Sharada Sanghi & Ors. v. Asha Agarwal & Ors.

 Dismissal of prior suits for default does not constitute res judicata, but may still bar re-agitation on grounds of abuse of process and equitable principles.

Background

Execution of a specific performance decree resisted by third parties claiming independent title.

Appellants obtained a decree for specific performance and initiated execution. Respondents (third parties) resisted delivery of possession under O. XXI rr. 99–101 CPC, claiming independent title via prior sale deeds. The executing court rejected objections, but appellate court and High Court directed appellants to seek a separate suit.

Issues Framed

  1. Whether dismissal of prior suits for default operates as res judicata under s. 11 CPC.
  2. Whether appellants’ conduct disentitles them from relief in execution proceedings.

Court’s Reasoning

1. Res judicata (s. 11 CPC)

  • Rule: Requires matter to be “heard and finally decided.”
  • Application:
    • Earlier suits (challenging respondents’ title) were dismissed for default, not on merits.
  • Holding: Such dismissal does not attract res judicata.

2. Effect of abandonment and conduct

  • Rule: Broader principle akin to nemo debet bis vexari and abuse of process may apply even absent res judicata.
  • Application:
    • Appellants filed suits challenging title but allowed them and restoration applications to be dismissed.
    • They were aware of respondents’ claims yet failed to implead them in the specific performance suit.
    • Attempt to reopen same issues in execution amounts to re-litigation and procedural abuse.
  • Precedents:
    • K.K. Modi v. K.N. Modi (1998) 3 SCC 573
    • Sarguja Transport Service v. STAT (1987) 1 SCC 5
  • Holding: Appellants’ conduct bars relief on equitable and public policy grounds.

3. Scope of execution under O. XXI rr. 97–101 CPC

  • While executing court can adjudicate title disputes, such jurisdiction cannot be used to revive abandoned claims.

Decision 

  • Appeal dismissed.
  • Appellate Court and High Court decisions upheld (though for different reasons).
  • Execution cannot proceed against respondents claiming independent title.

Ratio

Dismissal of a prior suit for default does not constitute res judicata under s. 11 CPC, but a party who abandons proceedings concerning title cannot subsequently re-agitate the same issues in execution, as such conduct constitutes abuse of process and is barred by equitable principles.

Case Details

Citation: 2026 INSC 292
Decided on: 25 March 2026
Case Title: Sharada Sanghi & Ors. v. Asha Agarwal & Ors.
Court: Supreme Court of India
Bench: Dipankar Datta, J.; Augustine George Masih, J.


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