J.C.SHAH, K.C.DAS GUPTA, K.N.WANCHOO, RAGHUBAR DAYAL
Manohar Lal Chopra – Appellant
Versus
Rai Bahadur Rao Raja Seth Hiralal – Respondent
Certainly. Based on the provided legal document, here are the key points:
The provisions of the Civil Procedure Code regarding stay of suits and injunctions are clear, definite, and mandatory when the conditions for their applicability are met. Once the criteria are satisfied, the court has no discretion but to stay the suit (!) .
The exercise of inherent powers under Section 151 of the Civil Procedure Code is meant for exceptional cases where the Code does not lay down specific procedures. Such powers should be exercised with great caution and only when absolutely necessary to do justice between the parties (!) (!) .
The inherent powers are not intended to control or limit the provisions of the Code but are supplementary, meant to be used to prevent abuse of process or to achieve justice in circumstances not expressly covered by the Code (!) (!) (!) .
The scope of inherent powers includes issuing temporary injunctions in circumstances not specifically provided for in the rules, but such powers should be exercised only in exceptional cases, and not as a routine substitute for specific procedural provisions (!) (!) (!) .
Orders restraining a party from proceeding with a suit in another court must be made with great care and only when absolutely necessary for justice. Such orders should not be issued lightly, especially when the suit is properly instituted in a competent court (!) (!) .
The legislative intent appears to favor adherence to the specific provisions of the Code, with inherent powers acting as a complement rather than a substitute. When the Code provides a specific procedure, that procedure should be followed (!) (!) .
The exercise of inherent jurisdiction to restrain proceedings should be based on substantial grounds, such as abuse of process or vexatious conduct, rather than mere inconvenience or distance between courts (!) (!) .
The courts have inherent jurisdiction to issue temporary injunctions only in circumstances that are not explicitly covered by the procedural rules, and such powers should be exercised with caution and only when necessary to prevent injustice or abuse (!) (!) .
The provisions of the Code are not exhaustive; however, when specific provisions exist, they must be observed, and the inherent powers should not be used to circumvent these provisions (!) (!) .
Orders that interfere with the proceedings of a suit in another court should be issued only when justified by exceptional circumstances, and not merely to prevent a party from exercising their legal rights in a proper forum (!) (!) .
Would you like a summary or further clarification on any specific point?
Judgment
RAGHUBAR DAYAL, J. : (on behalf of himself and Wanchoo and Das Gupta JJ.) The appellant and the respondent entered into a partnership at Indore for working coal mines at Kajoragram (District Burdwan) and manufacture of cement etc., in the name and style of Diamond Industries . The head office of the partnership was at Indore. The partnership was dissolved by a deed of dissolution dated August 22, 1945. Under the terms of this deed, the appellant made himself liable to render full, correct and true account of all the moneys advanced by the respondent and also to render accounts of the said partnership and its business, and was held entitled to 1/4th of Rs. 4,00,000 solely contributed by the respondent towards the capital of the partnership. He was, however, not entitled to get this amount unless and until he had rendered the accounts and they had been checked and audited.
2. The second proviso at the end of the covenants in the deed of dissolution reads :
"Provided however and it is agreed by and between the parties that as the parties entered into the partnership agreement at Indore (Holkar State) all disputes and differences whether regarding money or as to the relationship
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