State Bank Of India vs Gracure Pharmaceuticals Ltd

The Supreme Court examined the applicability of Order 2 Rule 2 of the Code of Civil Procedure in two suits filed by the respondent against the appellant bank. The Court held that the second suit for damages was barred as it arose from the same cause of action as the first suit, which sought recovery related to a Letter of Credit. The High Court's decision to allow the second suit was overturned, affirming that the respondent was estopped from claiming damages in a subsequent suit after omitting to do so in the first, thus upholding the principles of judicial economy and preventing multiplicity of litigation.