RAMENDRA MOHAN DATTA, J.

( 1 ) THIS is an application under Section 30 of the Code of Civil Procedure for stay of this suit filed on or about July 28, 1970.

( 2 ) THE facts shortly are that on or about July 19, 1966 the plaintiff Life Pharmaceuticals Private Ltd. (hereinafter called the plaintiff company) appointed the defendant (hereinafter called the defendant firm) the Chief Regional Distributor of the products of the plaintiff company for the East Zone. On or about December 1969 the defendant firm came to know that one Messrs. Hindusthan Medical Syndicate was appointed as stockist by the plaintiff company in respect of its products. The defendant firm protested against such appointment with the result that on or about January 5, 1970 the plaintiff company terminated the agreement and canqelled the Chief Regional Distributorship granted to the defendant firm.

( 3 ) ON or about January 6, 1970, the defendant firm filed the Title Suit No. 5 of 1970 in the Alipore Court (hereinafter called the said first suit) against the plaintiff company, inter alia, for a declaration that the appointment of Messrs. Hindusthan Medical Syndicate as stockist was illegal and void and also asked for permanent injunction. An interlocutory application for injunction was made in the said Title Suit No. 5 of 1970 and on or about January 16, 1970, an order was made thereon whereby the plaintiff company was restrained from making direct sales or supply to the stockists or distributors in West Bengal including the said Messrs. Hindusthan Medical Syndicate except through the defendant. On or about January 29. 1970 the plaintiff company filed its written statement in the said Title Suit No. 5 of 1970.

( 4 ) IT is to be remembered that neither in the application for injunction resulting in the order dated January 16, 1970, nor in the aforesaid written statement did the plaintiff company ever challenge the validity of the said agreement for distributorship as it did in the present suit filed in this Court.

( 5 ) ON or about June 15. 1970 the defendant company filed the Money Suit being Suit No. 33 of 1970 (hereinafter called the said second suit) against the plaintiff company before the Sub-Judge's Court at Alipore, inter alia, for realisation of unpaid commission to the extent of Rs. 70,000/ -. On or about July 2, 1970 the defendant firm filed another Title Suit being No. 208 of 1970 before the Munsiff s Court at Alipore (hereinafter called the said third suit), against the plaintiff company inter alia, for a declaration, that the notice of termination dated January 5, 1970 was illegal, void, inoperative and not binding on the defendant firm and also for permanent injunction etc. In the said third suit an ad-interim order was made by granting temporary injunction restraining the plaintiff company from giving effect to the purported letter of termination dated January 5, 1970. All the said three suits were filed on the basis that there was a valid and enforceable agreement by and between, the parties.

( 6 ) THE present suit was filed on or about July 28, 1970 by the plaintiff company, inter alia, for a declaration that the appointment of the defendant firm by the letter dated July 19, 1966 was void and illegal on the ground, that the said agreement appointing the defendant as the Regional Distributor was void and illegal as being in contravention of Section 294 (1) of the Companies Act, 1956. It is to be noted that the plaintiff company for the first time challenged the said agreement on the aforesaid ground as being void and illegal. The plaintiff company made an application in this suit for an order of injunction restraining the defendant from enforcing the said agreement and from proceeding with the said three suits filed before the Alipore Court. On August 11, 1970 the said application was finally disposed of by making no order thereon save and except giving directions for expeditious hearing of the said suit. The said order was made without prej

Click Here to Read the rest of this document