COFFEE BOARDversusM/S. RAMESH EXPORTS PVT. LTD.
- Citation
- 2014 INSC 391
- Decided
- 9 May 2014
- Disposal
- Appeal(s) allowed
- Bench
- C K PRASAD
Holding
A subsequent suit is barred under Order 2 Rule 2 of the CPC when it is based on the same cause of action as an earlier suit, the same parties are involved, and the plaintiff could have claimed the relief in the earlier suit without leave of the court.
Summary
The Coffee Board, a statutory body, failed to provide International Coffee Organization (ICO) export stamps to Ramesh Exports, causing loss of shipment and recall costs. The exporter filed two suits: O.S. No.3150 of 1985 for loss due to delayed shipment and O.S. No.4763 of 1986 for costs arising from the recall. The trial court decreed the first suit and dismissed the second, holding the latter barred under Order 2 Rule 2 of the CPC. The High Court partially reversed, allowing the second suit. On appeal, the Supreme Court examined whether the second suit was barred, finding that both suits arose from the same cause of action, involved the same parties, and the relief could have been claimed in the first suit; the bar under Order 2 Rule 2 was properly pleaded and the issue was framed. Consequently, the Court upheld the trial court, set aside the High Court, and dismissed the second suit. The appeal was allowed.
Issues considered
- Whether Order 2 Rule 2 of the Code of Civil Procedure, 1908 bars a subsequent suit when the cause of action is identical to an earlier suit and the same parties are involved.
- Whether the bar under Order 2 Rule 2 must be specifically pleaded by the defendant and the issue framed by the trial court.
- Whether the two suits filed by the respondent in the present case satisfy the criteria for the operation of the bar.
Legislation cited
- Code of Civil Procedure, 1908s. Order 2 Rule 1, s. Order 2 Rule 2
Subjects
Judgment
[2014] 7 S.C.R. 461
COFFEE BOARD A
v.
M/S. RAMESH EXPORTS PVT. LTD.
(Civil Appeal No. 5527 of 2014)
MAY 9, 2014.
B
[CHANDRAMAULI KUMAR PRASAD AND
PINAKI CHANDRA GHOSE, JJ.)
Code of Civil Procedure, 1908:
c
0.2, r.2 - Suit to include the whole claim - Bar to
subsequent suit on same cause of action - Held: 0.2, r.2
requires, if different reliefs and claims arise out of the same
cause of action then the plaintiff must place all his claims
before the court in one suit and cannot omit one of the reliefs D
or claims except without the leave of the court - Order 2 r.2
bars a plaintiff from omitting one part of claim and raising the
same in a subsequent suit - Bar under 0. 2 r.2 must be
specifically pleaded by· defendant in the suit and trial court
should specifically frame a specific issue in that regard E
wherein the pleading in the earlier suit must be examined and
the plaintiff is given an opportunity to demonstrate that the
cause of action in the subsequent suit is different - In the
instant case, de facto the parties are the same in both the
suits - In the written statement filed in the subsequent suit the
defendant-appellant has specifically pleaded that the suit was
F
barred under 0. 2, r. 2 of the CPC - The trial court also
specifically framed the issue on this point - As regards the
cause of action in the subsequent suit and the relief claimed
therein, in both the suits the fact required to be proved by the
respondent-plaintiff, to succeed in its claims was that on G
account of the failure of the appellant-defendant to provide the
required /CO stamps as assured by it, the respondent had to
suffer losses - Suits should have been merged and the two
461 H
462 SUPREME COURT REPORTS [2014] 7 S.C.R.
A reliefs, first being the losses due to delayed shipment and
second being the costs and losses arising due to the recall
of the shipment, could have been claimed in a single suit
when the cause of action was the same in both suits -
Therefore, trial court correctly held that subsequent suit was
B barred under 0. 2, r.2 - Judgment and order of High Court is
set aside and that of trial court upheld.
