High Court Of Calcutta
A. M. BHATTACHARJEE, AMULYA KUMAR NANDI
M.L.DALMIYA, COMPANY LIMITED - Appellant
Versus
PRAGATI ENGINEERING PVT.LIMITED - Respondent
F. M. A. T. 3259 Of 1988
Decided On : 03/08/1989
INJUNCTION - MONEY SUIT - SECTION 37, 38 AND 39 OF THE SPECIFIC RELIEF ACT, 1963 - INJUNCTION IN MONEY SUIT - IRREPARABLE INJURY - BALANCE OF CONVENIENCE - DISCRETION OF THE COURT - COURT DOES NOT GRANT INJUNCTION TO PROTECT THE CLAIM BEFORE ADJUDICATION.
Fact of the Case:
Appellant and Respondent No. 1 entered into a sub-contract agreement for the execution of a project. Disputes arose over payment, and the appellant stopped execution of the work. The parties attempted to resolve their dispute through meetings and agreements, but the appellant claimed that cheques issued by Respondent No. 1 were dishonored, and the power of attorney granted to the appellant to submit bills and receive payments was revoked. The appellant sought an injunction to restrain Respondent No. 1 from realizing its dues from Respondent No. 2, Engineers India Limited.
Finding of the Court:
The court found that there was an agreement between the parties, but there was a dispute over the amount due. The court also found that the appellant did not furnish a performance bank guarantee, completion certificate, or material reconciliation, and that there were incomplete items of work.
Issues: 1. Whether injunction can be granted in a money suit? 2. Whether the appellant would suffer irreparable injury if the injunction was not granted?
Ratio Decidendi: 1. Injunction may be granted even in a money claim, but it is a discretionary relief and the court must consider the balance of convenience and whether the plaintiff would suffer irreparable injury if the injunction was not granted. 2. In the instant case, the court found that the appellant would not suffer irreparable injury if the injunction was not granted, as it had already filed a suit for its dues and the court could not prejudge the amount due in interlocutory proceedings.
Final Decision: The court dismissed the appeal and declined to grant the injunction.
( 1 ) - Two companies have fallen out. One has sued another for recovery of a sum of five lakhs and odd, and for injunction, both permanent and temporary, restraining the other from realising his dues from Engineers India Limited.
( 2 ) ENGINEERS India Ltd. accepted the tender of Pragati Engineering Private Ltd. for a project at Manuguru in Andhra Pradesh. By means of correspondence between the two contending parties, the plaintiff-appellant M. L. Dalmiya and Co. Ltd. and the respondent No. 1 Pragati Engineering Pvt. Ltd, the former accepted the sub-contract under the latter to execute the work. In no time dispute arose over payment. The appellant M. L. Dalmiya and Co. Ltd. , alleged that the respondent No. 1 Pragati Engineering Pvt. Ltd. did not adhere to the payment schedule agreed upon by the parties. In a meeting held on 19. 9. 86 the parties principally came to two terms. The respondent No. 1 would issue cheques for a sum of Rs. 240000/- to the appellant. He would also execute an irrevocable power of attorney which would authorise the appellant to submit bills and receive payments from respondent No. 2 Engineers India Limited. An obligation to intimate the particulars of such bills and payment to the respondent No. 1 was cast upon the appellant. The respondent No. 1 issued cheques for Rs. 240000/- and Rs. 50,000/- which were all dishonoured and bounced. The appellant, however, received payment of Rs. 205845. 22 from respondent No. 2 virtue of the irrevocable power of attorney. Nevertheless the appellant stopped execution of the work on the plea that the cheques were all bounced. By a next meeting on 17. 12. 86 the parties sought to resolve their dispute. In pursuance of an agreement arrived at in this meeting the appellant received a further payment of Rs. 125000/- from respondent No. 2. It is claimed that the appellant thereafter completed the work and submitted his final bill for Rs. 654916. 84 on or about 22. 7. 87. The appellant received a further payment of Rs. 194679/- from respondent No. 2 on 25. 8. 87 and 15. 9. 87. The balance of Rs. 460237. 84 remained outstanding. In order to avoid payment the respondent No. 1 revoked the irrevocable power of attorney on or about 8. 2. 88 and is trying to collect its dues from respondent No. Z. So the appellant seeks to resist the realisation of the dues by the respondent No. 1 from respondent No. 2 by means of an order of injunction.
( 3 ) THE respondent No. 1 in his affidavit-in-opposition admits to have entered into the alleged sub-contract by means of correspondence. The terms were all laid down in letters dated 14. 5. 85, 19. 12. 85 and 15. 1. 86, It is admitted that pursuant to the terms laid down in the meeting on 19. 9. 86 issued cheques for Rs. 240000/- and executed a power of attorney as alleged. But a payment of Rs. 125000/- was received by the appellant from respondent No. 2. It is contended that the whole amount of Rs. 240000/- has been paid by further payment and adjustment. Finally it was discovered that by virtue of power of attorney the appellant received an over payment of Rs. 79930. 80 which they promised to repay in writing. The appellant did not forward copies of bus submitted to respondent No. 2 nor the statement of payments received from respondent No. 2 as agreed upon. It did not complete. the work nor obtained completion certificate from respondent No. 2. Further, the appellant did not submit measurement of works nor carried out the material reconciliation. It did not furnish the performance Bank Guarantee either. In such circumstances, the respondent No. 1 alleges, that it had to revoke the irrevocable power of attorney. It is urged that the appellant having suppressed material facts cannot get injunction.
( 4 ) THE respondent No. 2 did not ever enter appearance in this case.
( 5 ) ADMITTEDLY there was an agreement between the contending parties for execution of the alleged work in Andhra Pradesh which was awarded to respondent No.
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