R. Mcdill And Company Pvt. Ltd vs Gouri Shankar Sarda And Others on 13 March, 1991

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53
Supreme Court of India
R. Mcdill And Company Pvt. Ltd vs Gouri Shankar Sarda And Others on 13 March, 1991
Equivalent citations: 1991 SCR (1) 809, 1991 SCC (2) 548
Author: N Kasliwal
Bench: Kasliwal, N.M. (J)
           PETITIONER:
R. MCDILL AND COMPANY PVT. LTD.

	Vs.

RESPONDENT:
GOURI SHANKAR SARDA AND OTHERS

DATE OF JUDGMENT13/03/1991

BENCH:
KASLIWAL, N.M. (J)
BENCH:
KASLIWAL, N.M. (J)
RAMASWAMY, K.

CITATION:
 1991 SCR  (1) 809	  1991 SCC  (2) 548
 JT 1991 (1)   645	  1991 SCALE  (1)431


ACT:
     Arbitration Act, 1940: ss. 34, 41--Application for stay
in  a suit--Provisions of Code of  Civil  Procedure--Whether
applicable.
     Code  of  Civil  Procedure,  1908:	 Order	 XXIII--Suit
pending	  before  High	Court--Joint  application   by	 two
defendants  under  s. 34 of Arbitration	 Act--Permission  to
withdraw  with	liberty	 to make  a  fresh  application--Two
separate stay applications moved--Maintainability of.



HEADNOTE:
     In a suit filed by plaintiff-respondent no.1 before the
High  Court defendant-appellants filed a  joint	 application
under  s. 34 of the Arbitration Act for staying	 proceedings
of the suit and referring the matter to arbitration. In view
of  some formal defects in the said  application,  the	High
Court  on 25.2.1966 without mentioning the defects  ordered.
"Application   withdrawn  with	liberty	 to  make  a   fresh
application".  on  21.3.1966  the appellants  submitted	 two
separate applications for staying  the suit in so far as  it
related to them or in the alternative for stay of the entire
suit. The plaintiff-respondent resisted the applications  as
not  being in terms of the order dated 25.2.1966.  Upholding
the  objection,	 Learned Single Judge refused  to  stay	 the
suit.
     On	 appeal, the Division bench of the High	 Court	held
that  the liberty was granted to 'make a fresh	application'
and  as such, under the provisions or Order  XXIII,  C.P.C.,
the   appellants   had	no  right  to  move   two   separate
applications to stay the suit.
     In	 appeal	 by  special  leave to	this  Court  it	 was
contended  that provisions or Order  XXIII, C.P.C. were	 not
applicable  to	applications  filed  under  s.	34  of	 the
Arbitration Act; and that the High Court committed an  error
in  taking  a technical view that  as liberty was  given  to
withdraw   the	application  in	 order	to  make   a   fresh
application,  the  appellants  were  not  entitled  to	make
separate  stay applications. Respondent no. 1 supported	 the
impugned judgment.
     Allowing the appeals, this Court,
						       810
     HELD: 1. In view of s. 41 of the Arbitration Act, 1940,
subject to provisions of  the Act, Code of Civil  Procedure,
1908 apply to all proceedings before the Court No. provision
in  the Arbitration Act takes away the provisions  of  Order
XIII,  C.P.C. from being applied to applications filed under
s. 34 of the Arbitration Act in a suit. [814F, 816B]
     Hakam Singh v. M/S Gammon (India) Ltd, [1971] 3 SCR 314
relied on.
     Nawab  Usman Ali Khan  v. Sagarmal, [1965] 3  SCR	201,
held inapplicable.
     Munshi  Ram  v. Banwari Lal [1962] Supp; (2)  SCR	477;
Hansraj	 Gupta	v.  Officlal  Liquidator   Dehradun-Musoorie
Electric Tramway Co, [1932] L.R. 60 I.A. 13; Union of  India
v.  Mohinder Singh & Co., AIR 1971 JK 10; Union of India  v.
Rup Kishore, [1957] All. 504; Executive Engineer v.  Thingom
Iboyaima  Singh,  AIR 1970 Bom. 250; Ram bharosey  v.  Peary
Lal, AIR 1957 All. 265; Shrinath Bros. v. Century Spinning &
Wvg.  Co. AIR 1968 Bom 443; India Minerals Co.	v.  Northern
India  Lime Making Association, AIR 1958 All. 69;  Ganeshmal
v. Keshoram Cotton Mills, AIR 1952 Cal. 10; Governor-General
in  Council v. Associated Live Stock Farm (India) Ltd.,	 AIr
948  Cal. 230; Soorajmull Nagarmull  v. Sagar Mal, AIR	1978
Cal. 239; Ramchand v. Governor General in Council, AIR	9147
Sind.  147  and Scotish Union of National Insurance  Co.  v.
Saraswati Sajnani, Air 1960 Cal. 22, referred to.
     2.	 In  the  instant  case, apart from  s.	 41  of	 the
Arbitration Act providing  for application of Code of  Civil
Procedure   and	 there	being  no  provision   taking	away
provisions  of order XXIII,  C.P.C.  from being	 applied  to
the  applications  for	stay  filed  under  s.	 34  of	 the
Arbitration Act, the proceeding started on a plaint filed by
the  plaintiff	and in such a suit if  any  application	 was
filed  under  the  Arbitration Act, the	 same  ought  to  be
governed  by the provisions of the Code of Civil  Procedure.
[816A-c]
     3.1   The	High Court was not right in  dismissing	 the
applications  on the ground that two applications  were	 not
maintainable  as the same were not covered within its  order
dated 25.2.1966. [820E-F]
     3.2  The term 'a fresh application' in the order  dated
25.2.1966 used in singular had no more significance than the
fact that as both the
						       811
appellants had submitted one joint application, liberty	 was
given  to  make	 a fresh application, The  main	 purpose  of
moving	the applications under s. 34 of the Arbitration	 Act
was  to stay the suit proceeding. The intention and  purpose
of moving two such separate applications was also the  same.
The  explanation given by the appellants was that they	were
given  a legal advice to move two separate  applications  as
there were two different agreements between appellants no. 1
and  2	and the respondent no. 1 There being no	 element  of
mala  fide  in the two applications  having  been  submitted
within	30 days of the order dated 25.2.1966, the same	were
maintainable . [820A-c]



JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 2012-
2013 of 1974.

From the Judgement and Order dated 2.2.1973 of the
Calcutta High Court in Appeal No. 211 of 1966.

B. Sen, Mrs. Geetanjali Mohan and Bishan Lal for the
Appellant.

Dr. Shanker Ghosh, Darshan Singh, Praveen Kumar, I.B.
Gaur and Ms. Shaifali Khanna (NP) for the Respondents.

The Judgement of the Court was delivered by
KASLIWAL, J. These appeals by special leave are
directed against the order of the Calcutta High Court dated
February 2, 1973. Brief facts necessary for the
determination of these appeals are that Shri Gouri Sankar
Sarda (hereinafter referred to as Respondent No. 1) filed a
Suit No. 1783 of 1965 in the Calcutta High Court against R.
McDill and Company Pvt. Ltd. (in short Appellant No. 1),
Mirilal Dharamchand (Pvt.) Ltd. (in short Appellant No.2 )
and Shri Misrilal Jain for the recovery of some amounts as
well as for some other reliefs. On or about 15th December,
1965 both the appellant Nos. 1 and 2 who were also
defendants in the suit submitted a joint application in the
High Court for staying proceedings of the aforesaid suit,
under Section 34 of the Arbitration Act, 1940 (hereinafter
referred to as ‘the Act’). In view of some formal defect in
the application the High Court by order dated 25th February
1966 gave permission to withdraw the said application with
liberty to file a fresh application. As the entire case
hinges on the above order dated 25th Feb. 1966, relevant
portion of the said order is reproduced as under:

812

:Application withdrawn with liberty to make a
fresh application. Cost to be paid by the
applicant.”

Though the above order does not make a mention of the
formal defect, but according to the appellants the
permission to withdraw was sought as no copy of the plaint
was annexed with such application. Thereafter, on March 21,
1966 the appellant Nos. 1 and 2 instead of making a joint
application submitted two separate applications for staying
the suit against the respective appellants and in the
alternative for stay of the suit as a whole. These
applications were resisted by the plaintiff-respondent No. 1
on the ground that separate applications were not in terms
of the order dated 25.2.1966 and hence no stay should be
granted. Learned Single judge upheld the objection raised by
the plaintiff and refused to stay the suit. On appeal the
Division bench of the Calcutta High Court by order dated 2nd
February, 1973 dismissed the appeal. The Division Bench took
the view that liberty was granted to make a fresh
application and as such under the provision of Order XXIII
of the Code of Civil Procedure, the appellants had no right
to move two separate applications for staying the suit.

