Section 10 CPC and inherent powers: later suit not stayed, and connected suits may be consolidated to avoid duplication.
Section 10 CPC applies only when the matter in the later suit is directly and substantially in issue in the earlier suit between the same parties; where one suit concerns an apprehended breach and the other concerns alleged actual non-performance and damages, the issues are not identical and the later suit is not stayed. The court may also use inherent powers to consolidate connected suits arising from the same transaction when no legal prohibition exists, especially to avoid duplicated evidence, unnecessary delay, expense, and inconvenience to witnesses, and a defendant's objection will not defeat consolidation absent shown legal prejudice.
Issues: (i) Whether the subsequently instituted suit was liable to be stayed under Section 10 of the Code of Civil Procedure, 1908 on the ground that the matter in issue was directly and substantially in issue in the previously instituted suit. (ii) Whether the Court could direct consolidation of the two suits under its inherent powers despite objection by the defendant.
Issue (i): Whether the subsequently instituted suit was liable to be stayed under Section 10 of the Code of Civil Procedure, 1908 on the ground that the matter in issue was directly and substantially in issue in the previously instituted suit.
Analysis: Section 10 operates where the matter in issue in the later suit is directly and substantially in issue in the earlier suit between the same parties, so as to avoid parallel adjudication and conflicting decisions. The two suits here arose from the same contract, but the earlier suit was confined to restraining an apprehended breach by diversion of the machines, whereas the later suit was founded on alleged actual non-performance and claimed damages. The field of controversy was therefore not identical, and a decision in the earlier suit would not conclude the later suit as a whole on the principle of res judicata.
Conclusion: The later suit was not required to be stayed under Section 10, and the contention failed.
Issue (ii): Whether the Court could direct consolidation of the two suits under its inherent powers despite objection by the defendant.
Analysis: In the absence of any specific prohibition, the Court may exercise inherent powers to make an order necessary for the ends of justice and to prevent abuse of process. Since both suits were between the same parties and arose from the same transaction, consolidation would avoid duplication of evidence, save public time and expense, and reduce inconvenience to witnesses. The defendant's objection did not show legal prejudice sufficient to defeat such an order.
Conclusion: The Court had power to direct consolidation of the suits, and the objection was rejected.
Final Conclusion: The revision failed because the later suit was not hit by Section 10 and the order consolidating the connected suits was within the Court's inherent jurisdiction.
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