Citation : 2023 Latest Caselaw 3055 Kant
Judgement Date : 9 June, 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 9TH DAY OF JUNE, 2023
PRESENT
THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR
AND
THE HON'BLE MR. JUSTICE C.M. POONACHA
R.F.A. No.1221 OF 2015 (SP)
BETWEEN:
1 . SHRI P. DEVARAJ
S/O THIMMA REDDY
AGED ABOUT 45 YEARS
R/AT NO.115,6TH MAIN
MICO LAYOUT, BEGUR ROAD
VANGASANDRA
BANGALORE-560 058
2 . SHRI S T ANJANA REDDY
S/O THIMMA REDDY
AGED ABOUT 56 YEARS
R/AT SARJAPURA VILLAGE AND HOBLI
OLD POST OFFICE ROAD
ANEKAL TALUK 562106
BANGALOER URBAN DISTRICT
3 . SHRI K A RAMAIAH REDDY
S/O LATE ABBAIAH REDDY
AGED AOBUT 80 YEARS
4 . SHRI SRINIVASA REDDY
S/O K A RAMAIAH REDDY
AGED AOBUT 45 YEARS
BOTH ARE R/AT NO.357, 3RD CROSS
2
CAMBRIDGE LAYOUT
ULSOOR
BANGALORE-560 008
... APPELLANTS
(BY SRI RAVI B NAIK, SENIOR ADVOCATE A/W
SRI K B MONESH KUMAR, ADVOCATE)
AND
1 . SMT. KAMALAMMA
W/O LATE GANESH
AGED ABOUT 61 YEARS
2 . SMT. KUMARI
D/O LATE GANESH
AGED ABOUT 44 YEARS
3 . SHRI HARISH
S/O RAMALINGAM
AGED ABOUT 22 YEARS
4 . SHRI CHANDRASHEKAR
S/O LATE GANESH
AGED ABOUT 39 YEARS
5 . SHRI DINESH
S/O LATE CHANDRASHEKAR
AGED ABOUT 4 YEARS
SINCE MINOR REP BY
HIS MOTHER SMT. SAROJA
NATURAL GUARDIAN
6 . SHRI SURESH
S/O LATE GANESH
AGED ABOUT 36 YEARS
7 . KUM RASHMI
D/O SURESH
SINCE MINOR REP BY HER
MOTHER SMT. PRAMILA
AS NATURAL GUARDIAN
3
RESPONDENTS NO.1 TO 7 ARE
R/AT NO.418, KUMBARA STREET
KADUGODI VILLAGE
BIDARAHALLI HOBLI
BANGALORE EAST TALUK
BANGALORE DISTRICT.
8 . SMT. SUDHA RAKESH V
W/O RAKESHCHANDRA M S
AGED ABOUT 36 YEARS
R/AT MANDUR VILLAGE
BIDARAHALLI HOBLI
BANGALORE EAST TALUK
BANGALORE DISTRICT
9. GAFFAR BAIG
AGED ABOUT 46 YEARS
S/O LATE ABDULLA BAIG
R/AT NO.220/230
RAHATH GARDENIA,
VILLA NO.2B, OUTER CIRCLE
WHITEFIELD
BANGALORE 560066
10 MRS ABIDA BEGAUM
AGED ABOUT 46 YEARS
W/O SYED JAFFER
R/AT NO.143, 2HM,
KASTURINAGAR
BANGALORE-560043
11 MR. SYED IMRAN
AGED ABOUT 30 YEARS
S/O MR. SYED JAFFER
R/AT NO.143, 2HM,
KASTURINAGAR
BANGALORE-560043
12 MR. SYED TANFIQ
AGED ABOUT 40 YEARS
S/0 SYED MAHABOOB SAB
R/AT 143, 2HM,
4
KASTURI NAGAR
BANGALORE 560043
13 M/S CANDEUR CONSTRUCTIONS
REP. BY ITS DIRECTOR
SY. 183/1A, 183/1B VARTHUR
GUNJUR MAIN ROAD,
VARTHUR BANGALORE
...RESPONDENTS
(BY SRI JAYAPRAKASH, ADVOCATE FOR C/R2
SRI K K VASANTH, ADVOCATE FOR C/R8
SRI SIDDHARTHA H M, ADVOCATE FOR R9 & R10
SRI SUNIL S RAO, ADVOCATE FOR R11 & R12
SRI RISHAB D DESAI, ADVOCATE FOR
SRI. ARUN SRI KUMAR, ADVOCATE FOR R13
V/O DATED 21.4.2016 R1, R3,R4,R5 R6, R7 SERVED AND
UNREPRESENTED)
THIS RFA IS FILED UNDER SEC.96 OF CPC., AGAINST
THE ORDER DATED 12.08.2015 PASSED IN O.S NO.1216/2013
ON THE FILE OF THE PRL. SENIOR CIVIL JUDGE, BENGALURU
RURAL DISTRICT, BENGALURU, REJECTING THE PLAINT AND
SUIT FOR SPECIFIC PERFORMANCE AND ETC.
