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Citation Codes
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2004 INSC 239
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
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Acts
  • Section 10 of the Code
  • Section 10 CPC, Section 25 of the Code of Civil Procedure, 1908
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Cites
Cited by
Citation Codes
Neutral Citations
2004 INSC 239
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 10 of the Code
  • Section 10 CPC, Section 25 of the Code of Civil Procedure, 1908
Smart Summary

Factual and Procedural Background

Gupte Cardiac Care Centre and Hospital, representing Healing Touch Angiography and Cardiac Surgery Centre Pvt. Ltd., purchased a heart-lung machine manufactured by Jostra Medizintechnic AG (Germany) and supplied in India by Olympic Pharma Care Pvt. Ltd. (Delhi). After installation, the Hospital found the machine’s performance unsatisfactory, leading to exchanges of correspondence and legal notices.

Two separate suits were instituted:

  • Special Civil Suit No. 62 of 2002 – filed on 20-12-2001 by the Hospital in the Court of the Civil Judge (Senior Division), Nashik, seeking Rs 28,35,000 (refund of advance, compensation for purchasing a replacement machine, and interest).
  • Suit No. 190 of 2002 – filed on 10-01-2002 by Olympic Pharma Care Pvt. Ltd. in the High Court of Delhi (Original Side) claiming Rs 20,00,000 as the alleged balance price of the machine with interest.

Recognising the overlapping causes of action, the Hospital filed Transfer Petition (Civil) No. 400 of 2003 to move the Delhi suit to Nashik, while the dealer filed Transfer Petition (Civil) No. 248 of 2004 to move the Nashik suit to Delhi.

Legal Issues Presented

  1. Whether, in the interest of justice under Section 25 of the Code of Civil Procedure, 1908, Suit No. 190 of 2002 should be transferred from the High Court of Delhi to the Court of the Civil Judge, Nashik, or vice versa.
  2. How the rule in Section 10 CPC (stay of subsequently instituted suits involving the same matter) influences the exercise of the Supreme Court’s transfer jurisdiction.

Arguments of the Parties

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

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court noted that both suits arise from the same transaction and involve substantially identical parties and issues. Because only one of the suits can ultimately be decreed, trying them in different courts risks conflicting judgments and duplication of evidence.

The Court observed that the Nashik suit was filed first. Under Section 10 CPC, the later-filed Delhi suit would ordinarily be stayed. In exercising its discretionary power under Section 25 CPC, the Court is guided by the “expediency for ends of justice,” taking into account factors such as:

  • Chronology of the suits;
  • Potential for conflicting decrees;
  • Judicial economy and avoidance of duplicate evidence; and
  • Convenience of parties and witnesses.

Finding no compelling reason to depart from the Section 10 principle, the Court concluded that expediency favored transferring the Delhi suit to Nashik. Consolidation before a single court would streamline proceedings and safeguard against inconsistent outcomes.

Holding and Implications

TP (Civil) No. 400 of 2003 ALLOWED: Suit No. 190 of 2002 is transferred from the High Court of Delhi to the Court of the Civil Judge (Senior Division), Nashik. Both suits are to be consolidated; the Nashik court will frame consolidated issues and conduct a joint trial. The Registrar (Judicial) of the Delhi High Court must transmit the complete record promptly.

TP (Civil) No. 248 of 2004 DISMISSED: The request to transfer the Nashik suit to Delhi is denied.

Implications: The decision ensures a single, consolidated trial, preventing contradictory decrees and reducing litigation costs. The ruling turns solely on statutory considerations under Sections 10 and 25 CPC and does not establish a new precedent beyond reaffirming the usual practice of prioritising the first-filed suit.

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    Gupte Cardiac Care Centre And Hospital v. Olympic Pharma Care (P) Ltd. .

    R.C Lahoti, J. Gupte Cardiac Care Centre and Hospital (hereinafter “the Hospital” for short) representing Healing Touch Angiography and Cardiac Surgery Centre Pvt. Ltd., both situated at Nashik, has filed Special Civil Suit No. 62 of 2002 in the Court of Civil Judge at Nashik on 20-12-2001. The defendants impleaded therein are M/s Jostra Medizintechnic AG and Olympic Pharma Care Pvt. Ltd. situated respectively in Germany and Delhi (hereinafter referred to as ‘manufacturer’ and ‘dealer’ for short).

