A court has jurisdiction to grant an injunction restraining a party from breaching a contract if there is a negative covenant in the contract and the damages cannot be adequately compensated in money.

KAN SINGH, J.

( 1 ) THIS is a revision application by the Rajasthan Stale Electricity Board, hereinafter to be referred as the "board", and is directed against an order dated 28-8-68 passed by the Additional District Judge, Jaipur on an application by the respondent Messrs. Hindustan Brown Boveri Limited, hereinafter to be referred as the "company" for grant of a temporary injunction in certain proceedings instituted by the Company against the petitioner Board under Section 20 of the indian Arbitration Act. By his order under challenge the learned Additional District judge directed the petitioner Board "to refrain itself from making purchases of the material of the specifications for which order was placed with the Company bv the board to the extent of 9000 kilometers of All Aluminium Conductors till the matter was disposed of through arbitration. " The relevant facts are briefly these:

( 2 ) ACCORDING to the Company, the Board had invited tenders sometime in the early part of 1965 for the supply of All Aluminium Conductors as per their specifications. The company submitted its tender in response to the tender notice and, according to the Company, its tender was accepted by the Board. All Aluminium Conductors of three categories were to be supplied. 6000 kilometers of the specification known as ladybird were to be supplied at the rate of Rs. 770/- per kilometer, 2000 kilometers of the category known as fly were to be supplied at the rate of rs. 1135/- per kilometer and the third category was blue Bottle and 3000 kilometers of that category were to be supplied at the rate of Rs. 1305/-per kilometer. The total value that was to be paid by the Board after making discount of 5 per cent, was Rs. 1,02,64,000/-and odd. Then there was some correspondence between the parties and on account of the devaluation of the indian rupee that had come in the meantime the Company claimed increased rates on account of the consequences arising out of devaluation and it is averred that this was agreed to by the Board. Thereafter a meeting of the representatives of the Board and the Company had taken place and certain schedule of delivery was agreed upon. The case of the company inter alia was that on receiving despatch instructions from the Board the company bad supplied ladybird conductors which were 2000 kilometers and the supply had been accepted by the Board. This happened sometime in February, 1967. According to the company, the Board had failed to give further despatch instructions for the remaining quantity of goods to be supplied, of the three categories, and eventually in violation of the terms of the contract between the company and the Board, the Board invited fresh tenders for the purchase of 3000 kilometers of ladybird Conductors and 2000 kilometers of blue Bottle Conductors sometime in the last week of April, 1968. The advertisement containing a tender notice is said to have been published in the Times of India on 28-4-68. This inviting of fresh tenders, according to the Company, was in breach of the contract between the Board and the Company and as according to the Company, there was an arbitral clause in the tender notice which formed the basis of the contract between the Board and the Company, the Company invoked that arbitral clause and on 13-5-68 put in an application under Section 20 of the Arbitration Act in the Court of the Senior Civil Judge No. I, Jaipur City which court after June, 1968, came to be redesignated as the Court of Additional District Judge No. 1, jaipur City. In this application it was inter alia prayed that the Board be directed to produce the conditions of the contract containing the arbitration agreement between the parties and the dispute between the parties be ordered to be referred to arbitration as per the aforesaid arbitral clause. It was further prayed that during the pendency of the proceedings before the court and the arbitrator the Board, its servants and agents be restrained by an injunctio