THIS APPEAL HAVING BEEN HEARD AND RESERVED FOR
JUDGMENT ON 28.3.2023, COMING ON FOR PRONOUNCEMENT
OF JUDGMENT, THIS DAY, POONACHA, J., DELIVERED THE
FOLLOWING:
JUDGMENT
The above First Appeal is filed under Section 96 of
Code of Civil Procedure, 1908 (for short 'CPC') by the
Plaintiffs challenging the order dated 12.08.2015 passed
on I.A. No.8 in O.S. No.1216/2013 by the Prl. Senior Civil
Judge, Bengaluru Rural District, Bengaluru whereunder I.A.
No.8 filed under Order 7 Rule 11 (a), (b), (c) and (d) of
CPC has been allowed and the plaint has been rejected.
2. For the sake of convenience, the parties will be
referred to as per their rank before the Trial Court.
3. The case of the Plaintiffs, in brief, necessary
for consideration of the present Appeal is that, Defendant
Nos.1 to 7 are the absolute owners of land bearing Sy.
No.115 (new No.142) measuring 4 acres 10 guntas
situated at Channasandra, Bidarahalli Hobli, Bengaluru
East Taluk, Bengaluru (hereinafter referred to as 'suit
property'). That the Plaintiffs entered into an Agreement of
Sale dated 15.09.2011 with Defendant Nos.1 to 7 to
purchase the suit property for a total consideration of
Rs.3,82,50,000/- (Rs.90 lakhs per acre) and an advance of
Rs.10 lakhs was paid on the date of the Agreement. That
the sale transaction was required to be completed after the
revenue records in respect of the suit property was
transferred in the name of the Defendants. That although
the Plaintiffs were ready and willing to complete the sale
transaction, the Defendants stated that the revenue
records of the property have not been transferred in their
favour and due to pendency of certain litigations, were
postponing the execution of the Sale Deed. That after the
transfer of the revenue records in the names of
Defendants through MRH No.87/2011-12 dated
04.06.2012, the Plaintiffs approached them to receive the
balance sale consideration and execute the registered sale
deed but they have not come forward. However, on
01.02.2013 when the Plaintiffs went to the suit property,
they noticed Defendant Nos. 2 to 4 were negotiating with a
3rd party to sell the suit property.
3.1. That since the Defendants were making
attempts to alienate the suit property, the Plaintiffs filed
O.S. No.223/2013 for the relief of permanent injunction to
restrain Defendant Nos.1 to 7 from alienating the suit
property and an order of temporary injunction was passed
in the said suit restraining Defendant Nos.1 to 7 from
alienating the suit property in favour of 3rd parties vide
order dated 04.02.2013. That the Defendants, although
being aware of the suit filed by the Plaintiffs, evaded the
summons of the said suit.
