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  • Section 33 of the U.P Agriculturists' Relief Act,
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  • Section 33 of the U.P Agriculturists' Relief Act,
Smart Summary

Factual and Procedural Background

This opinion arises from a defendant's application challenging an order of the learned Civil Judge of Gorakhpur, which refused to stay further proceedings in a suit. The suit was instituted by the plaintiff based on a mortgage executed by the defendant on 5-1-1939 in favor of Mitra Nand, from whom the plaintiff purchased mortgagee rights. Prior to this suit, the mortgagors had filed Suit No. 1 of 1944 under Section 33 of the U.P Agriculturists' Relief Act against the mortgagee for accounting, which was dismissed by the Civil Judge, with an appeal pending before the High Court. The defendant applied under Section 10 of the Code of Civil Procedure (CPC) to stay the present suit, citing the pendency of the earlier suit's appeal. The Civil Judge rejected this application, holding that Section 10 CPC did not apply. This revision petition challenges that refusal to stay proceedings.

Legal Issues Presented

  1. Whether the learned Civil Judge erred in refusing to stay further proceedings in the present suit under Section 10 of the CPC, given the pendency of an appeal in a prior suit between the same parties.
  2. Whether the matter directly and substantially in issue in the two suits is the same so as to mandate a stay under Section 10 of the CPC.
  3. Whether an appeal is to be treated as a continuation of the suit for the purposes of Section 10 CPC.

Arguments of the Parties

Applicant's Arguments

  • The question arising in both suits is directly and substantially the same, centering on the amount due on the mortgage.
  • The Court was bound under Section 10 CPC to stay proceedings in the subsequent suit because the matter in issue was identical.
  • An appeal is a continuation of the suit, so the earlier suit should be considered pending before the High Court.

Respondent's Arguments

The opinion does not contain a detailed account of the respondent's legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gargi Din v. Debi Charan, AIR 1929 All 805 “Matter in issue” in Section 10 CPC means the entire matter in controversy, not one of several issues. Followed to establish that the entire controversy must be the same for Section 10 to apply.
Mt. Nasiban Bi v. Mt. Iqbal Begum, AIR 1935 Lah 816 Reinforces the interpretation of “matter in issue” as entire controversy under Section 10 CPC. Supported the Court's view on the scope of “matter in issue.”
Murugesa Mudaliar v. Bala-sundarammal, AIR 1935 Mad 24 Same interpretation of “matter in issue” under Section 10 CPC. Consistent judicial approach cited to support Court’s reasoning.
Mahaganpathi v. Natesa Iyer, AIR 1935 Mad 112 Interpretation of “matter in issue” in Section 10 CPC. Further judicial authority confirming the principle.
Munuswami v. Raghupathi, AIR 1940 Mad 7 Interpretation of “matter in issue” in Section 10 CPC. Used to reinforce the Court’s interpretation of the statutory provision.
Naskarpara Jute Mills Co. Ltd. v. Nirmal Kumar, AIR 1941 Cal 434 Same interpretation of “matter in issue” under Section 10 CPC. Supported the Court’s position on the requirement of identity of entire controversy.
Wahid-un-nissa Bibi v. Zamin All Shall, AIR 1920 All 70 Considered applicability of Section 10 CPC and alternative stay under Section 151 CPC. Distinguished on facts; no conclusive ruling on whether “matter in issue” means entire controversy.
Behari Lal v. Mt. Durga, AIR 1940 Oudh 440 Held that proceedings under subsequent suit need not be stayed if the first suit court lacks jurisdiction to grant relief claimed in the second suit. The Court respectfully disagreed with this reasoning but acknowledged the similarity in facts and used it as a basis to affirm non-application of Section 10.

Court's Reasoning and Analysis

The Court agreed with the settled proposition that an appeal is a continuation of the suit, thus considering the earlier suit as pending. The critical question was whether the matter directly and substantially in issue in both suits was the same. The previous suit, filed under Section 33 of the U.P Agriculturists' Relief Act by the mortgagors, sought a declaration of the amount due, but was dismissed on the ground that the applicant was not an agriculturist and thus not entitled to sue under that Act.