Aggrieved against the aforesaid Order of the High Court
dated 2nd February, 1973 the appellants have filed these
appeals by the grant of special leave. order XXIII C.P.C. as
it existed at the relevant time is reproduced as under:

ORDER XIII: WITHDRAWAL AND ADJUSTMENT OF SUITS

1. Withdrawal of suit or abandonment of part of
claim:

(1) At any time after the institution of a suit,
the plaintiff may as against all or any of the
defendants abandon his suit or abandon a part of
his claim.

(2) Where the Court is satisfied-

(a) That a suit must fail by reason for some
formal defect or

(b) That there are other sufficient grounds for
allowing the plaintiff to institute a fresh suit
for the subject matter of a suit or part of
claim.

813

It may, on such terms as it thinks fit, grant the
plaintiff permission to withdraw from such suit or
abandon such part of a claim with liberty to
institute a fresh suit in respect of the subject
matter of such suit or such part of claim.
(3) Where the plaintiff withdraws from a suit, or
abandon part of a claim, without the permission
referred to in sub-rule he shall be liable for
such costs as the Court may award and shall be
precluded from instituting any fresh suit in
respect of such subject matter or such part of the
claim.

(4) Nothing in this rule shall be deemed to
authorise the Court to permit one of several
plaintiffs to withdraw the consent of the
others”.

It was contended on behalf of the appellants that the
provisions or Order XXIII were not applicable in the matter
of applications filed under Section 34 of the Arbitration
Act. It was contended that the provisions of Order XXIII
could only apply to the proceedings of a suit and not in
respect of any applications filed under the Act. It was
submitted that the High Court committed an error in taking a
highly technical view of the matter that initially a joint
application was submitted for stating the suit and liberty
was given to withdraw the same and to make a fresh
application and as such the appellants were not entitled to
submit two separate applications though for the same
purpose. It was contended in this regard that there were two
separate agreements between the plaintiffs and appellants
Nos. 1 or 2 containing an arbitration clause and as such the
appellants were given a legal advice to submit two separate
applications for staying the suit and the High Court should
not have dismissed the applications on the ground that
liberty to file fresh application was given in respect of
one application only. Learned counsel for the appellants in
support of this contention placed reliance on Nawab Usmanli
Khan v. Sagarmal
, [1965] 93) SCR

201.
On the other hand it was argued on behalf of the
respondent No. 1 that provisions or Order XXIII C.P.C. were
applicable in respect of an application under the Act. It
was contended that basically the proceeding had arisen on
account of a suit filed by the plaintiff-respondent and in
that suit an application was submitted for staying the suit
and referring the matter to Arbitrator under Section 34 of
the Act. The Order as such passed by the High Court on 25th
February, 1966 would be governed by the provisions of order
XXIII of the Code of Civil
814
Procedure and fresh application could only lie in accordance
with the terms and conditions imposed at the time of
permitting the withdrawal of the first application. It was
contended that it was an admitted position that a joint
application was filed for staying the suit and the
permission was granted to withdraw the same with liberty to
make a fresh application and the defendants-appellants had
no right to submit two separate applications in violation of
the order of the Court dated 25th February, 1966. Reliance
in support of the above contention was placed on Munshi Ram
v. Banwari Lal
, [1962] Supp. (2) SCR 477 and Hakam Singh v.
M/s Gammon (India) Ltd
., [1971] 3 SCR 314.

We would first deal with the question whether the
provisions of Order XXIII C.P.C. apply or not to an
application for stay of suit filed under Section 34 of the
Act. Section 41 of the Act reads as under:

41 Procedure and powers of Court.

“Subject to the provisions of this Act and of
rules made thereunder-

(a) The provisions of the Code of Civil Procedure,
1908, shall apply to all proceedings before the
Court, and to all appeals, under this Act, and

(b) The Court shall have, for the purpose of, and
in relation to, arbitration proceeding before the
Court.

Provided that nothing in clause (b) shall be taken
to prejudice any power which may be vested in an
arbitrator or umpire for making orders with
respect to any of such matters”.

According to the above provision the provisions of the
Code of Civil Procedure, 1908 shall apply to all proceedings
before the Court subject course to the provisions of The
Arbitration Act
and of any rules made thereunder. it has
been laid down in various decisions from time to time that
the following provisions of the Code of Civil Procedure
shall apply to proceedings under the Act. In the ‘Law of
Arbitration’ by R.S. Bachawat (2nd 1987 Ed., 585) under the
Heading ‘Applicability of Code of Civil Procedure to court
proceeding’ it has been mentioned as under:

815

Subject to the provisions of the Act and the Rules
made thereunder the provisions of the code of civil
procedure aplply to all proceddings before the
Court and to all appeals under the Act, Section
41(a)
.

