Law:

Section:

(a) Constitution of Pakistan (1973)--- ----- Art. 185(3)-Leave to appeal to Supreme Court--Divergence in judicial opinion on legal question involved in case-Question also appearing to be of first impression in so far as Supreme Court con­cerned-Leave to appeal granted.-[Leave to Appeal to Supreme Court]. (b) Civil Procedure Code (V of 1908)----- ----S. 10-Stay of suit-No similarity between matters directly and substantially in issue in two suits and causes of action in two suits entirely different-Essential condition for application of S. 10 being not fulfilled, request for stay of previously instituted suit, held, rightly rejected. JUDGMENT MUHAMMAD GUL, J.-This appeal by special leave of this Court arises out 'of an application made by the appellants herein under section 10 of the Code of Civil Procedure in Suit No. 383 of 1970 by the respondent herein in the High Court at Karachi. 'The appellant No. 1 herein is a private limited Company engaged in the business of manufacturing sweets and confectionary in Islamabad. By an agreement dated 1-2-1969 it appointed the respondent with its head office at Karachi as its sole selling agent for its products. It appears that shortly after the above agreement, appellant No. 1 was in financial straits and therefore secured a loan of Rs. 1,50,000 from the respondent The loan was agreed to be repaid by monthly instalments of Rs, 25,000 as per arrangement set out in a letter dated 25-8-1969 which was confirmed by a subsequent letter dated 28-8-1969. By way of collateral security appellant, 2 and 3 pledged their shares of the nominal value of Rs. 2,00,000 in the share capital of appellant No. 1. On 4-9-1969 the respondent wrote to the appellants that unless the entire loan was repaid by 30-6-1970, the pledged shares with the respondent as collateral security for the loan shall be transferable to the respondent on its request. Subsequent to the above intimation, the agreement of agency between appellant 1 and the respondent was terminated, on 21-11-1969. By means of a letter of even date appellant 1 undertook to give a bank guarantee to the respondent to cover certain payments due to the respondent including the amount of the…

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