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2023 Supreme(AP) 829

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
SUBBA REDDY SATTI, J.
OSI Imports and Exports India Private Limited, Rep. by its Managing Director, Monangi Savararaju, S/o Late Thavitayya – Appellant
Versus
Doki Tirumala Rao, S/o Chinna Adinaryana – Respondent
Civil Revision Petition No.229 of 2023
Decided on : 14-06-2023

Advocates:
Advocate Appeared:
For the Appellant : Sri P. Rajasekhar

The relief sought in an interlocutory application should not exceed the relief sought in the main suit, and the petitioner must not undervalue the suit for jurisdictional purposes.

Headnote:

Injunction - Business Dispute - Companies Act - [RAW CASHEW NUTS] - [Order XXXIX Rules 1 and 2 of CPC] - [Summary: The court discussed the dispute over the stock of raw cashew nuts purchased from a foreign company and preserved in godowns, and the application for injunction to prevent interference with the delivery and movement of the stock. The court found that the relief sought in the interlocutory application exceeded the relief sought in the main suit, and the petitioner undervalued the suit for jurisdictional purposes. The court upheld the dismissal of the application for injunction.]

Fact of the Case:

The plaintiff, a private limited company, filed a suit for permanent injunction to prevent interference with the delivery and movement of raw cashew nuts purchased from a foreign company and preserved in godowns. The defendant, also in the business of raw cashew nuts, opposed the application, alleging that the plaintiff was a sister concern of the foreign company and had no title to the stock.

Finding of the Court:

The court found that the relief sought in the interlocutory application exceeded the relief sought in the main suit, and the petitioner undervalued the suit for jurisdictional purposes. The court upheld the dismissal of the application for injunction.

Issues: Dispute over the stock of raw cashew nuts, privity of contract, and undervaluation of the suit for jurisdictional purposes.

Ratio Decidendi: The relief sought in the interlocutory application should not exceed the relief sought in the main suit, and the petitioner must not undervalue the suit for jurisdictional purposes.

Final Decision: The civil revision petition is dismissed, and all pending miscellaneous applications shall stand closed.

ORDER :

Plaintiff in the suit filed above revision against order dated 03.11.2022 in CMA No.1 of 2022 passed by learned Judge, Family Court –cum- III Additional District and Sessions Court, Srikakulam (FAC) VI Additional District Court, Sompeta confirming the order and decretal order dated 04.07.2022 passed by learned Junior Civil Judge, Palasa in I.A.No.62 of 2022 in O.S.No.18 of 2022.

2. Plaintiff filed suit O.S.No.18 of 2022 for permanent injunction restraining and preventing the defendant, his men, agents, servants and any person claiming through him/on behalf of him from interfering with and from causing obstruction of delivery and movement of goods/stocks of raw cashew nuts being purchased from Saanthi Global Traders Limited and being preserved in godowns 1 and 2 as shown in the suit schedule for loading and transporting of the same through vehicles for reaching the destination of godowns or places of business of purchasers and for movement of the same to any other place by loading and transporting the same through vehicles for reaching their other places of business for the convenience of the plaintiff company from the godowns 1 and 2 and for costs, etc.

3. Plaint schedule property is shown as “the stock of raw cashew nuts being purchased by the plaintiff company from the company of Saanthi Global Traders being preserved in godowns 1 and 2 of the plaintiff company obtained on lease from the respective landlords within the boundaries mentioned therein.

4. The case of the plaintiff, in brief, is that plaintiff is a Private Limited Company registered under the Companies Act, under the name and style of OSI Imports and Exports India Private Ltd. Plaintiff is carrying on the business of raw cashew nuts at Palasa town and since three years the plaintiff company is dealing with purchase and sales of raw cashew nuts which are purchased and imported from Saanthi Global Traders Limited, a limited company established in Ghana, West African Country. After completion of legal formalities, plaintiff used to receive stock of raw cashew nuts from Saanthi Global Traders Limited. Plaintiff company used to obtain delivery of stock of cashew nuts by submitting bills of lading at Tuticorn Port at Tamilnadu State and used to transport by road to godowns 1 and 2 as described in the suit schedule for preserving. Lease deeds were executed between plaintiff company and landlords. In the course of business, plaintiff purchased raw cashew nuts in the current financial year from Saanthi Global Traders Limited by virtue of invoices five in number. Saanthi Global Traders Limited dispatched stock to India through Tuticorn Port of Tamilnadu State. After submission of invoices and bills of lading to the customs house at Tuticorn Port of Tamilnadu and after acceptance and acknowledgment of the bills of entry by the customs house at Tuticorn Port, plaintiff obtained delivery of stocks from shipping companies and kept the stocks in godowns 1 and 2.

5. Defendant, who is doing business of raw cashew nuts in and around Palasa also used to import raw cashew nuts of Benin country, by purchasing the same from Saanthi Global Traders Limited of Ghana country. Defendant filed petition under Section 9 of Arbitration and Reconciliation Act, vide ICAOA No.9 of 2021 on the file of High Court of Andhra Pradesh and sought attachment of stock of raw cashew nuts weighing approximately 250 metric tons in godowns 1 and 2. Defendant raised false plea that plaintiff did not purchase any stock from Saanthi Global Traders Limited and the plaintiff company is only shown as notified party for limited purpose of holding and delivering stock on behalf of Saanthi Global Traders Limited. Saanthi Global Traders Limited has been keeping stock with the plaintiff company in breach of the contract entered by the defendant with Saanthi Global Traders. In the commercial arbitration appeal, plaintiff and Saanthi Global Traders Limited are shown as respondents. Though defendant sought for interim a

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