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Devi Lal Modi v. STO — Constructive Res Judicata & Successive Writs (AIR 1965 SC 1150) | The Law Easy
Supreme Court of India 1965 AIR 1965 SC 1150 Constitutional & Procedure ~6 min read

Devi Lal Modi v. STO — Constructive Res Judicata & Successive Writ Petitions

Author: Gulzar Hashmi India CASE_TITLE: Devi Lal Modi v. STO PRIMARY_KEYWORDS: constructive res judicata, successive writs SECONDARY_KEYWORDS: Article 226, public policy, tax reassessment PUBLISH_DATE: 22 Oct 2025 Slug: devi-lal-modi-v-sto-air-1965-sc-1150

Hero image for Devi Lal Modi v. STO case explainer
Quick Summary

Simple rule: Raise all your grounds the first time. The Supreme Court said constructive res judicata stops parties from filing new writs on the same order by adding fresh points later. It is about finality and public policy.

CRJ Art. 226 AIR 1965 SC 1150
Issues
  1. Does constructive res judicata bar a second writ petition attacking the same order with new grounds?
  2. Should courts allow serial writs if the first one failed and the party later finds fresh arguments?
Rules
  • Constructive res judicata: Grounds that could and should have been taken earlier are treated as already decided.
  • Public policy: Litigation must end; repeat challenges waste time and harass the other side.
Facts — Timeline

1957–58: Appellant assessed under the Madhya Bharat Sales Tax Act, 1950.

1958: New Madhya Pradesh GST Act replaces the earlier Act.

Reassessment: Notice under S.19(1) MP GST Act, 1958; extra tax ₹31,250 + penalty ₹15,000 imposed.

First writ: High Court challenge fails; Supreme Court dismisses appeal (8 Mar 1963), refuses two new points.

Second writ (1963): Filed with those two new points; High Court dismisses after considering merits.

SC appeal: Supreme Court holds the second writ is barred by constructive res judicata.

Timeline for Devi Lal Modi v. STO
Arguments (Appellant vs Respondent)
Appellant (Devi Lal Modi)
  • New legal points were substantial and deserved a hearing.
  • First writ’s dismissal should not block a second writ on different grounds.
Respondent (Sales Tax Officer)
  • Party must bring all grounds at once; finality matters.
  • Allowing serial writs encourages abuse and delays revenue collection.
Judgment

Held: The second writ petition was barred by constructive res judicata. If the rule were not applied, a party could file endless writs by adding one or two new points each time—contrary to public policy. Appeal dismissed.

Judgment illustration for Devi Lal Modi v. STO
Ratio Decidendi
  • In writ jurisdiction, the principle of constructive res judicata applies.
  • Grounds available earlier but not urged are treated as already decided against the party.
Why It Matters

This judgment guards against piecemeal litigation. It preserves finality and judicial efficiency, especially in tax and administrative matters.

Key Takeaways
  • File a complete writ: include all available grounds.
  • Second writ on the same order with new grounds is barred.
  • The rule is rooted in public policy and finality.
Mnemonic + 3-Step Hook

Mnemonic: “ALL AT ONCE — OR ALL IS GONE.”

  1. Audit: List every arguable ground.
  2. Assert: Plead them in the first writ.
  3. Avoid: Don’t plan a second writ—CRJ will bar it.
IRAC Outline
Issue Can a second writ on the same reassessment order be maintained by adding new grounds?
Rule Constructive res judicata: Grounds that could have been urged earlier are deemed decided.
Application Appellant raised two new points only after the first writ failed; Court treated them as barred.
Conclusion Second writ barred; appeal dismissed; finality upheld.
Glossary
Constructive Res Judicata
A bar against raising in later proceedings what should have been raised earlier.
Writ Petition
A constitutional remedy for quick judicial review of state action.
Public Policy
Courts’ interest in preventing endless, repetitive litigation.
FAQs

Not against the same order. The rule treats new grounds as waived if they could have been raised earlier.

Revenue collection depends on finality; repeated writs cause delay and uncertainty.

Different facts or a new cause may justify fresh action; but the same order cannot be re-litigated by drip-feeding grounds.
Reviewed by The Law Easy Writs Res Judicata Public Policy

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