SUPREME COURT OF INDIA
Arun Mishra, Amitava Roy, JJ.
Dev Prakash and Another – Petitioners
Versus
Indra and Others – Respondents
Civil Appeal Nos. 5791-5792 of 2017 (Arising out of S.L.P. (C) Nos. 8783-8784 of 2016)
Decided On : 01-05-2017
Temporary Injunction - Property Disposal - Order 39 Rule 1, Order 39 Rule 2, Order 40 Rule 1, Section 151 of the Code of Civil Procedure - The court discussed the orders passed by the Trial Court granting temporary injunction and appointing a receiver regarding the suit property. The High Court directed the sale of the suit property by public auction pending disposal of the appeals. The Supreme Court set aside the order, emphasizing the fundamental precept of preservation of subject matter of any dispute pending adjudication in a court of law.
Fact of the Case:
The respondents filed a suit for a declaration that the suit property is of their predecessor and for restraining the appellants from using or utilizing the property. The Trial Court granted temporary injunction and appointed a receiver to keep the property in custody pending final resolution of the suit.
Finding of the Court:
The Supreme Court found that the order directing disposal of the suit property by public auction lacked persuasion and was speculative and illogical. It emphasized the fundamental precept of preservation of subject matter of any dispute pending adjudication in a court of law.
Issues: The issues revolved around the preservation of the suit property pending adjudication, the legality of the order directing disposal of the property by public auction, and the fundamental precept of preservation of subject matter of any dispute pending adjudication in a court of law.
Ratio Decidendi: The court emphasized the fundamental precept of preservation of subject matter of any dispute pending adjudication in a court of law and set aside the order directing disposal of the suit property by public auction.
Final Decision: The Supreme Court set aside the order directing disposal of the suit property by public auction and directed the High Court to decide the appeals on their own merits as expeditiously as possible.
ORDER :
1. Leave granted.
2. The appellants, who filed appeals in the High Court against the orders passed by the Trial Court granting temporary injunction and appointing a receiver qua the property involved, on interim applications filed by the respondents in their pending suit, have sought refuge of this Court under Article 136 of the Constitution of India, being aggrieved by the order directing sale of the subject-matter of suit by public auction. The appeals, before the High Court, are however pending.
3. We have heard Mr. H.D. Thanvi, learned counsel for the appellants and Mr. Avneesh Garg, learned counsel for the respondents.
4. Having regard to the issue demanding scrutiny, it would be inessential to dilate too much on facts. Suffice it to mention that the parties, who are locked in a series of litigation, are the heirs of a common ancestor i.e. Kodu Ram. The respondents, who are the heirs of late Prabhu Dayal, had filed a suit being Civil Case No. 15 of 2015 in the court of District Judge, Bikaner praying for a decree, inter-alia, for a declaration that the suit property being the assets of a partnership firm M/s. Chand Ratan Hira Lal is of their predecessor late Prabhu Dayal and for restraining the appellants/defendants from either mortgaging or utilising the said property, which would in any way adversely affect their rights. A prayer for rendition of accounts has also been made.
5. In short, according to them, the partnership comprised of Prabhu Dayal (since deceased), and the appellant/defendant No. 3 Dev Prakash. However, on the death of Prabhu Dayal, the latter started utilising the entire property forcibly by bringing them in his possession and thereby excluded the respondents/plaintiffs therefrom. As the plaint would reveal, the subject matter of suit included immovable and movable properties as described therein.
6. The appellants/defendants have filed their written statement denying the allegations levelled. They denied that any property of late Prabhu Dayal has remained in the partnership business. Though they admitted that Prabhu Dayal had been a partner of the aforementioned firm, according to them, on his death, it was dissolved and his dues had been duly remitted to his widow and therefore, the respondents/plaintiffs did not have any further claim with regard thereto.
7. In the suit, the respondents/plaintiffs filed two separate applications registered as Misc. Civil Case No. 12/2015 (24/2015) and Misc. Civil Case No. 13/2015 (25/2015), praying for temporary injunction and appointment of receiver qua the suit property respectively. The Trial Court, by separate orders dated 25.4.2015, granted both the prayers in the following terms:
"Resultantly, the application in question filed on behalf of the applicants/plaintiffs under Order 39 Rules 1 and 2 read with Section 151 of the Code of Civil Procedure against the non-applicants are restrained through temporary injunction to the effect that they shall not use & utilise the movable & immovable property of the firm M/s. Chandratan Heeralal, which have been mentioned in the application/plaint of the applicants/plaintiffs and whose inventory report has been got prepared through the commission in the presence of the rival parties and has been filed in the file; and nor shall diminish to the aforesaid property. The counter-claim-application of the non-applicant is not accepted."
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"Resultantly, the application in question filed on behalf of the applicants/plaintiffs against the non-applicants under Order 40, Rule 1 read with Section 151 of the Code of Civil Procedure regarding appointment of a receiver, is accepted and on the basis of the consent of the rival parties, Advocate Shri Brijratan Vyas, is appointed receiver upon the entire movable and immovable properties of the firm M/s. Chandratan Heeralal, and it is ordered that the receiver should take over in his possession to the entire movable & immovable properties of the aforesaid firm with immediate e
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