Tuesday, 17 May 2016

Res Judicata: Some Aspects

Under Sec 11 of Civil Procedure Code, 1908 the principle of Res Judicata is embodied. Herein the court is barred from trying suit or issue which has been previously decided.  For invoking this rule following requirements must be proved:

a) the matter should be directly and substantially in issue in former suit;
b) between same parties or their LR’s litigating under same title;
c) in a court competent to try such subsequent suit;
d) and has been heard and finally decided by such court

Res Judicata as is known is legislative avatar of following common law maxims:
(1) no man should be vexed  twice for the same cause, (2) it is in the interest of State that there should be an end to a litigation and (3) a judicial decision once it has  attained finality must be accepted as correct between the parties” [Satyendra Kumar & Ors v Raj Nath Dubey & Ors (May 2016 Supreme Court) ]

First basic requirement in a plea of Res Judicata is that there should be identical Cause of Action in both suits (matter should be directly and substantially in issue in former suit). The congruency  between issues is determined on myriad platforms of which Cause of Action is one, the others will be viz, same titles, same parties, same subject-matter.

Cause has been explained in Kunjan Nair v Narayanan Nair [(2004) 3 SCC 277]: "cause  of  action  means  the circumstances forming the infraction of the right or the immediate occasion for the action. In the wider sense, it means the necessary conditions for  the maintenance of  the suit,  including not only the infraction of the right, but the infraction  coupled with the right itself. Compendiously the expression  means  every  fact  which  would  be necessary for the plaintiff to prove, if traversed, in order to support his right to the judgment of the court.  Every fact which is necessary to be proved,  as  distinguished  from every  piece  of evidence which is necessary to prove each fact, comprises in 'cause of action'."

It is also mandatory to show that there was 'hearing' and court has rendered a 'decision' on such issues. Even a ex-parte hearing could be termed as sufficient for purposes of Sec 11 if due notices were served on defendants and sufficient opportunity for afforded to them to present their case, despite of which they fail to present their case.

·         Whether determination on pure issues of law could operate as Res Judicata in respect of some other properties which were not subject to ‘former proceedings’?

No, In Mathura Prasad v Dossibai JeeJeebhoy [AIR 1971 SC 2355] it was stated:

10. It is true that in determining the application of the rule of res judicata the Court is not concerned with the correctness  or  otherwise  of  the  earlier  judgment.  The matter in issue, if it is one purely of fact, decided in the earlier  proceeding  by  a  competent  Court  must  in  a subsequent  litigation  between  the  same  parties  be regarded as  finally  decided  and cannot  be  reopened.  A mixed question of law and fact determined in the earlier proceeding  between  the  same  parties  may  not,  for  the same reason,  be questioned in a subsequent  proceeding between the same parties. But, where the decision is on a question of law i.e. the interpretation of a statute, it will be res judicata in a subsequent proceeding between the same parties  where  the  cause of  action is  the  same,  for  the expression “the matter in issue” in Section 11 of the Code of Civil  Procedure means the right  litigated between the parties  i.e.  the  facts  on  which  the  right  is  claimed  or denied and the law applicable to the determination of that issue. Where, however, the question is one purely of law and it relates to the jurisdiction of the Court or a decision of  the  Court  sanctioning  something  which is  illegal,  by resort to the rule of res judicata a party affected by the decision will not be precluded from challenging the validity of that order under the rule of res judicata, for a rule of procedure cannot supersede the law of the land.”

Thus even ‘question of law’ can be of two types:
(a) Which is related to ‘interpretation of statute’ to any particular fact situation – decision on this is not subject to change;
(b) Which is related to any ‘formal defect’ (ex. error in exercise of jurisdiction etc)  - decision on this is not subject to Res Judicata and can be challenged   

·         In Saroja  v Chinnusamy (Dead) by Lrs & anr [(2007) 8 SCC 329] following issues emerged:
(1)  whether  an ex  parte  decree  could  attract  res  judicata; and
 (2)  whether the appellant could be held bound by the  judgment  in the earlier suit  when he was not a party to the same  although she had acquired title from the person who as a party had  suffered the ex parte decree.

Both the issues were decided against the appellant of that case by holding that an ex parte decree was as good  as a decree passed after contest and such ex parte decree, unless set  aside  on the  ground  of  fraud  or  collusion  will  not  only  bind  the  original  parties to the former suit  but also other parties who claim  under any of them and seek to litigate under the same title.

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·         Test for determining whether subsequent suit is barred by RJ

In Jaswant Singh v Custodian of evacuee property [(1985) 3 SCC 648] a simple test was laid to determine whether subsequent suit is barred by RJ or not: “…In order that a defence of  res judicata may succeed it  is necessary to show that  not  only the cause of action was the same but also that the plaintiff  had an opportunity of  getting the relief  which  he  is  now seeking in  the  former proceedings.  The test  is whether  the claim in the  subsequent  suit  or  proceedings  is  in  fact founded upon the same cause of  action which was  the  foundation  of  the  former  suit  or proceedings….”

·         In a court competent to try such subsequent suit v Exp VIII to Sec 11

Besides other requirements Sec 11 requires that party pleading Res Judicata must show that former court was competent to try subsequent suit. Ex Suit X was decided by Court 1. In Suit Y  before Court 2 a party claims RJ upon similarity of issues with Suit X. Now as per this requirement it is necessary to prove that Court 1 is competent to conduct trial of Suit Y.

However Exp VIII limits this requirement: If Court 1 above is court of limited jurisdiction and competent to decide issues under Suit X than such decision shall operate as RJ notwithstanding that Court 1 is a limited jurisdiction court having no competency to try Suit Y. 

[Court of limited jurisdiction: 
Such court which is restricted to preside over any particular subject-matter (as Special court under Protection of women under Domestic violence Act) or which is restricted by pecuniary limits]

Thus if Suit X above was between H & M regarding loan of Rs 20,000 and was decided by Court 1 which has pecuniary limit of Rs 1,00,000. than merely this limitation would not restrict application of RJ upon similar issues in Suit Y for loan of Rs 1 crore between H & M which is before Court 2 having pecuniary limit of Rs 1 crore


This is in furtherance of spirit of Res Judicata maxims (2) & (3) laid in  Satyendra Kumar & Ors v Raj Nath Dubey & Ors provided above

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