3.2. It is the further case of the Plaintiffs that
subsequent to filing of the suit, they learnt that Defendant
Nos.1, 2 and 4 have entered into a registered Agreement
of Sale dated 05.10.2012 with Defendant No. 8 showing
the market value of the suit property as Rs.3 crores and
that the entire sale consideration has been paid as on the
said date. The Plaintiffs got issued a legal notice dated
21.05.2013 calling upon the Defendants to receive the
balance sale consideration of Rs.3,72,50,000/- and
execute a registered Sale Deed in favour of the Plaintiffs
within seven days. That Plaintiff Nos.1 and 2 have
executed an Assignment Deed dated 30.08.2014 in favour
of Plaintiff Nos.3 and 4 to deal with the suit property as
they deem fit and received a sum of `20 lakhs from the
Plaintiff Nos.1 and 2. That the Defendants have refused to
receive the legal notice dated 21.05.2013 and hence, the
Plaintiffs have filed a suit seeking for the following reliefs:
(i) For the relief of specific performance of agreement of sale dt. 15.09.2011 directing the defendants No.1 to 7 to execute proper, valid, registered sale deed in favour of the plaintiffs by receiving the balance sale consideration amount of `3,72,50,000/- (Rupees three crore seventy two lakh and fifty thousand only), in the event the defendants No.1 to 7 fail to do so, this Hon'ble Court may be pleased to execute a proper, valid registered sale deed in respect of the schedule property in favour of the plaintiffs by using the Court machinery;
(ii) Direct the defendant No.8 also to join with the defendants No.1 to 7 for execution of proper, valid, registered sale deed in favour of the plaintiffs No.3 and 4 in respect of the suit schedule property.
(iii) To declare that the registered agreement of sale dt. 05.10.2012, Document No.33l75/2012-13, which is registered at the Office of the Sub- Registrar, Indiranagar, Bangalore, entered into between the defendant No.1 to 7 and defendant No.8 is a collusive and sham document and the same is not binding on the plaintiffs herein to the extent of their share;
(iv) Restrain the defendant from alienating or encumbering the suit schedule property in favour of third parties either by themselves or their family members, GPA holders, henchmen, supporters, agents or any person's claiming any right under or through her, by granting permanent injunction;
(v) Direct the defendants to pay the cost of the suit, and
(vi) To grant such other relief/s as this Hon'ble Court deems fit in the circumstances of the case, in the interest of justice and equity.
4. The Defendants entered appearance in the suit
and contested the case of the Plaintiffs by filing Written
Statement. The Defendant No.8 filed I.A. No.8 under Order
7 Rule 11(a), (b), (c) and (d) of CPC to reject the plaint for
want of cause of action, for undervaluing the suit property
nor paying sufficient stamp duty on agreement of sale and
also as barred by law under Order II Rule 2 of CPC.
5. The Plaintiffs filed objections to I.A. No.8. The
Trial Court vide its order dated 12.08.2015 allowed I.A.
No.8 and rejected the plaint as the same is hit by Order II
Rule 2 of CPC. Being aggrieved the present appeal is filed.
6. Sri Ravi B. Naik, learned Senior Counsel
appearing for the Appellants / Plaintiffs contended that:
a) at the time of the earlier suit i.e., O.S.
No.223/2013, there was no cause of
action to file the subsequent suit and
hence, the suit is not barred under res
judicata as held by the Trial Court.
b) The Trial Court ought not to have
held that the subsequent suit is
barred by res judicata without
recording evidence in the matter.
c) The Trial Court ought not to have
entertained the application under
Order VII Rule 11 of the CPC while
considering the aspect of bar of suit
under Order II Rule 2 of the CPC.
7. In support of his contentions, he relied on the
averments of the plaint in the previous suit i.e., O.S.
No.223/2013 and plaint in the present suit i.e., O.S No.
1216/2013 as well as the finding recorded by the Trial
Court in the impugned order. He further relied on the
following judgments:
1) Inbasagaran and another v.
S. Natarajan1;
2) Deva Ram and another v. Ishwar
Chand and another2;
(2015) 11 SCC 12
(1995) 6 SCC 733
3) Rohit kumar and another v.
A S Chugh3;
4) Srihari Hanumandas Totala v.
Hemant Vithal Kamat and Others4;
5) Dalip Singh v. Mehar Rathee and
others5;
6) Gurbux Singh v. Bhooralal6.
8. Per contra, Sri K.K.Vasanth, learned counsel
appearing for Respondent No.8, Shri. Siddhartha H.M.,
learned counsel for Respondent Nos.9 and 10 and Shri.
