PATNA HIGH COURT
U.N.Sinha and S.Sarwar Ali JJ.
Chhatu Ram Bhadani
Versus
State Of Bihar
Appeal From Original Order No. 120 of 1969 ;
Decided On : JULY 22, 1970
Injunction - Ad Interim Injunction - The court allowed the appeal and restrained the defendant from proceeding against the properties of the plaintiffs in the certificate case in question.
Fact of the Case:
The plaintiffs filed a suit claiming relief to prevent the defendant from auctioning their personal properties. They sought an ad interim injunction, which was rejected by the trial court.
Finding of the Court:
The court found that the plaintiffs had a prima facie case for trial and that the balance of convenience favored granting the injunction. It concluded that the balance of convenience lay in retaining the status quo, and therefore, an ad interim injunction should have been passed by the trial court.
Issues: The issues involved the balance of convenience and the potential irreparable loss to the plaintiffs if the injunction was refused.
Ratio Decidendi: The court's decision was influenced by the potential difficulty in the plaintiffs recovering possession of their properties if sold to a stranger, as well as the defendant's entitlement to interest on the loan amount.
Final Decision: The appeal was allowed, and the defendant was restrained from proceeding against the properties of the plaintiffs in the certificate case.
1. This appeal has been filed by the plaintiffs and it is directed against an order passed by the trial court dated the 12th April. 1969, rejecting the plaintiffs petition praying for an ad interim injunction. The plaintiffs have instituted a suit claiming a relief to the effect that on an adjudication that the plaintiffs are not liable to pay, the defendant be permanently restrained from taking any step for auction sale of the personal properties of the plaintiffs, advertised and described in schedule 1 of the plaint or from taking any other step in Certificate Case No. 20/OD/63-64. In that suit the plaintiffs filed an application under Order XXXIX Rules 1 and 2 and Sec.151 of the Code of Civil Procedure, praying that the defendant be injuncted by an ad interim order, restraining it from selling the properties given in Schedule 1 of the plaint or from taking further steps against the plaintiffs in the certificate case in question. On hearing the parties, the learned trial Judge has considered various aspects of the case and has stated that in view of the circumstances, the plaintiffs might have a prima facie case, but the balance of convenience is not in their favour nor would they be put to an irreparable loss if injunction is refused.
2. Learned counsel for the appellants has drawn our attention to certain paragraphs of the plaint, especially parapraphs 9 and 10, and has argued that not only the plaintiffs had a prima facie case for trial, the balance of convenience was also in their favour for grant of the injunction prayed for. In reply, Sri Katriar has referred to the show cause petition filed on behalf of the defendant in the court below and has specifically relied upon paragraphs 6 and 8 to 10 thereof. Sri Katriar has contended that it was open to the defendant to realise certain dues under the mortgage mentioned in the show cause petition against the plaintiffs and that the balance of convenience was not in favour of grant of an injunction, as by an injunction, realisation of a large sum of money will be postponed. Having heard the learned counsel for the parties we are of the opinion that substantial questions of law and fact have to be decided in the suit itself and that it cannot be said that the plaintiffs have not got a prima facie case in their favour for final adjudication. The conclusion of the learned trial Judge seems to be also that there is a prima facie case for trial. On the question of balance of convenience on this side or that, the learned Subordinate Judge has not given any reason for his conclusion that the balance of convenience was not in the plaintiffs favour. We do not think that the conclusion of the learned Subordinate Judge is sound, as the properties of the appellants, which are on sale, are said to be two houses at Jhumri Tilaiva in the district of Hazaribagh. If these properties are sold now and purchased by stranger to this litigation, and ultimately the plaintiffs suit succeeds, there may be difficulty in the way of the plaintiffs recovering possession of the houses from strangers. On the other hand, the defendant of the suit is entitled to interest on the amount of the loan mentioned in paragraph 4 of the defendants show cause petition, and when the dues are realised, the defendant of the suit will also be entitled to realise interest. Therefore, on the assumption that there is a prima facie case to go to trial, we are of the view that the balance of convenience lies in retaining the status quo, so that an order of ad interim injunction should have been passed by the trial court in this case.
3. For these reasons we are of the opinion that the appeal should be allowed and the defendant should be restrained from proceeding against the properties of the plaintiffs in the certificate case in question. We make it clear that no observation of this Court may be taken as any conclusion to be arrived in the suit itself on the disputed facts raised by the parties. The appeal is, therefor
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