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2004 Supreme(SC) 1331

S.B.SINHA, N.S.HEGDE
Maharwal Khewaji Trust (Regd) . Faridkot – Appellant
Versus
Baldev Dass – Respondent


Judgement Key Points

Key Points: - The Court held that unless a case of irreparable loss or damage is made out, the court should not permit alteration of the nature of the property, including alienation. (!) - Interim injunctions restraining alienation or construction were improperly allowed where no irreparable loss was shown, and the trial court’s order should be restored. (!) - The High Court and lower appellate court erred in permitting the respondent to change the nature of the property (construction and alienation) during pendency of the suit; if the appellant’s claim is found baseless, damages may be awarded. (!) - The case discusses the balance between protecting status quo and allowing better use of property pending litigation, emphasizing irreparable loss as a prerequisite for changing status quo. (!) (!) - The appeal was allowed, reinstating the trial court’s order. (!)

How to determine whether a party can restrain alienation or construction on scheduled property during pendency of suit?

What is the standard for granting or withholding interim injunctions where irreparable loss or damage is not shown?

What are the consequences for changing the nature of the property or permitting alienation when irreparable loss is not established?


JUDGMENT

Santosh Hegde, J.-Heard learned counsel for the parties.

Leave granted.

2. The appellant had filed a Civil Suit No. 541 of 2000 for possession of the suit scheduled property with an application under Order 39 Rules 1 and 2 CPC, seeking injunction restraining the respondent herein from alienating the suit property and putting up any construction thereon. The trial court on the interim application filed by the appellant granted an order of temporary injunction, as prayed for.

3. The appeal filed by the respondent herein before the learned District Judge came to be allowed holding that alienation made, if any, will be subject to the law of lis pendens and constructions, if any, put by the respondent will have to be removed at his own risk and cost in the event of the suit being decreed.

4. A revision filed against the said order of the High Court came to be dismissed by the impugned order wherein the High Court recorded an oral undertaking given by the learned counsel which is as follows:

Learned counsel for the respondent, on instruction from Rajinder Dass son of Baldev Dass, on the other hand, has stated that the respondent has no intention of alienating any part of the property









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