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2009 Supreme(MP) 105

IN THE HIGH COURT OF MADHYA PRADESH
GWALIOR BENCH
R. S. GARG AND U. C. MAHESHWARI, JJ.
Managing Director, Century Textile Industries Ltd. & Ors. - Appellant
v.
Smt. Manju Gupta & Mr. - Respondent
W. P. No. 29 of 2009.
Decided on : 22-1-2009

Advocates appeared:
Aniket Naik, for Petitioners; R. P. Singh for learned counsel, for Respondents.

The central legal point established is that an injunction cannot be granted when the contract is determinable and alternative legal remedies are available.

Headnote:

Injunction - Breach of Contract - Indian Specific Relief Act, 1963, Section 41, Section 14

Fact of the Case:

The plaintiff, claiming to be the manager of a company, filed a suit for declaration and injunction after the defendant terminated their agency and sales promoter role. The lower court denied the injunction, but the appellate court granted it.

Finding of the Court:

The court found that the injunction could not be granted as the contract was determinable and the plaintiffs could seek damages and other relief through legal proceedings.

Issues: The main issue was whether the injunction should be granted to prevent the termination of the contract.

Ratio Decidendi: The court held that under Section 41 of the Indian Specific Relief Act, an injunction cannot be granted when the contract is determinable and equally efficacious relief can be obtained through other legal means.

Final Decision: The appellate court's decision to grant the injunction was quashed, and the lower court's decision was restored. The trial court was directed to dispose of the suit promptly.

JUDGMENT

R. S. GARG, J. :- The petitioners being aggrieved by the order dated 15-11-2008 passed by the learned Second Additional District Judge, Ashoknagar, Guna in Misc. Appeal No. 20/08 granting injunction in favour of the respondents after setting aside the order dated 6-9-2008 passed by the learned Civil Judge Class-II Ashoknagar in Civil• Original Suit No. 14A/08 have filed this petition under Article 227 of the Constitution of India.

2. The short facts necessary for disposal of the writ petition are, that the plaintiff No. 1 Smt. Manju Gupta claiming herself to be the Manager of Abhinav Enterprises Ashoknagar pleaded that she was the agent and sales promoter of the defendant-company and was having the work of clearing and forwarding. The agency went on properly up to 2007 but thereafter to earn more profit and with the intention of improving the business the defendants without observing the terms of the agreement entered into between the parties, terminated the agency. The plaintiffs filed a suit for declaration and injunction and in the suit also filed an application for grant of ad interim injunction with 51- prayer that till disposal, of the suit the defendants be restrained from terminating the sales promoter ship and agency of clearing and forwarding with a further injunction against the defendants not to appoint any other person or body for the said purpose. The defendants appeared in the Court below and contested the suit on various grounds. The learned Court below after hearing the parties came to the conclusion that present is not a fit case for grant of any injunction and, therefore, the plaintiffs were not entitled to any injunction. In the appeal, learned Appellate Court granted the injunction. Therefore, the defendants are before this Court.

3. We have heard the parties at length and shall now consider the arguments in seriatum.

4. Learned counsel for the petitioners submitted that an injunction cannot be granted either in temporary form or perpetual in nature just for the sake of asking. According to him the interim injunctions or perpetual injunctions can be granted if the requirement as provided under the .law is fulfilled. It is also submitted by him that a juxtapose reading of Sections 41 and 14 of the Indian Specific Relief Act. 1963 would make it clear that an injunction cannot be granted to prevent the breach of a contract the performance of which would not be specifically enforced and when equally efficacious relief can certainly be obtained by any other usual mode of proceeding except in case of breach of trust. It is also submitted by him that the plaintiffs came with the case that the agreement has been terminated abruptly and the agency has been illegally terminated and if such were the pleadings then injunction restoring the sales promotership and clearing and forwarding agency cannot be granted.

5. Shri Singh learned counsel for the tries Ltd. v. Manju Gupta respondents, on the other hand, submitted that present is a case of breach of the agreement because the defendants without observing the conditions of the agreement abruptly terminated the agreement that too, without making payment of the earlier balance, without directing refund of the security and without observing the condition of issuing one month's notice. It is also submitted by him that the plaintiffs have present as the only business to earn their livelihood, an injunction certainly should have been granted in their favour. It is submitted by him that the Court below was not unjustified in granting the injunction.

6-7. Section 41 of the Specific Relief Act clearly provides that, an injunction cannot be granted, - (e) to prevent the breach of a contract the performance of which would not be specifically enforced and (h) when equally efficacious relief can certainly be obtained by any other usual mode of proceeding except in case of breach of trust. In the present matter if clauses (e) and (h) of Section 41 are read in juxtaposition with S







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