The respondent purchased coffee at the export
auction, and shipped 230.4 tonnes of coffee to USA and
Germany i.e. the members of International Coffee
C Organization (ICO), on 1st, 2nd and 3rd September, 1982
without valid ICO certificate of origin. On 22.9.1982, the
respondent wrote to the appellant Board requesting for
ICO stamps for export of 230.4 tonnes of coffee and on
29.9.1982, the respondent wrote to the appellant Board
D for issue of necessary permit/authority to re-import 230.4
tonnes of coffee into India. The appellant Board issued
a show cause notice to the respondent alleging that the
respondent committed breach of terms of ICO Agreement
by making false statement. The respondent filed two
E suits against the appellant Board in the Court of City Civil
Judge, i.e. O.S. No.3150 of 1985 praying for a decree of
Rs.5,32,012.31 p. with interest at the rate of 19% per
annum and costs of the suit and O.S. No. 4763 of 1986
praying for a decree of Rs.11,70,446.39 p. with interest at
F the rate of 19% per annum and costs of the suit. The trial
court decreed O.S. No.3150 of 1985 with costs and
interest at 6% per annum. However, O.S. No. 4763 of 1986
was dismissed. The appellant Board filed R.F.A. No.901
of 2002; whereas the respondent filed R.F.A. No.1033 of
G 2005 before the High Court, which partly allowed the
appeal filed by the respondent and partly decreed O.S.
No. 4763 of 1986 filed by-U.
Allowing the appeal, the Court
H HELD: 1.1. From a plain reading of 0. 2, r. 2 CPC, it
COFFEE BOARD v. RAMESH EXPORTS PVT. LTD. 463
·emerges that if different reliefs and claims arise out of the A
same cause of action then the plaintiff must place all his
claims before the court in one suit and cannot omit one
of th~ reliefs or. claims except without the leave of the
court. Order 2 r.2 bars a plaintiff from omitting one part
of claim and raising the same in a subsequent suit. The B
bar of 0. 2, r. 2 comes into operation where the cause of
action on which the previous suit was filed, forms the
foundation of the subsequent suit; and when the plaintiff
could have claimed the relief sought in the subsequent
suit, in the earlier suit; and both the suits are between the c
same parties:· Furthermore, the bar under 0. 2 r.2 must be
specifically pleaded by the defendant in the suit and the
trial court should specifically frame a specific issue in that
regard wherein the pleading in the earlier suit must be
examined and the plaintiff is given an opportunity to D
demonstrate that the cause of action in the subsequent
suit is different. [paras 10-11) [470-D-E; 471-B-D]
Deva Ram & Anr. vs. /shwar Chand & Anr. 1995 (4)
Suppl. SCR 369 = (1995) 6 SCC 733; Atka Gupta v.
Na render Kumar Gupta 2010 (11) SCR 756 = (2010) 10 SCC E
141; Gurbux Singh vs. Bhoorala/ 1964 SCR 831 =AIR 1964
SC 1810 - relied on.
Lachmi vs. Bhul/i ILR (1927) 8 Lah 384 - referred to.
1.2. The courts in order to determine whether a suit F
is barred by 0. 2 r.2, must examine the cause of action
pleaded by the plaintiff in his plaints filed in the relevant
suits. Considering the technicality of the plea of 0. 2 r. 2,
both the plaints must be read as a whole to identify the
cause of action, which is necessary to establish a claim G
or necessary for the plaintiff to prove if traversed.
Therefore, after identifying the cause of action if it is found
that the cause of action pleaded in both the suits is
identical and the relief claimed in the subsequent suit
H
464 SUPREME COURT REPORTS (2014] 7 S.C.R.
A could have been pleaded in the earlier suit, then the
subsequent suit is barred by 0. 2 r.2. [para 12) [471-H; 472-
A-C]
S. Nazeer Ahmed v. State Bank of Mysore & Ors. 2007
(1) SCR 843 = (2007) 11 sec 75 - relied on.
8
1.3. In the instant case, de facto the parties are the
same in both the suits. In the written statement filed in the
subsequent suit the defendant-appellant has specifically
pleaded that the suit was barred under 0. 2, r.2 of the
C CPC. The trial court also specifically framed the issue on
this point. Thus, it is evident that the two requirements
for the operation of bar under 0. 2, r.2 are met. [paras 13-
14) [472-E-F; 473-8) .
