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Civil Property & InheritanceSupreme Court of India

Arifa & Ors. v. Abhiman Apartment Co-operative Housing Society Ltd. & Ors.

Special Leave Petition (Civil) · 2025 INSC 875Decided 14 Jul 2025
SLP(C) Diary No. 14976 of 2024
Justice K. Vinod Chandran · Justice N.V. Anjaria

Background

The original plaintiff (predecessor of the petitioners) had agreed to sell certain plots to a cooperative housing society, and a Power of Attorney (PoA) was executed in favour of the society's secretary to complete the sale. The plaintiff later alleged the PoA was obtained by coercion and had been cancelled before the sale deed was executed, and first filed (and lost) a suit for injunction; when that ultimately reached the High Court in second appeal, the High Court dismissed it but granted "liberty" to file a fresh, comprehensive suit. Relying on that liberty, the plaintiff filed a new suit seeking to declare the sale deeds void and recover possession, which was decreed by the trial court but reversed on appeal and by the High Court as barred by limitation, res judicata, and non-joinder of necessary parties.

Decision Breakdown

The Supreme Court dismissed the special leave petition and affirmed the High Court's judgment. It held that the "liberty" granted by the High Court in the earlier round could not revive a cause of action or restart the limitation clock. It only permitted a suit subject to legal defences like limitation, and did not erase the effect of Order 23 Rule 1 read with Rule 2 of the Civil Procedure Code. The Court found the entire case rested on allegations of coercion and cancellation of the PoA that had already been rejected concurrently by three courts in the earlier round, squarely attracting res judicata under Section 11 CPC. It described the liberty as "akin to flogging a dead horse," incapable of giving fresh life to grounds already lost.

Lesson Learnt

When a court grants "liberty to file a fresh suit," that liberty does not reset the limitation period or allow re-litigating issues already conclusively decided against a party: a fresh suit still has to satisfy limitation and res judicata on its own merits.

Arifa & Ors. v. Abhiman Apartment Co-operative Housing Society Ltd. & Ors. – Legal Case Shots | LegalAware