A Party cannot file a Second Suit for omitted claims if the First Suit arises from the same Cause of Action --- Lahore High Court, Lahore

Islamabad 28-02-2025: In a significant ruling, the Lahore High Court, Rawalpindi Bench, has reaffirmed the bar on multiple suits arising from the same cause of action, emphasizing the principle of finality in litigation. The judgment, delivered by Mr. Justice Mirza Viqas Rauf, sets a strong precedent against splitting claims into successive lawsuits.  

The case involved a dispute between petitioner and respondent over a 4-marla commercial plot in DHA Rawalpindi. The respondent initially filed a suit for specific performance of a sale agreement dated July 3, 2004, but subsequently initiated a second suit for recovery of earnest money (Rs. 2,000,000). The Civil Judge, Rawalpindi, partially decreed the second suit in favor of the respondent, which was later upheld by the Additional District Judge on March 30, 2017.  

The primary legal question before the Court was:  

The Petitioner’s counsel argued that the second suit was barred under Order II Rule 2 of the Code of Civil Procedure (CPC), 1908, which mandates that a party must raise all claims from the same cause of action in a single suit. The Respondent, however, contended that specific performance and recovery of earnest money were separate reliefs, allowing for a second suit.  

The Lahore High Court allowed the Petitioner’s appeal, setting aside the judgments of the lower Courts and dismissing the Respondent’s suit for recovery. The Court held:  

1. A party cannot file a second suit for omitted claims if the first suit arises from the same cause of action (Order II Rule 2 CPC).    
2. Since the first suit for specific performance was dismissed, the respondent was barred from filing a new suit on the same contract (Order IX Rule 9 CPC).    
3. The Respondent could not claim a different stance in the second suit after admitting facts in the first case (Article 114 of Qanun-e-Shahadat Order, 1984).    
4. The filing of a second suit during the pendency of an earlier case is not permissible under Section 10 CPC.    
5. A party cannot use indirect legal maneuvers to bypass restrictions on multiple suits.    

The judgment relied on several Supreme Court precedents:  

1. (PLD 2001 SC 325) Hashim Khan Case: Bars claims that were omitted in a prior suit.  
2. (1996 SCMR 1047) Mian Muhammad Iqbal Case: Prohibits the splitting of claims into separate lawsuits.  
3. (PLD 1983 SC 344) Ghulam Nabi Case: A second suit is only allowed if the first suit was incompetent.  
4. (PLD 2022 Lahore 817) Mubashar Javed Case: Establishes judicial estoppel, preventing contradictory claims.  

(PLD 2006 SC 202) Jeewan Shah Case: A party cannot benefit from their own fraud.

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