    2. Olympic Pharma Care Pvt. Ltd., New Delhi has filed a suit against the Hospital in the High Court of Delhi (original side) on 10-1-2002, which is registered as Suit No. 190 of 2002.

    3. It appears that the Hospital needed a heart-lung machine along with accessories manufactured by the German Company (the manufacturer) and marketed by the ‘dealer’ in India. The machine was delivered and installed. Disputes arose as the performance of the machine was not found to be satisfactory. There was correspondence and notices exchanged and then suits filed. The suit filed by the ‘Hospital’ at Nashik is for recovery of Rs 28,35,000. The plaintiffs therein have claimed the return of the advance paid, compensation equivalent to the additional amount spent by them for purchasing another machine and the interest on the said two sums. The suit instituted by the ‘dealer’ at Delhi is for recovery of Rs 20,00,000 alleged to be outstanding by way of balance price of the machine and interest thereon. TP (C) No. 400 of 2003 has been filed by the Hospital seeking transfer of the suit at Delhi to Nashik while TP (C) No. 248 of 2004 has been filed by the ‘dealer’ seeking transfer of the suit at Nashik to Delhi.

    4. It has not been disputed at the Bar that the two suits arise out of the same transaction. Cause of action of one party arrayed as a plaintiff would be its defence in the suit where it is arrayed as a defendant. Though there are two plaintiffs and two defendants in the suit at Nashik while there is only one plaintiff and one defendant in the suit at Delhi but there is substantial identity of the parties in the two suits. The issues arising for decision would necessarily be the same. Only one of the two suits can be decreed. The decree in one suit in favour of the plaintiff in that suit would entail the dismissal of the other suit. It cannot, therefore, be denied that the two suits deserve to be heard and tried in one court. That would avoid the possibility of any conflicting decrees coming into existence. And certainly the duplication of evidence, oral and documentary both, would be avoided. The parties and the courts would save their time and energy which would needlessly be wasted twice over.

    5. The suit at Nashik has been instituted first in point of time. By reference to Section 10 CPC, the trial of the suit at Delhi, being the latter suit, shall be liable to be stayed. For the exercise of its discretionary jurisdiction under Section 25 of the Code of Civil Procedure, 1908 the only consideration which is relevant is “expediency for ends of justice”. The court will have regard to and respect for the rule enacted in Section 10 of the Code. Of course, the considerations such as which is the place where most of the evidence is available, convenience of the parties and witnesses, which one of the two places is more convenient to access and attend and so on are also the factors to be kept in view and may in an appropriate case persuade this Court to direct a transfer of case in departure from the rule underlying Section 10 of the Code. All would depend on the facts and circumstances of a given case. So far as the present cases are concerned, we deem it proper to transfer the suit at Delhi to the court at Nashik for the purpose of hearing and decision thereat. In doing so we are following the ordinary rule as we do not find any factor or consideration relevant for making a departure therefrom.

    6. TP (C) No. 400 of 2003 is allowed. Suit No. 190 of 2002 pending in the High Court of Delhi at New Delhi (civil original ordinary jurisdiction) is directed to be transferred to the Court of Civil Judge, SD Nashik at Nashik. Both the suits shall be consolidated for the purpose of trial. The learned Civil Judge seized of the trial may frame consolidated issues taking into consideration the pleadings in both the cases, and thereafter, set down the cases for consolidated trial.

    7. The Registrar (Judicial), High Court of Delhi, shall soon on communication of this order, transfer complete record of the proceedings of Suit No. 190 of 2002 to the Court of Civil Judge, SD Nashik at Nashik.

    8. TP (C) No. 400 of 2003 is thus allowed.

    9. TP (C) No. 248 of 2004 is dismissed.

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    Comments

    Gupte Cardiac Care Centre And Hospital v. Olympic Pharma Care (P) Ltd. .
    (Apr 6, 2004)