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Issues involved: Interpretation of Section 10 of the CPC in relation to summary suits filed under Order 37.
Summary: The Supreme Court considered the applicability of Section 10 of the CPC to a summary suit filed under Order 37. The case involved a dispute between a Federation and a Bank regarding payments under an Irrevocable Letter of Credit. The Bank filed a summary suit against the Federation, who had also initiated a suit against the Bank prior to the summary suit. The Single Judge held that Section 10 applies only to regular suits, not summary suits, and allowed the Federation to defend conditionally. The Division Bench, however, held that Section 10 applies to summary suits and stayed the proceedings. The Court analyzed the meaning of "trial" in Section 10, emphasizing that it aims to prevent concurrent trials and inconsistent findings. It clarified that the word "trial" should be interpreted in the context of summary suits under Order 37, where the trial begins after the defendant is granted leave to defend. The Court disagreed with the Division Bench's interpretation and set aside their judgment, restoring the Single Judge's order. The Court highlighted that Section 10 is a procedural provision to avoid simultaneous trials and conflicting decisions. It noted that the word "trial" should be understood in the context of summary suits under Order 37, where the trial commences post the defendant obtaining leave to defend. The Court emphasized that the purpose of Section 10 is not to bar the institution of suits but to regulate the proceedings to prevent conflicting judgments. The judgment clarified that the Division Bench erred in applying a different interpretation and reinstated the Single Judge's decision, emphasizing the specific nature of summary suits under Order 37. In conclusion, the Supreme Court allowed the appeals, overturned the Division Bench's judgment, and reinstated the Single Judge's order. The Court emphasized that the word "trial" in Section 10 should be construed in the context of summary suits under Order 37, where the trial begins after the defendant is granted leave to defend. The decision aimed to harmonize the provisions of Section 10 and Order 37 to achieve their respective objectives without conflicting interpretations.
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