A three Judges bench of the Hon’ble SUPREME COURT, in the case of Uttar Pradesh State Road Transport Corporation Versus State Of Uttar Pradesh, Judgment dated NOVEMBER 29, (2004 AIR 2005 SC 446 : 2005 (1) SCC 444) , observed as – Para 11: The principle of res judicata is based on the need of giving a finality to judicial decisions. The principle which prevents the same case being twice litigated is of general application and is not limited by the specific words of Sec. 11 of the Code of Civil Procedure in this respect. Res judicata applies also as between two stages in the same litigation to this extent that a court, whether the trial court or a higher court having at an earlier stage decided a matter in one way will not allow the parties to reagitate the matter again at a subsequent stage of the same proceedings. Satyadhyan Ghosal V/s. Deorajin Debi, AIR 1960 SC 941. A three Judges Bench of the Hon’ble SUPREME COURT, in the case of Satyadhyan Ghosal Versus Deorajin
AIR 1996 SC 1204 Para 12: In the case of Binayak Swain V/s. Ramesh Chandra Panigrahi, (AIR 1966 SC 948) this Court considered a case where in execution of an ex parte decree the property of the judgment-debtor was purchased by the decree-holder. The decree was set aside in appeal and the case remanded for fresh disposal. This Court said that the judgment-debtor was entitled to restitution even though ultimately after fresh disposal a decree was passed in favour of the decree-holder. It said that the principle of the doctrine of restitution is that on the reversal of a decree the law imposes an obligation on the party to the suit who received the benefit of the erroneous decree to make restitution to the other party for what he has lost. This obligation arises automatically on the reversal or modification of the decree and necessarily carries with it the right to restitution of all that has been done under the erroneous decree; and the Court in making restitution is bound t