It denotes that a matter or case is being considered by court or judge, when two or more cases are filed between the same parties on the same subject matter, the competent court has the power to stay proceedings.
It aims to prevent courts of concurrent jurisdiction from simultaneously entertaining and adjudicating upon two parallel litigation with respect to the same cause of action, same subject matter and same relief claimed.
Thus it provides that, civil court should not proceed with the trial of any suit in which the matter in issue is directly and substantially in issue in a previously instituted suit is pending is competent to grant the relief sought [Indian Bank v. Maharastra State Cop. Marketing Federation Ltd., AIR 1998 SC 1952].
The conditions essential for stay of suits:-
- The matters must be two suits instituted at different times.
- The matter in issue in the latter suit should be directly and substantially in issue in the earlier suit.
- Such suit should be between the same parties.
- Each earlier suit is still pending either in the same court or in any other competent court but not before a foreign court.
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