Judgment

R.C. Lahoti, CJI—Leave granted.

2. The appellant is a statutory body constituted under and governed by the provisions of the Gujarat Municipality Act, 1963. It discharges several public utility functions. In the years 1993-94, the respondent was given a contract for collection of octroi on behalf of the appellant on the terms and conditions set out in the contract. The contract was terminated by the appellant. The respondent filed a civil suit alleging wrongful termination/breach of contract by the appellant and seeking inter alia a decree for recovery of damages. The suit ended in a money decree being passed in favour of the respondent and against the appellant.­

3. The appellant preferred a First Appeal which is pending in the High Court of Gujarat. Therein, the appellant moved an application under Order XLI Rule 5 of the Code of Civil Procedure seeking stay on the execution of the decree. On 19.9.2003, the High Court admitted the appeal for hearing both the parties on merits and granted a stay subject to the condition that the appellant shall deposit in the court an amount of Rs. 8,78,925/- with 8 per cent interest on or before 4.11.2003.

4. The appellant moved an applic