0 1.4. As regards the cause of action in the subsequent
suit and the relief claimed therein, in both the suits the
fact required to be proved by the respondent-plaintiff, to
succeed in its claims was that on account of the failure
of the appellant-defendant to provide the required ICO
E stamps as assured by it, the 'respondent had to suffer
losses. The two separate reliefs claimed by the
respondent are dependent on the same fact being the
omission of duty by the appellant. The grounds of
disparity in the suits are the amount of coffee and the
dates when the same was purchased, however it must
F be noted that the period between August 11, 1982 and
August 18, 1982 is common to both the suits and there
are no specific pleadings differentiating the same.
Furthermore, the suits were filed within a span of nine
days of each other. [paras 14 and 19) [473-C; 474-F-H;
G 475-A]
1.5. Therefore, this Court is of the opinion that suits
should have been merged with the claims against coffee
purchased between July 25, 1982 and September 8, 1982,
H (a period arising from the merging of the two periods
COFFEE BOARD v..RAMESH EXPORTS PVT. l TD. 465
claimed in the suits wherein eight days overlapped each A
other) clubbed together in the same suit from which two
reliefs, first being the losses due to delayed shipment and
second being the costs and losses arising due to the
recall of the shipment, could have been claimed. Both the
reliefs are being claimed separately in the two suits. This B
scenario negates the principle of 0. 2, r.2 in absence of
any explanation as to why the respondent failed to claim
the relief by way of a single suit when the·cause of action
was the same in the both. Therefore, this Court is of the
opinion that the trial court in its judgment dated 17.3.2005 c
correctly held that in light of O.S. No. 3150 of 1985, O.S.
No. 4763 of 1986 was barred under 0. 2, r.2 of the Code,
[paras 20-21) [475-A-E] ·
!
1.6. The High Court has misapp;·eciated the facts in
the light of 0. 2, r. 2 of the Code and thereby the D
reasoning of the High Court cannot be sustained in the
eye of law. O.S.No.4763 of 1986 is barred. The judgment
and order of the High Court is set aside and the order of
the trial court upheld. [para 22) [475-E-F]
E
Case Law Reference :
ILR (1927) 8 Lah 384 referred to para 10
1995 (4) Suppl. SCR 369 relied on para 10
2010 (11) SCR 756 relied on para 10 F
1964 SCR 831 relied on para 11
..
2007 (1) SCR 843 relied on para 12
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
- G
5527 of 2014.
From the Judgment and Order dated 19.12.2011 in RFA
No. 1033/2005 of the High Court of Karnataka at Bangalore.
'
A. Subba Rao, K.L.D.S. Vinober for the Appellant. H
466 SUPREME COURT REPORTS [2014} 7 S.C.R. ·
A · Meenakshi Chauhan, Gaurav Nair (For K.J. John & Co.)
· for the Respondent.
.
The Judgment of the Court was delivered by
PINAKI CHANDRA GHOSE, J. 1. Leave granted.
B
2. This appeal is preferred against the judgment and order
dated December 19, 2011 passed by the High Court of
Karnatqka at Bangalore in Regular First Appeal No.1033 of
2005 partly allowing the appeal filed by the respondent herein
c and partly decreeing the Original Suit being O.S. No. 4763 of
1986 filed by the respondent being the original plaintiff. The·said
original suit was dismissed by a judgment and decree dated
March 17, 2005.
3. Pre-liberalization, till 1996 all the coffee grown in India
0 was pooled with the appellant-Board which is a statutory body
under the Coffee Act, 1942. The appellant-Board (herei~fter
referred to as "Board") marketed the pooled coffee and
distributed the net realization to the growers in proportion the
quantity pooled by them. The Board marketed the pooled coffee
E by means of auctions and separate auctions were held for
export and domestic market. Only registered exporters are
allowed to participate in the said auctions and the successful
bidders amongst them enter into contracts with the Board for
the purchase of the coffee. The Board is a member of the
F International Coffee Organization (hereinafter referred to as
"ICO") which is the main intergovernmental organization
controlling and regulating the global coffee export and import.
