Headline
The Supreme Court of India shed light on the Order II Rule 2 CPC which says multiple causes of action from the same transaction need not be merged.
Summary
The Supreme Court of India, shed light that Order II Rule 2 of Civil Procedure Code (CPC) does not mandate merging all different causes of action arising from the same transaction into a single suit. The ruling if the court stresses that the provision bars only subsequent suits dependent upon the same cause of action unless leave of the court is acquired.
Key Facts
- Case Name: Cuddalore Powergen Corporation Ltd. v. M/s Chemplast Cuddalore Vinyls Ltd. & Anr.
- Judges Name: Justice JB Pardiwala and Justice R Mahadevan
- The case was related to a dispute over an agreement to sell immovable property. Respondent No. 1 filed a 2nd suit for specific performance and cancellation of a sale deed after filing a permanent injunction suit earlier.
- The Court affirmed that the 2nd suit was valid, as the causes of action were distinct.
Legal Insights
The Court showcased:
- Order II Rule 2 of Civil Procedure Code (CPC) bars subsequent suits only when they appear from the same cause of action (COA).
- Causes of action must be considerably similar , not merely related to the same transaction.
- The defendant must prove the identity of causes of action (COA) and establish intentional omission of claims in the earlier suit.
Impact
This judgment makes sure the clarity on the application of Order II Rule 2 CPC, decreasing potential misuse to unfairly bar subsequent claims.
Why It Matters
The ruling of the Supreme Court makes sure the litigants’ rights by permitting them to pursue distinct claims arising from the same transaction separately, strengthening fairness in legal proceedings.
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