IN THE HIGH COURT OF CALCUTTA
Shekhar B. Saraf, J.
Usha Devi Chokhani And Anr. - Appellant
Versus
Kusum Surekha And Anr. - Respondent
I.A. G.A. No. 1 of 2021 & C.S. No. 263 of 2021
Decided On : 25-01-2022
Injunction - Property Dispute - AIR 2021 Cal 212, 2019(4) CHN (CAL) 412, 2017(1) CHN (CAL) 189 - The court discussed the principles of granting temporary injunction in property disputes and the requirement to prove intention to defraud creditors. The court emphasized the need for an ascertained and accrued debt to establish a prima facie case for injunction. The judgments cited by the petitioners were found to be distinguishable on facts, and the court held that no prima facie case was made out for granting an injunction at the ad interim stage.
Fact of the Case:
The petitioners sought injunction and relief in a property dispute where they claimed to have paid earnest money for a property purchase, but the respondents failed to fulfill the agreement. The respondents disputed the claims, and the court was asked to grant injunctions and reliefs.
Finding of the Court:
The court found that the petitioners failed to establish a prima facie case for granting injunction at the ad interim stage. The court emphasized the need for an ascertained and accrued debt to establish a prima facie case for injunction.
Issues: Dispute over property purchase agreement, failure to fulfill the agreement, and the petitioners' claim for injunction and reliefs.
Ratio Decidendi: The court emphasized the need for an ascertained and accrued debt to establish a prima facie case for injunction. The court also discussed the requirement to prove intention to defraud creditors in property disputes.
Final Decision: The court directed the parties to file affidavits before any injunctive relief may be granted to the petitioners. The service of writ of summons was dispensed with, and the petitioners were directed to serve a copy of the plaint upon the Advocate-on-Record of the respondents.
JUDGMENT
Shekhar B. Saraf, J. - This is an application wherein the petitioners are seeking the following reliefs:-
a) An order of injunction restraining the respondents from dealing with its bank accounts and particularly the one mentioned in paragraph 26 hereinabove and all other bank accounts of the respondents corresponding to Permanent Account Nos.(PAN) ALQPS 3878 R and AUMPS 3474 J without keeping apart a sum of Rs.29,56,904/-.
b) An order restraining the respondents from selling, transferring or alienating or creating any third party interest of any part or portion of the said property in any manner whatsoever;
c) Ad-interim orders in terms of the prayers above;
d) Pass any such further and/or other order or orders, direction or directions as Your Lordships may deem fit and proper.
2. Mr. Chayan Gupta, Counsel appearing on behalf of the plaintiff petitioners submits that an agreement had been reached between the parties wherein the petitioner was to purchase a property from the defendants at a cost of Rs.1,26,40,000/-. He further submits that a sum of Rs.25 lakhs was paid by way of earnest money to the defendants. He submits that in spite of several requests, the respondents did not make over the papers relating to the regularization of the said property to one commercial unit as had been agreed between the parties. He further submits that the respondents failed to execute a deed of conveyance in their favour.
3. It is to be noted that a legal notice had been issued by the plaintiff petitioners on February 8, 2021 and the same was replied to by Advocates representing the defendants on February 15, 2021. It is also to be noted that a suit was filed by the plaintiff petitioners before the Ordinary Original Civil Jurisdiction in the month of April, 2021. Subsequently, the plaint was returned with liberty to the plaintiffs to file before the Commercial Division. CS/263/2021 is the new suit filed by the plaintiff petitioners wherein this interlocutory application has been filed seeking the above reliefs.
4. To buttress his arguments, Mr. Chayan Gupta has relied on three judgments of the Calcutta High Court reported in AIR 2021 Cal 212 (Prabha Surana -v- Jaideep Halwasiya), 2019(4) CHN (CAL) 412 (Harleen Jairath -v- Prabha Surana and Ors.) and 2017(1) CHN (CAL) 189 (Santosh Promoters Pvt. Ltd and Ors. -v- Intrasoft Technologies Ltd.).
5. Mr. Rudraman Bhattacharyya, Counsel appearing on behalf of the defendants, submits that he disputes all the statements made by the petitioners except for the fact that Rs.25 lakh was given as earnest money to his client. He submits that there was never a written contract and the submissions in the petition are required to be proved by way of evidence. He further submits that earnest money is normally forfeited when the transaction does not go through. Mr. Bhattacharyya has taken me through the notices issued by both the parties and highlighted the fact that the petitioners are claiming in their notice that the stamp duty and registration fees for registration of the conveyance deed was required to be paid by the seller i.e. his client. He submits that the entire allegation is baseless and quite absurd as it is common knowledge that in case of purchase of property, the registration and stamp duty costs are paid by the buyer of the property.
6. I would first like to deal with the judgments cited by the petitioners. In the judgement passed in Prabha Surana -v- Jaideep Halwasiya, reported in AIR 2021 Cal 212, the plaintiff lent money to the defendant by way of cheques and fixed rate of interest was agreed on between the parties. Thereafter, default in repayment was committed by the defendant against which the plaintiff moved an injunction application before the learned single judge of this Hon'ble High Court. The court allowed the interim application on the ground that a prima facie case has been established by the plaintiff establishing the fact of money being lent and advanced to the respondent by acknowl
The need for an ascertained and accrued debt to establish a prima facie case for injunction in property disputes.
The court's decision was influenced by the plaintiffs' lack of willingness to purchase the property, leading to the vacation of the stay order.
Point of Law : Granting of injunction in case of a money decree - Unless a very strong prima facie case is made out with respect to defendant intending to defraud the plaintiff, no injunction can be ....
The power to attach property under Order XXXVIII Rule 5 CPC should not convert unsecured debts into secured ones and must be exercised judiciously to prevent abuse.
The main legal point established in the judgment is the requirement for a prima facie case, balance of convenience, and irreparable injury for granting injunction and attachment of property under Ord....
A plaintiff alleging fraud must establish a prima facie case, balance of convenience, and potential irreparable harm to obtain an ad-interim injunction under the Code of Civil Procedure.
In a suit for specific performance, the grant of a temporary injunction is discretionary and depends on the establishment of a strong prima facie case, the balance of convenience, and the conduct of ....
To obtain a temporary injunction, a plaintiff must demonstrate a prima facie case, balance of convenience, and potential for irreparable harm, without conducting a mini trial.
Doubt about the existence of a valid and binding agreement and the insignificance of the consideration paid by the plaintiffs disentitled them for grant of interim relief.
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