Special leave petition withdrawn unconditionally - A second special leave petition under Article 136 not maintainable

Supreme Court Upholds Finality in Litigation: Re-litigation Barred Without Explicit Permission. Supreme Court Dismisses Civil Appeals Citing Public Policy Against Unconditional Withdrawal of Special Leave Petitions

In a landmark decision, the Supreme Court of India has reaffirmed the principle of finality in litigation, dismissing civil appeals by Satheesh V.K. against Federal Bank Ltd. The appeals challenged orders previously contested through a special leave petition withdrawn unconditionally. The judgment emphasizes that a second special leave petition is not maintainable when the first petition is withdrawn without obtaining explicit permission to refile, underscoring public policy against re-litigation and bench-hunting.

The case involved Satheesh V.K., a borrower under the SARFAESI Act, who defaulted on a loan repayment to Federal Bank, leading to the classification of his account as a Non-Performing Asset (NPA). The Kerala High Court directed the appellant to pay a substantial sum and allowed for a one-time settlement. Dissatisfied, Satheesh initially approached the Supreme Court but withdrew his petition without securing the liberty to refile. Subsequently, he filed for a review at the High Court, which was dismissed, prompting the present appeals.

The Supreme Court, led by Justices Dipankar Datta and K.V. Viswanathan, cited the precedent set by Upadhyay & Co. v. State of U.P., emphasizing that unconditional withdrawal of a petition bars re-litigation of the same matter. The judgment referenced relevant sections of the Civil Procedure Code and previous rulings to support its decision, stressing that such withdrawals without court permission impede justice administration and promote litigation finality.

The Court dismissed the appeals, advising Satheesh to pursue remedies through appropriate legal channels, underscoring that the principle of finality serves public interest by preventing endless litigation and judicial resource misuse.

Bottom Line:

A second special leave petition under Article 136 of the Constitution is not maintainable if the earlier special leave petition challenging the same order was withdrawn unconditionally without obtaining liberty from the Court to file another petition. This principle is based on public policy to ensure finality in litigation and prevent abuse of judicial process.

Statutory provision(s): Constitution of India Article 136, Civil Procedure Code 1908 Order XXIII Rule 1, Order XLVII Rule 7, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 Section 2(f), Section 2(zd), Section 13(4)

Satheesh V.K. v. Federal Bank Ltd., (SC) : Law Finder Doc id # 2782687