ISSUE:
Whether the suit was barred by the principle of res judicata?
Whether the suit was barred under Order 2 Rule 2 of the Code of Civil Procedure, 1908?
RULE:
Res Judicata: A subsequent suit is barred only if the matter directly and substantially in issue was adjudicated in a prior suit. Constructive res judicata applies only when a claim ought to have been raised but was not. A court cannot assume this bar without a specific plea and a framed issue.
Order 2 Rule 2 of CPC: This bar applies only when both suits arise from the same cause of action. A claim omitted in a previous suit can only be barred if it was part of the same cause of action and was intentionally relinquished. The absence of a plea or issue on this point renders dismissal under this provision unsustainable.