The following provisions of the Code of Civil Procedure
have been held to apply to certain proceedings under the
Act:

(1) Section 20 Hakam Singh v. Gammon (India) ltd.,
AIR 1971 SC 740: (1971) 1 SCC 286.

(2) Section 96(3) Union of India v. Mohinder Singh
& Co
., AIR 1971 JK 10.

(3) Section 24 Union of India v. Rup Kishore, AIR
1957 All 504.

(4) Section 114 read with Order 47 Executive
Engineer v. Thingom Iboyaima Singh, AIR 1970
Manipur 76.

(5) Order 1 Rule 8 Abdul Gani v. Reception
Committee
, AIR 1936 Bom. 250: ILR 60 Bom. 645: 39
Bom. LR 380.

(6) Order 3 Rule 5 Ram Bharosey v. Peary Lal, AIR
1957 All 265.

(7) Order 5 Shrinath Bros. v. Century Spinning &
Wvg. Co., AIr 1968 Bom. 443.

(8) Order 6 Rule 17 Indian Minerals Co. v. Northern
India Uime Marketing Association
, AIR 1958 All 69.
(9) Order 9 Rule 13 Ganeshmal v. Keshoram Cotton
Mills
, AIR 1952 Cal 10: ILR (1951) Cal. 196.
(10) Order 23 Rule, 3 Munshi Ram v. Banwari Lal,
AIR 1962 SC 903.

(11) Order 30 Rule 3 Governor-General in Council v.
Associated Live Stock Farm (India) Ltd
., AIR 1948
Cal. 230: 52 CWN 288.

(12) Order 30 Rule 4 Soorajmull Nagarmull v. Sagar
Mal, AIR 1978 Cal. 239.

A proceeding under Section 14 Section 17 under the Act is
not a suit and the provisions of Section 86(1) C.P.C. read
with Section 87 C.P.C. does not apply to such a proceeding
(Usman Ali Khan) v. (Sagar Mal,) AIR 1965 SC 1798. Nor does
the provision of Section 80 C.P.C. apply to a proceeding
under Section 20 (Ramchand) v. (Governor-General in
Council,) AIR 1947 sind 147. The following provisions of the
Code Civil Procedure apply to appeals under the Act:

816

(1) Section 96(3) (Union of India) v. (Mohinder Singh &
Co
.,) AIR 1971 JK 10; (2) Order 41 Rule 5 (Scottish
Union of National Insurance Co.) v. (Saraswati
Sajnani
,) AIR 1960 Cal. 22:63 CWN 800.

Apart from the above cases Section 41 of the Act itself
provides that the provisions of the Code of Civil Procedure
shall apply to all proceedings before the Court. We do not
find any provision in the Act so as to take away the
provisions or Order XXIII C.P.C. from being applied to
applications filed under Section 34 of the Act, in a suit.
That apart the case before us has started on a plaint filed
by the plaintiff and in such a suit if any application is
filed under the Act, the same ought to be governed by the
provisions of the Code of Civil Procedure.

In (Munshi Ram) v. (Banwari Lal,) (supra) the facts
were that the Arbitrator gave an award. The award was filed
in the court by the Arbitrator. The appellants made
application for setting aside the award and the respondents
filed their replies to the application. Thereafter, the
parties came to terms and asked for a decree to be passed in
accordance therewith. The court passed a decree on the
award modified by the compromise. In execution, the
appellant contended that the decree was nullity as the Court
had no jurisdiction to modify the award by compromise. It
was argued that after a dispute is referred to arbitration
and an award has been obtained and filed in Court, it is not
open to the Court to record the compromise under Order
XXIII Rule 3 of the Code of Civil Procedure, because an
award can be set aside or modified as laid down in the
Arbitration Act, there is no provision in the Arbitration
Act
for recording the compromise, the above contention was
not accepted and it was held as under:

“When an award is given, the parties cannot, under
the Act challenge it except as laid down there. The
powers of the Court are indicated by the Act. They
are limited to accepting the award, if there be no
objection and passing a decree in accordance
therewith, or superseding the reference or revoking
or modifying the award or remitting it for further
consideration, as laid down in the Act. But, the
Act does not disable the parties from terminating
their dispute in a different way, and if they do it
could not be intended by law that a dispute, which
had been successfully terminated, should again
become the subject of litigation. If the parties
are dissatisfied with the award and want to
substitute it by a compromise involving matters
alien to the original dispute
817
which are inseparable, the Court may supersede the
submission, and leave the parties to work out
their agreement in accordance with the law
outside the Arbitration Act“.