Majority of the coffee growing and consuming countries are
members of the ICO. The import and export of coffee is
G regulated by ICO by fixing quotas on the member countries in
accordance with the quarftum •produced. As per the then
International Coffee Agreement of 1983 the export quota system
was supported by an obligatory system of controls. Each export
by a Member was covered by a Certificate of Origin. Importing
H Members did not admit coffee from Members unless the
COFFEE BOARD v. RAMESH EXPORTS PVT. LTD. 467
[PINAKI CHANDRA GHOSE, J.]
Certificate was validated by coffee export stamps issued by the A
Organization. When quotas were in effect importing Members
were required to limit their imports from non-members and
exports to non-members were closely monitored. •
4. Accordingly, India being a member of ICO through the B
.Board was subject to the same agreement and as per the fixed
quota for exporting coffee the Board received stamps from ICO
for each quarter through State Bank of India. Thus, the Board
·subject to 100 rules and regulations regulated the coffee
production and marketing in India by accordingly distributing C
stamps to the exporters who had successfully purchased coffee
from the auctions. The respondent Mis. Ramesh Exports Pvt.
Ltd. being the original plaintiff was registered with the Board
as an exporter during the coffee year October 1, 1981 to
September 30, 1982.
D
5. In this backdrop, the fpcts leading to the present appeal
.are as ·under:
5.1. On August 24, 1980, the appellant Board sent the
lTerms and Conditions of Sale of Coffee in the Course of E
Export', after amendment of certain clauses, to all the registered
exporters of coffee. On October 9, 1980 the appellant Board
issued a Circular regarding introductio_n of Coffee Export stamp .
system for export of coffee to member importing countries of
ICO from November 1, 1980. The respondent purchased coffee-
1at"the export auction. The respondent shipped 230.4 tonnes of F
coffee to USA and Germany who were members of ICO, on 1st,
2nd and 3rd Septembsr, 1982 without valid ICO ·certificate of
origin. Qn September 22, 1982, the respondent wrote to the
appellant'Board requesting for ICO stamps for export of 230.4
tonnes of coffee and on September 29, 1982, the respondent G
wrote to the appellant Board for issue of necessary permit/
authority to re-import 230.4 tonnes of coffee into India. The
appellant Board issued a show cause notice to the respondent
alleging that the respondent has committed breach of terms of
H
468 SUPREME COURT REPORTS [2014] 7 S.C.R.
A ICO Agreement by making false statement. The respondent
replied to the show cause notice. Thereafter, the respondent
filed two suits against the appellant Board in the Court of City
Civil Judge, Bangalore, one being O.S. No.3150 of 1985
praying for a decree of Rs.5,32,012.31 p. with interest at the
B rate of 19% per annum and costs of the suit and another suit
be·ing O.S. No. 4763 of 1986 praying for a decree of
Rs.11, 70,446.39 p. with interest at the rate of 19% per annum
and costs of the suit. The appellant Board resisted the sµits and
denied the claims made by the respondent.
c 5.2. By judgment dated February 14, 2002, the Trial Court
decreed O.S. No.3150 of 1985 with costs and interest at 6%
per annum. Aggrieved by the judgment and decree dated
February 14, 2002 passed by the Trial Court, the appellant
Board filed R.F.A. No.901 of 2002 before the High Court of
D Karnataka. However, the other suit being O.S. No. 4763 of
1986 was dismissed by the Trial Court by judgment dated
March 17, 2005 and aggrieved thereby, the respondent filed
R.F.A. No.1033 of 2005 before the High Court of Karnataka.
After considering the submissions of both the parties, the High
E Court partly allowed the regular first appeals. Aggrieved by the
judgment and order dated December 19, 2011 passed by the
High Court of Karnataka at Bangalore in Regular First Appeal
No.1033 of 2005, the appellant Board has come up before this
Court.
