M. L. Sureka vs Diwa Kant Mishra And Ors on 24 July, 2025

0
2

Patna High Court – Orders

M. L. Sureka vs Diwa Kant Mishra And Ors on 24 July, 2025

Author: Arun Kumar Jha

Bench: Arun Kumar Jha

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                         CIVIL MISCELLANEOUS JURISDICTION No.962 of 2017
                  ======================================================
                  M. L. Sureka S/o Late Kedarnath Sureka, proprietor of the firm named and
                  styled as M.L. Sureka and Co., Ezra Street, P.S.- Hare Street, Kolkata-
                  700001.
                                                                             ... ... Petitioner
                                                  Versus

            1.1. Binay Kumar Mishra, Son of late Diwa Kant Mishra, Resident of Village-
                 Manguraha, P.S. Govindganj, District-East Champaran, Presently residing at
                 Qr. No. E 1/63 Barauni Refinery Township, Begusarai.
            1.2. Satyendra Kumar Mishra, Son of late Diwa Kant Mishra, Resident of
                 Village- Manguraha, P.S. Govindganj, District-East Champaran, Presently
                 residing at Qr. No. E 1/63 Barauni Refinery Township, Begusarai.
            2.    Jay Hind Kabra, S/o Late Jagannath Kabra, proprietor of the firm named and
                  styled as Kabra and Co. Office at 2 India Exchange Place, 2nd Floor,
                  Kolkata- 700001.
            3.    Mr. Subrata Kunda Chaudhary, Office at 17 Dr. Chatterjee Lane, P.S.-
                  Serampore, District- Hoogly, S
            4.    Mr. Sib Kinkar Mallick, S/o Durlav Kumar Mallick, residing at Ghoshpara,
                  2nd lane, Sermapore, District- Hoogly, State- West Bengal.
            5.    Mr. Ram Sagar Sinha, S/o late Ram Sharan Singh, a resident of Village-
                  Bihat, Tola- Masnadpur, P.S.- Barauni, District- Begusarai, at present C/o
                  Parmanand Singh, at Sun Flower School, Kapasia, District- Begusarai.
            6.     Vintage Capital Markets Ltd. Office at 227, Acharya Jagdish Chandra Bose
                   Road, Kolkata.
                                                                           ... ... Respondents
                  ======================================================
                  Appearance :
                  For the Petitioner    :       Mr. Rajni Kant Jha, Advocate
                  For the Respondents   :       Mr. Satish Kumar, Advocate
                                                Mr. Mukesh Kumar Sinha, Advocate
                  ======================================================
                  CORAM: HONOURABLE MR. JUSTICE ARUN KUMAR JHA
                                        ORAL ORDER

12   24-07-2025

Heard learned counsel for the petitioner and learned

counsel appearing on behalf of the respondent 1 st set.

2. The present civil miscellaneous petition has been

filed against the order dated 06.03.2017 passed by learned Sub-

Judge-VI, Begusarai in Money Suit No. 10 of 2003, whereby and

whereunder the learned Sub-Judge-VI, Begusarai rejected the
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
2/12

application dated 03.05.2016 filed by the defendant petitioner

under Section 10 of the Civil Procedure Code (Hereinafter referred

to as “CPC“) seeking stay of the trial in Money Suit No. 10 of

2003 till disposal of Title Suit No. 1566 of 2001 filed by the

petitioner before the 8th Bench of City Civil Court at Kolkata.

3. Learned counsel for the petitioner submits that

petitioner has filed Title Suit No. 1566 of 2001 in the 8 th Bench of

City Civil Court at Kolkata seeking following reliefs:

(a) Declaration that the plaintiff had no obligation
to make payment of value of the said shares to the
defendant nos. 6 to 163 or any of them and that
with the payment of the value thereof to the
defendant no. 1 the plaintiff stood discharged of all
his obligations as broker / dealer involved in the
sale of the same.

(b) A decree of perpetual injunction restraining the
defendants and particularly the defendant nos. 6 to
163 or any of them from either representing or
holding out that they or any of them are entitled to
the value of the said shares or any part or portion
thereof from the plaintiff or from claiming or
seeking to realize the same or any part or portion
thereof from the plaintiff.

