IN THE HIGH COURT OF BOMBAY
Dr. B.P. Saraf M.S. Rane, JJ.
The Maharashtra State Co-operative Marketing Federation Ltd..... Appellants.
Versus
Indian Bank.... Respondents.
Appeal No. 953 of 1994 in Summons for Judgment No. 278 of 1992 in Summary Suit No. 500 of 1992 with Appeal No. 954 of 1994 in Notice of Motion No. 1126 of 1992 in Summary Suit No. 500 of 1992, decided on 21-6-1996.
Section 10 is also applicable to the summary suits which are to be tried by the special procedure laid down in Order XXXVII of the C.P.C. There is no dispute in this case in regard to the fact that subsequent suit was for recovery of the amount under a letter of credit, being letter of credit No. 12 of 1989, and that the very same letter of credit was subject matter of the earlier suit. That being so, in Court view. Section 10 of the C.P.C. clearly applies and the trial of the subsequent suit under Rule 3 of Order XXXVII has to be stayed.
Section 10-Applicabillty of Section 10-Still applicable on a Court holding that the previously instituted suit was is violation of terms of contract,- The Counsel for the respondents at this stage contended that the first suit filed by the appellants is a vexatious suit and. that being so, the appellants cannot be allowed to get the trial of the subsequently filed suit of the respondents stayed. This Court, however, does not find any n1erit in the same because of the well-settled legal position that the provisions of Section 10 of the C.P.C. do not become inapplicable on a Court holding that the previously instituted suit is a vexatious suit. Reference may be n1ade in his connection to the decision of the Supreme Court in Manohar Lal v. Seth Hiralal reported in AIR 1962 SC 527, where it was held:
"The provisions of that section are clear, definite and mandatory. A Court in which a subsequent suit has been filed is prohibited from proceeding with the trial of that suit in certain specified circumstances. The provisions of Section 10 do not become inapplicable on a Court holding that the previously instituted suit is a vexatious suit or has been instituted in violation of the terms of the contract."
2.The facts of the case giving rise to this controversy, briefly stated, are as follows:
A summary suit was filed by the Indian Bank (respondents herein) against the Maharashtra State Co-operative Marketing Federation Ltd. (appellants herein) for recovery of a sum of Rs. 4,96,59,160.25. It was filed on 6th February, 1992. In the said suit, a notice of motion was taken out by the original defendants (appellants herein) for stay of the trial of the above suit in view of the fact that the matter in issue in the said suit was also directly and substantially in issue in a suit previously instituted by the appellants against the respondents in this Court numbered as Suit No. 400 of 1991 which was pending. The case of the appellants was that the matter in issue in the summary suit filed by the respondents against the appellants was directly and substantially in issue in above previously instituted suit. The contention of the appellants therefore was that the subsequent suit instituted by the respondents should be stayed pending the hearing and final disposal of the previously instituted suit.
3.On receipt of the summons for judgment in the above summary suit, the appellants also field their affidavit-in-reply to the summons for judgment. Both the notice of motion for stay of the summary suit under section 10 of the C.P.C. as well as the summons for judgment were taken up by the learned Single Judge for consideration on 24th October, 1994. The learned Single Judge, on hearing the parties, rejected the notice of motion taken out by the appellants as he was of the opinion that section 10 of the C.P.C. did not apply to summary suits under Order XXXVII, Rules 2 and 3 of the C.P.C. The learned Single Judge held that section 10 of the C.P.C. applies only to ordinary suits and not to summary suits under Order XXXVII of the C.P.C. The learned Single Judge also heard the summons for judgment and on such hearing directed the appellants (original defendants) to deposit a sum of rupees four crores as a condition for leave to defend the suit. Appeal No. 954 of 1994 is directed against the dismissal of the notice of motion taken out by the appellants for stay of the summary suit under section 10 of C.P.C. Appeal No. 953 of 1994 is directed against the order of the learned Single Judge directing the appellants to deposit a sum of rupees four crores as a condition to defend the suit.
5.We have heard the learned Counsel for the parties on the question of applicability of section 10 of the C.P.C. to suits under Order XXXVII of the C.P.C. The submission of the learned Counsel for the appellants is that the summary suit instituted under Order XXXVII is also a suit which is triable like any other suit except with the difference that in such a suit, the trial has to be conducted in accordance with the special procedure laid down in Rules 2 to 7, Order XXXVII. It is, contended that in that view of the matter, provisions of section 10 will be applicable to summary suits under Order XXXVII with the same force as they are applicable to other suits. Reliance is placed in support of this contention on a Division Bench decision of this Court in (Indian Express v. Basumati Pvt. Ltd.)1, A.I.R. 1969 Bom. 40, where it was held that a defendant in a summary suit under Order XXXVII is entitled to apply to the Court for stay of the subsequently instituted suit. Our attention was also drawn to the object and scheme of Order XXXVII of the C.P.C. in support of the contention that Order XXXVII contemplates trial of a suit and a judgment in pursuance thereof. The contention of the learned Counsel for the respondents, on the other hand, is that there is no trial whatsoever in case of summary suits under Order XXXVII. According to hi
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