Sunil S. Rao, learned counsel for Respondent Nos.11 and
12 justifying the order passed by the Trial Court contend;
a) The cause of action for the earlier suit O.S. No.223/2013 as well as the present suit i.e., O.S. No.1216/2013 are same.
b) That O.S. No.223/2013 was withdrawn without granting liberty to the Plaintiffs to file another suit.
c) The Trial Court was justified in entertaining IA No.8 filed under Order VII Rule 11 of the CPC and considering the
CS(OS) 36/2007(Delhi HC DD.20.11.2008)
2021 SCC online Sc 565
(2004) 7 SCC 650
aspect regarding bar of suit under Order II Rule 2 of the CPC.
9. In support of their submission, they relied on
the following judgments:
1) Virgo Industries (Eng.) Private Limited v. Venturetech Solutions Private Limited7;
2) Vurimi Pullarao v. Vemari Vyankata Radharani and another8;
3) Dahiben v. Arvindbhai Kalyanji Bhanusali9.
10. We have considered the submissions made by
both the learned counsels and perused the material on
record. The questions that arises for our consideration is:
"Whether the Trial Court was justified in rejecting the plaint on the ground that it is hit by Order II Rule 2 of the CPC?"
(1964) 7 SCr 831
(2013) 1 SCC 625
(2020) 14 SCC 110
(2020) 7 SCC 366
11. In order to consider the contentions by the
parties, it is necessary to notice the relevant statutory
provisions. Order 2 Rule 2 of CPC states as follows:
"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 several relief:.- A person entitled to more than one relief in respect of the same cause of action may sue for all or any of such reliefs; but if he omits, except with the leave of the Court, to sue for all such reliefs, he shall not afterwards sue for any relief so omitted."
12. In the case of Gurbux Singh6 a Constitution
Bench of the Hon'ble Supreme Court considering the scope
of Order II Rule 2 of CPC has held as follows:
"6. In order that a plea of a bar under Order 2 Rule 2(3) of the Civil Procedure Code should succeed the defendant who raises the plea must make out (1) that the second suit was in respect of the same cause of action as that on which the previous suit was based; (2) that in respect of that cause of action the plaintiff was entitled to more than one relief; (3) that being thus entitled to more than one relief the plaintiff, without leave obtained from the court, omitted to sue for the relief for which the
second suit had been filed. From this analysis it would be seen that the defendant would have to establish primarily and to start with, the precise cause of action upon which the previous suit was filed, for unless there is identity between the cause of action on which the earlier suit was filed and that on which the claim in the later suit is based there would be no scope for the application of the bar. ............ "
(emphasis supplied)
13. In the case of Virgo Industries (Eng.)
Private Limited7, the Hon'ble Supreme Court was
considering a case where the Plaintiff had filed two suits
for permanent injunction on 28.8.2005 and 9.9.2005 to
restrain the Defendant from alienating the suit properties.
The basis of the relief claimed in the suits were two
Agreements of Sale dated 27.7.2005 in respect of two
different properties. In the said suits, the Plaintiff had
stated that the period of six months for execution of the
Sale Deeds under the Agreements was not yet over and
the Plaintiff is not claiming specific performance of the
Agreements. The Plaintiff, accordingly sought leave of the
Court to omit to claim the relief of specific performance
with liberty to sue for the said relief at a later point of
time, if necessary. Subsequently, on 29.5.2007 the
Plaintiff filed two suits seeking for a decree against the
Defendant for execution and registration of the Sale Deeds
in respect of the same properties and for delivery and
possession. In the subsequent suits, it was stated by the
Plaintiff that in respect of the same properties the earlier
suits for injunction were filed and time for performance
had not lapsed and the Plaintiff being under a bona fide
belief that the Defendant would perform/execute the
Agreements, the relief of specific performance was not
claimed.
13.1 The Defendant filed an application before the
High Court to strike off the subsequent suits on the ground
that they were barred under Order II Rule 2 of CPC. The
High Court held that on the date of earlier suits, the time
stipulated for execution of the Sale Deeds having not
expired, the cause of action to seek the relief of specific
performance is not matured and held that Order II Rule 2
of CPC was not attracted and rejected the application filed
by the Defendant.
13.2 The Hon'ble Supreme Court set aside the
judgment of the High Court and held that the suits for
injunction as well as suits for specific performance were
based on the same cause of action and that the
subsequent suits were barred under Order II Rule 2 of
CPC. In the said case it was held as follows:
"11. The cardinal requirement for application of the provisions contained in Order 2 Rules 2(2) and (3), therefore, is that the cause of action in the later suit must be the same as in the first suit. ...........
