High Court Of Calcutta
ALTAMAS KABIR, GORACHAND DE
K.C.GEORGE - Appellant
Versus
GOURI SHANKAR MISHRA - Respondent
F. M. A. T. 3978 Of 2000
Decided On : 02/22/2001
INJUNCTION - EX-PARTE AD INTERIM ORDER - REASONS FOR PASSING - MANDATORY REQUIREMENT - CIVIL PROCEDURE CODE, 1908 - ORDER 39 RULE 3 - INTERPRETATION.
Fact of the Case:
Appellant challenged an ex-parte ad interim injunction order granted by the trial court without recording reasons, claiming it violated the mandatory provisions of Order 39 Rule 3 of the Civil Procedure Code (CPC). The injunction restrained the appellant from interfering with the functioning of a trust and taking disciplinary action against certain staff members.
Finding of the Court:
The High Court held that the trial court's failure to record reasons for passing the ex-parte ad interim injunction was a violation of the mandatory provisions of Order 39 Rule 3 CPC, as interpreted by the Supreme Court in Shiv Kumar Chadha vs. Municipal Corporation of Delhi and Ors. and Morgan Stanley Mutual Fund vs. Kartick Das.
Issues: 1. Whether the trial court's failure to record reasons for passing the ex-parte ad interim injunction violated the mandatory provisions of Order 39 Rule 3 CPC? 2. Whether the High Court had the authority to modify the injunction order and provide interim protection to the plaintiffs pending the hearing of their application for temporary injunction?
Ratio Decidendi: 1. The High Court relied on the Supreme Court's rulings in Shiv Kumar Chadha and Morgan Stanley Mutual Fund, which emphasized the mandatory nature of recording reasons for ex-parte ad interim injunctions. The Court held that these decisions were binding and overruled any conflicting views expressed in previous judgments of the High Court. 2. The High Court acknowledged its authority under Section 107(2) CPC to grant suitable ad interim orders pending the hearing of the plaintiffs' application for temporary injunction. However, it declined to delve into the merits of the case or the maintainability of the suit under Section 92 CPC, leaving those issues to be determined by the trial court.
Final Decision: The High Court set aside the trial court's ex-parte ad interim injunction order and directed the parties to maintain the status quo with regard to the trust's properties until the disposal of the plaintiffs' application for temporary injunction. The Court clarified that it had not adjudicated on the merits of the case or the maintainability of the suit, leaving those matters for the trial court's consideration.
( 1 ) THIS appeal is directed against Order No. 2 dated 5th September, 2000, passed by the learned Additional district Judge, Contai, District- Midnapore, in title Suit No. 3 of 2000, granting ad interim order of injunction on the plaintiffs' application for temporary injunction, till the disposal of the said application.
( 2 ) APPEARING for the appellant, Mr. Amitava Ghosh submitted that the impugned order was per se bad having been passed exparte without compliance with the provisions of Rule 3 of Order 39 of the Code of Civil procedure which requires the court to record reasons while granting an ex-parte order of injunction. Mr. Ghosh submitted that the law relating to grant of ex-parte orders of injunction had been clearly explained by the Hon'ble supreme Court, in Shiv Kumar Chadha vs. Municipal Corporation of Delhi and Ors. , and in Morgan Stanley Mutual Fund vs. Kartick das.
( 3 ) MR. Ghosh submitted that in shiv Kumar Chadha's case the Hon'ble Supreme court had observed that before passing an order of injunction the court has to be satisfied that a strong prima facie case has been made out by the plaintiff, including on the question of maintainability of the suit, and the balance of convenience is in his favour and refusal of injunction would cause irreparable injury to him. The Hon'ble Supreme Court went on to observe that the courts have to be more cautious when the said power is exercised without notice or hearing the party who is to be affected by such ex-parte order. The Hon'ble supreme Court also had occasion to refer to the Civil Procedure Code (Amendment) Act, 1976, whereby a proviso had been added to rule 3 of Order 39 indicating that where it is proposed to grant an injunction without giving notice of the application to the opposite party, the Court shall record the reasons for its opinion that the object of granting the injunction would be defeated by delay. Mr. Ghosh submitted that after considering the imperative nature of the proviso and the principles laid down in earlier decisions, the Hon'ble Supreme Court finally concluded that whenever a court considers it necessary in the facts and circumstances of a particular case to pass an order of injunction without notice to the other side, it must record the reasons for doing so and should take into consideration, while passing an order of injunction, all relevant factors, including as to how the object of granting injunction itself would be defeated if an ex-parte order was not passed. Furthermore, such ex-parte order should be in force upto a particular date before which the plaintiff should be required to serve notice on the defendant concerned. Mr. Ghosh submitted that in the morgan Stanely Mutual Fund case the Supreme Court while considering certain provisions of the Consumer Protection Act, 1986, also had occasion to consider the provisions relating to grant of ex parte ad interim orders of injunction. Mr. Ghosh submitted that among several questions posed by the Hon'ble supreme Court in the said decision, one of the questions related to the guiding principles in relation to the grant of ad interim injunction in areas concerning the functioning of the capital market and public issues of the corporate sector and whether certain 'venue restriction clauses' would require to be evolved judicially as has been done in cases such as the sanchaita case. Mr. Ghosh submitted that while answering such question the Hon'ble Supreme Court observed that as a principle, ex-parte injunction could be granted only under exceptional circumstances. The factors which should weigh with the Court in the grant of ex-parte injunction are:-" (A) whether irreparable or serious mischief will ensue to the plaintiff; (b) whether the refusal of ex-parte injunction would involve greater injustice than the grant of it would involve; (c) the court will also consider the time at which the plaintiff first- had notice of the act complained so that the making of improper
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