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2014 Supreme(SC) 561

SUPREME COURT OF INDIA
SUDHANSU JYOTI MUKHOPADHAYA, S.A. BOBDE, JJ.
BABU LAL & ORS. – APPELLANTS
VERSUS
M/S VIJAY SOLVEX LTD. & ORS. – RESPONDENTS
CIVIL APPEAL NO. 7174 OF 2014
(Arising out of SLP(C) No.9914 of 2012)
WITH
C.A. NO.7175 OF 2014 (@ SLP(C)No.10363/2012)
C.A. NOs.7195-7201 OF 2014 (@ SLP(C)Nos.18158-18164/2012)
C.A. NO.7177 OF 2014 (@ SLP(C)No.18420/2012)
Decided on : 04-08-2014

IMPORTANT POINT
It is not open to the High Court, while vacating injunction, to give a finding on main issue relating to maintainability of the suit and the family settlement reached between the parties.

Headnote:Code of Civil Procedure, 1908 – Order XXXIX Rule 1, 2 – Temporary injunction – Granted by lower court – Application for vacation – High Court, while vacating injunction, giving a finding on main issue relating to maintainability of the suit and the family settlement reached between the parties – Not permissible. (Para 7)

       (2010) 7 SCC 1; (2005) 11 SCC 314 – Referred

       Facts of the case:

       Plaintiffs/appellants-Babulal and others filed a suit for declaration, mandatory injunction, rendition of accounts and permanent injunction against the defendants/non- applicants. The Lower Court noticed that the properties which the plaintiffs presented in the Schedules “Ka” to “Cha” are basically immovable properties, companies and partnership firms regarding which both the parties have claimed ownership.

       Taking into consideration that the dispute between the parties has arisen after the year 2007 and the cases are pending before the Company Law Board and if a restraint is not imposed upon the transfer of the aforesaid properties it will lead to multiplicity of litigation and the parties will entangle in litigation, the Lower Court observed that plaintiffs/appellants have made out partially a prima facie case and held that the issue of balance of convenience and irreparable loss are in favour of the plaintiffs/appellants. Resultantly, the application of the plaintiffs-appellants for temporary injunction against the non-applicants and the counter temporary injunction application filed on behalf of the non-applicants were partly allowed

       The High Court set aside the temporary injunction granted in favour of plaintiffs/appellants by the Lower Court and confirmed that part of the order requiring production of audited/unaudited accounts of the companies/ partnership firms run by the parties.

       Finding of the Court:

       It is not open to the High Court, while vacating injunction, to give a finding on main issue relating to maintainability of the suit and the family settlement reached between the parties.

       Result:Appeals disposed of.

JUDGMENT :

SUDHANSU JYOTI MUKHOPADHAYA, J.

Leave granted.

2. In these appeals the appellants have challenged the common judgment and order dated 14th March, 2012 passed by the High Court of Judicature for Rajasthan, Bench at Jaipur in S.B. Civil Misc. Appeal No. 2218 of 2011 etc. By the impugned judgment, the High Court modified the interim order dated 10th February, 2011 passed by the Additional District Judge No.3 Jaipur Metropolitan Magistrate, Jaipur (hereinafter referred to as, “the Lower Court”) in Civil Misc. Case No.36/2010, whereby the Lower Court partly allowed the application of the appellants-original plaintiffs seeking temporary injunction under Order XXXIX Rule 1,2 of CPC. The High Court set aside the temporary injunction granted in favour of plaintiffs/appellants by the Lower Court and confirmed that part of the order requiring production of audited/unaudited accounts of the companies/ partnership firms run by the parties.

3. The present appeals arise from the following sequence of facts. Plaintiffs/appellants-Babulal and others filed a suit for declaration, mandatory injunction, rendition of accounts and permanent injunction against the defendants/non- applicants. The Lower Court noticed that the properties which the plaintiffs presented in the Schedules “Ka” to “Cha” are basically immovable properties, companies and partnership firms regarding which both the parties have claimed ownership. Taking into consideration that the dispute between the parties has arisen after the year 2007 and the cases are pending before the Company Law Board and if a restraint is not imposed upon the transfer of the aforesaid properties it will lead to multiplicity of litigation and the parties will entangle in litigation, the Lower Court observed that plaintiffs/appellants have made out partially a prima facie case and held that the issue of balance of convenience and irreparable loss are in favour of the plaintiffs/appellants. Resultantly, the application of the plaintiffs-appellants for temporary injunction against the non-applicants and the counter temporary injunction application filed on behalf of the non-applicants were partly allowed and it was ordered that till the decision of the original suit:-

1. The applicants and non-applicants no.1 to 31 and the non-applicants no.36 to 43 shall not sell/transfer the immovable properties as mentioned in Schedule “Ka” to “Cha” and nor shall they create any substantial charge on the said properties.

2. The Companies/Partnership firms controlled and run by the parties of which the details have been given in Schedule “Ka” to “Cha” regarding them the audited accounts of income and expenditure half yearly/annually whichever is got done in the normal sequence shall be presented before this Court. Apart from this the other prayers which have been made by both the parties are rejected.

4. The non-applicants preferred different miscellaneous appeals against the aforesaid interim order of injunction before the High Court. The non-applicants-respondents herein made the following submissions:

(a) The suit of the plaintiffs in the present form is not maintainable in the eyes of law, inasmuch as it has been filed by Sh. Babulal along with Saurabh Agrotech Pvt. Ltd., which is a company incorporated under the Companies Act, two partnership firms registered under the Partnership Act jointly and the HUF of Babulal, seeking partition of the properties mentioned in the Schedules annexed to the plaint and that too against the set of companies, which have been shown as the assets of the HUF.

(b) Plaintiff-Babulal though seeking partition of the joint family properties has not impleaded his own sons and other coparceners as parties to the suit and has not included the properties owned and managed by the plaintiffs in the schedules annexed to the plaint. Therefore, it was argued that the suit itself is bad for non-joinder of necessary parties and of causes of action and the suit is not tenable in the eye of law.

(c












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