Supreme Court dismisses Uniworld Logistics' appeal, upholds maintainability of Indev Logistics' suit for recovery of dues
Justices Vikram Nath & PB Varale [10-07-2024]

Read Order: UNIWORLD LOGISTICS PVT. LTD v. INDEV LOGISTICS PVT. LTD[SC- CIVIL APPEAL NO. 7308 OF 2024]

LE Correspondent

New Delhi, July 15, 2024: The Supreme Court has dismissed an appeal filed by Uniworld Logistics Pvt. Ltd. against Indev Logistics Pvt. Ltd., upholding the Madras High Court's order that allowed Indev Logistics to file a separate suit for recovery of arrears of storage charges, warehouse charges, and damages amounting to Rs. 8,42,88,761/-.

The dispute arose from a Leave and License agreement between the two parties, where Uniworld Logistics defaulted on the payment of storage charges. Indev Logistics initially filed a suit for permanent injunction and possession of the warehouse premises, reserving its right to claim the outstanding dues separately. Subsequently, Indev Logistics sought leave under Order II Rule 2(3) CPC to file a separate suit for the recovery of arrears, which was granted by the trial court.

Uniworld Logistics challenged the order granting leave, contending that the second suit was barred under Order II Rule 2(2) CPC. However, both the trial court and the Madras High Court found that the two suits were based on different causes of action and that Indev Logistics had neither relinquished its claim nor omitted to seek relief.

The Supreme Court, relying on its recent judgment in Bharat Petroleum Corporation Ltd. v. ATM Constructions Pvt. Ltd., held that a suit for possession and a suit for claiming damages for use and occupation of the property are based on different causes of action. The Court observed that Indev Logistics had specifically reserved its rights regarding the claim for outstanding dues in the first suit and had obtained leave to file a separate suit. Therefore, the second suit was maintainable, and the appeal filed by Uniworld Logistics was dismissed.

The Supreme Court's decision clarifies that separate suits can be filed for possession and recovery of dues when the causes of action are different, and the plaintiff has reserved their rights to claim the outstanding amounts separately.