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CODE OF CIVIL PROCEDURE

M/S Uttra Drytech Engineering Private Limited Vs M/S Niraj


Pertrochemicals Ltd.
AIR 1994 Andra Pradesh 33

CHANAKYA NATIONAL LAW UNIVERSITY,


Nyaya Nagar, Patna

Submitted by- Radhika Prasad Supervised By –


Roll no. – 2139 Dr. Meeta Mohini
BA LLB (3rd ) YEAR
2019-2024
INTRODUCTION
This civil miscellaneous appeal is filed against the order of the Second Additional Judge, City
Civil Court, Hyderabad. The learned Judge allowed the said application filed by the plaintiff
thereby making the interim injunction granted on 24-9-1991 absolute, restraining the
defendant from disposing of or alienating the petition schedule properties including the
furniture, fittings, machinery, etc., till the disposal of the suit.

FACTS: Original Suit was filed by the plaintiff against the defendant for recovery of Rs. 70
lakhs with future interest thereon for the loss sustained by it for breach of contract by the
defendant. Application for injunction was filed in the said suit, which was allowed as stated
above. Aggrieved by the same, the defendant preferred this appeal.

The main contention of the appellant is that the learned Judge having held that all the three
requirements under Order XXXIX, Rule 1 of the Civil Procedure Code for grant of injunction
are not satisfied, erred in granting injunction in exercise of inherent powers conferred under
S. 151 of the Civil Procedure Code. It is further contended for the appellant that there is no
basis for the allegation of the respondent that it could not be possible to recover the suit
amount in the event of its success in the suit; that the properties shown in the petition
schedule are not subject matter of the suit; that in the main suit there is no relief sought for
injunction against the appellant preventing him from alienating the properties; and therefore,
the petition for injunction is untenable. The learned counsel further con- tended that in spite
of a detailed counter filed and the relevant material produced, the Court below failed to
examine the matter in detail for arriving at the conclusion that prima facie case is made out.

It is a settled proposition of Law that where there is specific provision for grant of the relief
sought, Courts need not resort to exercise inherent powers vested under Section 151 of the
Civil Procedure Code. The Supreme Court also laid down the Law stating that the Court shall
exercise inherent jurisdiction only when they consider it absolutely necessary for the ends of
justice. The Supreme Court also held that the said discretion has to be applied in cases with
extreme caution and only in very rare cases.

That apart, the plaintiff filed the present suit for recovery of about Rs. 70 Lakhs. It is
represented that the defendant also had earlier filed another suit in Bombay High Court for
recovery of about Rs. 48 Lakhs towards the expenses incurred by it due to the delayed
retirement of documents and also demurrage charges for about three months. A specific plea
is taken to the said effect by the defendant in its counter-affidavit stating that the present suit
filed is a counter-blast to the one filed by the defendant in Bombay Court. All of the above
arguments were contended by the appellant in his appeal.

The appellate court , which is the High Court said , in a given case, it is the bounden duty of
the Court to examine in detail with reference to the specific material on record to find out
whether prima facie case is made out or not; in whose favour does the balance of convenience
lie; and whether the petitioner suffers any irreparable loss if injunction is refused. In the
present case, as many as twenty six documents for the petitioner and the same number of
documents for the respondents were exhibited before the trial Court. But, the Court below
without examining the matter in detail, granted injunction in favour of the plaintiff merely
saying that prima facie case is made out apart from stating that the two other requirements are
also fulfilled. Therefore, in view of the foregoing, the court allowed the appeal and set aside
the impugned order and remanded the matter back for fresh hearing and disposal in
accordance with Law.

JUDGMENT: The High Court allowed the appeal and set aside the impugned order and
remanded the matter back for fresh hearing and disposal in accordance with Law, It directed
the case to be transferred to the file of the IV Additional Judge, City Civil Court. Hyderabad.
It said that the said Court will dispose of the application afresh on its own merits and in the
light of the observations made above and after hearing both the parties, within a period of two
months from the date of receipt of this order.

PROVISIONS:

Section 151 – Saving of inherent powers of court - Nothing in this Code shall be deemed to
limit or otherwise affect the inherent power of the Court to make such orders as may be
necessary for the ends of justice, or to prevent abuse of the process of the Court.

Order 39 Rule 1 – Cases in which temporary injunction may be granted - Where in any
Suit it is proved by affidavit or otherwise—

(a) that any property in dispute in a suit is in danger of being wasted, damaged or alienated by
any party to the suit, or wrongfully sold in execution of a decree, or

(b) that the defendant threatens, or intends, to remove or dispose of his property with a view
to defrauding his creditors,
(c) that the defendant threatens to dispossess the plaintiff or otherwise cause injury to the
plaintiff in relation to any property in dispute in the suit,

the court may by Order grant a temporary injunction to restrain such act, or make such other
Order for the purpose of staying and preventing the wasting, damaging, alienation, sale,
removal or disposition of the property or dispossession of the plaintiff, or otherwise causing
injury to the plaintiff in relation to any property in dispute in the suit] as the court thinks fit,
until the disposal of the suit or until further orders.

CHAPTERIZATION:

1) INTRODUCTION ( INCLUDING FACTS)


2) PRINCIPLE AND SCOPE OF SECTION 151 & ORDER 39 RULE 1
3) RELEVANT CASE LAWS
4) ANALYSIS OF JUDMENT
5) CONCLUSION

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