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2024 Supreme(SC) 1114

J. B. PARDIWALA, R. MAHADEVAN
Ramakant Ambalal Choksi – Appellant
Versus
Harish Ambalal Choksi – Respondent


Advocates appeared:
For the Petitioner(s): Mr. C.U. Singh, Sr. Adv. Mr. Chirag M. Shroff, AOR Mrs. Mahima C Shroff, Adv. Mr. Anand Thumbayil, Adv.
For the Respondent(s): Mr. Nikhil Goel, Sr. Adv. Mr. Ashutosh Ghade, AOR Mr. Adithya Koshy Roy, Adv. Ms. Siddhi Gupta, Adv. Ms. Naveen Goel, Adv.

Judgement Key Points

Key Points: - The appellate court must not substitute its discretion for the trial court’s unless the trial court’s discretion was perverse, arbitrary, or failed to apply settled law; review should consider whether the trial court acted within principles governing interim injunctions (!) (!) (!) (!) (!) . - The court reiterates the three core conditions for granting a temporary injunction: prima facie case, irreparable injury, and balance of convenience, with the need for sound judicial discretion in pendency of the suit (!) (!) (!) (!) (!) . - The judgment emphasizes that appellate interference should be limited and not based on extraneous considerations; the High Court erred by materially substituting its view and considering pending litigations and alleged malafides instead of per se perversity in the trial court’s order (!) (!) (!) (!) . - The decision clarifies that lis pendens under Section 52 TP Act can affect transfers of the suit property during litigation, and interim relief does not automatically foreclose subsequent transfers when pending; transfers may be constrained or scrutinized at final adjudication (!) (!) (!) .

What is the appropriate scope of appellate review of a trial court's interim injunction under Order 39 CPC, and when may an appellate court interfere with such discretionary orders?

What are the essential criteria (prima facie case, irreparable injury, balance of convenience) governing temporary injunctions in a civil suit, and how should they be weighed when the suit is still pending?

What are the implications of lis pendens and Section 52 of the Transfer of Property Act on pending transfers of suit property after an interim injunction has been issued or vacated?


ORDER

1. Leave granted.

2. This appeal arises from the order passed by the High Court of Gujarat dated 08.12.2022 in Appeal from Order No. 86/2022 by which the High Court allowed the miscellaneous appeal filed by the respondents herein and thereby set aside the order of injunction which was passed by the trial court below Exhibit-5 in favour of the appellants herein.

3. Heard the learned counsel appearing for the parties and also looked into the materials on record.

SUIT PROCEEDINGS

4. The appellants herein, who are the original plaintiffs before the trial court, instituted the Special Civil Suit No. 54 of 2019 for declaration, cancellation of registered sale deed bearing no. 2863 dated 23.03.2018 and permanent injunction against the respondents herein, that is, the original defendants. In the said suit, the plaintiffs filed an application below Exhibit-5 for grant of temporary injunction under Order 39 Rules 1 and 2 read with Section 151 of the Code of Civil Procedure, 1908 (“CPC”).

5. For the sake of convenience, the parties are referred to by their nomenclature in the original suit.

6. Plaintiff nos. 1 to 3 respectively are real brothers and plaintiff nos. 4 to 6 respectively are their

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