defendants No. 2 and 3 [Harchand Singh and Makhan Singh], in which, the present applicant was not impleaded as a party and, therefore, his application under Order 1 Rule 10 CPC to be impleaded as a party was accepted. In that suit filed in 1998 by plaintiff- Jaspal Kaur, defendant ap

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