12. In the instant case though leave to sue for the relief of specific performance at a later stage was claimed by the plaintiff in CSs Nos. 831 and 833 of 2005, admittedly, no such leave was granted by the Court. The question, therefore, that the Court will have to address, in the present case, is whether the cause of action for the first and second set of suits is one and the same. Depending on such answer as the Court may offer the rights of the parties will follow.
13. xxxx
14. The averments made by the plaintiff in CSs Nos. 831 and 833 of 2005, particularly the pleadings extracted above, leave no room for doubt that on the dates when CSs Nos. 831 and 833 of 2005 were instituted, namely, 28-8-2005 and 9-9-2005, the plaintiff itself had claimed that facts and events have occurred which entitled it to contend that the defendant had no intention to honour the agreements dated 27-7-2005. In the aforesaid situation it was open for the plaintiff to incorporate the relief of specific performance along with the relief of permanent injunction that formed the
subject-matter of the above two suits. The foundation for the relief of permanent injunction claimed in the two suits furnished a complete cause of action to the plaintiff in CSs Nos. 831 and 833 to also sue for the relief of specific performance. Yet, the said relief was omitted and no leave in this regard was obtained or granted by the Court.
15. xxxx
16. In Vithalbhai (P) Ltd. case [(2005) 4 SCC 315] this Court has taken the view that whether a premature suit is required to be entertained or not is a question of discretion and unless "there is a mandatory bar created by a statute which disables the plaintiff from filing the suit on or before a particular date or the occurrence of a particular event", the Court must weigh and balance the several competing factors that are required to be considered including the question as to whether any useful purpose would be served by dismissing the suit as premature as the same would entitle the plaintiff to file a fresh suit on a subsequent date. We may usefully add in this connection that there is no provision in the Specific Relief Act, 1963 requiring a plaintiff claiming the relief of specific performance to wait for expiry of the due date for performance of the agreement in a situation where the defendant may have made his intentions clear by his overt acts."
(emphasis supplied)
14. In the case of Inbasagaran and another1
the Hon'ble Supreme Court was considering a case where
consequent to an Agreement of Sale, the purchaser was
put in possession of the suit property and also put up
construction on the said property. After putting up
construction, since the vendor attempted to take
possession of the suit property, the purchaser filed a suit
for injunction on 11.9.1985 to restrain the Defendant from
taking forcible possession of the building constructed on
the suit property. Pending the said suit, on 25.4.1986 the
purchaser filed a suit for specific performance. The
Defendant (owner of the property), inter alia, took a
defence that the subsequent suit for specific performance
is barred under Order II Rule 2 of CPC. The Defendant
(owner of the property) had also filed a suit for injunction
to restrain the purchaser from interfering with his peaceful
possession and enjoyment of the suit property. The Trial
Court tried all the suits together and dismissed the suits
for injunction filed by the owner and purchaser and
decreed the suit for specific performance filed by the
purchaser.
14.1 The High Court held that the subsequent suit
for specific performance is barred under Order II Rule 2 of
CPC and set aside the judgment and decree passed by the
Trial Court. The Hon'ble Supreme Court, upon
consideration of the material on record held that the cause
of action and the relief sought for in the two suits are
distinct and not the same. It also considered the earlier
judgment rendered in the case of the Virgo Industries
(Eng.) Private Limited7 and noticed that the said
judgment was distinguishable on the facts of the case.
The Hon'ble Supreme Court set aside the judgment of the
High Court and remanded the matter to the High Court for
consideration on the merits of the case. While
distinguishing the said case from the case of Virgo
Industries (Eng.) Private Limited7 the Hon'ble
Supreme Court recorded the following findings:
"29. In the instant case, as discussed above, suit for injunction was filed since there was threat given from the side of the defendant to dispossess him from the suit property. The plaintiff did not allege that the defendant is threatening to alienate or transfer the property to a third party in order to frustrate the agreement."
