IN THE HIGH COURT OF MADRAS
Venkataramana Rao, J.
Muthuswami Pillai
Versus
Manikka Moopan and Ors.
Decided On : 28.07.1936
Security Bond - Enforcement of Terms - The court had jurisdiction to enforce the terms of the security bond given by the respondent in an interlocutory proceeding, as it was a proceeding in court importing a certain liability to be enforced in the suit against the defendant. The court had general jurisdiction over the subject matter of the suit and was competent to give effect to the agreement between the parties.
Fact of the Case:
The plaintiff filed a suit for a permanent injunction against the defendant and also applied for a temporary injunction to restrain the defendant from interfering with the possession of the property. The parties entered into an agreement, and the defendant was put in possession of the property, with the obligation to pay the plaintiff the profits if the plaintiff succeeded in the suit. A security bond was taken from the respondent to enforce this obligation.
Finding of the Court:
The District Munsif allowed the application to recover the amount, but the District Judge disallowed it, stating that the court had no jurisdiction to give relief in regard to mesne profits subsequent to the suit. The court, however, reversed the decree of the District Judge and restored the decree of the District Munsif with costs.
Issues: The main issue was whether the court had jurisdiction to enforce the terms of the security bond given by the respondent in an interlocutory proceeding, particularly in relation to the payment of profits if the plaintiff succeeded in the suit.
Ratio Decidendi: The court held that it had general jurisdiction over the subject matter of the suit and was competent to enforce the terms of the security bond. The security bond was considered as a proceeding in court importing a certain liability to be enforced in the suit against the defendant.
Final Decision: The court reversed the decree of the District Judge and restored the decree of the District Munsif with costs.
Venkataramana Rao, J.
1. This Civil Miscellaneous Second Appeal arises out of an application to enforce the terms of a security bond given by respondent 2 in the course of an interlocutory proceeding in the suit. The suit itself was for a permanent in-junction by the plaintiff against defendant 1 restraining him from interfering with the possession of the property. Immediately after filing the said suit he filed an application for a temporary injunction requesting the Court to restrain defendant 1 from interfering with his possession during the pendency of the suit, and when the application came on for hearing the parties seem to have entered into an agreement in and by which defendant 1 was to be in possession of the land in dispute during the pendency of the suit and he should, in case the plaintiffs title to the property is declared, pay him the profits of the said land.
2. It was also stipulated among other terms that for the fulfilment of this obligation defendant 1 must also furnish security. A joint meant bodying one terms of the agreement arrived at between the parties was filed in Court and the Court approved of it and took a security bond from responded 2 in the appeal. The security bond clearly recites the agreement, the obligation entered into by defendant 1 and that respondent 2 has agreed to stand security for the fulfilment of that obligation and that in case the plaintiff succeeds the amount mentioned in the bond can be recovered in execution, "treating this as part of such decree and by executing such decree." The result of the suit was, there was a decree in favour of the plaintiff. The plaintiff accordingly filed an application to recover the amount which defendant 1 and respondent 2 agreed to pay as aforesaid. The learned District Munsif allowed the application, but the learned District Judge disallowed it on the ground that the said suit itself being one for a permanent injunction the Court had no jurisdiction to give a relief in regard to mesne profits subsequent to the suit. It seems to me that this view of the learned District Judge is entirely wrong. He has misunderstood the nature and scope of the order passed on the application for temporary injunction and has not correctly appreciated the effect of the security bond given by the parties as a result of the agreement arrived at between them at the stage when the parties sought interlocutory relief by way of temporary injunction. It cannot be doubted that the plaintiff was entitled to ask for the relief by way of a temporary injunction restraining defendant 1 from interfering with the possession during the progress of the suit. It was open to the parties at that stage to agree to any terms as they deemed fit to agree or it was open to the Court to pass such order as it might deem fit to give proper relief to the plaintiff during the pendency of the suit. The result of the proceedings was that by agreement defendant 1 was put in possession of the property he being accountable for the produce thereof in case the plaintiff succeeded in the suit. The Court had general jurisdiction over the subject matter of the suit. It was perfectly competent to the parties to come to the said understanding and for the Courts to give effect to it. As stated by their Lordships of the Privy Council in Sadasiva Pillial v. Ramalinga Pillai (1974) 2 IA 219, the security bonds under such circumstances must be considered as proceedings in Court importing a certain liability to be enforced in the suit against the defendant to that suit.
3. Having undertaken this obligation it would not be open to defendant 1 or respondent 2 to resile from it and allege that the proceedings were entirely irregular and that the Court had no jurisdiction to enforce the terms which they had undertaken to fulfil. As observed by their Lordships in the same case, if the Court had general jurisdiction over the subject matter, though the exercise of that jurisdiction by the particular proceeding may
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