2011 (3) Supreme 698
SUPREME COURT OF INDIA
P.Sathasivam and H.L. Gokhale, JJ.
Purshottam Vishandas Raheja and another — Appellants
versus
Shrichand Vishandas Raheja (D) through Lrs. and others — Respondents
Civil Appeal No. 4005 of 2011
(Arising out of Special Leave Petition (C) No. 26974 of 2010)
Decided on : 6-5-2011
(1990) 2 SCC 117; (1986) 3 All ER 87; (2004) 7 SCC 478; (2006) 3 SCC 312 – Relied upon
(b) High Court Rules – LPA – Single Judge’s exercise of discretion not being arbitrary, capricious or perverse, could not be interfered with by the Division Bench. (Para 23)
1990 (Supp) SCC 727 – Relied upon
Facts of the case:
1. Respondent No.1 (the original Plaintiff) is the elder brother of Petitioner No.1 (Defendant No.1 in the Suit). Petitioner No.2 is the son of Petitioner No.1. The dispute between them is about the rights to a property which is being developed. The respondent no. 1 and the appellants both claim ownership of the property.
2. The respondent no. 1 executed three Powers of Attorney from time to time. The first one was executed on 8.8.2000 in favour of his wife and Appellant No.1 which was for performing various acts and deeds on his behalf as his Constituted Attorneys in furtherance of this project. He executed second Power of Attorney on 21.9.2005 again in favour of his wife and Appellant No.1 as well as Appellant No.2 which is also in the similar fashion as the first one. The third Power of Attorney was executed on 24.10.2000 which is a specific power in favour of Appellant No.1 for giving evidence on behalf of the Respondent No.1.
3. As the Appellant No. 1 surreptitiously withdrew amounts totalling to One Crore Forty Lakhs and invested in Mutual Funds part of which amount was redeemed on protest by respondent no. 1, he revoked all the three powers of attorney.
4. He also filed a suit praying for restraining the Appellants as attorneys or agents of first Respondent or restraining them from entering into the property; ands also for the return of the documents in possession of the Appellants.
5. The learned judge held that no prima facie case for a mandatory injunction was made out, yet he granted a limited interim order.
6. The Division Bench, was of the view that a strong prima facie case was made out and an interim order will have to be granted.
Finding of the Court:
Division Bench’s judgment is not sustainable.
Result : Appeal allowed.
Key Points: - The judgment discusses the nature and limits of interlocutory mandatory injunctions and when they are justified, including the Dorab Cawasji Warden framework and related guidelines. (!) (!) (!) (!) - It addresses the standard of review for appellate interference with a trial court’s discretion in interim orders, outlining that appellate courts should not substitute their discretion unless the lower court acted arbitrarily, capriciously, or perversely, or ignored established principles. (!) (!) (!) - It analyzes circumstances where family settlement, contribution to purchase, development actions, and control of bank accounts influence the grant or denial of interim relief in property disputes. (!) (!) (!) (!) (!) (!) - It records that the Division Bench’s order granting full interim relief was set aside, and the Single Judge’s limited interim relief was restored, indicating the court’s emphasis on preserving status quo and preventing injustice while allowing trial on merits. (!) (!) (!) (!) - It emphasizes that granting a broad interim decree at the interlocutory stage can amount to a pre-trial decree and should be avoided unless exceptional circumstances exist. (!) (!) (!)
JUDGMENT
Gokhale J. —
Leave granted.
2. This appeal by special leave by original Defendants Nos. 1 and 2 seeks to challenge the Judgment and Order dated 12.8.2010 passed by a Division Bench of the Bombay High Court allowing the Appeal No. 550/2009 against the order of a Single Judge dated 9.9.2009 in Notice of Motion No. 1787/2009 in Suit No. 1266/2009 filed by Respondent No. 1 (since deceased). The learned Single Judge had granted a limited relief to Respondent No. 1 (original plaintiff) whereas by the Order passed by the Division Bench the Notice of Motion taken up by the original Plaintiff had been made absolute in terms of prayers (a), (b) and (c), and thereby granting full interim relief which was sought by Respondent No. 1 herein.
3. In view of the demise of Respondent No. 1, the heirs of Respondent No. 1 have come on record of the appeal. Their case is that the interim relief as was sought, though in the nature of mandatory relief, was necessary in the facts and circumstances of the case. As against that, the submission on behalf of the Appellants is that the learned Single Judge had exercised his discretion appropriately and there was no reason for the Division Bench to interfere therein. The Appellants also contend that the prayers in the Notice of Motion are the principal prayers in the plaint and, therefore, it amounts to granting a decree at the interlocutory stage which was not justified in the present case.
4. The question for determination, therefore, is as to whether, in the facts and circumstances of the case, the mandatory order as passed by the Division Bench was justified, or whether the learned Single Judge having exercised his discretion appropriately, the Division Bench erred in interfering therein?
5. The facts leading to this appeal are as follows:
Respondent No.1 (the original Plaintiff) is the elder brother of Petitioner No.1 (Defendant No.1 in the Suit). Petitioner No.2 is the son of Petitioner No.1. The dispute between them is about the rights to a property which is being developed and is situated at Cadastral Survey No. 764, Mazgaon Division in Mumbai. The case of Respondent No.1 is that he is the exclusive owner of that property whereas the Appellants very much dispute the same. It is the case of Respondent No.1 that by Conveyance Deed dated 27.3.1981 as rectified by Rectification Deed dated 11.9.1986, he had purchased the property from the original owners and necessary property entries are in his name. It is his case that he has taken steps to develop that property under the Development Control Rules by removing one old bungalow and several chawls situated thereon. Two buildings have already been put up on that property and the third one now named as ‘Siddhagiri’ is under construction.
6. It is his further case that since 1999, he has not been keeping well, and therefore, he executed three Powers of Attorney from time to time. The first one was executed on 8.8.2000 in favour of his wife and Appellant No.1 which was for performing various acts and deeds on his behalf as his Constituted Attorneys in furtherance of this project. He executed second Power of Attorney on 21.9.2005 again in favour of his wife and Appellant No.1 as well as Appellant No.2 which is also in the similar fashion as the first one. The third Power of Attorney was executed on 24.10.2000 which is a specific power in favour of Appellant No.1 for giving evidence on behalf of the Respondent No.1. It was his further case that though there was one Joint Account with Appellant No.1 in Indian Bank since 1993, one more Joint Account was opened on 10.10.2001, this time in HSBC Bank which was particularly for carrying the transactions relating to the property and developments thereon. It was his case that all amounts deposited in that account belong to him. He opened one more Joint Account on 1.2.2008 in the State Bank of India with the Appellant which was stated to be opened for payment of taxes etc. relating to the property.
7. It i
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