As per case facts, the plaintiff, claiming to be the sole legal owner and trustee of a property, filed a suit for declaration of ownership and permanent injunction against the ...
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IN THE HIGH COURT AT CALCUTTA
CIVIL REVISIONAL JURISDICTION
APPELLATE SIDE
Before:
The Hon’ble Justice Hiranmay Bhattacharyya
CO 2084 of 2026
Exide Industries Ltd. & Anr.
Vs.
Dalhousie Holdings Ltd. & Ors.
with
CAN 1 of 2026
For the Petitioner no. 1 : Mr. Ratnanko Banerji, Sr. Advocate
Mr. Debnath Ghosh, Sr. Advocate
Ms. Urmila Chakraborty
….. advocates
For the Petitioner no. 2 : Mr. Soumabho Ghosh ….. advocate
For the Opposite Party no. 1 : Mr. Anirban Ray, Sr. Advocate
Mr. Debrup Bhattacharjee
Mr. Shubham Saha
Mr. Arjun Kumar Ray
Mr. Siddharth Singh
…… advocates
For the Opposite Party no. 7 : Mr. Jayanta Mitra, Sr. Advocate
Mr. Orijit Chatterjee
Ms. Swati Dalmia
Ms. Sabarni Mukherjee
Ms. Safura Ahmed …… advocates
Reserved on : 10.08.2026
Judgment on : 15.10.2026
Hiranmay Bhattacharyya, J.:-
1. This application under Article 227 of the Constitution of India is at the
instance of the defendant nos. 4 and 5 and is directed against an order
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being no. 5 dated 21.05.2026 passed by the learned District Judge 24
Parganas (S) at Alipore in Misc. Appeal No. 114 of 2026.
2. The order dated 20.04.2026 passed by the lear ned Civil Judge, Senior
Division, First Court at Alipore District 24 Parganas (S) in Title Suit no. 549
of 2026 thereby allowing the prayer for ad interim order of temporary
injunction was challenged by the petitioners in Misc. Appeal No. 114 of
2026. By the order impugned, the learned District Judge, rejected the prayer
for ad interim order of stay of operation of the ad interim order of injunction
passed by the learned Trial Judge.
3. The Opposite Party no. 1 filed a suit for declaration that the opposite party
no. 1 is sole legal owner of the suit property and for permanent injunction.
4. The case made out by the plaintiff/opposite party no. 1 in the plaint of the
said suit may be summarized hereunder as follows. For the sake of
convenience, parties are referred to according to their description in the Title
Suit.
The plaintiff became the sole legal owner of premises no. 13 Debendra
Lal Khan Road, Kolkata- 700027 by virtue of a registered deed of
conveyance dated 15.02.1962. The plaintiff holds the said property in
its capacity as trustee under a registered deed of declaration of trust
dated 15.11.1962. The lawful title in respect of the said property
vested exclusively upon the plaintiff. Plaintiff being the trustee held
the property for the benefit of the syndicate members while retaining
the exclusive legal title. As per the stipulations of the said deed of
trust any change or any transfer of the beneficial interest in any flat
could only be effected and recorded through a duly executed and
registered supplemental deed of trust with the participation of the
plaintiff as trustee. Five supplemental deeds of trust were executed
and registered from 1962 to 1982 recording its successive change in
the composition of the syndicate and the allocation of the flats. The
last of such registered supplemental deed of trust was the 5
th
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supplemental deed executed on 03.11.1982 which recorded the then -
current composition of the syndicate and the allocation of 34 specified
“Schedule B” flats among defendant nos. 1 to 7 as the then recognized
syndicate members. No registered instrument has been executed by
the plaintiff since 1982 recognizing or ratifying any change in the
composition of the syndicate or allocation of any flat. During the said
period the defendant nos. 1 to 7 have, without the knowledge, consent
or participation of the plaintiff as trustee, purported to transfer their
alleged beneficial interests in the suit flats, in favour of third parties,
through unregistered agreements which are void and legal ly
ineffective. Defendant no. 8 namely Minto Park Syndicate being an
association of such members has been an active participant in those
void transfers, collecting transfer fees from each of such transactions
while simultaneously withheld all information from the plaintiff being
the trustee. Plaintiff first became aware of the full extent of the
unauthorized transfers upon receipt of the reply dated 10.07.2025 of
the defendant no. 1 which for the first time disclosed that it had
entered into 7 unregistered agreements purpo rting to transfer its
interest in 7 flats to various third parties, in each case solely on the
basis of management committee resolutions of defendant no. 8 and
without any reference to or participation of the plaintiff as trustee. The
defendant nos. 2 to 7 have not intimated any change or transfers to
the plaintiffs in respect of the flats associated with their respective
allocations.
