PUNJAB & SIND BANK Vs. LALIT MOHAN MADAN

JUDGEMENT

(1.) The impugned order is dated 30.07.2008; the application filed by the petitioner i.e. Punjab and Sind Bank under Section 10 of the Code of Civil Procedure (hereinafter referred to as 'the Code') seeking stay of the present suit had been declined. Record shows that the Punjab and Sind Bank had filed a suit for specific performance on 30.12.1987; this suit was directed against M/s. Madhan & Co. a partnership firm comprising of two partners. It was registered as Suit No. 78/1988. It was filed in the High Court but thereafter due to the change in the pecuniary jurisdiction, it was transferred to the district court; during the pendency of this suit Lalit Mohan Madhan/M/s. Madhan & Co.(the said partnership firm) filed a suit against the Punjab and Sind Bank seeking a declaration, permanent injunction on the basis of the same documents i.e. the agreement which was the subject matter of the suit for specific performance which had been filed by the Punjab and Sind Bank; the prayer in this second suit was that the aforenoted agreement to sell dated 15.3.1977 and 5.4.1977 be declared null and void. This suit was registered as Suit No. 2074/1998. During the course of these proceedings the present application under Section 10 of the Code was filed by the petitioner seeking stay of this later suit. Impugned order had however declined the prayer.

(2.) Vehement contention of the learned counsel for the petitioner is that all the ingredients of Section 10 of the Code stood met and the first suit which was a suit for specific performance was qua the same agreement dated 15.3.1977 and 5.4.1977.

(3.) Record shows that M/s Madhan & Co. had purchased a plot of land measuring 344.65 sq. mt. in an open auction from the DDA; it was thereafter offered for sale to the Punjab and Sind Bank by a aforenoted communication dated 08.01.1977 it was followed up by another communication dated 15.3.1977; letter of acceptance of the Punjab and Sind Bank is dated 30.3.1977. This agreement was for a total sale consideration of Rs.12.50 lacs out of which Rs. 12.25 lacs was paid by Punjab and Sind Bank to Madan & Co. A joint application was also made by the parties before the DDA seeking transfer of the plot in favour of the Punjab and Sind Bank; possession of the land was also handed over to the Punjab and Sind Bank. However on 31.08.1985, M/s. Madan & Co. wrote a letter to Punjab and Sind Bank to treat the agreement as cancelled as on 23.09.1986 DDA had also threatened to make re-entry into the property.