(emphasis supplied)
15. In the case of Vurimi Pullarao8 the Hon'ble
Supreme Court was considering a case where, consequent
to an Agreement of Sale, possession was alleged to have
been handed over to the purchaser. Alleging that the
owner sought to obstruct the possession, the purchaser
filed a suit for injunction on 30.10.1996 and no leave of
the Court was sought under Order II Rule 2 of CPC to
institute a suit for specific performance subsequently.
Subsequently, on 30.4.1997 the purchaser filed a suit for
specific performance. The Defendant contested the
subsequent suit raising the bar under Order II Rule 2 of
CPC. The Trial Court upheld the said contention and
dismissed the suit for specific performance. The first
Appellate Court reversed the said judgment and held that
bar under Order II Rule 2 of CPC was not attracted. The
High Court in second appeal set aside the judgment of the
first Appellate Court and remanded the matter to the first
Appellate Court by consent of the parties to decide the
appeals afresh. Subsequent to the remand, the first
Appellate Court held that the subsequent suit was barred
which was upheld by the High Court. The Hon'ble
Supreme Court considering the judgment in the case of
Virgo Industries (Eng.) Private Limited7 upheld the
judgment of the first Appellate Court.
16. It is clear from the aforementioned that the
principles contained under Order II Rule 2 of CPC and the
law as laid down by the Constitution Bench of the Hon'ble
Supreme Court in the case of Gurbux Singh6 has been
noticed and followed in the case of Virgo Industries
(Eng.) Private Limited7, Inbasagaran and another1
and Vurimi Pullarao8. In the cases of Virgo Industries
(Eng.) Private Limited7 and Vurimi Pullarao8 while
applying the settled proposition of law to the facts of the
respective cases, it was held that subsequent suit was
barred. However, in the case of Inbasagaran and
another1 while applying the settled proposition of law to
the facts of the said case, it was held that the subsequent
suits were not barred. The Hon'ble Supreme Court at
paras 28 and 29 of the judgment in the case of
Inbasagaran and another1 has clearly distinguished the
judgment in the case of Virgo Industries (Eng.) Private
Limited7. Hence, it cannot be said that the Hon'ble
Supreme Court in the case of Inbasagaran and another1
has overruled the ratio as held in the case of Virgo
Industries (Eng.) Private Limited7 .
17. In order to apply the settled proposition of law
with regard to Order II Rule 2 of CPC, the relevant facts of
the present case are required to be noticed.
18. The relevant paragraphs of the plaint in
OS.No.223/2013 are extracted herein below for ready
reference:
"14. It is respectfully submitted that in fact, on 1.2.2013 when the plaintiffs being an agreement holders of the schedule property went near the schedule property by that time the defendants No.1, 4 and 6 have brought third parties near the schedule property and have started to show them the schedule property with an intention to negotiate for alienation of the schedule property in favour of third parties whom they brought to the spot in persons of the plaintiffs itself immediately the plaintiffs who were present in the spot have objected and question the defendants of their acts stating that there is already an agreement of sale executed by the defendants in favour of the plaintiffs on 15.9.2011 agreeing to sell the suit property by receiving the advance amount and that now they cannot do any illegal acts but deprive the legal right accrued to the plaintiffs in pursuance of the agreement of sale executed by the defendants for which the defendants have started to proclaim that at the time of agreement of sale the market value of the schedule property was only Rs.3,82,50,000/- and now it is increased more and hence, they want to sell the schedule property to
the persons of their choice and they are not willing to sell the schedule property to the plaintiff for the rate fixed under the agreement of sale.
16. It is submitted that the plaintiffs have reserved their right to file a separate suit for the relief of relief of specific performance under the agreement of sale dtd.15.9.2011 and for consequential relief, but now in view of the urgency of the matter as the defendants are making all sorts of illegal attempts to alienate the suit property in favour of third parties with an intention to deprive the plaintiffs legal right accrued them under the agreement of sale. Having no alternative remedy the plaintiffs are constrained to file the above suit for the relief of permanent injunction to restrain the defendants from alienating the suit schedule property in favour of third parties. It is submitted that if the defendants are not restrained from alienating the suit property in favour of third parties, the defendants will take undue advantage of the situation and will sell the suit property in favour of the third parties, in such an event the plaintiffs will be put to great hardship, irreparable loss and injury, further more it will leads to multiplicity of proceedings. Hence, the above suit.