5. In the backdrop of such factual matrix, the plaintiff prayed for a declaration
that it is the sole legal owner of the suit property being no. 13, Debendra Lal
Khan Road, Kolkata- 700027 and for a further declaration that the
execution of a registered supplemental trust deed with the participation of
the plaintiff as trustee as the only recognized lawful mode of effecting or
recording any change in the trust structure, composition of the syndicate or
allocation or transfer of any interest in the suit flats and that any purported
arrangement, agreement or document not so executed and registered is
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incapable of creating, transferring or conferring any right, title or interest in
respect of the suit property and for a declaration that no right title or
interest of any nature whatsoever in respect of the suit flats or any portion
of the suit property subsists in the defendant nos. 1 to 7 or any person
claiming through or under them and that the plaintiff as trustee is entitled
to deal with the suit property free from any claim or interest of the
defendant nos. 1 to 7 or any person claiming through or under the syndicate
structure and for permanent injunction restraining the defendant nos. 1 to
8, the respective men agents, assigns and all persons claiming through or
under them from in any manner transferring, encumbering, alienating,
subletting, parting with possession of or creating any third party rights in
respect of the suit flats or any portion of the suit property and for other
consequential reliefs.
6. The opposite party filed an application under Order 39 Rule 1 and 2 of the
Code of Civil Procedure praying for an order of temporary injunction against
the defendant nos. 1 to 8 and/or any person claiming through them. The ad
interim order of injunction in similar terms was also prayed for in the
injunction application.
7. The case made out by the plaintiff in the injunction application is more or
less identical to the case made out in the plaint.
8. The learned Trial Judge by an order dated 20.04.2026 allowed the prayer for
ad interim injunction.
9. Being aggrieved by and dissatisfied with the aforesaid order the defendant
nos. 4 and 5/petitioners herein preferred the miscellaneous appeal. In
connection with the Miscellaneous Appeal the petitioners took out an
application for stay of operation of the ad interim order of temporary
injunction passed by the learned Trial Judge.
10. The learned District Judge, by the order impugned, rejected the prayer for
ad interim stay of operation of the order passed by the learned Trial Judge.
Being aggrieved the defendant nos. 4 and 5 have approached this Court.
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11. Mr. Banerjee, learned Senior Advocate appearing for the petitioners
contended that the Court is under a statutory obligation to direct issuance
of notice upon the opposite party before granting injunction. He further
contended that only in exceptional circumstances as contemplated under
Order 39 Rule 3 of the Code of Civil Procedure the Court can grant an
injunction without giving notice of the application to the opposite party but
in such cases the Court is duty bound to record reasons in writing for
passing an ex parte ad interim order of injunction.
12. Mr. Banerjee contended that the plaintiff has obtained the ex parte ad
interim order of injunction by suppressing the agreement dated 25.02.1961
between the plaintiff and several companies including the petitioners being
the syndicate members of Minto Park Syndicate. Mr. Banerjee contended
that the ownership of the flats allocated to the petitioners as mentioned in
the 2
nd
Schedule of the five registered supplemental agreements and more
particularly the 5
th
supplemental agreement dated 03.12.1982 stood
transferred and vested with all rights incident to ownership in favour of the
petitioners and the petitioners having been put in possession of the
respective flats and the consideration of the land and building have also
been paid by the petitioners to the original owners, the petitioners are
entitled to exercise all their rights as owners thereof and cannot be
restrained from exercising their ownership rights including dealing with the
flats in any manner whatsoever.
