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"42. In Devilal Modi v. Sales Tax Officer, Ratlam [AIR
1965 SC 1150], a Constitution Bench of the Apex Court
held that, if the underlying rule of constructive res
judicata is not applied to writ proceedings, it would be open
to the party to take one proceeding after another and urge
new grounds every time, and would be inconsistent with
considerations of public policy.
43. 'Henderson Principle' is a foundational doctrine in
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common law that addresses the issue of multiplicity in
litigation. It embodies the broader concept of procedural
fairness, abuse of process and judicial efficiency by
mandating that all claims and issues that could and ought
to have been raised in a previous litigation should not be
relitigated in subsequent proceedings. The extended form
of res judicata, known as constructive res judicata,
contained in Section 11, Explanation VII of the Code of Civil
Procedure, 1908, originates from this principle.
47.1. In Celir LLP [2024 SCC OnLine SC 3727], the Apex
Court reiterated that the 'Henderson Principle' is a core
component of the broader doctrine of abuse of process,
aimed at enthusing in the parties a sense of sanctity towards
judicial adjudications and determinations. It ensures that
litigants are not subjected to repetitive and vexatious legal
challenges. At its core, the principle stipulates that all claims
and issues that could and should have been raised in an
earlier proceeding are barred from being raised in
subsequent litigation, except in exceptional circumstances.
This rule not only supports the finality of judgments but also
underscores the ideals of judicial propriety and fairness.
47.2. In Celir LLP [2024 SCC OnLine SC 3727], the Apex
Court noticed that there are four situations where, in second
proceedings between the same parties, doctrine res judicata
as a corollary of the principle of abuse of process may be
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invoked; (i) cause of action estoppel, where the entirety of
a decided cause of action is sought to be relitigated; (ii)
issue estoppel or, 'decided issue estoppel', where an issue is
sought to be relitigated, which has been raised and decided
as a fundamental step in arriving at the earlier judicial
decision; (iii) extended or constructive res judicata, i.e.,
'unraised issue estoppel', where an issue is sought to be
litigated which could, and should, have been raised in a
previous action but was not raised; (iv) a further extension
of the aforesaid to points not raised in relation to an issue
in the earlier decision, as opposed to issues not raised in
relation to the decision itself. As part of the broader rule
against abuse of process, the 'Henderson Principle' is rooted
in the idea of preventing the judicial process from being
exploited in any manner that tends to undermine its
integrity. This idea of preventing abuse of judicial process is
not confined to specific procedure rules, but rather aligned
to a broader purport of giving quietus to litigation and
finality to judicial decisions. The essence of this rule is that
litigation must be conducted in good faith, and parties
should not engage in procedural tactics that fragment
disputes, prolong litigation, or undermine the outcomes of
such litigation. It is not a rigid rule but rather a flexible
principle to prevent oppressive, unfair, or detrimental
litigation.
47.3. In Celir LLP [2024 SCC OnLine SC 3727], the Apex
Court held that piecemeal litigation where issues are
deliberately fragmented across separate proceedings to gain
an unfair advantage is in itself a facet of abuse of process of
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law and would also fall foul of the 'Henderson Principle'.
Merely because one proceeding initiated by a party differs
in some aspects from another proceeding or happens to be
before a different forum, will not make the subsequent
proceeding distinct in nature from the former, if the
underlying subject matter or the seminal issues involved
remains substantially similar to each other or connected to
the earlier subject matter by a certain degree, then such
proceeding would tantamount to 'relitigating' and the
'Henderson Principle' would be applicable. Parties cannot be
allowed to exploit procedural loopholes and different fora to
revisit the same matters they had deliberately chosen not
to pursue earlier. Thus, where a party deliberately withholds
certain claims or issues in one proceeding with the intention
to raise them in a subsequent litigation disguised as a
distinct or separate remedy or proceeding from the initial
one, such subsequent litigation will also fall foul of the
'Henderson Principle'. Similarly, where a plea or issue was
raised in earlier proceedings but later abandoned, it is
deemed waived and cannot be relitigated in subsequent
proceedings. Allowing such pleas to be resurrected in later
cases would not only undermine the finality of judgments
but also incentivize strategic behaviour, where parties could
withdraw claims in one case with the intention of
reintroducing them later. Abandonment signifies
acquiescence, barring its reconsideration in subsequent
litigation. This ensures that judicial processes are not
misused for tactical advantage and that litigants are held
accountable for their procedural choices. Parties must
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litigate diligently and in good faith, presenting their entire
case at the earliest opportunity.