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2004 Supreme(SC) 504

2004(3) Supreme 346
SUPREME COURT OF INDIA
(From Karnataka High Court)
S. Rajendra Babu & G.P. Mathur, JJ.
Pukhraj D. Jain and Ors. -Appellants
versus
G. Gopalakrishna -Respondent
Civil Appeal No. 2082 of 1998
Decided on 16-4-2004
Counsel for the Parties :
For the Appellants : P.R. Ramasesh, Advocate.
For the Respondent : E.C. Vidya Sagar, Advocate.

IMPORTANT POINT
Mere filing of an application u/s 10 CPC does not put in any manner an enbargo on power of Court to examine merits of the matter.

Headnote:Civil Procedure Code, 1908-Section 10-Stay of suit in which matter in issue was also directly and substantially in issue in a previously instituted suit between the parties-Mere filing of application u/s 10 CPC does not put an embargo on power of Court to examine merits of suit-Where subsequently instituted suit can be decided on purely legal points without taking evidence, Court could decide the suit-Appellants 6 to 10 had entered into an agreement to sell suit property to respondent No.1 in 1974-Respondent No.1 filed suit for recovery of amount paid in advance rescinding the contract and suit was decreed in 1985-Respondent himself got decree set aside in revision in High Court-Meanwhile appellants 6 to 10 sold suit property to appellants 1 to 5 and put them in possession-Appellants 1 to 5 filed eviction suit against respondent No. 1 and respondent then filed suit for specific performance against appellants 6 to 10 and then filed an application u/s 10 CPC for stay of proceedings in his suit in view of eviction suit filed by appellants 1 to 5-Trial Court dismissed suit of appellants 6 to 10 as barred by limitation-High Court set aside decree holding that application for stay of suit ought to have been considered-High Court committed manifest error and impugned order of High Court was liable to be set aside.

       Held : Mere filing of an application under section 10 CPC does not in any manner put an embargo on the power of the court to examine the merits of the matter. The object of the section is to prevent Courts of concurrent jurisdiction from simultaneously trying two parallel suits in respect of the same matter in issue. The section enacts merely a rule of procedure and a decree passed in contravention thereof is not a nullity. It is not for a litigant to dictate to the court as to how the proceedings should be conducted, it is for the court to decide what will be the best course to be adopted for expeditious disposal of the case. In a given case the stay of proceedings of later suit may be necessary in order to avoid multiplicity of proceedings and harassment of parties. However, where subsequently instituted suit can be decided on purely legal points without taking evidence, it is always open to the court to decide the relevant issues and not to keep the suit pending which has been instituted with an oblique motive and to cause harassment to the other side. (Para 4)

       

JUDGMENT

G.P. Mathur, J.-This appeal by special leave has been preferred by the defendants against the judgment and order dated 17.3.1997 of High Court of Karnataka by which the Regular First Appeal preferred by the plaintiff was allowed and case was remanded to the trial court with certain directions.

2. In order to understand the controversy involved it is necessary to set out the facts which are little involved.

(i) The appellant No. 6 to 10 are sons and daughters of Shri M.G. Dayal and they were owners of the suit property (residential building at Jayanagar, Bangalore). They executed an agreement to sell the suit property in favour of Dr. G. Gopalakrishna (plaintiff/respondent No.1) on 5.12.1974 for a consideration of Rs. 1,42,500/- and received Rs. 42,500/- by way of advance. The respondent No.1 was also put in possession of the ground floor of the property.

(ii) The respondent No.1 issued a legal notice rescinding the contract and claimed refund of the advance amount paid by him. On 7.11.1977 he filed OS No. 801 of 1977 (subsequently renumbered as OS No. 1891 of 1980) against the appellant Nos. 6 to 10 (owners of the property) claiming the amount which had been paid by way of advance. After considerable period of time respondent No.1 moved an amendment application seeking permission to convert the suit into one for specific performance of the agreement of sale. This application was rejected by the trial court on 3.12.1984 on the ground that the suit for specific performance had become barred by limitation. The Revision Petition preferred against the said order being CRP No. 702 of 1985 was dismissed by the High Court at the admission stage on 29.5.1985.

(iii) The appellant Nos. 1 to 5 (Pukhraj D. Jain and his four sons) purchased the property in dispute from the original owners, namely, respondent Nos. 6 to 10 on 18.4.1985 for Rs. 3,60,000/- and they were put in possession of the first floor of the building.

(iv) Respondent No.1 filed an amendment application on 26.6.1985 seeking an amendment of the plaint in OS No. 801 of 1977 and claiming an additional amount of Rs. 125 towards the cost of the legal notice. The amendment application was allowed and the respondent No.1 was required to pay an additional court fee of Rs. 12.50 in view of the enhanced claim. However, instead of paying aforesaid amount the respondent No.1 filed a memo stating that he was not in a position to pay the court fee and as such the plaint may be rejected being deficiently stamped. The trial court decreed the suit for recovery of the amount on 24.7.1985.

(v) Though the suit filed by respondent No.1 was decreed yet he preferred a revision petition being CRP No. 3797 of 1985 challenging the judgment and decree passed in his favour. The High Court though observed that it was an unusual revision filed by a plaintiff yet allowed the same on 18.2.1987, set aside the judgment and decree of the trial court and rejected the plaint.

(vi) The appellants Nos.1 to 5 after execution of the sale deed in their favour on 18.4.1985, filed a suit being OS No. 4631 of 1986 seeking eviction of respondent No.1 from the ground floor of the house in dispute and also for mesne profits.

(vii) On 2.4.1988 the respondent No.1 filed another suit being OS No. 1629 of 1988 against appellant Nos. 6 to 10 in the Court of City Civil Judge, Bangalore for specific performance of the agreement dated 5.12.1974. In this suit issue No.3 relating to the bar of limitation and issue No. 4 relating to the maintainability of the suit were framed. The respondent No.1 also filed an application under section 10 CPC seeking stay of his own suit OS No. 1629 of 1988 on the ground that the issues involved were also directly and substantially in issue in a previously instituted suit being OS No. 4631 of 1986 which had been filed by the appellants Nos. 1 to 5 for his eviction from the groun













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