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Supreme Court of India

LAKSHMI ALIAS BHAGYALAKSHMI AND ANR.versusE. JAYARAM (D) BY LR.

Citation
2013 INSC 80
Decided
7 February 2013
Disposal
Appeal(s) allowed

Holding

The High Court erred; the interim injunction under Order 39 Rules 1 and 2 CPC was proper and must be upheld.

Summary

The plaintiffs claimed ownership of a property purchased from the defendant, although the sale deed was unregistered, and filed a suit for permanent injunction together with an application under Order 39 Rules 1 and 2 of the CPC for interim relief. The trial court granted an interim injunction protecting the plaintiff who was in possession as a tenant, pending the final determination of rights. The defendants appealed, and the High Court set aside the interim injunction, holding that because the suit for a bare injunction was filed without seeking leave under Order 2 Rule 2 CPC, any incidental injunction was unavailable and interpreting Section 53A of the Transfer of Property Act to bar the relief. The Supreme Court held that the High Court mis‑interpreted Order 39 and Section 53A, and that the trial court was correct in granting the interim injunction. Consequently, the Supreme Court allowed the appeal, restored the interim injunction, and directed the trial court to dispose of the suit within four months. The decision clarifies that an interim injunction may be granted under Order 39 even when the suit does not seek specific performance, and that Section 53A does not preclude such relief.

Issues considered

  • Whether an interim injunction under Order 39 Rules 1 and 2 CPC can be granted when the suit is for a permanent injunction and no leave under Order 2 Rule 2 CPC is sought.
  • Whether Section 53A of the Transfer of Property Act bars the grant of an incidental injunction in the present circumstances.
  • Whether the High Court was correct in setting aside the trial court's interim injunction.

Legislation cited

Subjects

injunctioninterim injunctionpermanent injunctionOrder 39 CPCSection 53ATransfer of Property Actspecific performancetenancyproperty disputeprocedural law

Judgment

                          [2013] 1 S.C.R. 794


A          LAKSHMI ALIAS BHAGYALAKSHMI AND ANR.
                                     v.
                         E.JAYARAM (D) BY LR.
                    (Civil Appeal No. 1004 of 2013)
                          FEBRUARY 7, 2013
B
       [SURINDER SINGH NIJJAR AND M.Y. EQBAL, JJ.]

          Code of Civil Procedure, 1908 - Or. 39, rr.1 and 2 - Suit
    for permanent injunction - Plaintiff no. 1 claimed ownership
C   rights in respect of the suit property stating that it had
    purchased the same from defendant no. 1, and though the sale
    deed was not registered, the entire sale consideration had
    been paid to defendant no. 1 - Separate application filed by
    plaintiffs-appellants u!Or. 39, rr. 1 and 2 CPC seeking ad-
D   interim relief - Interim injunction granted by trial court -
    Appeal - High Court instead of considering the legality and
    propriety of the order of interim injunction, proceeded to
    decide the effect of s.53A of the Transfer of Property Act, 1882
    - Further, taking note of the fact that the suit for bare injunction
E   was filed without seeking leave u!Or.2, r.2 CPC reserving the
    right to sue for any other relief, the High Court held that in light
    of the same if the plaintiffs were barred from claiming any
    relief of specific performance, the incidental relief of injunction
    would also be unavailable to them, and thereafter set aside
F   the order of trial court - Held: High Court completely
    misconstrued the provisions of Or. 39, rr. 1 and 2 CPC and
    committed serious error in deciding the scope of s. 53A of
    Transfer of Property Act, 1882 and Or. 2, r. 2 CPC - Trial court
    while granting ad-interim injunction very categorically
G   observed in the order that respective rights of the parties shall
    be decided at the time of final disposal of the suit - The very
    fact that plaintiff no. 2 was in possession of the property as a
    tenant under plaintiff no.1 and possession of plaintiff no.2 was
    not denied, interim protection was given to plaintiff no.2 against

H                                  794
  LAKSHMI ALIAS BHAGYALAKSHMI AND ANR. v.                 795
            E.JAYARAM (D) BY LR.
the threatened action of the defendants-respondents to evict     A
her without following the due process of law - Order passed
by High Court cannot be sustained in law.