F
6. The case of theI appellant before us is based on two
grounds. Firstly, it has been contended by the learned counsel
appearing for the appellant that the High Court has incorrectly
held that the Original Suit being O.S. No.4763 of 1986 is not
G barred by the provisions of Rule 2 of Order 2 of the Code of
Civil Procedure, 1908 (hereinafter referred to as "the Code").
In support of the same, it has been submitted by the learned
d'o,unsel that the High Court incorrectly determined the above
without considering the specific pleadings in O.S. No.3150 of
1985 filed by the respondent, as against the pleadings in the
H
COFFEE BOARD v. RAMESH EXPORTS PVT. LTD. 469
[PINAKI CHANDRA GHOSE, J.]
orig!nal suit being O.S. No.4763 of 1986. It was further A
submitted that the High Court also did not consider the cogent
findings of the judgment dated March 17, 2005 passed by the
Trial Court in O.S. No.4763 of 1986.
7. The second ground raised by the learned counsel for 8
the appellant is on merits wherein it has been contended that
when the respondent by letter dated September 29, 1982
agreed to re-import 230.4 tonnes of coffee into India which was
exported without ICO Stamps by them in haste and against the
ICO Regulations of which they were aware and which entailed C
in the debarring of India from the membership of ICO, then they
are estopped from claiming any damages and costs being
freight and other charges arising due tp the re-import.
8. Havi~g heard the arguments advanced by the COUl']Sel
appearing for the parties and considering the documents on D
record in light of the ave~ments of the parties, we will first
consider the procedur,al validity of the original suit and w.ould
accord1ngly pfoceed with the merits.
9. It is the claim of the appellant being the original E
defendant in the original suit being O.S. No.4763of1986 that
the present suit is barred by Order 2 Rule 2 of the Code. The
said provision should be read in context of Rule 1 of Order 2.
The relevant rules are reproduced below for ready reference:
"1. Frame of suit.-Every suit shall as far as practicable F
be framed so as to afford ground for final decision upon
the subjects in dispute and to prevent further litigation
concerning them. ,
2. Suit to include the whole claim. 1 (1) Every suit shall G
include the whole of the ~laim 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
I
a plaintiff
\
4 70 SUPREME COURT REPORTS [2014] 7 S.C.R.
A 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 reliefs.-A person
entitled to more than one relief in respect of the same
B
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 ~o
omitted."
C 10. The above rules are offshoots of the ancient principle
that there should be an end to litigation traced in the Full Bench
decision of the Court in Lachmi vs. Bhulli1 and approved bY
1
this Court in many of its decisions. The principle which emerges
from the above is that no one ought to be vexed twice for the
D same cause. In light of the above, from a plain reading of Order
2 Rule 2, it emerges that if different reliefs and claims arise out·
of the same cause of action then the plaintiff must place all his
claims before the Court in one suit and cannot omit one of the
reliefs or claims except without the leave of the Court. Order 2
E Rule 2 bars a plaintiff from omitting one part of claim and raising
the same in a subsequent suit. (See: Deva Ram & Anr. vs.
/shwar Chand & Anr. 2 ). Furthermore, this Court in Alka Gupta
v: Narender Kumar Gupta3 stated that:
"The object of Order 2 Rule 2 of the Code is twofold. First
F is to ensure that no defendant is sued and vexed twice in
regard to the same cause of action. Second is to prevent
a plaintiff from splitting of claims and remedies based on
the same cause of action. The effect of Order 2 Rule 2 of
the Code is to bar a plaintiff who had earlier claimed certain
G remedies in regard to a cause of action, from filing a
second suit in regard to other reliefs based on the same
1. ILR (1927) 8 Lah 384.
2. (1995) 6 sec 733.
H 3. (2010) 10 sec 141.
COFFEE BOARD v. RAMESH EXPORTS PVT. LTD. 471
[PINAKI CHANDRA GHOSE, J.]
cause of action. It does not however bar a second suit A
based on a different and distinct cause of action."
