IN THE HIGH COURT OF JUDICATURE AT BOMBAY
B.P. Colabawalla, J.
Kishore Punamchand Mashruwala & Ors. - Appellants
Versus
Harish Punamchand Mashruwala & Ors. - Respondents
Interim Application (L) NO. 4586 of 2020 in Suit No. 246 of 2011
Decided On : 16-01-2021
Status-Quo Order - Violation - Code of Civil Procedure, 1908 - [Order 39 Rule 2-4] - [Summary of Acts and Sections: Order 39 Rule 2-4 of the Code of Civil Procedure, 1908] - The court considered an interim application seeking appointment of a Court Receiver, attachment of properties, and dismissal of a suit under Order 39 Rule 11 of the Code of Civil Procedure, 1908, due to alleged violation of a status-quo order. The court analyzed the nature of the agreement dated 23rd November, 2019, and its compliance with the 2014 order, and concluded that there was no breach of the status-quo order. The court emphasized that the status-quo order related only to the plots and not to the factory building standing thereon. The court dismissed the interim application, finding no merit in the alleged violation of the status-quo order.
Fact of the Case:
The defendants sought appointment of a Court Receiver and attachment of properties, alleging violation of a status-quo order by the plaintiffs. The plaintiffs had entered into an agreement with a third party, Padmavati Textile Mills, regarding the use of the property, which the defendants claimed violated the 2014 order.
Finding of the Court:
The court found that the agreement did not violate the status-quo order as it related only to the factory building and not the plots covered by the order. The court also concluded that even if there was a violation, it was not willful, deliberate, or intentional.
Issues: The primary issue was whether the agreement dated 23rd November, 2019 violated the status-quo order. The secondary issue was whether any violation, if found, was willful, deliberate, or intentional.
Ratio Decidendi: The court held that the status-quo order related only to the plots and not to the factory building standing thereon. It emphasized that the interpretation of the order put by the defendants was plausible, and there was no willful or deliberate violation of the order.
Final Decision: The court dismissed the interim application, finding no merit in the alleged violation of the status-quo order.
JUDGMENT
1. The above Interim Application has been preferred by the applicants/ defendant Nos.1 to 4 seeking the following reliefs:-
"(a) This Hon'ble Court may be pleased to appoint the Court Receiver of this Hon 'ble Court as a Receiver to take possession of the property being Plot No.250/1 and 250/2, RoadNo.2, GIDC Sachin, Surat, 394 230, under Order 39 Rule 2-4 of the Code of Civil Procedure, 1908;
(b) this Hon 'ble Court may be pleased to attach all the properties of the plaintiffs, including plot No.250/1 and 250/2, Road No.2, GIDC Sachin, Surat, 394 230, under Order 39 Rule 2-4 of the Code of Civil Procedure, 1908;
(c) This Hon 'ble Court may be pleased to dismiss the present Suit under Order 39 Rule 11 of the Code of Civil Procedure, 1908;
(d) This Hon 'ble Court may be pleased to order the plaintiffs to be detained in civil prison for a term not exceeding three months. "
2. According to defendant Nos.1 to 4, the reliefs sought in this application ought to be granted in view of the fact that the plaintiffs have violated the status-quo order passed by this Court on 4th September, 2014 (for short "the 2014 order") in Notice of Motion No.303/2011. For the sake of convenience the 2014 order reads thus:-
"Heard the learned counsel for both parties. After the matter was heard at some length, it is now agreed between the learned counsel for parties that both the parties, namely, Plaintiff Nos.1 to 4 on the one hand and Defendant Nos.1 to 4 on the other, shall maintain status-quo in respect of their respective plots, namely, plot No.250/1 owned by plaintiff No. 1 and plot No.250/2 owned by the H.U.F. of defendant No. 1 situated at Road No.2, Sachin GIDC, Sachin, Surat, pending the hearing and final disposal of the suit. It is clarified that this agreement shall be without prejudice to the rights and contentions of the parties in Summary Suit No. 193 of 2010. The Notice of Motion is disposed of accordingly. There shall be no order as to costs." (emphasis supplied)
3. Dr. Chandrachud, the learned counsel appearing on behalf of defendant Nos.1 to 4, submitted that plaintiff Nos.3 and 4 are in possession of plot No.250/1 and 250/2, Road No.2, Sachin GIDC, Sachin, Surat, 394230 along with the factory standing thereon. He submitted that in relation to the said plots and the factory standing thereon, there were no third-party rights created in relation thereto as on the date of the passing of the 2014 order. Subsequently, it has come to the knowledge of defendant Nos.1 to 4 that plaintiff Nos.3 and 4 have inducted a third party, namely Padmavati Textile Mills (a proprietary concern of the respondent above named), as a lessee/licensee in the said property by entering into an agreement dated 23rd November, 2019. This is in direct violation of the 2014 order, which directs plaintiff Nos.1 to 4 on the one hand and defendant Nos.1 to 4 on the other, to maintain status-quo in respect of their respective plots, namely, plot No.250/1 owned by plaintiff No.1 and plot No.250/2 owned by the H.U.F. of defendant No.1. He submitted that it is, in these circumstances, that defendant Nos.1 to 4 have preferred the present application inter alia seeking appointment of a Court Receiver to take possession of the aforesaid two plots and attach all the properties of plaintiff Nos.3 and 4, pending the hearing and final disposal of the above suit.
4. Dr. Chandrachud submitted that plaintiff Nos.3 and 4 have violated the 2014 order principally on two grounds:
(a) that the agreement dated 23rd November, 2019 entered into with Padmavati Textile Mills is a Lease Agreement and not a Business Conducting Agreement as sought to be contended by the plaintiffs. This would clearly be in violation of the status quo order passed by this Court on 4th September, 2014; and
(b) even assuming that the aforesaid agreement dated23rd November, 2019 could be construed as a Business Conducting Agreement, it is still in violation of the order dated 4th September, 2014 which directs the parti
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