Stay of later suit under Section 10 applies when the underlying controversy is substantially the same, despite additional claims.

Section 10 of the Code of Civil Procedure applies where the matter directly and substantially in issue is substantially the same in two suits, and the test is the identity of the underlying controversy rather than the form of the cause of action or the exact relief claimed. A later suit is not saved merely because it includes an additional claim, such as demurrage, if both proceedings arise from the same contract and transactions. A reservation of the right to sue separately does not prevent the stay where the core dispute remains common to both actions. On that basis, the later suit was properly stayed.

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Issues: Whether the later suit was liable to be stayed under Section 10 of the Code of Civil Procedure on the ground that the matter in issue was directly and substantially the same as in the previously instituted suit.

Analysis: Section 10 turns on identity of the matter directly and substantially in issue, not on the mere form of the cause of action or the precise relief claimed. The controlling inquiry is whether the subject matter in controversy between the parties is substantially the same in both suits. Even if the later suit introduces an additional claim, such as demurrage, that does not avoid Section 10 if the controversy arises out of the same contract and the same transactions. The reservation of a right to sue separately does not prevent the application of Section 10 where the underlying controversy remains common to both proceedings.

Conclusion: The later suit was properly stayed, and the order refusing stay was not sustainable.

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