NEMI CHAND GANGWAL Vs. HARISH KUMAR JHANWAR

JUDGEMENT

(1.) The petitioner as plaintiff filed civil suit for recovery of Rs. 1,09,309/- against the defendant/non-appli- cant in the Court of VIIth Additional District Judge, Bhopal. It was pleaded in the plaint that the plaintiff had a number of share certificates which he wished to dispose of and for this purpose contacted the defendant who dealt with the purcahse of shares. After due discussion the petitioner handed over the share certificates to the defendant and the defendant agreed for buying the shares for a total of Rs. 1,23,143/- and the defendant handed over a bill signed by him to the petitioner. Since the share certificates pertained to different companies the defendant handed over different cheques drawn on different banks. However, when the petitioners deposited the cheques in his account in the State Bank of India only one cheque amounting to Rs. 36,562.50/- was debited and the rest were dishonoured.

(2.) In this obtaining factual matrix the petitioner filed a complaint under section 138 of the Negotiable Instruments Act before the competent Court for prosecuting the defendant/ non-applicant. In spite of such proceedings having been initiated the petitioner did not get payment of outstanding amount in question. As no attempts were made by the non-applicant to liquidate the amount under compelling circumstances the petitioner was obligated to file the suit for recovery of the amount of Rs.1,09,309/- which included the principal sum of Rs.70,980/- and interest at the rate of 18% per annum.

(3.) After notice of the suit was received by the defendant he moved an application under Section 10 of the Code of Civil Procedure for stay of the suit. It was set forth in the said application that a complaint case under section 138 of the Negotiable Instruments Act has also been filed against him and as the cause of action is the same the suit should be stayed. The petitioner filed reply to the said application resisting the prayer of the non-applicant. The learned triat Judge upon hearing the learned counsel for the parties allowed the application and directed for stay of the suit.