     The plaintiffs-appellants filed a suit for permanent
injunction restraining the defendant-respondents from
interfering with their peaceful possession and enjoyment         8
of the suit property inter-alia pleading that plaintiff no.1
was the absolute owner of the suit property which was
purchased from defendant no.1 and that though the sale
deed was not registered, the entire sale consideration had
been paid to defendant no.1. The plaintiffs-appellants           C
further filed a separate application under Order 39 Rule
1 and 2 CPC seeking ad-interim relief restraining the
defendants from interfering with their peaceful
possession and enjoyment.
                                                                 D
     The defendant-respondents denied the purchase of
suit property by the plaintiff-appellants from defendant-
respondent no.1. They pleaded that plaintiff no.1 was a
stranger; that defendant no.1 was the owner of the
property and plaintiff no.2 was a tenant under him.              E

     The trial court allowed the application of the plaintiffs
under Order 39 Rule 1 and 2 CPC and granted ad-interim
temporary injunction restraining the defendants from
interfering with the peaceful. possession and enjoyment
of the suit property by plaintiff no.2 till disposal of the suit. F
Aggrieved by the said order, the defendants preferred
appeal before the High Court. The High Court instead of
considering the legality and propriety of the interim
injunction granted by the trial court, proceeded to decide
the effect of Section 53A of the Transfer of Property Act, G
1882. Further, taking note of the fact that the suit for bare
injunction was filed without seeking leave ulOr.2, r.2 CPC
reserving the right to sue for any other relief, the High
Court held that in light of the same if the plaintiffs were
barred from claiming any relief of specific performance, H
    nl6      SUPREME COURT REPORTS              [2013] 1 S.C.R.


A the incidental relief of injunction would also be
  unavailable to them. The High Court thereafter set aside
  the order passed by the trial court holding that defendant-
  respondents were entitled to initiate action for ejectment
  of the plaintiff-appellants from the suit property. Hence
8 the present appeal.
          Allowing the appeal, the Court

       HELD: The High Court completely misconstrued the
  provisions of Order 39 Rule 1 and 2 CPC and committed
C serious error in deciding the scope of Section 53A of
  Transfer of Property Act, 1882 and Order 2 Rule 2 of CPC.
  The trial court while granting ad-interim injunction very
  categorically observed in the order that respective rights
  of the parties shall be decided at the time of final disposal
o of the suit. The very fact that Plaintiff No.2 was in
  possession of the property as a tenant under Plaintiff
  No.1 and possession of Plaintiff No.2 was not denied, the
  interim protection was given to Plaintiff No.2 against the
  threatened action of the defendants to evict her without
E following the due process of law. The order passed by
  the High Court cannot be sustained in law. [Para 7] [800-
  A-D]

        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    1004 of 2013.
F
        From the Judgment & Orders 29.08.2005 of the High
    Court of Karnataka at Bangalore in M.F.A. No. 524 of 2003
    (CPC).

G       Raghavendra S. Srivatsa, Subramonium Prasad for the
    Appellant.

          E.C. Vidya Sagar, Kheyali Sarkar, Sanjay R. Hegde for
    the~ Respondent.

H         The Judgment of the Court was delivered by
   LAKSHMI ALIAS BHAGYALAKSHMI AND ANR. v.                      797
             E.JAYARAM (D) BY LR.
     M.Y. EQBAL, J. 1. Leave granted.                                   A
      2. This appeal is directed against the order dated
29.08.2005 passed by a single Judge of the Karnataka High
Court in M.F.A. No. 524 of 2003, whereby the Learned Single
Judge set aside the order passed by the VII Addi. City Civil            B
Judge, Bangalore and held that defendant-respondent is
entitled to initiate action for ejectment of the plaintiff-appellants
from the suit property.
     3. The facts of the case lie in a narrow compass.
                                                                        c
     4. The plaintiffs who are the present appellants filed a suit
for permanent injunction restraining the defendant-respondents
from interfering with their peaceful possession and enjoyment
of the suit property. The plaintiff-appellants case was that
 Plaintiff No.1 is the absolute owner of the suit property D
consisting of a building which was purchased from Defendant
 No.1 on a consideration of Rs.6,000/- However, sale deed
could not be registered as the registration was suspended by
the Government and the defendant-respondents could not get
clearance from the Urban Land Ceiling Authority. The plaintiff- E
appellant's further case was that although the sale deed was
not registered, the entire sale consideration was paid to
Defendant No.1 by the plaintiff who was put in possession of
the suit property. It was pleaded by the plaintiffs that Plaintiff
No.1 leased out the suit property in favour of Defendant No.2
                                                                    F
who is residing in the same suit property for the last 17 years.
Plaintiff-appellants further case was that they approached the
Bangalore Mahanagara Palike for change of kattas and, on
enquiry, they learnt that Defendant No.1 with an intention to grab
the property concocted a gift deed in favour of Defendant No.2,
who is his wife and on that basis moved an application for 'G
change of kattas. Immediately, the plaintiffs caused a legal
notice dated 09.09.2002 asking him to execute a sale deed in
favour of Plaintiff No.1. The plaintiffs also caused a legal notice
on Municipal authorities not to change the kattas in favour of
Defendant No.2 as Defendant No.1 has no right whatsoever to H
    798       SUPREME COURT REPORTS                  [2013) 1 S.C.R.