11. The bar of Order 2 Rule 2 comes into operation where
the cause of action on which the previous suit was filed, forms
the foundation of th~ subsequent suit; and when the plaintiff
8
could have claimed the relief sought in the subsequent suit, in
the earlier suit; and both the suits are between the same
parties. Furthermore, the bar under· Order 2 Rule 2 must be
specifically pleaded by the defendant in the suit and the Trial
Court should specifically frame a specific issue in that regard C
wherein the pleading in the earlier suit must be examined and
the plaintiff is given an opportunity to demonstrate that the
cause of action in the subsequent suit is different. This was held
by this Court in Alka Gupta v. Narender Kumar Gupta (supra)
which referred to decision of this Court in Gurbux Singh vs.
Bhooralal" wherein it was held that: D
"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 E
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 F
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 whi9h 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 G
which the claim in the later suit is based there would be
no scope for the application of the bar."
12. The Courts in order to determine whether a suit is
4. AIR 1964 SC 1810.
472 SUPREME COURT REPORTS [2014] 7 S.C.R.
A barred by Order 2 Rule 2 must examine the cause of action·
pleaded by the plaintiff in his plaints filed in the relevant suits
(See: S. Nazeer Ahmed v. State Bank of Mysore & Ors. 5 ).
Considering the technicality of the plea of Order 2 Rule 2, both
tha plaints must be read as a whole to identify the cause of
B action, which is necessary to establish a claim or necessary
for the plaintiff to prove if traversed. Therefore, after identifying
the cause of action if it is found that the cause of action pleaded
in botn the suits is identical and the relief claimed in the
subsequent suit could have been pleaded in the earlier suit,
C then the subsequent suit is barred by Order 2 Rule 2.
13. In the present case we have found the first suit is
claimed to be O.S. No. 3150 of 1985 and the subsequent suit
is claimed to be O.S. No:4763of1986. The first suit was filed
D by Ramesh Enterprises which is admitted to be the Coffee
Division of Ramesh Exports Pvt. Ltd. which is the plaintiff in the
second suit. It has also been admitted by the plaintiff in the
second suit that Ramesh Exports Pvt. Ltd. is a wholly owned
subsidiary of Ramesh Enterprises Pvt. Ltd. Both the entities are
E operated out of the same premises and suits were filed by their
Director who is Mr. T. Thangapalam. Therefore, we are of the
opinion that de facto the parties are the same in both the suits.
Having perused the written statement of the defendant being
the appellant before us in O.S. No.4763of1986 we have found
that the defendant in paragraph 14(c) of his written statement
F has specifically pleaded that:
"The suit is barred under Order 2, Rule 2 of the CPC as
the plaintiff having filed O.S. No. 3150/1985 in respect of
the alleged failure of the board to supply stamps for the
G coffees purchased by it between 11-8-1982 and 8-9-1982,
the claim now made must be deemed to have been
relinquished."
H 5. c200?) 11 sec 75.
COFFEE BOARD v. RAMESH EXPORTS PVT. LTD. 473
[PINAKI CHANDRA GHOSE, J.]
The Trial Court also in its judgment dated March 17, 2005 A
specifically framed the ·following issue:
"(5) Whether Defendant prove that this is barred as per
para 14 (c) of the Written Statement?"
14. It is evident from the above that the two requirements 8
for the operation of bar under Order 2 Rule 2 are met with and
what remains to be seen is whether the cause of action in the
subsequent suit is the same and the relief claimed therein could
have been claimed in the earlier suit. For the same, both the
·plaints are discussed in the subsequent paragraphs. C
15. In the plaint in O.S. No. 3150of1985 being the earlier
suit, it has been claimed by the respondent being the plaintiff
,therein that the appellant being the defendants failed to ~upply
. ICO Stamps for 268.08 tonnes of coffee purchased by him for · D
, export between August 11, 1982 and September 8, 1982,
: inspite of its assurances leading to delay in the shipment of the
coffee resulting in losses to the plaintiff. On the basis of the
same, the respondent claimed for the losses suffered by him
along with damages. The respondent further averred that the E
cause of action for the suit arose on various dates when the
respondent purchased coffee from the appellant in the ~uctions
held by them on the assurance that the ICO Stamps will be
supplied by the appellant to them.
