High Court Of Calcutta
Monjula Bose
MIRTA LINA PR.LTD. - Appellant
Versus
THE FINLAY MILLS LTD. - Respondent
Suit 961 Of 1979
Decided On : 06/03/1981
CIVIL PROCEDURE CODE - Section 10 - Stay of Subsequent Suit - Requirements - Matter in issue must be directly and substantially the same - Parties must be the same or claiming under the same title - Court where first suit instituted must be competent to grant relief claimed in subsequent suit - Stay not granted where subsequent suit is more comprehensive and seeks additional relief - Application for stay dismissed.
Fact of the Case:
Plaintiffs, tenants of a ground floor premises, filed a suit in the City Civil Court seeking a declaration that a notice terminating their tenancy was invalid and that the agreement under which they occupied the premises was still subsisting. The defendants, the Mills, filed a subsequent suit in the High Court seeking, inter alia, a declaration that the plaintiff's tenancy was not subject to any sub-tenancy in favor of the defendants and possession of the suit premises.
Finding of the Court:
The court held that the provisions of Section 10 of the Civil Procedure Code were not attracted in the present case as the matters in issue in the two suits were not directly and substantially the same. The subsequent suit was more comprehensive and sought additional relief, including a decree for possession and mesne profits, which the City Civil Court did not have the pecuniary jurisdiction to grant. The court also held that the defendants had not established that the subsequent suit was vexatious or an abuse of process of the court, and therefore, there were no grounds for invoking the court's inherent jurisdiction under Section 151 to stay the proceedings.
Issues: Whether the provisions of Section 10 of the Civil Procedure Code were attracted in the present case.
Ratio Decidendi: The court held that the provisions of Section 10 of the Civil Procedure Code were not attracted in the present case as the matters in issue in the two suits were not directly and substantially the same. The subsequent suit was more comprehensive and sought additional relief, including a decree for possession and mesne profits, which the City Civil Court did not have the pecuniary jurisdiction to grant.
Final Decision: The application for stay was dismissed with costs.
( 1 ) THE short point requiring determination in this application is whether the applicants, Finlay Mills Ltd. and the Gold Mohar Mills Ltd. , are entitled to an order of stay of a subsequent suit filed in this Court by the plaintiff Co. under Section 10 of the Civil P. C. ? To appreciate the contentions that have been raised before the Court, it will be necessary to give a very brief resume of the material facts not in dispute. The plaintiffs are the tenants of the entire ground floor of premises No. 12-B/1. Park Street, Calcutta and the defendant Mills are in occupation of the premises under an agreement dt. Dec. 26, 1975, contended by the plaintiff company to be a leave and licence agreement, whilst the defendants asserting that a greater interest is created in its favour thereunder.
( 2 ) ON or about Nov. 8, 1979 the applicants filed Title Suit No. 2013 of 1979 in the City Civil Court at Calcutta, inter alia, praying for a declaration that the notice dt. Aug. 29. 1979 issued by the respondent Co. is invalid, inoperative and void ab initio and that the agreement dt. Dec. 26, 1975 is still subsisting and that the defendant No. 1 is not entitled to unilaterally terminate the same or to revoke the grant made thereunder. A permanent injunction restraining the defendants from disturbing and/ or interfering with possession of the plaintiffs in the suit premises and from disturbing or interfering with the plaintiff's enjoyment of all rights, agreements and facilities in connection therewith and from giving any further effect to the impugned notice in breach of the agreement was also sought.
( 3 ) ON Dec. 14, 1979 the present suit was filed in this Court by the respondent Co. claiming inter alia, a declaration that the plaintiffs tenancy of 12-B/1. Park Street, Calcutta is not subject to or incumbered by any sub-tenancy in favour of the defendants and its possession of the suit premises, mesne profits and/or compensation for use and occupation of the suit premises by the defendants from Dec. 1, 1979 until possession is delivered. It is contended by learned Counsel for the applicants that taking any further steps in this suit would incur unnecessary costs and result in multiplicity of judicial proceedings as the principal issue likely to arise in both the suits are identical and substantially the same matters are in issue. Alternatively, if the application is not maintainable under Section 10, an order of stay should be passed under Order 39 of the Code and/or under Section 151 invoking the Court's inherent jurisdiction so to do.
( 4 ) MR. J. N. Roy, Ld. Counsel for the applicants, in support of his submissions draws my attention to the two plaints filed, and submits that it is apparent therefrom that the parties are the game persons although admittedly in the earlier suit filed by the applicants the two Directors of the defendant Co. were made party-defendants along with the defendant Co. He contends that the Terms of Agreement whereunder the applicant was put in occupation of the suit premises is an issue, which is required to be considered in both the suits. The question thus is whether determination of the first suit will make the material questions in the second suit res judicata? Relying on the averments in the plaint filed in the City Civil Court suit, he contends that the validity of the notice dt. Aug. 29, 1979 as also the scope of the agreement between the parties is required to be construed in the City Civil Court proceedings and in that context relief is sought claiming that the notice dt. Aug. 29, 1979 is void and inoperative, that the respondents are not entitled to unilaterally terminate the agreement entered upon and that the applicants are legitimately entitled to a declaration that the agreement dt. Dec. 26, 1975 is still subsisting, as also an injunction restraining the defendants from interfering with or disturbing their possession. He points out that in the said earlier proceedings an interi
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.