A gift the suit property. The plaintiffs alleged that defendants along
  with their henchmen came to the suit property and threatened
  the plaintiff-appellants of dire consequences if they do not
  vacate the property within three days. On account of repeated
  threats from the side of defendants, the plaintiffs were
B compelled to file a suit for permanent injunction restraining the
  defendants from interfering with their peaceful possession and
  enjoyment of the suit property. A separate application under
  Order 39 Rule 1 and 2 CPC seeking an ad-interim relief
  restraining the defendants from interfering with their peaceful
c possession and enjoyment was filed.
       5. The defendant-respondents filed a written statement and
  denied the averments made in the plaint. The defendants
  denied the purchase of the suit property by the plaintiff-
  appellants from Defendant-Respondent No.1. The defendants
D pleaded about their family settlement whereby the suit property
  was allotted to the defendants who put construction and let out .
  the same to Plaintiff No.2. According to the defendants, Plaintiff
  No.1 is a stranger. In a nutshell the case of the defendants is
  that Defendant No.1 is the owner of the property and Plaintiff
E No.2 is a tenant under him and that she was paying rent per
  month.
         6. The learned Additional City Civil Judge on consideration
  of the pleadings made by the parties and the documents filed
F by them allowed the application of the plaintiffs under Order 39
  Rule 1 and 2 CPC and granted ad-interim temporary injunction
  restraining the defendants from interfering with the peaceful
  possession and enjoyment of the suit property by Plaintiff No.2
  till disposal of the suit. While granting temporary injunction the
G Civil Judge recorded the following reasons :-
                 "From the allegations and counter allegations, it can
          be crystallized that plaintiff no.2 is in possession of suit
          schedule property and as such, the documents have been
          produced and even defendants admit the possession of
H         plaintiff no.2. As regards the sale deed which is alleged
    LAKSHMI ALIAS BHAGYALAKSHMI AND ANR. v.                      799
       E.JAYARAM (D) BY LR. [M.Y. EQBAL, J.]
     to have been executed the same is seriously disputed               A
     document. Hence it need not be considered at this stage.
     The respective rights of the parties will have to be decided
     at the final disposal of the suit. At this stage, it is suffice
     to state that plaintiff no.2 is in possession of the property
     who has filed an affidavit stating that she is a tenant under      s
     plaintiff no.1 where as defendants have produced
     documents to show that she is tenant under them.
            In view of the above, I am of the considered opinion
     that this controversy can be resolved at the final disposal
     of the suit when parties lead their respective evidence. At        C
     this stage, plaintiff no.2 is entitled for injunction. Hence the
     point for consideration is answered in favour of plaintiff no.2
     only and I proceed to pass the following:
          I.A. No.1 filed by the plaintiffs under Order 39 Rule         D
     1 and 2 of CPC is allowed in part.
           Defendants 1 and 2 are restrained by an order of ad-
     interim temporary injunction from interfering with the
     peaceful possession and enjoyment of'the suit 'schedule            E
     property by plaintiff no.2 till disposal of the suit."
      6. Aggrieved by the said order the defendants preferred
 an appeal before the High Court being MFA No.524 of 2003.
 Ld. Single Judge instead of considering the legality and
propriety of the interim injunction granted by the Civil Judge F
proceeded to decide the effect of Section 53A of the Transfer
of Property Act, 1882. The Ld. Single Judge is of the view that
though the plaintiff is ready and willing to perform her part of
the contract, the fact that suit for bare injunction is filed without
seeking leave under Order 2 rule 2 CPC reserving their right G
to sue for any other relief. According to Ld. Single Judge in the
light of this, if the respondent is barred from claiming any relief
of specific performance, the incidental relief of injunction would
be unavailable to the respondents.
                                                                      H
    800      SUPREME COURT REPORTS                   [2013] 1 S.C.R.

A       7. We have heard learned counsel appearing for the
  parties. In our considered opinion, the learned single judge has
  completely misconstrued the provisions of Order 39 Rule 1 and
  2 CPC and has committed serious error in deciding the scope
  of Section 53A of Transfer of Property Act, 1882 and Order 2
B Rule 2 of CPC. As noticed above the Civil Judge while granting
  ad-interim injunction very categorically observed in the order
  that respective rights of the parties shall be decided at the time
  of final disposal of the suit. The very fact that Plaintiff No.2 is in
  possession of the property as a tenant under Plaintiff No.1 and
c possession of Plaintiff No.2 was not denied, the interim
  protection was given to Plaintiff No.2 against the threatened
  action of the defendants to evict her without following the due
  process of law. In our considered opinion, the order passed by
  the learned single judge cannot be sustained in law.
D       8. For the aforesaid reasons, we allow this appeal and set
    aside the order passed by the High Court in the aforesaid
    appeal arising out of the order of injunction.
       9. However, before parting with the order we are of the
E view that since the suit is pending for a long time the trial court
  shall hear and dispose of the suit within a period of four months
  from the date of receipt of copy of this order. It goes without
  saying that the trial court shall not be influenced by any of the
  observation made in the order passed by the appellate court
F as also by this court and the suit shall be decided on its own
  merits.
    B.B.B.                                           Appeal allowed.


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