HDFC BANK LIMITED Vs. ASHIMA LIMITED

JUDGEMENT

(1.) By this petition under Articles 226 and 227 of the Constitution of India, the petitioner (original defendant) has called in question the order dated 27.11.2018 passed by the Commercial Court, Ahmedabad below Exhibit 166 filed by the petitioner under Section 10 read with Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as "the Code") in Commercial Civil Suit No.154 of 2016.

(2.) The respondent (original plaintiff) instituted a suit being Civil Suit No.1360 of 2003 against Bank of Bahrain and Kuwait (also referred to as BBK). Subsequently, the respondent-plaintiff instituted Civil Suit No.3213 of 2004 against the petitioner-defendant, which in turn came to be transferred to the Commercial Court, at Ahmedabad and re-numbered as Commercial Civil Suit No.154 of 2016. By the impugned order dated 27.11.2018, the application below Exhibit 166 came to be dismissed with costs of Rs.50,000/-. Being aggrieved, the petitioner has filed the present petition seeking the relief noted hereinabove.

(3.) Mr. Mihir Thakore, Senior Advocate, learned Counsel with Mr. Anip Gandhi, learned Advocate for the petitioner, submitted that the subsequent suit being Commercial Civil Suit No.154 of 2016 is closely connected with the first Suit being Civil Suit No.1360 of 2003. According to the learned Counsel, even if Section 10 of the Code may not be applicable to the facts of the present case; in exercise of inherent powers under Section 151 of the Code, stay can still be granted. It was submitted that the present case squarely falls within the ambit of Section 151 of the Code and therefore, the Commercial Court was not justified in rejecting the application filed by the petitioner.