Introduction
This case is related to the Doctrine of Sub Judice or section 10 of the Civil Procedure Code, 1908.
Relevant Section
Facts
- Respondent (Maharashtra State Cooperative Marketing Federation Ltd.) applies to the appellant bank to open an irrevocable letter of credit for a sum of 3,78,90,000 /- in favor of 'Shankar Rice Mill'.
- Under the request, the Bank opened an irrevocable letter of credit.
- It is agreed that the documents drawn under the said letter of credit when tendered to the appellant bank were to be forwarded to the federation for their acceptance thereafter the bank had to make payment to 'Shankar Rice Mill' on behalf of the federation.
- The bank filed a summary suit in the Bombay High Court under Order 37 of the code against the federation for obtaining a decree, stating that said amount has become revocable.
The Federation/Respondent Contention
- Before filing a summary suit, there was already instituted a suit therefore there should be a stay on summary suit as per section 10.
The appellant contention
- The very object of making a separate provision for summary suits will be frustrated if section 10 is made applicable to summary suits also.
Issue
Whether Section 10 apply to summary suits filed under Order 37 of the Code?
Case History and Ratio Decidendi
Single Bench of Bombay H. Court held-
- The concept of trial contended in section 10 of the code applies only to a regular or ordinary suit and not to a summary suit filed under order 37 of the code.
Division Bench High Court held-- Section 10 applies to a summary suit also.
- Therefore the summary suit filed by the bank a subsequently instituted a suit was required to be stayed.
Supreme Court (G.T. Nanavati, J.) held-
- Allowed appeal and set aside Decision of Division Bench and restored the order passed by learned single bench.
Ratio Decidendi-
- Meaning of Trial, in its widest sense, includes all the proceedings right from the stage of the institution of a plaint in a civil case to the stage of a final determination by a judgment or decree of a Court.
- By looking into the object and nature of Section 10, the word "Trial" is not used in its widest sense.
- The object of S.10- To prevent the court of concurrent jurisdiction from simultaneously trying two parallel suits and also to avoid inconsistent findings on the matter in issue.
- Nature of S.10-
- A rule of procedure and doesn't affect the jurisdiction of the Court to entertain and deal with the later suit
- It is not a substantive right
- It is not a bar to the institution of a suit
- It is not a bar on the passing of interlocutory orders or appointment of a Receiver or an injunction or attachment before judgment.
- In a Summary suit, the "trial" begins after the Court or Judge grants leave to the defendant to contest the suit but in an ordinary suit, it includes entire proceedings starting with the institution of the suit by lodging a plaint.
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