CPC Section 10 – With Judgement – What is Stay of Suit ?

The purpose of Sec.10 is to avoid conflict of judicial decisions by Preventing Courts of Concurrent jurisdictions from adjudicating upon two or more parallel suits in which the matter in issue is substantially the same. The conditions to operate the provisions of Sec.10 are : (1) There must be two suits (2) a matter in issue in the later suit should also be directly and substantially in issue in the earlier instituted suit (3) Such suits should be between the same parties, (4) Such previously instituted suit is pending either in the same court or in any other Competent Court and (5) The Second Court should have be competent not to try the first suit.

In the case of M/s. Sohal Engg. Works Ltd. V/s.  Rustam Jahangir Vakil Mills reported in AIR 1981 Guj. 110, the Honourable Gujarat High Court has held that the chief test for determination of the question whether the later suit is to be stayed u/s. 10 of C.P.Code is to see if the findings of the earlier suit on having decided would operate as res-judicata in the later suit. (state facts).

The purpose of Sec.10 is to avoid conflict of judicial decisions by Preventing Courts of Concurrent jurisdictions from adjudicating upon two or more parallel suits in which the matter in issue is substantially the same. The conditions to operate the provisions of Sec.10 are : (1) There must be two suits (2) a matter in issue in the later suit should also be directly and substantially in issue in the earlier instituted suit (3) Such suits should be between the same parties, (4) Such previously instituted suit is pending either in the same court or in any other Competent Court and (5) The Second Court should have be competent not to try the first suit.

In the case of M/s. Sohal Engg. Works Ltd. V/s.  Rustam Jahangir Vakil Mills reported in AIR 1981 Guj. 110, the Honourable Gujarat High Court has held that the chief test for determination of the question whether the later suit is to be stayed u/s. 10 of C.P.Code is to see if the findings of the earlier suit on having decided would operate as res-judicata in the later suit. (state facts)

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Model Order 

[1]                 SECTION : 10 STAY OF SUIT

Heard the Ld. Advocates for the parties., Read this application, reply (Ex.       ) and other relevant papers on record. It is the case of the defendant that in the earlier suit the parties and the subject in issue are substantially the same and therefore this suit is required to be stayed. The plaintiff has strongly objected.

The purpose of Sec.10 is to avoid conflict of judicial decisions by Preventing Courts of Concurrent jurisdictions from adjudicating upon two or more parallel suits in which the matter in issue is substantially the same. The conditions to operate the provisions of Sec.10 are : (1) There must be two suits (2) a matter in issue in the later suit should also be directly and substantially in issue in the earlier instituted suit (3) Such suits should be between the same parties, (4) Such previously instituted suit is pending either in the same court or in any other Competent Court and (5) The Second Court should have be competent not to try the first suit.

In the case of M/s. Sohal Engg. Works Ltd. V/s.  Rustam Jahangir Vakil Mills reported in AIR 1981 Guj. 110, the Honourable Gujarat High Court has held that the chief test for determination of the question whether the later suit is to be stayed u/s. 10 of C.P.Code is to see if the findings of the earlier suit on having decided would operate as res-judicata in the later suit. (state facts). In the present matter all the conditions are fulfilled. Hence, in the interest of justice, I pass the following order.

O R D E R

This application is allowed.

R.C.S.No.____________ is ordered to be stayed u/s.10 of the C.P.Code till final disposal of R.C.S.No._________.

No order as to costs.

[ Note :- The subsequent suit can be stayed even before filing of written statement.(Ronak International Ltd. V/s. Ota Kandla Pvt. Ltd. 1987 GLR a599 (Guj)]

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