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2024 Supreme(HP) 27

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
SATYEN VAIDYA, J.
Ambuja Cement Ltd. – Petitioner
Versus
Bimla Devi and Another – Respondents
CMPMO Nos. 49, 51, 65, 66, 67, 68, 69 of 2024
Decided On : 08-05-2024

Advocates:
Advocate Appeared:
For the Petitioners: Neeraj Gupta, Kulwant Chauhan.
For the Respondents: Ram Krishan Sharma, Sanjeev Bhushan, Sohail Khan.

IMPORTANT POINT
The jurisdiction of the civil court was not ousted by the provisions of the 1968 Act, and the plaintiffs had a valid cause of action for the grant of injunction.

Headnote:

Cooperative Society - Injunction - Himachal Pradesh Cooperative Societies Act, 1968 - Section 72, Section 92

Fact of the Case:

The Company placed a check on the operation of trucks belonging to the plaintiffs, who were members of a cooperative society formed under the Himachal Pradesh Cooperative Societies Act, 1968. The plaintiffs sought permanent prohibitory injunction and damages against the Company.

Finding of the Court:

The Court found that the plaintiffs had a valid cause of action and had qualified for the grant of injunction. The Court held that the jurisdiction of the civil court to entertain the suits of the plaintiffs was not ousted by the provisions of the 1968 Act. The Court also found that the plaintiffs had established a prima facie case in their favor and that the balance of convenience was in their favor.

Issues: The issues included the legality and validity of the Company's actions, the privity of contract between the plaintiffs and the Company, and the jurisdiction of the civil court under the 1968 Act.

Ratio Decidendi: The Court held that the jurisdiction of the civil court was not ousted by the provisions of the 1968 Act, and that the plaintiffs had a valid cause of action for the grant of injunction. The Court also emphasized the importance of protecting the plaintiffs' right to earn a livelihood.

Final Decision: The petitions were dismissed, and pending applications were disposed of.

 

1. All these petitions are being decided together as common questions of law arise from identical facts.

2. The first respondents in all these petitions are the original plaintiffs before the learned trial Court in their respective suits (hereinafter referred to as plaintiff). Petitioner herein has been impleaded as defendant No. 1 (hereinafter referred to as the Company) and respondent No. 2 herein has been impleaded as defendant No. 2 (hereinafter referred to as the Society) in all the suits.

3. By way of these petitions, the Company has assailed the orders passed by the learned Appellate Court under Order 43, Rule 1 (r) of the Code of Civil Procedure (for short “the Code”) affirming the orders of ad- interim injunction passed by learned trial Court against the Company on the applications of plaintiffs in all the petitions.

4. Brief facts necessary for adjudication of these petitions are that the Society is a ‘Cooperative Society registered under Himachal Pradesh Cooperative Societies Act, 1968’ (for short “1968 Act”). Plaintiffs are the members of the Society. The said Society has been formed by the residents of the area affected by acquisition of land for establishment of cement manufacturing plants of the Company. As part of Relief and Rehabilitation Scheme formulated by the State Government for the persons affected by the aforesaid acquisition, agreement was executed between the Society and the Company to facilitate the obligation of the Company to provide direct or indirect employment to the project affected persons. As per the agreement, the Company required trucks for transportation for its raw material and final produce and the same was to be provided by the Society. In similarly fashion, few other cooperative societies have been formed and they also have entered into similar agreement with the Company.

5. Plaintiffs being members of the society have attached their respective trucks with the society for the purpose of fulfillment of object of the society. Their trucks since long have been plied by the society for the purpose of transportation of raw material and final produce of the Company.

6. On 28.08.2023, the company placed check on plying of trucks of plaintiffs for the business of the company, which means that the trucks of plaintiffs were barred from being operated for the business of the Company. Plaintiffs filed their respective suits with a prayer of restraining the defendants by way of permanent prohibitory injunction from placing any check or fetter in the plying of trucks by the company. In addition, decree for damages has also been prayed for.

7. Plaintiffs along with their respective suits also filed applications for interim injunction seeking restraint order against the company to place any check or fetter in plying of their trucks by society for transportation of raw material or final produce manufactured by the company.

8. Learned trial Court after hearing the parties had allowed the applications of the plaintiffs and the company has been restrained from causing obstruction in the transport business of plaintiffs and has further restrained the company from implementing the orders of check put on the vehicles of the plaintiffs till final adjudication of the main suit.

9. The company assailed the orders of interim injunction passed by the learned trial Court before the learned Appellate Court by invoking provisions of Order 43 Rule 1(r) of the Code. Learned Appellate Court has affirmed the orders passed by the learned trial Court. Hence these petitions.

10. I have heard learned counsel for the parties and have also gone through the record carefully.

11. Learned senior counsel for the company has contended that the impugned orders are bad in law for the reasons, firstly, that without the prayer of declaration as to legality and validity of action taken by defendant No. 1, the plaintiffs could not maintain the simpliciter suit for injunction; secondly, the impugned action of placing check on the operation of veh

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