13. Mr. Banerjee contended that the learned Trial Judge without considering the
fact that the plaintiff failed to satisfy the urgency for passing an ex parte ad
interim order of injunction, passed a restraint order upon the defendant
nos. 1 to 8 from dealing with their property as a lawful owner thereof
without recording any reasons. Mr. Banerjee further submitted that the
learned Judge of the Appellate Court also failed to appreciate that the
learned Trial Judge passed an ex parte ad interim order of injunction
without recording any reasons as has been mandated in terms of proviso to
Order 39 Rule 3 of the Code of Civil Procedure.
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14. Mr. Banerjee submitted that an ex parte ad interim order of injunction can
be vacated by the High Court in exercise of powers under Article 227 of the
Constitution of India if the High Court finds that provisions contained in the
proviso to Order 39 Rule 3 of the Code of Civil Procedure has not been
satisfied. In support of such contention he placed reliance upon the decision
of the Hon’ble Supreme Court in the case of Time City Infrastructure &
Housing Ltd. v. State of U.P., reported at 2025 SCC OnLine SC 1674 .
15. Mr. Mitra, learned Senior advocate appearing for the opposite party no. 7
contended that there was no urgency for passing an ex parte ad interim
order of injunction by the learned Trial Judge. He contended that the 5
th
and last supplemental trust deed was executed way back in the year 1982
and the plaintiff approached the learned Trial Judge only in the year 2026
alleging that several flats are being transferred. He thus, contended that the
plaintiff was sleeping over its alleged rights from 1982 till 2026. He
contended that the plaintiff was well aware of the transfers made in the
meantime and have approached the Court at a belated stage with a frivolous
plea.
16. Mr. Mitra contended that as per the terms and conditions of the agreement
25.11.1961 each syndicate members are the beneficial owners of the
respective flats and they are in exclusive possession of such flats. He further
contended that in view of the specific dec laration made in the five
supplemental deeds of trust to which the plaintiff is a signatory, the plaintiff
do not have any right, title and interest in the suit flats. He further
contended that the members of the syndicate have paid the consideration
money for the purchase of the land and construction of the building
thereupon and are also in possession of the flats in question. He further
contended that the members of the syndicate are entitled to exercise their
rights of ownership in respect of the suit flats and the defendants cannot be
restrained from dealing with the flats in any manner whatsoever.
17. Mr. Mitra further contended that the ad interim order of injunction is liable
to be vacated for suppression of the agreement dated 25.11.1961 which is a
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relevant material. Mr. Mitra contended that the learned District Judge failed
to perform his duty as an appellate court by not staying the operation of the
ex parte ad interim order of injunction which was passed by ignoring the
mandate of the proviso to Order 39 Rule 3 of the Code of Civil Procedure.
18. Mr. Ray learned Senior Advocate appearing for the plaintiff seriously
disputed the contentions of Mr. Banerjee and Mr. Mitra. He contended that
after execution and registration of the last and 5
th
supplemental deed of
trust dated 03.11.1982 transfers were made by the defendant nos. 1 to 7
without the knowledge or participation of the plaintiff as the trustee. He
further contended that the plaintiff first became aware of the unauthorized
transfers upon receipt of the reply dated 10.07.2025 of the defendant no. 1
wherein it was disclosed that seven unregistered agreements have been
entered into purporting to transfer its interest in seven flats to various third
parties. He contended that in the plaint as well as in the injunction
application the plaintiff has narrated the facts and circumstances
necessitating passing of an ex parte ad interim order of injunction.