(c) Temporary injunction.

4. The case of the petitioner is that he has been

carrying on business as a stock and share broker and dealer in the

name and style of “M.L. Sureka” through his registered firm. On

the request of defendant no. 1, the petitioner agreed to transact in

the shares of Indian Oil Corporation. The defendant nos. 6 to 163
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
3/12

were the registered shareholders of equity shares of Indian Oil

Corporation who sold their shares during the period of December

1999 to March 2000 through defendant nos. 2 to 4, who in turn

sold the shares to defendant no. 3 which was further sold to

defendant no. 1, who had transacted the same through the firm of

the petitioner and sold to shares to defendant no. 5 in National

Stock Exchange and received the share scripts along with signed

transfer deeds from defendant no. 1 and delivered them to

defendant no. 5 and made all the payment to defendant no. 1 by

A/C payee cheques and also by way of account adjustments. The

petitioner never dealt with defendant nos. 6 to 163 directly and

claimed that there was no privity of contract between the petitioner

and defendant nos. 6 to 163 who sold their shares to Ram Sagar

Singh, defendant no. 2. Petitioner made the payments through the

bank and he claimed that he was not liable to any further payment

as he was under no obligation to pay any amount to any of the

defendants in respect of their shares as his liability stands

discharged. All the payments were made to defendant no. 1

through whom the transaction was made.

5. During pendency of Title Suit No. 1566 of 2001,

the petitioner filed an application under Order 39 Rule 1 and 2

read with Section 151 of the CPC and till 19.10.2001, the learned

trial Court directed both the parties to maintain status quo in
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
4/12

respect of claiming the value of the shares in dispute. The plaintiff

for Money Suit No. 10 of 2003 is the defendant no. 9 in Title Suit

No. 1566 of 2001 and on 11.07.2003, he along with some of the

defendants filed an application under Order 39 Rule 4 of the CPC

for vacating the interim stay order and dismissing the injunction

application. But the said petition was dismissed by the learned trial

Court on 03.01.2005. The interim injunction which was effective

till 19.10.2001 was extended till the disposal of injunction

application. In Money Suit No. 10 of 2003, the plaintiff of the said

case who was the original respondent no. 1, claimed that defendant

/ defendants were liable to make the payment of the consideration

amount mentioned in the Schedule 1 of the plaint, i.e., Rs.

1,44,000/- (Rupees one lakh and forty-four thousand only) along

with interest, which came to Rs. 1,88,880/- (Rupees one lakh

eighty-eight thousand eight hundred and eighty only). This amount

was claimed for sale of 1200 equity shares of Indian Oil

Corporation through the defendants.

6. Meanwhile, petitioner filed an application on

05.12.2006 under Section 10 of the CPC to stay the proceedings of

Money Suit No. 10 of 2003 till disposal of Title Suit No. 1566 of

2001 claiming that both the suits dealt with identical subject

matter between the same parties.

7. Learned counsel for the petitioner did not turn up
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
5/12

for pressing this petition, the said petition was dismissed on

14.09.2010. Another application was moved on 29.01.2013

seeking leave of the Court to press his earlier application, but the

said petition was also dismissed. In these facts and circumstances,

the petitioner filed another petition on 03.05.2016, but the said

petition filed under Section 10 of the CPC was dismissed on

06.03.2017 and against this order, the petitioner has approached

this Court.

8. Learned counsel for the petitioner submits that the

impugned order is not sustainable as it has been passed

mechanically and without application of judicial mind. The

learned trial Court of Sub-Judge-VI, Begusarai did not consider

the fact that plaintiff of Money Suit No. 10 of 2003 has been

restrained by the order of the competent Court at Kolkata from

proceeding the matter of claim of his shares. Learned counsel

further submits that since in the Title Suit No. 1566 of 2001,

subject matter is the same and the plaintiff for Money Suit No. 10

of 2003 is also a defendant in the said case in the Title Suit No.

1566 of 2001, the subsequent suit could not proceed. The

petitioner has claimed in the Title Suit No. 1566 of 2001 that he is

not under any obligation to make payment to the defendant

respondents since he has already made the payment and if the suit

is decreed, the same would operate as res judicata against the
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
6/12

claim of the respondent 1st set in Money Suit No. 10 of 2003.