In (Nawab Usmanali Khan) v. (Sagarmal,) (supra) on
which reliance has been placed by learned counsel for the
appellant it was held that a proceeding under Section 14
read with Section 17 of the Act for the passing of a
Judgement and decree on an award does not commence with a
plaint or a petition in the nature of a plaint, and cannot
be regarded as a suit and the parties to whom the notice
of the filing of the award is given under Section 14(2)
cannot be regarded as “suit in any Court otherwise
competent to try the suit” within the meaning of Section
86(1)
read with section 87B, Civil Procedure Code. In the
above case the appellant was the Ruler, or the former Indian
State of Jaora. The had money dealing with the respondent.
The respondent after obtaining a decree in terms of the
award started execution proceedings against the appellant.
The Central Government gave a certificate under Section
86(3)
read with Section 87B of the Code Civil Procedure,
1908 consenting to the execution of the decree against the
properties of the appellant. The Executing Court passed the
prohibitory order under Order XXI Rule 46 of the Code of
Civil Procedure in respect of sums payable to the appellant
on account of the privy purse. On an objection raised by the
appellant by order dated March 15, 1958, the Court recalled
the decree and cancelled the certificate as prayed for, on
the ground that the amount receivable by the appellant on
account of his privy purse was not attachable. The
respondent preferred appeal before the High Court. The High
Court allowed the Appeal No. 33 of 1958. Usmanali Khan
(appellant) filed an appeal before this Court. This Court
held as under:

Section 86(1) read with s. 87B confers upon the
Rulers of former Indian State substantive rights
of immunity from suits. Section 141 makes
applicable to other proceedings only those
provisions of the Code which deal with procedure
and not those which deal with substantive rights.
Nor does s. 41(a) of the Indian Arbitration Act,
1940 carry the matter any further. By that
section, the provisions of the Code of Civil
Procedure, 1908 are made applicable to all
proceedings before the Court under the Act. Now,
by its own language s. 86(1) applies to suits
only, and s. 141, Code of Civil procedure does not
attract the provisions of s. 86(1) to proceedings
other than suits. Accordingly, by the conjoint
application of s. 41(a) of the Indian Arbitration
818
Act and ss. 86(1) and 141 of the Code of Civil
Procedure, the provisions of s. 8691) are not
attracted to a proceeding under s.14 of the Indian
Arbitration Act
, 1940. It follows that the Court
was competent to entertain the proceedings under
s. 14 of the Indian Arbitration Act, 1940 and to
pass a decree against the appellant in those
proceedings, though no consent to the institution
of those proceedings had been given by the Central
Government”.

The following observations in (Hansraj Gupta) v.

(Official Liquidator, Dehra Dun–Mussorrie Electric Tramway
Co.) [1932] L.R. 60 I.A. 13, 19 made by Lord Russell of
Killowen were quoted.

“The word ‘suit’ ordinarily means, and apart from
some context must be taken to mean a civil
proceeding instituted by the presentation of a
plaint”.

The following observations made by Shah, J. in (Bhagwat
Singh) v. (State of Rajasthan
,) AIR 1964 SC 444 were also
quoted with approval:

“The appellant is recognised under Art. 366(22)
of the Constitution as a Rule of an Indian State,
but s. 86 in terms protects a Ruler from being
‘sued’ and not against the institution of any
other proceeding which is not in the nature of a
suit. A proceeding which does not commence with a
plaint or petition in the nature of plaint, or
where the claim is not in respect of dispute
ordinarily triable in a Civil Court, would prima
facie not be regarded as falling within s. 86 Code
of Civil Procedure”.

The above observation made by Lord Russell of Killowen
and Shah, J. go to show that for a suit the civil
proceedings is instituted by the presentation of a plaint.
In the aforesaid background it was held that a proceeding
which does not commence with a plaint or petition in the
nature of plaint, or where the claim is not in respect of
dispute ordinarily triable in a civil court, would prima
facie not be regarded as falling with Section 86, Code of
Civil procedure. In the case before us as already mentioned
above a suit by presenting a plaint was instituted by the
respondent No. 1 and thereafter it was sought to be stayed
by submitting application under s. 34 of the Act. Thus we
are clearly of the view that the above case of (Usmanali
Khan) v. (Sagarmal
,) (supra) is clearly distinguishable and
does not help the appellants in the case before us. It may
be noted that Bachawat, J. who delivered the Judgment in
(Usmanali Khan) v. (Sagarmal,) (supra) has himself in his
819
book on the ‘law of Arbitration’ under the heading
‘Applicability of Code of Civil Procedure to Court
Proceeding’ has mentioned a number of decisions wherein the
provisions of Code of Civil Procedure have been held to
apply to proceedings under the Act. We have already
extracted the above passage from the book of Bachawat, j.