19. Mr. Ray contended that the learned Trial Judge after being satisfied with the
urgency involved in the matter passed an ex parte ad interim order of
injunction. He further submitted that the learned District Judge being
conscious of the scope and nature of an appeal under Order 43 Rule 1(r) of
the Code of Civil Procedure rightly refused to pass an ad interim stay of
operation of the order of injunction. He contended that in a Miscellaneous
Appeal arising out of an order granting temporary injunction, no stay of
operation of such an order should be granted by the appellate court. In
support of such contention he placed reliance upon the decision of the co-
ordinate benches in the case of In Re: Goutam Kumar Hada vs State
reported at (1994) ILR (1) Cal 72; Mobassor Hussain and ors. vs. Manik
Chandra Pal reported at (2005) 4 CHN 499; order dated 13.02.2020 passed
in CO 118 of 2014 in the case of Suman Biswas vs. Saroj Biswas and
another; order dated 06.10.2023 in CO 2890 of 2023 in Aniruddha Lahiri
and another vs. Anand Saraf and another; order dated 04.02.2026 in CO
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4350 of 2024 in the case of Smt. Rekha Bittar Hazra alias Rekha Bittar
vs. The Chairman, Bolpur Municipality.
20. Mr. Ray further contended that flats were transferred by the defendants
without the knowledge and participation of the plaintiff which amounts to
fraud being perpetuated by the defendants. He further contended that the
fraud perpetuated by the defendants were detected only upon receipt of the
reply letter dated 10.07.2025 and immediately thereafter the plaintiffs have
approached the Court by filing a suit and prayed for an order of injunction.
In support of his contention that a party should not be penalized for failing
to initiate legal proceedings when the facts and material necessary for him
to do so have been willfully concealed, Mr. Ray placed reliance upon a
decision of the Hon’ble Supreme Court in the case of Pallav Seth vs.
Custodian and Ors reported at (2001) 7 SCC 549.
21. Mr. Ray further contended that the scope of interference by the appellate
court in an appeal against an order of temporary injunction is very limited
and stringent and such interference is permissible if the order of injunction
passed by the learned Trial Judge suffers from perversity rather than a mere
error of fact or law. In support of such contention he placed reliance upon a
judgment of the Hon’ble Supreme Court delivered on 02.11.2024 in Civil
Appeal No. 13001 of 2024 in the case of Ramakant Ambalal Choksi vs.
Harish Ambalal Choksi reported at (2024) INSC 910. Mr. Ray further
contended that while exercising the supervisory jurisdiction under Article
227 of the Constitution of India the High Court has to see whether the
inferior court or Tribunal has proceeded within its parameters and not to
correct an error apparent on the face of the record, much less of an error of
law. In support of such contention he placed reliance upon a decision of the
Hon’ble Supreme Court in the case of Sadhana Lodh vs. National
Insurance Company and Another reported at (2003) 3 SCC 524.
22. Heard the learned advocates for the parties and perused the materials
placed.
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23. The question that arises for consideration is whether the learned Judge of
the Appellate Court was justified in rejecting the prayer for ad interim stay
of operation of the order of injunction passed by the learned Trial Judge.
24. The three well established principles for grant or refusal of temporary
injunction are as follows-
(i) Whether the petitioner has made out a prima facie case
(ii) Whether balance of convenience is in his favour and
(iii) Whether the petitioner would suffer irreparable loss and injury.
25. It is now judicially settled that in order to make out a prima facie case the
plaintiff need not establish his title. It is enough if the plaintiff can show
that he has raised a fair question as to the existence of a right which he
alleges. For grant of interlocutory injunction, the Court has to see that there
is a bona fide contention between the parties and then on which side, in the
event of success, lies the balance of convenience. At the interlocutory stage
the Court may only consider whether triable issues have been raised by the
plaintiff and whether substantial questions are to be investigated.
