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2005 Supreme(HP) 306

High Court Of Himachal Pradesh
V.M.JAIN
BHAGWATI RAMPAL - Appellant
Versus
STATE BANK OF INDIA - Respondent
FAO Nos. 385 of 2004
Decided On : 09/07/2005

Advocates Appeared:
Mr. Bhupender Gupta, Sr. Advocate with Mr. Neeraj Gupta, Advocate for the appellants. Mrs. Devyani Sharma, Advocate for the respondent.

Ad-interim injunction cannot be granted in the absence of a prayer for permanent or mandatory injunction in the main suit, and interfering with the functioning of the Debt Recovery Tribunal is impermissible.

Headnote:

Injunction - Suit for Declaration - Order 39 Rules 1 and 2, Section 151 CPC - The court discussed the provisions of Order 39 Rules 1 and 2, Section 151 CPC and highlighted the requirement of seeking permanent or mandatory injunction as a consequential relief in a suit for declaration. The court referred to various case laws and emphasized that ad-interim injunction cannot be granted in the absence of a prayer for permanent or mandatory injunction in the main suit. The court also considered the exclusive jurisdiction of the Debt Recovery Tribunal under The Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and held that interfering with the functioning of the Tribunal and the Recovery Officer was not permissible.

Fact of the Case:

The plaintiffs filed a suit for declaration challenging a Civil Court decree obtained by the defendant-Bank and sought an ad-interim injunction to restrain the defendant from attaching, auctioning, or selling the disputed property. The District Judge dismissed the ad-interim injunction application, leading to the present appeal.

Finding of the Court:

The court found that the plaintiffs had only sought a declaration and had not asked for any permanent or mandatory injunction in the suit. The court emphasized that the ad-interim injunction could not be granted in the absence of a prayer for permanent or mandatory injunction in the main suit. The court also considered the exclusive jurisdiction of the Debt Recovery Tribunal and held that interfering with its functioning was impermissible.

Issues: The main issue was whether the plaintiffs were entitled to an ad-interim injunction in the absence of a prayer for permanent or mandatory injunction in the main suit.

Ratio Decidendi: The court held that ad-interim injunction cannot be granted in the absence of a prayer for permanent or mandatory injunction in the main suit. The court also emphasized the exclusive jurisdiction of the Debt Recovery Tribunal and the impermissibility of interfering with its functioning.

Final Decision: The appeal was dismissed, and the court held that the plaintiffs were not entitled to the grant of ad-interim injunction in the suit for declaration.

Judgement Key Points

Key Points: - Ad-interim injunction cannot be granted in the absence of a prayer for permanent or mandatory injunction in the main suit (!) (!) (!) . - The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 provides exclusive jurisdiction to the Tribunal for adjudication of debt recovery (!) (!) (!) . - Interfering with the functioning of the Debt Recovery Tribunal and Recovery Officer is impermissible (!) (!) (!) .

What is the requirement for granting an ad-interim injunction in a suit for declaration?

What is the exclusive jurisdiction of the Debt Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993?

Can ad-interim injunction be granted against the Recovery Officer or Tribunal functioning?


JUDGEMENT

V.M. Jain, J (Oral).:This appeal has been filed by the plaintiffs against the order dated 30.7.2004 passed by the District Judge dismissing the application under Order 39 Rules 1 and 2 read with Section 151 CPC, in a suit for declaration.

2. The facts, which are relevant are the decision of the present appeal, are that the plaintiffs had filed a suit for declaration that the Civil Court decree dated 25.3.1997 obtained by the defendant-Bank was obtained by it by fraud etc. from the District Judge, Sirmaur at Nahan and that the same was illegal and void and not binding on the plaintiffs. Alongwith the suit, an application under Order 39 Rules 1 and 2 CPC read with Section 151 CPC was also filed by the plaintiffs seeking to restrain the defendant, by way of ad-interim injunction, from attaching, auctioning or selling the disputed property till the disposal of the suit.

3. The suit was contested by the defendant-bank by filing written statement. Reply to the application under Order 39 Rules 1 & 2 read with Section 151 CPC was also filed, alleging therein that no case for grant of ad-interim injunction was made out especially when the defendant-Bank was effecting the sale of the disputed property in accordance with law through the Debt Recovery Tribunal, Chandigarh.

4. The plaintiff filed rejoinder to the said reply. After hearing both sides and perusing the record, the learned District Judge dismissed the ad-interim injunction application, vide order dated July 30, 2004. Aggrieved against the same, the plaintiffs filed the present appeal in this Court, under Order 43 Rule 1 (r) CPC

5. After hearing the learned counsel for the parties and perusing the record, in my opinion, there is no merit in this appeal and the same liable to be dismissed.

6. As referred to above, the plaintiffs had filed the suit for declaration simplicitor, challenging the Civil Court decree dated 25.3.1997 passed by the District Judge, Sirmaur at Nahan, in the case titled State Bank of India Vs. Tej Straw Board Pvt. Ltd. the only prayer made in the suit was as follows: "It is therefore, respectfully, prayed that a decree of declaration to the effect that the defendant obtain a decree for mortgage in respect of H No. 3086, situated at Sector 35-D, Chandigarh, in Civil Suit No. 13-N/1 of 1995/1987 fraudulently and by misrepresenting the facts and falsely claiming that the Title Deeds were possessed of by it, and as such, the decree qua mortgage is illegal, void and nonest and has no bearing vis-a-vis the rights of the plaintiffs and further that the said mortgage decree is nullity, nonest in law as the same is without jurisdiction. The plaintiffs are entitled for the rent, from the date of institution of Civil Suit No. 428 dated 4-12-1989 till date, alongwith interest @ 24% PA alongwith costs of the suit, or any other relied which under the circumstances this Honble Court deems appropriate may also be granted."

7. From a perusal of the above, it would be clear that except seeking a declaration with regard to the legality or otherwise of the Civil Court decree dated 25.3.1997, the plaintiffs had not sought any consequential relief by way of permanent or mandatory injunction. Even in the body of the plaint, no such reference had been made, except making a reference that the defendants had moved the Debt Recovery Tribunal Chandigarh.

8. At the time when the appeal came up for hearing before me on 25.8.2005, the learned counsel appearing for the appellants had prayed for a short date to seek instructions as to whether the appellants had moved or were moving the trial Court for the amendment of the plaint so as to incorporate the plea of permanent injunction in the suit filed by them. Resultantly, the appeal was adjourned. On 39.8.2005 also, the learned counsel prayed for some more time to seek instructions and accordingly the case was adjourned. On 6.9.2005, the learned counsel appearing for the appellants informed the Court that neither any prayer has been made












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