PUNJAB & HARYANA HIGH COURT
J.V.Gupta, J.
Mohinder Singh Jubbal
Versus
Grindlays Bank Ltd.
Civil Revision No. 2756 of 1981,
Civil MISCELLANEOUS Application No. 4332-CII of 1981,
Decided On : DECEMBER 18, 1981
O.2 R.2(3) CIVIL PROCEDURE CODE - SUIT TO INCLUDE WHOLE CLAIM - CAUSE OF ACTION - MORTGAGE - PLEDGE - LIMITATION ACT - SECTION 10 CIVIL PROCEDURE CODE - STAY OF SUIT - RES JUDICATA - SAME CAUSE OF ACTION - SAME RELIEF - SAME SUBJECT MATTER - DISTINCTION - INTERPRETATION - APPLICATION - FACTS - DECISION.
Fact of the Case:
Plaintiff-respondent, Grindlays Bank Limited, filed a suit against the defendant-petitioner for the recovery of Rs.16,74,596.98, alleging that the defendant was a partnership firm and its partners were carrying on business in their factory at Faridabad. The defendants were also guarantors for the re-payment of the amount due to the plaintiff from the defendant firm. The plaintiff had been taking loans from the plaintiff from time to time and a total amount of Rs. 11,57,684.17 was due to the plaintiff from the defendants. A sum of Rupees 5,16,912.82 was due to the plaintiff as interest and the total amount due to it thus came to Rs. 16, 74,596.98. The petitioner created a mortgage over his property by depositing the title deeds of his property with the plaintiff. The plaintiff prayed for a preliminary mortgage decree for Rs. 16,74,596.98 in its favour and a final mortgage decree for the sale of the mortgaged property in the event of the defendants failing to satisfy the preliminary decree. The defendant-petitioner pleaded that the suit was liable to be stayed as the matter in issue in the suit was also directly and substantially in issue in a previously instituted suit between the same parties, (suit No.107 of 1975), pending in the High Court at Delhi. It was further pleaded that in the previous suit, the plaintiff had originally prayed for the recovery of Rs. 11,57,684.17, on the basis of the pledge of goods by hypothecation, the pledge of the machinery and the alleged mortgage of the property in suit, but subsequently, the plaintiff gave up the relief for the sale of the mortgaged property in that suit and as such, the suit out of which this revision petition has arisen, was barred under O.2, R.2 of the Civil Procedure Code (CPC).
Finding of the Court:
The trial court held that the suit was not barred by the provisions of O. II, R.2 of the CPC and that the suit was not liable to be stayed under the provisions of S.10 of the CPC. The defendant-petitioner filed a revision petition challenging the trial court's order.
Issues: 1. Whether the suit is barred under the provisions of O.2, R.2 of the Civil Procedure Code? 2. Whether the suit is liable to be stayed for the reasons stated in paragraph No.1 of the written statement?
Ratio Decidendi: 1. The cause of action in both the suits is separate and distinct. The suit in the Delhi High Court was for the recovery of the loan on the basis of the hypothecation of the goods belonging to the defendants, whereas the subsequent suit filed at Faridabad was for the recovery of the amount of the loan advanced, by sale or otherwise of the property mortgaged in its favour. 2. The decision in the earlier suit filed in the Delhi High Court would not operate as res judicata in the subsequent suit filed in the Court at Faridabad. 3. The provisions of Section 10 of the CPC are not attracted.
Final Decision: The revision petition was dismissed with costs.
1. This revision petition is directed against the order of the trial Court dated Aug. 12, 1981, whereby the two preliminary issues, arising in the suit for the recovery of Rs.16,74,596.98, out of which the present revision petition has arisen, have been decided against the defendant-petitioner.
2. M/s. Grindlays Bank Limited, the plaintiff-respondent, filed a suit on Sept. 25, 1978, on the allegations that defendant-respondent No.2 was a partnership firm while defendants-respondents Nos.1 and 3 were its partners and had been carrying on the business in their factory at Faridabad and that defendants Nos.1 and 3 were also the guarantors for the re-payment of the amount due to the plaintiff from defendant-respondents No.2. It was also alleged that the defendants had been taking loans from the plaintiff from time to time and, thus the total amount of Rs. 11,57,684.17 was due to the plaintiff from the defendants. It was also alleged that a sum of Rupees 5,16,912.82 was due to the plaintiff as interest and that the total amount due to it, thus, came to Rs. 16, 74,596.98. Since the petitioner created mortgage over his property by depositing the title deeds of his property with it, it was prayed that on that basis, a preliminary mortgage decree for Rs. 16,74,596.98, be passed in its favour. It was also pleaded that a final mortgage decree for the sale of the mortgaged property be passed in the event of the defendants failing to satisfy the preliminary decree and that the sale proceeds thereof be paid to it towards the payment of the decretal amount. In the written statement filed on Nov. 29, 1978, it was inter alia pleaded that the suit was liable to be stayed as the matter in issue in the suit was also directly and substantially in issue in a previously instituted suit between the same parties, (suit No.107 of 1975), pending in the High Court at Delhi. It was further pleaded that in the previous suit, the plaintiff had originally prayed for the recovery of Rs. 11,57,684.17, on the basis of the pledge of goods by hypothecation, the pledge of the machinery and the alleged mortgage of the property in suit, but subsequently, the plaintiff gave up the relief for the sale of the mortgaged property in that suit and as such, the suit out of which this revision petition has arisen, was barred under O.2, R.2 of the Civil P.C. (hereinafter called the Code). The other pleas taken in the written statement are not relevant at this stage. On the pleadings of the parties, the trial Court framed the following two preliminary issues :
1. Whether the suit is barred under the provisions of O.2, R.2 of Civil P.C.?
2. Whether the suit is liable to be stayed for the reasons stated in paragraph No.1 of the written statement? The defendants placed on the file, the copies of the documents, Exhibits D.1 to D.4. No other evidence was led by either side. Under issue No.1, the learned trial Court held that the suit was not barred by the provisions of O. II, R.2 of the Code. The reason given for the same was that since the mortgaged property was situated in Faridabad, the subsequent suit, for the recovery of the amount, on the basis of the mortgage of the property, could only be filed at Faridabad and not at Delhi. Under Issue No.2, it was held that the subsequent suit was not liable to be stayed under the provisions of S.10 of the Code. Dissatisfied with the same, the defendant-petitioner has come up in revision to this Court.
3. The learned counsel for the petitioner, vehemently contended that both the preliminary issues, referred to above, have been wrongly decided by the trial Court. The subsequent suit filed by the plaintiff at Faridabad, was barred under O. II, R.2 of the Code and, in any case, it was liable to be stayed under S.10 of the Code. The main thrust of the argument of the learned counsel is that it was the same loan for which the previous suit had been filed in the Delhi High Court and for the recovery of which, the subsequent suit, has be
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