26. The Hon’ble Supreme Court in Dalpat Kumar vs. Prahlad Singh reported at
(1992) 1 SCC 719 held that existence of the prima facie right and the
infraction of the enjoyment of his property or the right is a condition
precedent for the grant of temporary injunction. Prima facie case is not to be
confused with prima facie title which has to be established on evidence at
the trial. Prima facie case is substantial question raised, bona fide which
needs investigation and a decision on merits. The Hon’ble Supreme Court
held thus-
“5. Therefore, the burden is on the plaintiff, by evidence aliunde by
affidavit or otherwise, to prove that there is “a prima facie case” in his
favour which needs adjudication at the trial. The existence of the prima
facie right and infraction of the enjoyment of his property or the right is
a condition precedent for the grant of temporary injunction. Prima facie
case is not to be confused with prima facie title which has to be
established on evidence at the trial. Only prima facie case is a
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substantial question raised, bona fide, which needs investigation and a
decision on merits. Satisfaction that there is a prima facie case by itself
is not sufficient to grant injunction. The Court further has to satisfy that
non-interference by the court would result in “irreparable injury” to the
party seeking relief and that there is no other remedy available to the
party except one to grant injunction and he needs protection from the
consequences of apprehended injury or dispossession. Irreparable
injury, however, does not mean that there must be no physical
possibility of repairing the injury, but means only that the injury must
be a material one, namely one that cannot be adequately compensated
by way of damages. The third condition also is that “the balance of
convenience” must be in favour of granting injunction. The Court while
granting or refusing to grant injunction should exercise sound judicial
discretion to find the amount of substantial mischief or injury which is
likely to be caused to the parties, if the injunction is refused and
compare it with that which is likely to be caused to the other side if the
injunction is granted. If on weighing competing possibilities or
probabilities of likelihood of injury and if the Court considers that
pending the suit, the subject matter should be maintained in status quo,
an injunction would be issued. Thus, the Court has to exercise its sound
judicial discretion in granting or refusing the relief of ad interim
injunction pending the suit.
(emphasis supplied)
27. Ordinarily before granting injunction, court has to direct notice of the
application to be given to the opposite party. However, only in exceptional
cases where it appears to the Cour t that the object of granting the
injunction would be defeated by the delay in directing notice of the
application to be given to the opposite party before granting an injunction,
an injunction can be granted without giving notice of the application to the
opposite party. However, in such exceptional cases the proviso to Order 39
Rule 3 comes into play whereby the Court is under an obligation to record
the reasons for its opinion that the object of granting the injunction would
be defeated by the delay and require the applicant to take steps as provided
under Clause (a) and (b) to the proviso.
28. Recording of reasons as per the proviso to Order 39 Rule 3 of the Code of
Civil Procedure has been held to be mandatory by the Hon’ble Supreme
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Court in the case of Shiv Kumar Chadha v. Municipal Corpn. of Delhi,
reported at (1993) 3 SCC 161 the Hon’ble Supreme Court held thus-
“34. The imperative nature of the proviso has to be judged in the context
of Rule 3 of Order 39 of the Code. Before the proviso aforesaid was
introduced, Rule 3 said “the court shall in all cases, except where it
appears that the object of granting the injunction would be defeated by
the delay, before granting an injunction, direct notice of the application
for the same to be given to the opposite party”. The proviso was
introduced to provide a condition, where court proposes to grant an
injunction without giving notice of the application to the opposite party
being of the opinion that the subject of granting injunction itself shall be
defeated by delay. The condition so intro- duced is that the court “shall
record the reasons” why an ex parte order of injunction was being
passed in the facts and circumstances of a particular case. In this
background, the requirement for recording the reasons for grant of ex
parte injunction cannot be held to be a mere formality. This requirement
is consistent with the principle, that a party to a suit, who is being
restrained from exercising a right which such party claims to exercise
either under a statute or under the common law, must be informed why
instead of following the requirement of Rule 3 the procedure prescribed
under the proviso has been followed. The party which invokes the
jurisdiction of the court for grant of an order of restraint against a party,
without affording an opportunity to him of being heard, must satisfy the
court about the gravity of the situation and court has to consider briefly
these factors in the ex parte order. We are quite conscious of the fact
that there are other statutes which contain similar provisions requiring
the court or the authorities concerned to record reasons before
exercising power vested in them. In respect of some of such non -
compliance therewith will not vitiate the order so passed. But same
cannot be said in respect of the proviso to Rule 3 of Order 39. The
Parliament has prescribed a particular procedure for passing of an
order of injunction without notice to the other side under exceptional
circumstances. Such ex parte orders have far-reaching effect, as such a
condition has been imposed that court must record reasons before
passing such order. If it is held that the compliance with the proviso
aforesaid is optional and not obligatory, then the proviso by the
Parliament shall be a futile exercise and that part of Rule 3 will be a
surplusage for all practical purposes. Proviso to Rule 3 of Order 39 of
the Code, attracts the principle that if a statute requires a thing to be
done in a particular manner it should be done in that manner or not all.”