The present suit, brought by the mortgagee, concerns enforcement of the mortgage by sale of the property. The Court noted that even if the previous suit had declared the amount due, the mortgagee could still choose to proceed with a separate suit for sale under the mortgage. Therefore, the reliefs sought in the two suits differ in nature and scope.

The Court emphasized that “matter in issue” under Section 10 CPC means the entire matter in controversy, not merely one of several issues. Since the previous suit did not encompass the question of saleability of the mortgaged property, the matters in issue were not directly and substantially the same.

The Court also addressed a precedent (Behari Lal v. Mt. Durga) that held otherwise but found its reasoning on jurisdiction unsatisfactory. Instead, the Court preferred to rest its decision on the distinctness of the matters in issue.

Consequently, the Court upheld the refusal to stay proceedings in the present suit.

Holding and Implications

The revision petition is dismissed with costs.

The direct effect of this decision is that the present suit for enforcement of the mortgage will proceed without a stay despite the pendency of an appeal in a prior suit between the same parties. The Court clarified that Section 10 CPC requires identity of the entire matter in controversy for a stay to be mandated, and partial overlap of issues is insufficient. No new precedent beyond the application of existing principles was established.

    Hathi Ram v. Hazi Mohammad

    1. This is a defendant's application against an order of the learned Civil Judge of Gorakhpur refusing to stay further proceedings in a suit.

    2. The present suit was brought by the plaintiff on the basis of a mortgage executed by the defendant on 5-1-1939. The mortgage was in favour of one Mitra Nand and the plaintiff has purchased the mortgagee rights from Mitra Nand. Before the institution of the present suit the mortgagors filed a suit numbered as Suit No. 1 of 1944 in the same Court against the mortgagee under Section 33 of the U.P Agriculturists' Relief Act for accounting. That suit, filed by the mortgagors, was dismissed by the learned Civil Judge and an appeal is now pending in this Court against the decision of the Civil Judge. In the present suit an application was made before the learned Civil Judge under Section 10 of the CPC praying that the hearing of the present suit be stayed, in view of the fact that the previous suit between the same parties was pending in appeal before the High Court. The learned Civil Judge dismissed this application and held that Section 10 of the CPC did not apply to the facts of this case.

    3. The present revision has been filed against the order of the learned Civil Judge refusing to stay further proceedings in the present suit.

    4. A preliminary objection has been taken to the hearing of this revision on the ground that, the order of the learned Civil Judge does not amount to a “case decided” within the meaning of Section 115 of the CPC. It is not necessary to decide this point, as, in our opinion the order of the learned Civil Judge is correct and he rightly refused to stay further proceedings in the suit.

    5. The learned counsel for the applicant has contended that the question arising in the two suits is directly and substantially the same, because in both the suits the main question for decision was as to what is the amount due on the mortgage in question; and the Court below was, therefore, bound to stay further proceedings in the present suit because Section 10 of the CPC contains a mandatory direction to the effect that further proceedings in the subsequent suit must be stayed if the matter directly and substantially in issue in the two cases is the same. He has further contended that an appeal is a continuation of a suit and the previous suit should be deemed to be pending in this Court. We agree with the learned counsel that an appeal is a continuation of a suit and Suit No. 1 of 1944 should still be deemed to be pending in appeal. The proposition is well settled and it is not necessary to cite any authorities in support of the proposition. The main point, therefore, for decision is whether the matter in issue in the previous suit is also directly and substantially in issue in the present suit. The previous suit, as stated above, was filed under Section 33 of the U.P Agriculturists' Relief Act for a declaration of the amount due to the opposite party from the applicant. In the present suit the trial Court, will also have to determine whether the property should be sold in enforcement of the mortgage. The previous suit was dismissed on the ground that the applicant was not an agriculturist and therefore not entitled to bring a suit under Section 33 of the U.P Agriculturists' Relief Act in case the Court had declared what amount was due under the mortgage, the mortgagee would have been entitled to apply under sub-s. (2) of S. 33 for a decree in his favour. But the mortgagee is not bound so to apply; it is open to him to obtain a decree under S. 33, sub-s. (2) or to bring a separate suit for sale of the property in enforcement of the mortgage. In the present case the mortgagee opposite party has exercised the latter option. The position, therefore, is that in the present suit the Court will have to determine the question of the saleability of the mortgaged property. The present suit will have to proceed to a decree, in any case, and it is only in execution of the decree that would be passed in the present case that the mortgagee would be able to realize the amount due to him. Irrespective of the result of the previous suit, the present suit has to be tried in order to give a relief to the mortgagee opposite party. In our opinion, under these circumstances, it cannot be said that the matter in issue in the two suits is directly and substantially the same.

