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2025 Supreme(Cal) 364

IN THE HIGH COURT AT CALCUTTA
SHAMPA SARKAR, J.
Merlin Projects Limited – Appellant
Versus
D.C. Paul Group Construction Pvt. Ltd. and Others – Respondents
CO No. 4420 of 2025
Decided On : 22-12-2025

Advocates Appeared:
For the Appellants : P. Chidambaram, Aniruddha Chatterjee, Debjit Mukherjee, Rahul Karmakar, Saptarshi Datta, Abir Chakravorti
For the Respondents: Abhrajit Mitra, Saurapriya Mukherjee, Deepam Kumar Sarkar, Deepti Priya, Dipayan Dan, Rahul Sarkar, Anirban Ray, Jishnu Chowdhury, Satadeep Bhattacharya, Aniket Chaudhury, Sriparna Mitra, Surajit Nath Mitra, Sankarsan Sarkar, Srinjita Ghosh, Pourush Kanti Pal, Ratnanko Banerjee, Abhidipto Tarafdar, Samriddha Sen, Jishnujit Roy, Sumit Biswas, Devesh Bose

The court emphasized the need for a careful balance of equities in injunction cases, asserting that blanket injunctions affecting substantial projects must be substantiated with clear justifications.

Headnote:(A) Injunction Act - Grant of Interim Injunction - The court addressed the principles of prima facie case, balance of convenience, and the irreparable loss standards while granting an interim injunction favoring the appellants. The court emphasized that any infringement on the defendants' rights must be justified carefully. (Paras 1, 8, 25)

(B) Discretion of Courts - The appellate court should not substitute its discretion for that of the trial court unless the latter's discretion was exercised arbitrarily or capriciously. (Paras 20, 24)

Facts of the case:
The case involves a dispute over the validity of signatures on a Memorandum of Understanding and Board Resolution between company directors. Allegations of forgery led to a request for an interim injunction against the development project.

Findings of Court:
The court found the plaintiffs had made a prima facie case for a stay on the project and noted the potential for irreparable harm.

Issues: The court examined the validity of documents and the appropriateness of the trial court's initial denial of relief.

Ratio Decidendi: The court held that the appellate court is to consider equities and not lightly grant injunctions that cease all activities without sufficient justification.

Result: The order of injunction was set aside, allowing development to proceed but mandating the earmarking of specific flat units for the plaintiffs.

Table of Content
1. factual background of the case. (Para 1)
2. court's analysis on prima facie case for injunction. (Para 2 , 3)
3. arguments regarding validity and execution of agreements. (Para 7 , 9 , 10 , 11 , 12 , 14 , 15 , 16 , 19)
4. court's reasoning for balancing equities in injunction. (Para 18 , 21)
5. judgment on injunction's scope and limitations. (Para 20 , 22 , 24 , 25 , 30)
6. final order and disposition of the matter. (Para 26 , 28 , 29 , 32)

JUDGMENT :

SHAMPA SARKAR, J.

1. The revisional application arises out of an order dated December 6, 2025, passed by the learned District Judge at Alipore, in Misc. Appeal No.404 of 2025. By the order impugned, the learned Appeal Court granted an ad interim injunction. The operative portion is quoted below:-

“Upon hearing the submissions made by the Ld. Advocate for the appellants and upon appraisal of the materials on record, it, prima facie, appears that the respondent nos. 42 and 43 were the Directors of the appellants/companies and the respondent no. 1 was the Director of the appellants/companies till 20th April, 201 and since then, the respondent no. 1 has ceased to be the Director of appellant no.1. Presently, it has been alleged by the appellants that the respondent no. 1 sent a copy of Memorandum of Understanding dated 15th January, 2025, allegedly entered into between the respondent no. 1 and respondent no. 43. It has been further alleged that the Board Resolution dated 28h January, 2015, has not been signed by the respondent no. 43. It has also been alleged that vide the said Board Resolution, a Joint Development Agreement dated 25th June, 2021, has been entered into in between the respondents. The respondent no. 43 alleges that the signatures in MOU dated 15th January, 2015 and Board Resolution of D.C. Paul Group Construction Pvt. Ltd. dated 28h January, 2015, are forged and the respondent no. 43 has denied ever having signed on them and to that effect, the respondent no. 43, namely, Suparna Paul, sent a letter to D.C. Paul Group Construction Pvt. Ltd. (being Annexure 'G'). In that regard, the appellants also conducted a forensic test done by 'Forensi Labs' and report of the same has been appended with the injunction application (being Annexure 'K'). Therefore, regard being had to the above facts and circumstances, this Court is of the view that the appellants have been able to make out a prima facie case in their favour and the balance of convenience and inconvenience is also tilting in favour of the appellants. If, at this stage, an order of ad- interim injunction is not passed in favour of the appellants, then the appellants will suffer from irreparable loss and injury and the very purpose of filing the suit and the appeal would be rendered infructuous. As such, this Court is of the view that for a very restrictive period till hearing the respondents, a protective order needs to be given in favour of the appellants in order to protect the suit premises Hence, it is, ORDERED that the prayer for an order of ad-interim injunction in favour of the appellants is allowed for a restricted period till 07.01.2026.

The respondent nos. 1 and 2, their men, agents and assigns are restrained from taking any step on the basis of Joint Development Agreement dated 25th June, 2021, and the purported Development Power of Attorney, dated 16th July, 2021, till 07.01.2026.

2. The court was of the view that the opposite parties had made out a, prima facie, case for grant of injunction. The balance of convenience and inconvenience was in their favour. The learned Appeal Court recorded that one of the directors of the company had disputed her signature in the MOU dated January 15, 2015 and in the Board Resolutions dated January 28, 2015. The court further observed that the signature of the directors of the company were absent in the Joint Development Agreement.

3. The Court noted that a forensic test had been done at the instance of the plaintiffs, in order to ascertain whether the declaration m

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