TMI Blog2006 (6) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... he Company has filed the present application for stay of the proceedings before the Company Law Board, in view of the mandatory provisions of Section 10 of the Code of Civil Procedure, 1908, until disposal of the civil suit in C.S. No. 128/2003 on the file of the High Court of Judicature at Madras. more so when, the subject matter in the company petition as well as the civil suit is materially the same. 2. Shri R. Shanmugam learned Senior Counsel in support of the stay application submitted: The Company and its Managing Director have approached the High Court of Madras as early as in February. 2003 seeking for a decree and judgment in C.S. No. 128/2003 against the petitioner herein and his two sons to declare that the petitioner, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not maintainable in law or on facts of the present case. The petitioner suppressed material facts without disclosing the relevant portion of the order dated 21.03.2003 of the High Court of Madras made in O.A. No. 192/2003 in C.S. No. 128/2003. which reads thus: ... the application in O.A.No. 192 of 2003 (for grant of interim injunction) is allowed. Consequently, Application in Appln. No. 1405 of 2003 (for vacating the order of interim injunction) is rejected. But this will not stand in the way of the respondents to get a clarification from this Court, if they are able to get any favourable order from the concerned authorities under the Companies Act regarding the resignation and sale of shares as alleged by the plaintiff. Hence, the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n parties under whom they or any of them claim litigating under the same title where such suit is pending in the same or any other Court in India having jurisdiction to grant the relief claimed, or in any Court beyond the limits of India established or continued by the Central Government and having like jurisdiction, or before the Supreme Court. Explanation:- The pendency of a suit in a foreign Court does not preclude the Courts in India from trying a suit founded on the same cause of action. The object of Section 10 is to avoid the conflicting decisions of two competent courts over the same matter and save the time of the court, where the subsequent proceedings are initiated in the same manner. By virtue of Section 10, a court shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudicate the genuineness or otherwise of the letters purportedly given by the petitioner discussed supra. The specific defence raised before the civil court at Vishakapatnam is that the petitioner herein had resigned from his directorship on 09.11.1998 and that Form No. 32, was filed with Registrar of Companies, Chennai on 04.12.1998. The petitioner sold away his shares on 06.11.2000 and the transfer was effected on 27.11.2000 in the name of the third respondent before the Civil Court. The prima facie findings in the interlocutory proceedings, as borne out by the order dated 21.03.2003 made in I.A. No. 28/2003 in O.S. No. 81/2003 are that the petitioner is not the director since 02.12.1998 and that he has subsequent to 27.11.2000 no shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... torship. The civil suit filed before the High Court is prior in point of time, which is pending. The High Court, where the civil suit has been instituted is empowered to grant the reliefs claimed in the subsequent proceedings before the CLB. The decision of the High Court will definitely affect the decision in the present company petition, which is later in point of time. The disputed facts, cause of action and vital documents before the High Court and the CLB being common, any decision by the CLB on the very same issues which are before the High Court, may probably result in conflicting decisions which must, therefore, be desisted by the CLB. Section 10 would therefore, in my view, apply where the issues in both the proceedings directly an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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