9. Learned counsel further submits that since the

parties are same and subject matter is also same, any subsequent

suits could not be allowed to proceed and therefore the learned

trial Court erred in rejecting the application of the petitioner by the

impugned order.

10. Learned counsel for the petitioner further submits

that so far as other defendants not being parties in the present case

is concerned, complete identity of either the subject matter or the

parties is not required for application of Section 10 of the CPC and

relied on the Division Bench decision of the Kolkata High Court in

the case of Shorab Merwanji Modi & Anr. v. Mansata Film

Distributors & Anr. reported in AIR 1957 CAL 727.

11. Learned counsel appearing on behalf of

respondent 1st set vehemently contended that there is no infirmity

in the impugned order. Learned counsel submits that petitioner has

twice approached the learned trial Court with same prayer and

both the applications were rejected. On similar contention, the

present petition has been rightly rejected by the learned trial Court.

Learned counsel further submits that the petitioner is a share

broker and when the respondent 1 st set pledged his share for sale,

he did not receive any payment by the petitioner or any of the

defendants. He further submits that issue in Title Suit No. 1566 of
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
7/12

2001 pending before the Court of Civil Judge, Kolkata is different

from the Money Suit No. 10 of 2003 and therefore the learned trial

Court has rightly rejected the application filed by the petitioner

under Section 10 of the CPC. Learned counsel further submits that

the learned trial Court has also taken note of the fact that the

present case has been running since the year 2003 and all the

witnesses have been produced by the plaintiff and the matter has

been fixed for evidence of defendant but even after lapse of about

22 years, the defendant did not examine a single witness and in

order to delay the disposal of the Money Suit, he has filed repeated

applications under Section 10 of the CPC to stay the proceeding in

the garb of pendency of Title Suit No. 1566 of 2001. Learned

counsel further submits that even after filing of Title Suit by the

petitioner in the year 2001 and by the respondent in Money Suit by

the year 2003 due to the conduct of the petitioner, both the suits

are stuck and have not proceeded further, though in their suit, the

respondent 1st set has examined all their witnesses.

12. I have given my thoughtful consideration to the

rival submissions of the parties and also perused the record.

13. Section 10 of the CPC reads as under:

“10. Stay of suit .-

No Court shall proceed with the trial of any
suit in which the matter in issue is also
directly and substantially in issue in a
previously instituted suit between the same
parties, or between parties under whom they
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
8/12

or any of them claim litigating under the same
title where such suit is pending in the same or
any other Court in [India] having jurisdiction
to grant the relief claimed, or in any Court
beyond the limits of [India][Substituted by Act
2 of 1951, Section 3, for ” the
States”.]established or continued by [the
Central Government][Substituted by A.O.
1937, for ” the G.G. in C.”.][* * *][The words
” or the Crown Representative” omitted by
A.O. 1948.]and having like jurisdiction, or
before [the Supreme Court][Substituted by
A.O. 1950, for ” His Majesty in Council”.].
Explanation.-The pendency of a suit in a
foreign Court does not preclude the Courts in
[India][Substituted by Act 2 of 1951, Section
3
, for ” the States”.]from trying a suit founded
on the same cause of action.”

14. Coming back to the facts of the case, in Title Suit

No. 1566 of 2001, the petitioner has been claiming that he is not

liable to make payment of any money to the defendants who

pledged their shares through the petitioner since he has already

made the payment and has sought declaration to that effect. The

suit had been instituted against altogether 163 defendants. On the

other hand in Money Suit No. 10 of 2003, only six persons have

been made defendants who are the plaintiff of Title Suit No. 1566

of 2001 and the first five defendants. Evidently, the parties in these

two Suits are not the same. The plaintiff in Title Suit No. 1566 of

2001 has sought declaration that plaintiff had no obligation to

make payment of the value of these shares to defendant nos. 6 to
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
9/12

163 and his liability stands discharged with the payment of the

value thereof to the defendant no. 1. Apart from seeking a decree

of the perpetual injunction restraining the defendants and

particularly the defendant nos. 6 to 163 from claiming that they are

entitled to the value of the said shares. The case of respondent nos.