In (Hakam Singh) v (M/s Gammon (India) Ltd.,) (supra)
it was held that the Code of Civil Procedure in its entirety
applies to proceedings under the Arbitration Act by Virtue
of Section 41 of the later Act. The jurisdiction of the
Courts under the Arbitration Act to entertain a proceeding
for filing an award is accordingly governed by the
provisions of the Code of Civil Procedure read with
Explanation (II) thereto, the respondent company which had
its principal place of business at Bombay, was liable to be
sued at Bombay. Thus in the above case dispute arose between
the parties and the appellant submitted a petition to the
Court of the Subordinate Judge at Varanasi for an order
under Section 20 of the Indian Arbitration Act, 10 of 1940
that the agreement be filed and an order of reference be
made to an Arbitrator or Arbitrators appointed by the Court
to settle the dispute between the parties in respect of the
construction works done by him. In order to determine the
place of suing, it was held that Section 20 of the Code of
Civil Procedure would govern the case.

Thus we do not find any force in the submission made by
learned counsel for the appellants before us that the
provisions or Order XXIII of the Code of Civil Procedure
will not apply to the Order passed by the High Court on 25th
February, 1966.

We would, now, consider the scope and effect of the
order dated 25th February, 1966 considering that the said
order would be governed by the provisions of Order XXIII of
the Code of Civil Procedure. Admittedly, appellant Nos. 1
and 2 were defendants in the suit filed by respondent No. 1.
A joint application was submitted on their behalf for
staying the proceedings of the suit, under Section 34 of
the Act, Though the order dated 25th February, 1966 does not
make a mention of the formal defect on account of which the
said application was withdrawn, but the appellants have
categorically stated that the same was withdrawn on account
of the fact that copy of the plaint was not annexed with
such application and in the absence of any counter made by
the respondent, we take that the reason for withdrawing the
application was that copy of the plaint was not annexed with
such application. The said application was allowed to be
withdrawn with liberty to
820
make a fresh application. To our mind, the term ‘a fresh
application’ used in singular had no more significance than
the fact that as both the appellants had submitted one
joint application as such the liberty was given to make a
fresh application. The main purpose of moving the
application by the appellant was to stay the proceedings of
the suit under Section 34 of the Act the intention and the
purpose of moving two separate applications is also to
stay the proceedings of the suit under Section 34 of the
Act. The explanation given by the appellants for moving two
separate applications is that they were given a legal advice
to move two seperate applications as there were two
different agreements between the appellant Nos. 1 and 2 and
the respondent No. 1. There was no element of mala fide in
doing so and the two applications were also submitted on
March 21, 1966 i.e. within 30 days of the order dated
25.2.66. Learned counsel for the respondent No. 1 submitted
that there was no merit in the applications submitted by the
appellants under Section 34 of the Act and the proceedings
of the suit have already remained stayed for nearly 15 years
in this Court and now there is no justification for
further staying the suit. So far as the pendency of this
appeal in this Court is concerned, no party is at fault and
it would have been proper if the respondent had been
advised not to take such objection of non maintainability of
two applications before the High Court and would have
contested the applications on merits. We are not deciding
the question of maintainability of the applications under
Section 34 of the Act on merits and we make it clear that
respondent No. 1 would be free to take all objections as
he likes against the grant of such application and the same
would be decided by the High Court on merits in accordance
with law. We are, however, clearly of the view that the High
Court was not correct in dismissing the applications on the
ground that two applications were not maintainable as the
same were not covered within the order passed by the High
Court dated 25th February, 1966. In view of the fact that
it is an old matter, we request the High Court to dispose of
the applications filed by the appellants Nos. 1 and 2 under
Section 34 of the Act. At the earliest.

In the result, these appeals are allowed, the order of
the High Court dated 2nd February, 1973 is set aside and the
case would now be decided by the High court in the manner
indicated above. The parties are left to bear their own
costs.

R.P.

Appeals Allowed.

821

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