In a suit for injunction, the court has the power to restrain the defendant from committing breach of contract or causing injury, even if the plaintiff has not claimed damages.

( 1 ) THIS first miscellaneous appeal is at the instance of a defendant in a suit for declaration and permanent injunction and is directed against Order No. 17 dated June 1, 2004 passed by the learned judge, Second Bench, City Civil Court at Calcutta, in Title Suit No. 1150 of 2003 thereby disposing of an application under Order 39 Rules 1 and 2 of Code of Civil Procedure filed by the plaintiff by directing the parties to maintain status quo as on that day in respect of the suit property till the disposal of the suit.

( 2 ) THE respondent filed the aforesaid suit being Title Suit No. 1150 of 2003 thereby praying for declaration that the letter dated 19th May, 2003 issued by the appellant had no force in the eye of law and not binding on the parties and for permanent injunction restraining the appellant, his men and agents and servants from encumbering the premises No. 243n, Acharya Prafulla Chandra road, P. S. Burtolla and from parting with possession or inducting any person and also from entering into any agreement with any third party in respect of construction and development of the said premises.

( 3 ) IN connection with the aforesaid suit, the respondent filed an application for temporary injunction in terms of the prayer of permanent injunction mentioned above.

( 4 ) THE case made out by the respondent may be summed up thus: (a) By an agreement dated 14th April, 1992 the appellant promised to hand over the premises free from all encumbrances to the respondent. But after the execution of the said agreement, it was found that the said premises were not free from all encumbrances and there was huge municipal Tax-liability and dues towards electricity charges and at the same time, there were labour and industrial disputes and factory-closure problems relating to the industry previously run from the suit premises. (b) The appellant as per the said agreement agreed to obtain clearance from K. M. D. A. , C. I. T. and also Kolkata Municipal Corporation but subsequently he expressed his inability to bear the costs, expenses and responsibility of the same and requested the respondent to undertake those jobs with the assurance that he would pay the costs and expenses thereof to the respondent before sanction of the building plan. (c) Pursuant to such agreement, the respondent spent a sum of rs. 7,03,000/- in addition to the initial advance of Rs. 4,00,000/ -. (d) The respondent further spent a sum of Rs. 18. 41 lakh towards incidental and miscellaneous expenses for the development of the said site, the particulars of which were described in the application for injunction. (e) On the persuasion of the respondent, the plan in respect of premises no. 243n, Acharya Prafulla Chandra Road, P. S. Burtolla was duly sanctioned by Kolkata Municipal Corporation and the respondent made a bank pay-order for Rs. 3,36,387/- ready on 13th February, 2002 for the purpose of depositing the same to the Kolkata Municipal corporation towards sanction fees. (f) A lot of work was required to be done on behalf of the appellant in terms of agreement dated 14th April, 1992 and the parties decided that the appellant would execute a power-of-attorney in favour of the respondent to enable him to do such jobs on behalf of the appellant. Accordingly, the respondent on 12th March, 2002 got a power-of-attorney prepared and after getting the same ready for being executed by the appellant sent the same to him for completion. (g) The appellant on receiving the said letter dated 12th March, 2002 from the respondent answered through a letter dated 18th March, 2002 thereby totally denying that he had executed any agreement on 14th april, 1992. The appellant also denied all his liabilities under the said agreement. (h) In view of the letter written by the appellant dated 18th March, 2002 denying the agreement, the respondent again wrote a letter on 4th April, 2002 to the appellant and complained therein that he was ready and willing to do the