1.1 and 1.2 on the other hand in Money Suit No. 10 of 2003 is not

only against the plaintiff of Title Suit No. 1566 of 2001, but also

against defendants / respondent nos. 2 to 6 for making payment of

the consideration amount mentioned in Schedule 1 of the plaint,

which is the value shares as well as the interest amount accruing

due to non-payment. Therefore, the subject matter is not identical

and the parties in two Suits are not the same. Reference could be

made to paragraph no. 8 of the decision of the Hon’ble Supreme

Court in the case of National Institute of Mental Health & Neuro

Sciences v. C. Parameshwara, reported in (2005) 2 SCC 256,

which reads as under:

“8. The object underlying Section 10 is to
prevent Courts of concurrent jurisdiction from
simultaneously trying two parallel suits in
respect of the same matter in issue. The object
underlying Section 10 is to avoid two parallel
trials on the same issue by two Courts and to
avoid recording of conflicting findings on
issues which are directly and substantially in
issue in previously instituted suit. The language
of Section 10 suggests that it is referable to a
suit instituted in the civil Court and it cannot
apply to proceedings of other nature instituted
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
10/12

under any other statute. The object of Section
10
is to prevent Courts of concurrent
jurisdiction from simultaneously trying two
parallel suits between the same parties in
respect of the same matter in issue. The
fundamental test to attract Section 10 is,
whether on final decision being reached in the
previous suit, such decision would operate as
res-judicata in the subsequent suit. Section 10
applies only in cases where the whole of the
subject matter in both the suits is identical. The
key words in Section 10 are “the matter in issue
is directly and substantially in issue” in the
previous instituted suit. The words “directly and
substantially in issue” are used in contra-
distinction to the words “incidentally or
collaterally in issue”. Therefore, Section 10
would apply only if there is identity of the
matter in issue in both the suits, meaning
thereby, that the whole of subject matter in both
the proceedings is identical.”

Therefore, it is apparent that Section 10 of the CPC

will be applicable and subsequent Suits can be stayed if the parties

are same and whole of the subject matter is also identical in both

the Suits. Apparently, the facts of the case do not show such

similarity between the two Suits. Therefore, Section 10 of the CPC

will not be applicable for staying the Money Suit No. 10 of 2003.

15. Further, facts which need to be taken note of that in Title Suit

No. 1566 of 2001, admittedly, the Suit has not proceeded as in

inch further and not even issues have been framed. Even the

application for injunction has been pending, though the learned

trial Court passed some status quo order till the disposal of the
Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
11/12

injunction application, which prima facie appears absurd as the

plaintiff got the final relief by way of such injunction order. On the

other hand, in Money Suit No. 10 of 2003, the evidence of plaintiff

has concluded and the matter is fixed for evidence of defendant /

petitioner herein. The petitioner repeatedly filed applications

seeking stay on the proceedings, but he purposely did not move or

did not press the same except the last one. The petitioner could not

be allowed to subvert the judicial proceeding to his advantage.

Moreover, the procedural law is intended to facilitate the

administration of justice and not to obstruct it. The Hon’ble

Supreme Court in the case of State of Gujarat v. Ramprakash P.

Puri & Ors. and State of Gujarat v. Satu Khayaldas & Ors.,

reported in 1969 (3) SCC 156, held that procedure has been

described to be a hand-maid and not a mistress of law, intended to

subserve and facilitate the cause of justice and not to govern or

obstruct it. Therefore, in the given facts and circumstances, the

impugned order could not be faulted.

16. In light of discussion made herein before, I find

no error in jurisdiction on part of the learned trial Court in passing

the impugned order dated 06.03.2017 and hence, the said order is

affirmed.

17. Accordingly, the present petition stands

dismissed.

Patna High Court C.Misc. No.962 of 2017(12) dt.24-07-2025
12/12

18. Since, the Money Suit No. 10 of 2003 has been

pending before the learned trial Court for more than twenty-two

years, learned trial Court is directed to proceed in the matter

showing urgency and dispose it off at the earliest and preferably

within six months from the date of receipt / production of a copy

of this order.

(Arun Kumar Jha, J)

Shahnawaz/-

U



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here