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2017 Supreme(Sikk) 63

IN THE HIGH COURT OF SIKKIM, GANGTOK
MEENAKSHI MADAN RAI, J.
Shri Pawan Kumar Todi, S/o Late Manik Chand Todi – Petitioner
Versus
Shri Ankit Sarda, S/o Shri Ravindra Kumar Sarda – Respondent
WP(C) No.20 & 21 of 2017
Decided On : 13-11-2017

Advocates Appeared:
For the Petitioner:Mr. Sudesh Joshi, Mrs. Manita Pradhan and Mr. Sujan Sunwar, Advocates
For the Respondent:Mr. Jorgay Namka, Ms. Panila Theengh and Ms. Tashi Doma Sherpa, Advocates

The main legal point established in the judgment is the interpretation and application of Section 10 of the CPC, emphasizing the requirement for the matter in issue to be directly and substantially the same in previously instituted suits between the same parties.

Headnote:

Section 10 of the CPC - Stay of Suit - [MONEY SUIT] - [Section 10 of the CPC] - The court discussed the application of Section 10 of the CPC, emphasizing the requirement for the matter in issue to be directly and substantially the same in previously instituted suits between the same parties. The court referred to various judgments to establish the interpretation of Section 10 and concluded that the issues involved in the money suits filed by the petitioner and the respondent were not directly and substantially identical.

Fact of the Case:

The petitioner filed suits for recovery of money against the respondent in Kolkata, while the respondent filed money suits against the petitioner in Gangtok. The petitioner sought a stay of the proceedings in Gangtok based on Section 10 of the CPC, claiming that the subject matters and issues in the suits were directly and substantially the same.

Finding of the Court:

The court found that the issues involved in the money suits filed by the petitioner and the respondent were not directly and substantially identical. It noted the disparity in the amounts claimed and the absence of formal intimation or knowledge of the filing of the suits by the petitioner in Kolkata. The court upheld the finding and order of the learned District Judge, East Sikkim, at Gangtok.

Issues: The main issue was whether the matter in issue in the suits filed by the petitioner and the respondent were directly and substantially the same, warranting a stay of the proceedings in Gangtok.

Ratio Decidendi: The court emphasized the requirement for the matter in issue to be directly and substantially the same in previously instituted suits between the same parties, as per the interpretation of Section 10 of the CPC. It considered the disparity in the amounts claimed and the absence of formal intimation or knowledge of the filing of the suits by the petitioner in Kolkata to conclude that the issues were not directly and substantially identical.

Final Decision: The petitions filed by the petitioner under Article 227 were dismissed and disposed of. The court upheld the finding and order of the learned District Judge, East Sikkim, at Gangtok.

JUDGMENT :

Meenakshi Madan Rai, J.

1. WP(C) No.20 of 2017 and WP(C) No.21 of 2017 filed under Article 227 of the Constitution of India, are being disposed of by this common Judgment. They arise out of the impugned Orders of the learned District Judge, East Sikkim at Gangtok, dated 05-12-2016, in Money Suit No.10 of 2015 [Mr. Ankit Sarda vs. Pawan Kumar Todi and Order dated 05-12-2016 passed in Money Suit No.9 of 2015 [Mr. Ankit Sarda vs. Pawan Kumar Todi (HUF)], respectively.

2. The Petitioner’s case, in WP(C) No.21 of 2017, is that, he had filed a Suit for recovery of money against the Respondent, before the Learned 7th Bench of the City Civil Court, at Kolkata, on 16-04-2015, being Money Suit No.220 of 2015. The facts enumerated therein were that sometime in November 2012, the Respondent had approached the Petitioner to be a franchisee of the Petitioner’s Company, in Siliguri, West Bengal. On the basis of the agreed terms, the Respondent advanced some money to the Petitioner, who in turn supplied some computers, servers and peripherals worth Rs.9,75,000/- (Rupees nine lakhs and seventy-five thousand) only, to the Respondent at the Respondent’s Siliguri Office, which however closed down after a few months. Therefore, the Petitioner sought recovery of Rs.1,03,026/- (Rupees one lakh, three thousand and twenty six) only, being the difference in the value of goods supplied and the advance made by the Respondent. Instead, two and half months’ later, the Respondent filed a Money Suit against the Petitioner, being Money Suit No.09 of 2015, in the Court of the Learned District Judge, East Sikkim, at Gangtok, on 06-07-2015 seeking recovery of a sum of Rs.10,11,044/- (Rupees ten lakhs, eleven thousand and forty-four) only, from the Petitioner.

3. In WP(C) No. 20 of 2017, it was averred that the supply of computers and peripherals by the Petitioner to the Respondent amounted to Rs.20,40,000/- (Rupees twenty lakhs and forty thousand) only, hence the Petitioner sought recovery of an amount of Rs.94,200/- (Rupees ninety-four thousand and two hundred) only, from the Respondent as the difference between the supplies and the money advanced by the Respondent. The Respondent for this part filed Money Suit No. 10/2015 in the Court of the learned District Judge, East Sikkim, on 6-7-2015, seeking recovery of an amount of Rs.22,74,914/- (Rupees twenty-two lakhs, seventy-four thousand, nine-hundred and fourteen) only, from the Petitioner herein alleging that he had advanced loan to the Petitioner.

4. In both matters, the Petitioner filed an Application each under Section 10 of the Code of Civil Procedure, 1908 (for short “CPC”), on 04-11-2015 before the learned Court at Gangtok, seeking stay of both the above proceedings, as according to him the Civil Suits filed by him in Kolkata were prior in time to those filed by the Respondent in Gangtok. That, the subject matters in the City Civil Court, at Kolkata and the issues in the suits filed by the Respondent before the Gangtok Court are directly and substantially the same. That, the Learned Trial Court had directed the Petitioner to furnish a certified copy of the Plaint filed by him in Kolkata and fixed 05-12-2016 for orders. However, the required documents were delayed, prompting the Court to reject the Petitioner’s Applications, inter alia, with the reasoning that if the parties in the instant case and the case before the VIIth Bench of the City Civil Court, at Kolkata were the same, it did not tantamount to the claim of the parties being in respect of the same transaction. It is contended herein that the provisions of Section 10 of the CPC are mandatory and that if the matter in issue is directly and substantially the same in the previous and latter suit, between the same parties, then the later suit must be stayed. Learned Counsel garnered succour from the decisions in National Institute of Mental Health and Neuro Sciences v. C. Parameshwara, (2005) 2 SCC 256 and Manohar Lal Chopra v. Rai Bahadur Rao R

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