Part I — Suits in General
No Court shall try any suit or issue in which the matter directly and substantially in issue has been directly and substantially in issue in a former suit between the same parties, or between parties under whom they or any of them claim, litigating under the same title, in a Court competent to try such subsequent suit or the suit in which such issue has been subsequently raised, and has been heard and finally decided by such Court.
Explanation I.—The expression “former suit” shall denote a suit which has been decided prior to a suit in question whether or not it was instituted prior thereto.
Explanation II.—For the purposes of this section, the competence of a Court shall be determined irrespective of any provisions as to a right of appeal from the decision of such Court.
Explanation III.—The matter above referred to must in the former suit have been alleged by one party and either denied or admitted, expressly or impliedly, by the other.
Explanation IV.—Any matter which might and ought to have been made ground of defence or attack in such former suit shall be deemed to have been a matter directly and substantially in issue in such suit.
Explanation V.—Any relief claimed in the plaint, which is not expressly granted by the decree, shall for the purposes of this section, be deemed to have been refused.
Explanation VI.—Where persons litigate bona fide in respect of a public right or of a private right claimed in common for themselves and others, all persons interested in such right shall, for the purposes of this section, be deemed to claim under the persons so litigating.
1[Explanation VII.—The provisions of this section shall apply to a proceeding for the execution of a decree and references in this section to any suit, issue or former suit shall be construed as references, respectively, to a proceeding for the execution of the decree, question arising in such proceeding and a former proceeding for the execution of that decree.
Explanation VIII.—An issue heard and finally decided by a Court of limited jurisdiction, competent to decide such issue, shall operate as res judicata in a subsequent suit, notwithstanding that such Court of limited jurisdiction was not competent to try such subsequent suit or the suit in which such issue has been subsequently raised.]
COMMENTS
An earlier dispute about regularisation does not foreclose a later claim for pension and retirement benefits arising from regularisation subsequently granted by the employer. The later claim rests on a different cause of action and cannot be rejected simply by invoking the earlier litigation. — Punjab School Education Board v. Satnam Singh, 2026 INSC 965.
A final interlocutory ruling excluding internal communications cannot be bypassed by repeating their contents through oral testimony or an evidence affidavit. The Court upheld removal of the excluded material while permitting testimony confined to the witness’s own perceptions and admissible communications between the parties. — Reliance Industries v. NTPC Ltd., 2026 INSC 862.
A common judgment dismissing two consolidated suits by the same plaintiff may be challenged through one composite appeal if both decrees are challenged, their certified copies are supplied and the required fees are paid for both. A missing separate appeal memorandum is curable, and res judicata does not defeat such a comprehensive challenge. — Bassanna v. Bhimanna, 2026 INSC 838.
Where a common judgment decides a suit and counterclaim, a composite appeal covering both determinations, with separate grounds, valuation and fees, is not barred by res judicata merely because two appeal memoranda were not filed. — Basudev v. Sanjay Kumar, 2026 INSC 831.
A merits decision on impleadment binds the parties at later stages of the same proceedings even if its factual reasoning is disputed. A second application based on the same transfer cannot avoid that finality by invoking a different procedural provision; a genuinely changed setting in separate cross-objections must be considered on its own facts. — Sanjiv Kumar v. Shakuntla Devi, 2026 INSC 747.