(emphasis supplied)
29. It, therefore, follows that recording of reasons by the Court for its opinion
that the object of granting the injunction would be defeated by the delay is
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mandatory in case the Court proposes to grant an injunction without giving
notice of the application to the opposite party. However, recording of reasons
as to the urgency is in addition to the satisfaction of the Court of the three
well settled principles for grant of injunction in case a Court is inclined to
pass an ad interim order of injunction.
30. In the case on hand the learned Trial Judge noted the case made out by the
plaintiff in the injunction application as well as the documents produced by
the plaintiff in support of the case made out in the injunction application.
After considering the registered deed of conveyance dated 15.02.1962 and
the declaration of the trust dated 15.11.1962 supported by KMC Property
Tax Receipt dated 31.03.2026 standing in the plaintiff’s name, the learned
Trial Judge arrived at a finding that the plaintiff’s title as registered owner
and trustee of the suit property has been established. The learned Trial
Judge also took note of the admission made by the defendant in the reply
letter dated 10.07.2025 that the interest of the defendants is that of “limited
beneficial interest” and upon going through the said reply letter the learned
Trial Judge returned a finding that all seven transfers were effected solely on
the basis of management committee resolution of the defendant no. 8
without any participation of the plaintiff as trustee. The learned Trial Judge
further took note of the various clauses in the unregistered agreements
dated 09.10.2015 and 21.06.2008 that were placed on record and arrived at
a finding that the said agreements expressly acknowledges that a registered
supplemental deed of trust with the participation of the trustees was
required to complete the transfer which admittedly was never executed. The
learned Trial Judge further observed that the said agreements being
unregistered and executed on a stamp paper of Rs. 100/- only renders them
void and legally ineffective in view of Section 54 of the Transfer of Property
Act, 1882 and Section 17 of the Registration Act, 1908. The learned Trial
Judge further observed that the defendant no. 8’s withdrawal of the forged
assessment form submitted to KMC is itself an admission that the said
document was not a valid document. The learned Trial Judge further
recorded a prima facie view that the persons in occupation through
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unregistered instrument cannot be said to have any recognized right and
title to resist the claim of the plaintiff as sole registered owner and trustee
and the balance of convenience favours protection of the plaintiff’s title
during the pendency of the suit.
31. The learned Trial Judge in details have recorded as to how the plaintiffs
have established their prima facie case. The learned Trial Judge further held
that the balance of convenience and inconvenience is entirely with the
plaintiff. The learned Trial Judge further held that any further dealing,
encumbrance or creation of third party interests in respect of the “Schedule
B” flats will give rise to complications incapable of being undone by a money
decree alone. The learned Trial Judge further noted that the plaintiff has
already submitted a chain of at least seven disclosed unregistered transfers
in respect of the flats of defendant no. 1 alone. The learned Trial Judge
ultimately held that the plaintiff will suffer irreparable loss and injury if
injunction is not granted.
32. The learned Trial Judge after recording in details that the three well settled
principles for grant of injunction namely prima facie case to go for trial;
balance of convenience and inconvenience and irreparable loss and injury
has been satisfied in the instant case proceeded to consider the aspect of
urgency. The learned Trial Judge held that if the notice is given of the
present suit to the defendants, it may further accelerate the dealings and
transfers in respect of the suit flats, create additional third party interest
and introduce further complication that would defeat the very relief sought
for in the said suit. The learned Trial Judge after recording that there is
sufficient cause for the plaintiff to move ex parte and after noting that the
title of the plaintiff is clear and the admission of the defendants is on record,
delay will defeat justice unless an immediate ad interim injunction is
passed.
