2.
The answer is: B
Explanation
The correct option is B: When further proceedings have to be taken or the suit to be completely disposed of.
A preliminary decree is a decree that determines the rights of the parties in respect of some or all of the matters in controversy in the suit, but does not completely dispose of the suit. It is passed when the court is unable to grant a final decree at once, and further proceedings are required to be taken before the suit can be finally decided. A preliminary decree is usually passed in suits for partition, foreclosure, sale, redemption, dissolution of partnership, administration, etc.
A final decree is a decree that completely disposes of the suit, and leaves nothing more to be decided by the court. It is passed after the preliminary decree, when the court has taken all the necessary steps to adjudicate upon the rights and liabilities of the parties. A final decree is usually passed in suits for recovery of money, declaration of title, injunction, specific performance, etc.
A decree is partly preliminary and partly final when it decides some of the matters in controversy in the suit finally, and leaves some other matters to be decided by further proceedings.
Option A is incorrect because a decree is not preliminary merely because it is issued in the preliminary stages of the suit. A decree may be final even if it is passed at an early stage of the suit, if it completely disposes of the suit. For example, a decree dismissing a suit for default or for want of jurisdiction is a final decree.
Option C is incorrect because a decree is not preliminary merely because it deals with some preliminary issues. A decree may be final even if it decides only some of the issues in the suit, if those issues are sufficient to dispose of the suit.
Option D is incorrect because option B is the correct answer.