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2000 Supreme(P&H) 427

PUNJAB & HARYANA HIGH COURT
V.M.Jain, J.
Century Proteins Ltd.
Versus
Sham Sunder (Haryana) Industries Pvt.Ltd.
Civil Revision No. 1514 of 1998,
Decided On : APRIL 24, 2000

The stay of the trial of the suit under Sec. 10, C.P.C. does not prevent the Court from making interlocutory orders such as injunctions, appointment of a receiver, or orders for attachment before judgment.

Headnote:

C.P.C. - Competency of Court to Hear Application under Order 39 Rules 1 and 2 Despite Stay of Suit - Sec. 10, C.P.C. - AIR 1995 Kerala 57, AIR 1980 Kerala 161, AIR 1974 Mysore 63, AIR 1969 Allahabad 479, AIR 1922 Bombay 276

Fact of the Case:

The defendant filed a revision petition against the order of the District Judge, claiming the Court's competency to hear an application under Order 39 Rules 1 and 2 despite the stay of the suit under Sec. 10, C.P.C.

Finding of the Court:

The Court found no merit in the revision petition and dismissed it, citing various rulings of different High Courts supporting the competency of the Court to hear the application despite the stay of the suit.

Issues: Competency of the Court to hear an application under Order 39 Rules 1 and 2 despite the stay of the suit under Sec. 10, C.P.C.

Ratio Decidendi: The Court relied on various rulings of different High Courts, which held that the stay of the trial of the suit under Sec. 10, C.P.C. does not prevent the Court from making interlocutory orders such as injunctions, appointment of a receiver, or orders for attachment before judgment.

Final Decision: The revision petition was dismissed with no order as to costs.

Judgment

1. This is a revision petition against the order dated 11-3-1998 passed by the District Judge, holding that the Court was competent to hear and decide the application under Order 39 Rule 1 and 2, C.P.C.in spite of the fact that the trial of the suit had been stayed by the Court vide order dated 14-6-1997.

2. The facts which are necessary for the disposal of the present revision petition are that M/s Sham Sunder (Haryana) Industries Pvt. Ltd. (plaintiffs) had filed a suit for permanent injunction against M/s. Century Proteins Ltd. (defendant) seeking to restrain and forbid the defendant from infringement of trade name, copy rights and passing of the trade mark of "Gopal Vanaspati" of the plaintiff company and further to restrain the defendant from manufacturing, selling, offering for sale or otherwise dealing and passing off the products of Vanaspati oil under the trade mark of exclusive right to use the trade mark "Gopal Vanaspati." The said suit was contested by the defendant by filing a written statement. Subsequently, on an application of the defendant under Sec. 10, C.P.C.for stay of the suit on account of another litigation pending between the parties, the learned District Judge vide order dated 14-6-1997 stayed the present suit in view of the previously instituted suit No. 502 of 1997 pending in the High Court at Delhi. Later on, the learned District Judge proceeded to decide the application under Order 39 Rules 1 and 2 filed by the plaintiffs for the grant of ad interim injunction. The said move was contested by the defendant by submitting that once the trial of the suit had been stayed, the application under Order 39 Rules 1 and 2 could not be decided. The learned District Judge, after hearing both sides and perusing the record, dismissed this objection of the defendant vide order dated 11-3-1998 and it was held that in spite of the fact that the trial of the suit had been stayed, yet he was competent to hear the said application. Aggrieved against the said order of the learned District Judge, the defendant-petitioner has filed the present revision petition.

3. Notice of motion was issued. Learned counsel for the parties have been heard.

4. Learned counsel for the petitioner submitted before me that the learned District Judge erred in law in holding that the application under Order 39 Rules 1 and 2 C.P.C.could be heard and decided by him in spite of the fact that the trial of the suit had been stayed under Sec. 10, C.P.C.When asked if there was any case law on the subject, the learned counsel submitted that in spite of his best efforts he could not lay his hands, on any authority in support of the proposition. On the other land, learned counsel for the plaintiff-respondents submitted before me that there were numerous rulings of various High Courts to the effect that even if the trial of the suit had been stayed yet an application under Order 39 Rules 1 and 2 could be decided by the Court. Reliance has been placed on V.P.Vrinda V/s. K.Indira Devi, AIR 1995 Kerala 57; V.R.Balakrishanan Nadar V/s. R.Velayudhan Nadar, AIR 1980 Kerala 161; Baburao Vithalrao Sulunke V/s. Kadarappa Prasappa Dabbannavar, AIR 1974 Mysore 63, Smt. Kulsumum Nisan V/s. Mohammad Farooq, AIR 1969 Allahabad 479 and Senaji Kapurchand V/s. Pannaji Devichand, AIR 1922 Bombay 276.

5. After hearing both sides and after perusing the record, I find no merit in the present revision petition.

6. The learned District Judge, while passing the impugned order dated 11-3-1998 had placed reliance on the law laid down by Kerala High Court in 1995 (1) LJR 177 : (AIR 1995 Kerala 1957) which is equivalent to AIR 1995 Kerala 57 (supra). In the said authority it was held by the Kerala High Court as under:-

"From the above discussion, the revision petitioner is entitled to have only the trial of the suit stayed under Sec. 10, C.P.C.Clearly, therefore, even if the trial of the suit is stayed, the Court will be entitled to pass interlocutory orders in the nature of



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