33. Thus, the learned Trial Judge considered all the aspects including urgency
that are necessary for passing an ad interim order of injunction.
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34. This Court shall now consider whether the learned District Judge exercised
its appellate powers in accordance with law or not. Before answering the
said question it would be apt to take note of the scope of an appeal against
grant or non-grant of interim injunction.
35. The Hon’ble Supreme Court in Wander Limited vs. Antox India Pvt. Ltd.
reported at 1990 Supp SCC 727 held that in an appeal against an order of
interim injunction the appellate court will not interfere with the exercise of
discretion of the Court of the first instance and substitute its own
discretion, except where the discretion has been shown to have been
exercised arbitrarily or capriciously or perversely or where the Court has
ignored the settled principles of law regulating grant or refusal of
interlocutory injunctions. The appellate Court will not reassess the material
and seek to reach a conclusion different from the one reached by the Court
below. If the discretion has been exercised by the appellate court reasonably
and in a judicial manner, the fact that the appellate court would have taken
a different view may not justify interference with the trial courts exercise of
discretion.
36. The Hon’ble Supreme Court in Ramakant Ambala Choksi (supra) after
noticing the decision in Wanders Limited (supra) and various other
subsequent decisions held that with the passage of time the test laid down
in Wanders Limited (supra) as regards the scope of interference has been
more stringent over a period of time. The Hon’ble Supreme Court held that
the emphasis is now more on perversity rather than a mere error of fact or
law in the order granting injunction pending the final adjudication of the
suit. The Hon’ble Supreme Court held thus-
“32. The appellate court in an appeal from an interlocutory order
granting or declining to grant interim injunction is only required to
adjudicate the validity of such order applying the well settled principles
governing the scope of jurisdiction of appellate court under Order 43 of
the CPC which have been reiterated in various other decisions of this
Court. The appellate court should not assume unlimited jurisdiction and
should guide its powers within the contours laid down in the Wander
(supra) case.”
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37. The co-ordinate bench in Goutam Kumar Hada (supra) after noticing that
the scope of a Miscellaneous Appeal arising out of an order granting or
refusing to pass an ad interim order of injunction in the suit is whether the
order granting ad interim injunction passed by the learned Trial Judge is
legal or not, held that such an appeal should be heard expeditiously by the
lower appellate court but the lower appellate court should not pass any ad
interim order resulting practically allowing the appeal itself at the initial
stage without hearing the other side. The aforesaid proposition of law has
been reiterated in Mobasser Hussain (supra), Suman Biswas (supra),
Aniruddha Lahiri (supra) and Rekha Bitter Hazra (supra).
38. It logically follows from the aforesaid discussion that a Miscellaneous Appeal
arising out of order granting ad interim order of injunction should be
disposed of expeditiously but normally no stay of operation of the order
granting temporary injunction should be passed resulting practically
allowing the appeal itself at the initial stage.
39. Turning back to the impugned order this Court finds that the learned Judge
of the appellate court specifically noted that the learned Trial Judge
considered the documents that were placed on record and after perusing the
order of the learned Trial Judge held that the learned Trial Judge have
considered materials in its entirety with reference to urgency pleaded in the
injunction application and passed an ad interim injunction considering the
basic parameters namely prima facie case, balance of convenience and
inconvenience and irreparable loss and injury.
40. After going through the impugned order this Court is of the considered view
that the learned Judge of the appellate court was prima facie satisfied that
the learned trial judge passed the ad interim order of injunction keeping in
mind the proviso to Order 39 Rule 3 of the Code of Civil Procedure and the
settled principles of grant of injunction.
41. To the mind of this Court, the refusal to pass an ad interim order of stay of
operation of the order of injunction passed by the learned Trial Judge is in
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consonance with the proposition of law laid down in Goutam Kumar Hada
(supra).