16. The cause of action in the above suit is the failure of F
ICO to supply stamps to the respondent inspite of its
assurances. The respondent to ensure the success of his claim,
was required to prove that on account of the omission of the
appellant i.e. failure to provide ICO Stamps for the coffee
purchased by them, the respondent suffered losses. G
17. lnspite of the different wording of the plaint in O.S. No.
4763 of 1986, being the subsequent suit, the respondent has
primarily claimed that inspite of the assurance given by the
appellant regarding the ICO stamps by its Circular dated H
... \\,
474 SUPREME COURT REPORTS [2014] 7 S.C.R.
A August 18, 1982, the appellant failed to providethe requisite
ICO Stamps for 230.4 tonnes coffee purchased by it between
July 25, 1982 and August 18, 1982. That on the basis of the
assurance of the appellant the respondent started making
preparations for the shipment and after requesting for the ICO
B Stamps on August 28, 1982 and waiting for the same, he was
forced for shipment of the coffee without the necessary stamps
which lead to the recalling of the ship. That the respondent had
to bear to and fro freight charges and other costs being the
damages to importers for delay in shipment as the shipment
. c was called back wrongfl,llly; on account of the omission of the
appellant for which the respondent is not accountable; and the
appellant is liable for the cost arising from the recall of the
shipment. Furthermore, as per the plaintiff, the cause of action
arose when the circular assuring the availability of stamps was
issued, when the coffee was shipped and subsequently called
0
back.
18. Though the plaint in the subsequent suit is more
specific, we however, find that the respondent so as to recover
the cost of the freight charges and other costs suffered by it,
E must prove that the appellant was under a duty to provide ICO
stamps; and its failure to provide the stamps timely lead to the
coffee being shipped without the stamps and ultimately lead to
the losses being suffered by the ,respondent.
F 19. In both the suits the fact required to be proved by the
respondent (being the plaintiff therein), to succeed in its claims
was that on account of the failure of the appellant (being the
defendant) to provide the required ICO stamps as assured by
it, the respondent had to suffer losses. The two separate reliefs
G claimed by the respondent are dependent on the same fact·
being the omission of duty by the appellant. The grounds of
disparity in the suits are the amount of coffee and the dates
. when the same was purchased, however it must be noted that
the period between August 11, 1982 and August 18, 1982 is
common to both the suits and there are no specific pleadings
H differentiating the same.· Furthermore, the suits were filed within
- COFFEE BOARD v. RAMESH EXPORTS PVT. LTD: 475
[PINAKI CHAND.RA GHOSE, J.]
.
a span of nine days of each other. A
20. In the light of the abave, we are of the opinion that suits
should have been merged with the claims against coffee
purchased between July 25, 1982 and September 8, 1982, (a
period arising from the merging of the two periods claimed in
8
the suits wherein eight days overlapped each other) clubbed
together in the same suit from which two relief~. first being the
losses due to delayed shipment and second being the costs
and losses arising due to the recall of the shipment, could have
been claimed..
c
21. In the present factual matrix both the reliefs are being
claimed separately in the two concerned suits. This scenario
negates the principl~. of Order 2, Rule 2 in absence of any /
explanation as to why the respondent failed to claim the relief
by way of a single suit when the cause of action was the same D
in the both. Therefore, we are of the opinion that the Trial Court
in its judgment dated March 17, 2005 correctly held that·in light
of O.S. No. 3150of1985 the present suit is barred 4nder Order
2 Rule 2 of the Code.
E
22. In view of the aforesaid discussion, we find that the
High Court has misappreciated the facts in the light of Order 2
Rule 2 of the Code and thereby the reasoning of the High Court
cannot be sustained in the eye of law. The said suit
(O.S.No.4763 of 1986) is barred. Considering the facts, as
discussed above, we set aside the judgment and order of the F
High Court and uphold the order of the Trial Court. Accordingly,
the present appeal is allowed and the suit of the respondent is
dismissed.
Rajendra Prasad Appeal allowed. G
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