Does Section 10 CPC stay an Order 37 summary suit?

No. The Supreme Court held Section 10 CPC does not apply to summary suits. In Order 37, 'trial' begins only after the court grants leave to defend.

What did the Supreme Court say about the word ‘trial’?

‘Trial’ was not to be given an overbroad meaning from other statutes. For Order 37, it refers to the stage after leave to defend, not the entire summary procedure.

What happened to the High Court’s stay order?

The Supreme Court set aside the Division Bench judgment and restored the Single Judge’s order, allowing the summary suit to proceed.

Why was Harish Chandra v. Triloki Singh not followed?

That ruling interpreted ‘trial’ under the Representation of the People Act. The Supreme Court said it was improper to import that meaning into Section 10 CPC/Order 37.

indian bank v maharashtra state co operative marketing federation ltd 1985 5 scc 69

Indian Bank v. Maharashtra State Co-Operative Marketing Federation Ltd.

Supreme Court of India 1985 (1985) 5 SCC 69 Civil Procedure 6–8 min read

Author: Gulzar Hashmi • India

Primary: Section 10 CPC, Order 37 Summary Suit, Stay of Suit

Secondary: Meaning of Trial, Letters of Credit, Bombay High Court

Published: 22 Oct 2025

Slug: indian-bank-v-maharashtra-state-co-operative-marketing-federation-ltd-1985-5-scc-69

Quick Summary

Main point: Section 10 CPC does not stop a summary suit under Order 37. The Supreme Court ruled that in the Order 37 framework, the trial starts only after the court grants leave to defend. A broad, all-stages meaning of “trial” was rejected. The Bombay High Court’s stay of the bank’s summary suit was set aside; the Single Judge’s order was restored.

Issues

Does the Section 10 CPC bar to proceed with a later suit apply to an Order 37 summary suit?
What does “trial” mean in the context of Order 37?

Rules

Section 10 CPC: Later suit may be stayed if the matter in issue is directly and substantially the same as in a prior suit.
Order 37 (Summary Procedure): The defendant must seek leave to defend. Only after leave is granted does the trial begin.
No Borrowed Meanings: Meanings taken from other statutes (e.g., election law) should not be used to expand “trial” for Order 37/Section 10 CPC.

Facts (Timeline)

The Federation asked Indian Bank to open an Irrevocable Letter of Credit in favour of a rice mill.

Later disputes led the Bank to file an Order 37 summary suit in Bombay.

Single Judge: granted conditional leave to defend (deposit condition) and dismissed tenant’s motion to stall the case.

Division Bench: stayed the summary suit under Section 10 CPC, reading “trial” broadly.

Supreme Court: Allowed the Bank’s appeals; set aside the High Court’s stay; restored the Single Judge’s order.

Timeline: LC request, Order 37 summary suit, Division Bench stay, Supreme Court reversal

Arguments

Appellant: Indian Bank

Order 37 has a distinct structure; “trial” arises only after leave to defend.
Section 10 should not freeze summary suits at the pre-trial stage.
Relying on election-law meaning of “trial” is misplaced.

Respondent: Federation

Broader sense of “trial” → Section 10 stay should apply to avoid parallel proceedings.
Division Bench supported a wide reading to cover entire suit continuum.

Judgment (Held)

The Supreme Court allowed the appeals. It held that Section 10 CPC does not apply to an Order 37 summary suit. The High Court erred by importing an external meaning of “trial”. The Single Judge’s order—including conditional leave—was restored, and the summary suit could continue.

Gavel with Order 37 file—Supreme Court restores Single Judge order

Ratio Decidendi

In Order 37, the trial commences after leave to defend is granted; pre-leave stages are not “trial”.
Section 10 CPC cannot be used to stay such pre-trial summary proceedings.
Meanings from other statutes (e.g., election law) should not control CPC interpretation here.

Why It Matters

The ruling protects the speed of Order 37 suits. Banks and businesses can use summary procedure without being stalled by a Section 10 stay based on a different suit between the parties.

Key Takeaways

Section 10 ≠ automatic stay for Order 37 suits.
“Trial” in Order 37 = post-leave stage.
Do not import meanings from non-CPC statutes.

Mnemonic + 3-Step Hook

Mnemonic: LEAVE → THEN TRIAL

Is it an Order 37 suit?
Has the court granted leave to defend?
If no, Section 10 stay claim fails.

IRAC Outline

Issue: Can a later Order 37 summary suit be stayed under Section 10 CPC?

Rule: Section 10 applies only where a later suit’s trial concerns the same matter; in Order 37, “trial” starts after leave.

Application: High Court’s broad reading halted the summary suit prematurely; SC rejected that reading.

Conclusion: Section 10 not applicable; summary suit proceeds.

Glossary

Order 37 CPC: Fast-track civil procedure for negotiable instruments and written contracts; requires leave to defend.
Section 10 CPC: Allows stay of a later suit when the matter in issue is directly and substantially the same as an earlier suit.
Leave to Defend: Permission granted to a defendant in an Order 37 suit to contest; may be conditional.