42. At this stage it would be relevant to take note of the submission of the
learned senior counsels for the petitioners and the opposite party no. 7 that
the ad interim order of injunction was obtained by the plaintiffs by
suppressing a material document. Order 39 Rule 4 of the Code of Civil
Procedure provides for a remedy to a person dissatisfied with an order of
injunction in case a party has knowingly made a false and misleading
statement in relation to a material particular and the injunction was granted
without giving notice to the opposite party. In such a case upon an approach
being made by a party dissatisfied with the order of injunction, the Court in
exercise of its powers under Order 39 Rule 4 of the Code can vacate,
discharge, vary or set aside such order of injunction.
43. In the case on hand, the petitioners instead of approaching the learned Trial
Judge with an application under Order 39 Rule 4 of the Code alleging
suppression of material facts, made out a case of suppression in an
application for stay in the Miscellaneous Appeal.
44. As to whether the issue of alleged suppression of certain material
documents can be allowed to be raised in a Miscellaneous Appeal from an
ad interim order of injunction passed by the learned Trial Judge, this Court
refrains from making any observation on such issue at this stage. However,
since an allegation of suppression of material fact has been made out in the
stay application, an opportunity should be afforded to the plaintiff to deal
with such allegation.
45. This Court finds that the learned District Judge afforded an opportunity to
the respondents in the Miscellaneous Appeal to file written objection to the
stay application and fixed a date for hearing of the stay application and the
hearing of the appeal.
46. In Sadhana Lodh (supra), the Hon’ble Supreme Court held that the
supervisory jurisdiction of the High Courts under Article 227 of the
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Constitution of India is confined only to see whether the inferior court or
tribunal has proceeded within its parameters and not to correct an error
apparent on the face of the record, much less of an error of law.
47. In the case on hand the Miscellaneous Appeal and the stay application are
pending. Only the prayer for ad interim stay of operation of the order of
injunction was refused by the impugned order. To the mind of this Court,
the learned Judge of the Appellate Court proceeded within its parameters.
48. In Time City Infrastructure and Housing (supra), the Hon’ble Supreme
Court noted that the Hon’ble High Court under Article 227 of the
Constitution interfered with an order of injunction on the ground that the
Trial Court has passed the order in a cursory manner and has not recorded
any existence of a prima facie case, the balance of convenience or irreparable
hardship. No reasoning as has been mandated in terms of proviso to Order
39 Rule 3 of the Code of Civil Procedure has been recorded. The Hon’ble
Supreme Court after reiterating the proposition of law laid down in Shiv
Kumar Chadha (supra) that the proviso to Order 39 Rule 3 is mandatory,
held that if the Court is satisfied of non-compliance with the provisions
contained in the proviso, the ex parte order of injunction can be vacated.
The said decision is distinguishable on facts as this Court has already
observed that the learned Trial Judge has recorded reasons as to the
satisfaction of the tests laid down for grant of ad interim injunction. Thus,
the said reported decision cannot come to the aid of the petitioner.
49. In view of the aforesaid discussion this Court holds that the learned Judge
of the appellate court was right in rejecting the prayer for ad interim order of
stay of the order of injunction passed by the learned trial Judge.
50. For all the aforesaid reasons C.O. No. 2084 of 2026 stands dismissed. There
shall be, however, no order as to costs.
51. The learned Judge of the appellate court is requested to make an endeavor
to dispose of the Misc. Appeal along with connected applications strictly in
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accordance with law and as expeditiously as possible without granting
unnecessary adjournments to either of the parties.
52. Before parting, it is clarified that the finding recorded hereinbefore are only
to support the ultimate conclusions in this order and the learned Judge of
the Appellate Court shall proceed to decide the Miscellaneous Appeal and
the connected application in accordance with law and without being
influenced by the aforesaid observations.
53. Urgent photostat certified copies, if applied for, be supplied to the parties
upon compliance of all formalities.
(HIRANMAY BHATTACHARYYA, J.)
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