17. The cause of action for the suit arose on 1.2.2013 when the defendants have executed an agreement of sale on 15.9.2011 in favour of the plaintiffs by receiving advance sale consideration amount of Rs. 10,00,000/- and subsequently on all occasion when the plaintiffs have approached the defendants with a request to furnish the revenue documents to enable them for payment of balance consideration amount and to get registered the sale deed so also on 1.2.2013 when the plaintiff's were came near the schedule property by that time the defendant No.1, 4 and 6 came with third parties to show the property and were making negotiations for sale of the property which are within the jurisdiction of this Hon'ble Court."
(emphasis supplied)
19. The relevant paragraphs of the plaint in OS
No.1216/2013 are extracted herein below for ready
reference:
"10. It is submitted that to the shock and surprise of the plaintiffs No.1 and 2 on 01.02.2013, they being the agreement 9 holder, went to the schedule property, while the defendants No.1 to 4 came near the suit schedule property and negotiating with some third parties with an intention to sell the same in their favour even though the agreement of sale executed by them is subsisting and hence, the plaintiffs No.1 and 2 have objected for the same. Thereafterwards, having no alternative remedy, since the defendants No.1 to 7 are making illegal attempts to alienate the schedule property in favour of third parties, the the plaintiffs No.1 and 2 were constrained to file a suit in O.S. No.223/2013 on the file of the Hon'ble Principal Civil Judge, Bangalore Rural District Bangalore for the relief of permanent injunction restraining the defendants No.1 to 7 from alienating the suit schedule property in favour of third parties and for other consequential relief/s.
11. It is submitted that on considering the case of the plaintiffs No.1 and 2, the Hon'ble Court is pleased to pass an order of temporary injunction restraining the defendants No.1 to 7 from alienating the suit schedule property in favour of third parties by an order dt 04.02.2013. It is submitted that the Hon'ble Court is pleased to issue Summons, so also the plaintiffs No.1 and 2 have complied with the direction given by the Hon'ble Court. But in spite of passing of the order by the Hon'ble Court so also sending of plaint papers along with documents in the said suit, the defendants No.1 to 7 have intellectually evaded receiving the same and the RPAD sent to them have been returned un-served to the Advocate
of the plaintiffs No.1 and 2. Copy of the plaint and interim order dt 04.02.2013 are herewith produced for kind perusal of this Hon'ble Court as Document No.3 & 4.
17. The cause of action for the suit arose on 15.09.2011 when the defendants have executed the agreement of sale in favour of the plaintiffs and received a sum of Rs 10,00,000/- (Rupees ten lakh only) towards part performance of agreement of sale and further on 21.05.2013 when the plaintiffs have issued legal notice to the defendants calling upon them to execute proper, valid, registered sale deed in favour of the plaintiffs by receiving the balance consideration amount within 7 days from the date of receipt of legal notice, which are all within the jurisdiction of this Hon'ble Court."
(emphasis supplied)
20. It is clear from the averments made at para 14
of the plaint in OS.No.223/2013 that the Plaintiffs were
aware that the Defendants were not willing to sell the suit
property to the Plaintiffs.
21. It is relevant to note that the event
contemplated for completion of the sale transaction i.e.,
transfer of revenue records was admittedly completed
prior to filing of the earlier suit for injunction in O.S.
No.223/2013.
22. It is also relevant to note that although in the
cause of action for the earlier suit the date has been
mentioned as 15.11.2011 when the Agreement of Sale was
executed and on 1.2.2013 when the Plaintiffs allegedly
went near the suit property, the cause of action mentioned
in the subsequent suit is mentioned as 15.9.2011 when
the Agreement of Sale was executed and on 21.5.2013
when a legal notice was got issued by the Plaintiffs to the
Defendants.
23. Another aspect which is required to be placed
on record is that the Agreement of Sale was entered into
by Plaintiff Nos.1 and 2. Subsequently, they executed the
Assignment Deed on 13.8.2004 in favour of Plaintiff Nos.3
and 4 for a consideration of `20 lakhs and their right under
the said Agreement of Sale was assigned in favour of the
Plaintiffs.