    6. It has been held in a number of cases that the words “matter in issue” in Section 10 of the CPC mean the entire matter in controversy and not one of several issues in the case. In — ‘Gargi Din v. Debi Charan’, AIR 1929 All 805 (A), it was held by this Court that the words “matter in issue” could not be held necessarily to mean the subject-matter in dispute, but they must clearly mean the entire matter in controversy and not one of several issue in the case. This case was followed in — ‘Mt. Nasiban Bi v. Mt. Iqbal Begum’, AIR 1935 Lah 816 (B). The Madras High Court has taken the same view, vide — ‘Murugesa Mudaliar v. Bala-sundarammal’, AIR 1935 Mad 24 (C), — ‘Mahaganpathi v. Natesa Iyer’, AIR 1935 Mad 112 (D) & — ‘Munuswami v. Raghupathi’, AIR 1940 Mad 7 (E). The High Court of Calcutta has also taken the same view in a case reported in — ‘Naskarpara Jute Mills Co. Ltd. v. Nirmal Kumar’, AIR 1941 Cal 434 (P).

    7. The learned counsel for the applicant relied on a case of this Court reported in — ‘Wahid-un-nissa Bibi v. Zamin All Shall’, AIR 1920 All 70 (G). In this case one of the learned Judges was of the view that Section 10 of the CPC applied to the facts of that case and the proceedings were ordered to be stayed, but the other learned Judge only observed that if Section 10 of the CPC did not apply the proceedings of the second suit could be stayed under Section 151 of the CPC. The facts of the case were different, but certain observations made in the case were relied upon by the learned counsel. There does not appear to be any discussion of the question whether the matter in dispute meant the entire matter in controversy or only one of the matters in controversy. No other case was cited by the learned counsel for the applicant in support of his proposition that Section 10 of the CPC applied to the facts of the present case.

    8. The Court below relied upon a case reported in — ‘Behari Lal v. Mt. Durga’, AIR 1940 Oudh 440 (H). The facts of the case are absolutely similar to those of the present case and the two suits in that case were similar to the two suits in the present case, that is, one was a suit for the declaration of the amount due. It was filed by the mortgagor under Section 33 of the U.P Agriculturists' Relief Act, and the other suit was a suit brought by the mortgagee to enforce his mortgage. It was held in that case that the proceedings of the latter suit were not to be stayed under Section 10 of the CPC because the Court seized of the first suit had no jurisdiction to pass a decree which could be obtained in the subsequent suit. It was observed that in the suit under S. 33 there could not be a decree for the sale of the property until the mortgagee filed an application under Sub-s. (2), and as the mortgagee in that case had filed a separate suit, he was not likely to file an application under sub-s. (2) of S. 33. It was said that for this reason the Court seized of the case under S. 33 had no jurisdiction to pass a decree which the mortgagee claimed in the subsequent suit. With all respect to the learned. Judges, we find it difficult to accept this reasoning. The words used in S. 10 are a Court “having jurisdiction to grant the relief claimed”. In our opinion, what is to be seen is the jurisdiction of the Court to grant a relief claimed, and it is difficult to say that the Court seized of the case under S. 33 had no jurisdiction to grant the relief. In case the mortgagee filed an application under sub-s. (2), the Court could pass a decree in favour of the mortgagee. The jurisdiction in the Court to pass the decree was not wanting but, of course, it could not grant the relief unless the mortgagee claimed that relief. Be that as it may, we consider it safer to base our decision on the ground that the matter directly and substantially in issue in the two cases is not the same.

    9. We agree with the Court below in the order that Court has passed, though for different reasons. The revision is consequently dismissed with costs.

    B/H.G.P

    10. Revision dismissed.

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    Comments

    Hathi Ram v. Hazi Mohammad
    (Mar 4, 1953)