PARTAP KRISHNA Vs. STERLING GENERAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) This is an appeal brought against an order passed by Mr. Jagdish Narain Kapur acting as a Tribunal under the Displaced Persons' Debt Adjustment Act of 1951, but I cannot see how this order the effect of which is the stay of proceedings pending before him, can be appealed against. I would therefore treat it only as an application under Article 227.

(2.) The petitioner brought a suit for recovery of Rs. 50,000 against the Sterling General Insurance Company on the basis of an insurance policy. He has also made an application under section 13 of the Displaced Persons Debt Adjustment Act and has claimed the same amount. The learned Judge has stayed the proceedings under section 151 of the Code of Civil Procedure, but the approach, in my opinion, seen is to be erroneous. Section 3 of the Displaced Persons' Debt Adjustment Act of 1951 overrides the provisions of all other laws and takes effect in preference to all other laws, or rules or orders and it also overrides any decree or order of a Court.

(3.) Besides, the stay of suits is governed by section 10 of the Civil Procedure Code. There is a previously instituted suit no doubt but the present proceedings cannot be called a suit, and therefore it cannot be stayed under section 10 of the Civil Procedure Code, but as according to section 3 of the Displaced Persons' Debt Adjustment Act any order passed in such proceedings is to take precedence over the decree or order of a Court, I am of opinion that these proceedings should go on and the previously instituted suit in the Court of one of the Subordinate Judges at Delhi which has been brought by the present appellant (Applicant) against the present respondent, shall remain stayed and to this order Mr. Parma Lal Bahl for the appellant (Applicant) agrees. In the result the present appeal is treated as a petition under Article 227 and is allowed. There will be no order as to costs in this Court.