24. Having regard to the aforementioned, the
Plaintiffs having averred in the earlier suit that the
Defendants were not willing to sell the suit property, they
ought to have sought for the relief of specific performance
when OS No.223/2013 was filed.
25. It is to be noticed that in the earlier suit OS
No.223/2013, at para 16 of the plaint, the Plaintiffs have
averred regarding reservation of their right to file a
separate suit for the relief of specific performance. It is a
matter of record that pursuant to a memo dated
16.08.2014, the said suit in OS No.223/2013 was
dismissed as withdrawn. Admittedly, no leave as
contemplated under Order II Rule 2(3) of the CPC has
been granted by the Court. Hence, a subsequent suit is
clearly barred by Order II Rule 2 of the CPC.
26. The contention of the learned Counsel for the
Appellants that the order of the Trial Court is liable to be
interfered with as the same has been passed before
recording of evidence is liable to be rejected in as much as
admittedly, the Plaintiffs themselves have filed a copy of
the plaint of the earlier suit in OS.No.223/2013 and the
same is a part of record. The plaint has also been referred
to by the Trial Court while passing the impugned order.
The observations, in Gurbux Singh6 made by the Hon'ble
Supreme Court that the evidence was not recorded before
the plea under Order II Rule 2 was considered, were made
having regard to the facts of the said case that while
considering the bar under Order II Rule 2 of the CPC the
Trial Court had only referred to the judgment rendered in
the earlier suit and the pleadings of the earlier suit were
not placed on record. This aspect of the matter also had
been noticed by the Hon'ble Supreme Court in the case of
Vurimi Pullarao8. Hence the said contention will not aid
the case of the Appellants/Plaintiffs.
27. It is a settled position of law that the Court
while adjudicating an application under Order VII Rule 11
of the CPC is required to consider only the averments
made in the plaint and the documents produced along with
the plaint. The Hon'ble Supreme Court in the case of
Dahiben9 has held as follows:-
"23.2. The remedy under Order 7 Rule 11 is an independent and special remedy, wherein the court is empowered to summarily dismiss a suit at the threshold, without proceeding to record evidence, and conducting a trial, on the basis of the evidence adduced, if it is satisfied that the action should be terminated on any of the grounds contained in this provision.
23.6. Under Order 7 Rule 11, a duty is cast on the court to determine whether the plaint discloses a cause of action by scrutinising the averments in the plaint [Liverpool & London S.P. & I Assn. Ltd. v. M.V. Sea Success I, (2004) 9 SCC 512] , read in conjunction with the documents relied upon, or whether the suit is barred by any law.
23.8. Having regard to Order 7 Rule 14 CPC, the documents filed along with the plaint, are required to be taken into consideration for deciding the application under Order 7 Rule 11(a). When a document referred to in the plaint, forms the basis of the plaint, it should be treated as a part of the plaint.
23.15. The provision of Order 7 Rule 11 is mandatory in nature. It states that the plaint "shall" be rejected if any of the grounds specified in clauses (a) to (e) are made out. If the court finds that the plaint does not disclose a cause of action, or that the suit is barred by any law, the court has no option, but to reject the plaint.
28. The Plaintiff at para 10 of the plaint has
specifically pleaded regarding the earlier suit filed in OS
No.223/2013. It is also forthcoming from para 11 of the
plaint that a copy of the earlier suit in OS.No.223/2013
was produced before the Trial Court. Hence, the Trial
Court was perfectly justified in entertaining IA No.8 filed
by Defendant No.8 under Order VII Rule 11 of the CPC.
29. The Trial Court considered all aspects of the
matter and has found that the suit filed by the Plaintiffs is
barred under Order II Rule 2 of the CPC. Upon a re-
appreciation of the material on record it is clear and
forthcoming that the Trial Court was justified in allowing
IA No.8 and rejecting the plaint as hit by Order II Rule 2 of
the CPC. Having regard to the aforementioned, the
Appellants have not made out any ground to warrant
interference in the order dated 12.8.2015 passed on
IA No.8 by the Trial Court. The question framed for
consideration is answered in the affirmative.
30. Hence, the above appeal is dismissed being
devoid of merit.
No costs.
Sd/-
JUDGE
Sd/-
JUDGE BS/nd
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