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Supreme Court of India
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Second Suit for Specific Performance After Injunction Suit Barred by Order II Rule 2 CPC: Supreme Court

Published: · NyayVidhan

The Supreme Court dismissed a suit for specific performance of an alleged oral agreement to sell land, reversing concurrent decrees. The plaintiff had earlier sued only for an injunction when specific performance was already available and took no leave, so Order II Rule 2 CPC barred the second suit; liberty granted on withdrawal could not cure that. In any case, no concluded oral contract was proved (paras 24-27, 39-40).

Second Suit for Specific Performance After Injunction Suit Barred by Order II Rule 2 CPC: Supreme Court

Judgment Intelligence

Petition Allowed
Bombay Garage Ahmedabad Ltd. & Ors. v. J P Iscon Pvt. Ltd. & Anr.
2026 INSC 1066
Civil Appeal No. 13255 of 2026 (@ SLP (C) No. 25909 of 2024)
Court
Supreme Court of India
Date of Decision
29 September 2026
Bench
Justice J.B. Pardiwala and Justice K. Vinod Chandran
Relevant Acts & Sections
Code of Civil Procedure, 1908 — Order II Rule 2, Order XXIII Rule 1(3)
Final Outcome

Appeal allowed. The trial court's decree and the High Court's judgment were set aside and the suit for specific performance dismissed; as no payment of advance was proved, no refund arises. Parties bear their own costs (paras 39-40).

Key holdings

  1. The Order II Rule 2 bar applies where the same cause of action entitled the plaintiff to specific performance in the earlier suit (paras 8-9, 24).
  2. Leave must be obtained when the first suit is instituted; liberty to file afresh on withdrawal does not cure its absence (paras 25-27).
  3. Order XXIII Rule 1(3) allows a fresh suit for the same subject matter, not a new relief (para 26).
  4. An oral agreement to sell needs strict proof of a concluded contract; an unpresented advance cheque points the other way (paras 3, 33).
  5. Evasive answers by defence witnesses cannot establish the plaintiff's case, and a witness's status adds no weight (paras 35-36).

Brief Facts

J P Iscon claimed an oral agreement under which Bombay Garage Ahmedabad would sell it land for Rs 20.5 crore, with Rs 5,11,000 paid in cash and a Rs 5 crore cheque handed over (paras 7, 28-30). Its first suit sought only an injunction against alienation, pleading a refusal to perform on 08.05.2007, and was withdrawn citing settlement talks (paras 24, 31). The fresh suit sought specific performance and, after the plaint was amended in 2011, was decreed; the decree was affirmed on appeal, relying on oral evidence and the defendants' evasive answers (paras 4-5, 36, 39).

Court's Findings

Following the Constitution Bench in Gurbux Singh, Order II Rule 2 bars a later suit on the same cause of action where the plaintiff could claim more than one relief and omitted one without leave (paras 8-9); Gurinderpal's inference of leave from a withdrawal ran contrary to it (para 11). The first plaint, produced by the plaintiff itself, pleaded the agreement, the cheque and a clear refusal, so specific performance was available then; no leave was sought at institution, and liberty on withdrawal could not cure that, as Order XXIII Rule 1(3) permits a fresh suit only for the same relief (paras 24-27). On the merits, an oral agreement needs strict proof of a concluded contract (Brij Mohan, K. Nanjappa) (paras 2-3). The two plaints described the meetings inconsistently, no date for the sale was pleaded, and the Rs 5 crore cheque was never presented (paras 31-33). A key witness's evidence was unpleaded and partly hearsay, his political status lent it no weight, and evasive defence answers cannot prove the plaintiff's case (paras 34-36).

Legal Principle

A plaintiff who sues only for an injunction when specific performance is already available, without the court's leave at institution, is barred by Order II Rule 2 CPC from a later suit for specific performance. A suit on an oral agreement needs strict proof of a concluded contract (paras 3, 26-27).

Precedents Relied Upon

  1. Brij Mohan & Ors. v. Smt. Sugra Begum & Ors. (1990) 4 SCC 147
    Relied Upon Discussed at ¶ 2-3

    An agreement to sell immovable property need not be in writing, but a plaintiff relying on an oral agreement bears a heavy burden to prove a concluded contract on all vital terms.

  2. K. Nanjappa (Dead) by LRs v. R.A. Hameed @ Ameersab (Dead) by LRs & Anr. (2016) 1 SCC 762
    Relied Upon Discussed at ¶ 2-3

    Reiterates Brij Mohan; a concluded contract must be strictly proved and cannot be inferred.

  3. Gurbux Singh v. Bhooralal 1964 SCC OnLine SC 101
    Followed Discussed at ¶ 8-9, 11, 16

    Constitution Bench: the Order II Rule 2(3) bar needs the same cause of action, entitlement to more than one relief, and omission without leave; it must be established, not inferred.

View all precedents (11)
  1. Gurinderpal v. Jagmittar Singh (2004) 11 SCC 219
    Not Followed Discussed at ¶ 11

    Inferred leave from a withdrawal to file a fresh suit; that inference runs contrary to the Constitution Bench in Gurbux Singh.

  2. Vurimi Pullarao v. Vemari Vyankata Radharani (2020) 14 SCC 110
    Relied Upon Discussed at ¶ 11, 14, 16

    Where the cause of action for specific performance had arisen when the injunction suit was filed, the later suit is barred by Order II Rule 2(3).

  3. Vimlesh Kumari Kulshrestha v. Sambhajirao & Anr. (2008) 5 SCC 58
    Distinguished Discussed at ¶ 12

    Concerned Order XXIII Rule 1(3)(b) where the second suit was filed before withdrawal of the first; no application here.

  4. Cuddalore Powergen Corporation Ltd. v. M/s Chemplast Cuddalore Vinyls Ltd. & Anr. 2025 INSC 73
    Relied Upon Discussed at ¶ 13, 21-23

    Explains "cause of action" for Order II Rule 2; the bar was not applied where specific performance was legally unavailable when the first suit was filed.

  5. Virgo Industries (Eng.) Pvt. Ltd. v. Venturetech Solutions Pvt. Ltd. (2013) 1 SCC 625
    Relied Upon Discussed at ¶ 14-15

    Injunction suits based on facts furnishing a complete cause of action for specific performance bar later specific performance suits filed without leave.

  6. Inbasagaran v. S. Natarajan (2015) 11 SCC 12
    Distinguished Discussed at ¶ 17

    The bar did not apply where the cause of action for specific performance arose only after the first suit was filed.

  7. Rathnavati v. Kavita Ganashamdas (2015) 5 SCC 223
    Distinguished Discussed at ¶ 17-18

    The bar did not apply where the sale to a third party was first disclosed in the written statement in the injunction suit.

  8. Sucha Singh Sodhi (Dead) through LRs v. Baldev Raj Walia (2018) 6 SCC 733
    Distinguished Discussed at ¶ 19-20

    Order II Rule 2(2) applies only if the omitted relief was available on the cause of action pleaded in the earlier suit.

NyayVidhan
Court Judgments · 2 min read
Decided: September 29, 2026 Justice J.B. Pardiwala and Justice K. Vinod Chandran
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