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2026 Supreme(Online)(Kar) 18739

THE HIGH COURT OF KARNATAKA
K.S. Hemalekha, J
Manjunath B.N. – Appellant
Versus
Vasanth Kumar H.G. – Respondent
MFA No. 510 of 2026



Advocates:
For the Appellants/Petitioners: Sri Srihari N.S.
For the Respondents: Sri Viswanatha Reddy G.A.

A party who suppresses material facts regarding finalized statutory recovery proceedings and lacks actual possession (relying on non-party tenants) is disentitled to equitable relief of injunction, especially against an auction purchaser where no declaration of title is sought.

Headnote:The appellant challenged a temporary injunction order passed under Order 39 Rules 1 and 2 of the Code of Civil Procedure, 1908. The facts reveal that the property was auctioned following recovery proceedings under the Karnataka State Souharda Co-Operative Act, and a sale certificate was issued to the appellant. Despite the dismissal of multiple challenges by the respondent in the Tribunal, High Court, and Apex Court, the Trial Court granted an injunction based on the respondent's claim of possession through tenants. The court framed the issue as to whether the impugned order warrants interference. The court reasoned that the respondent suppressed material facts regarding the finality of statutory proceedings and that a claim of possession through third-party tenants, who were not parties to the suit, cannot sustain a prayer for injunction. It further held that a suit for injunction without seeking a declaration of title against an auction purchaser is not maintainable, and the Trial Court's order effectively sought to nullify superior court rulings. The miscellaneous first appeal is allowed.

Table of Content
1. background of the dispute involving auction purchase and temporary injunction. (Para 1 , 2 , 3)
2. arguments regarding title, possession, and circumvention of statutory proceedings. (Para 4 , 5 , 6)
3. impact of suppression of material facts on equitable relief. (Para 7 , 8 , 9 , 10)
4. invalidity of injunction based on non-party tenants and lack of title declaration. (Para 11 , 12 , 13)
5. misapplication of prima facie case and balance of convenience principles. (Para 14 , 15 , 16 , 17)

THIS APPEAL COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA

ORAL JUDGMENT

This miscellaneous first appeal is preferred by the defendant against the order dated 15.11.2025 passed on I.A. No.1 in O.S. No.5061/2024 on the file of the XIV Additional City Civil and Sessions Judge, Bengaluru (‘Trial Court’ for short), whereby the Trial Court has allowed the application filed under Order XXXIX Rules 1 and 2 CPC and granted an order of temporary injunction restraining the defendant (appellant herein) from interfering with the alleged possession of the plaintiff over the suit schedule property.

Brief facts:

2. The plaintiff instituted suit for permanent injunction claiming to be in possession of the suit schedule property on basis of partition. It is his case that, he has let out the property to tenants and continues to be in possession through them. The undisputed material on record discloses that the plaintiff had availed loan from the SLV Souharda Pattina Sahakari Niyamitha by mortgaging the suit property. Upon default, recovery proceedings were initiated culminating in an award dated 21.12.2020, followed by auction proceedings, wherein the appellant emerged as a highest bidder. A sale certificate dated 14.12.2023 was issued in favour of the appellant.

3. The challenge to the said proceedings had already attained finality in W.P. No.26112/2024 and in W.A. No.598/2025 preferred by the plaintiff. The Division Bench of this Court refused to grant interim order, despite the same, the application for injunction in the suit filed by the plaintiff was pressed and the impugned order of injunction was granted.

4. Learned counsel for the appellant submits that the Trial Court has committed a serious error in granting injunction in favour of a person who has already lost both title and possession pursuant to lawful auction proceedings. It is submitted that the issuance of sale certificate vests with a valid title and rights in favour of the auction purchaser and therefore, the plaintiff cannot maintain a suit for permanent injunction without seeking a declaration of title. It is brought to the notice of this Court, by the appellant by way of a memo dated 25.03.2026, that writ petition in W.P. No.26112/2024 filed by the respondent came to be dismissed on 12.03.2025 and that further proceedings, including writ appeal in W.A. No.598/2025, the Division Bench of this Court refused to grant an interim relief and the appeal preferred before the Apex Court in Special Leave to Appeal (C) No.30719/2025 was also dismissed and declined to interfere with the order dated 25.09.2025, refusing to grant interim order in W.A. No.598/2025.

5. It is submitted that all these developments have taken place during the pendency of the suit and prior to the passing of the impugned order of temporary injunction dated 15.11.2025 and these material facts were not brought to the notice of the Trial Court by the plaintiff while seeking an equitable relief of injunction. It is submitted that the present suit is an indirect attempt to circumvent those proceedings. The Trial Court has failed to consider that the plaintiff is not in actual possession and has relied upon a vague plea of tenants being in possession. Even assuming tenants are in possession, they are not parties to the suit and plaintiff cannot seek an injunction on their behalf. It is contended that the impugned order is perverse, illegal and contrar

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