Supreme Court Allows Landlord's Appeal in CPC Order 39 Rule 2-A Contempt Proceeding — Interim Injunction Must Be Obeyed Until Set Aside Despite Later Finding of Lack of Jurisdiction. The Court Held That Violation of Interim Orders Passed Before a Jurisdictional Determination Remains Punishable Under Order 39 Rule 2-A of the Code of Civil Procedure, 1908.

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Case Note & Summary

The dispute arose from a fire that destroyed a building in Bombay on August 25, 1985. The appellant, the landlord of the ground-floor premises, and the first respondent, a private limited company tenant, were parties to a tenancy. After the fire, the landlord claimed that the tenancy had come to an end and filed Suit No. 1407 of 1991 in the City Civil Court, Bombay on February 11, 1991, seeking a perpetual injunction to restrain the tenant from carrying out any construction. On February 15, 1991, the City Civil Court granted an ad-interim injunction. The tenant's application to vacate the injunction was dismissed on July 24, 1991. Meanwhile, on April 11, 1991, the landlord moved for punishment of the defendants under Order 39 Rule 2-A of the Code of Civil Procedure, 1908, alleging that the tenant had flouted the injunction by carrying out massive reconstruction. On November 29, 1991, the City Civil Court confirmed the temporary injunction and held that it had jurisdiction. On December 2, 1991, the court allowed the contempt motion, finding that construction work was massive, continued despite the injunction and police warnings, and was wilful; it committed the second defendant (managing director) to imprisonment for one month and directed the Court Receiver to take possession and seal the premises. The defendants filed appeals in the Bombay High Court. On July 28, 1994, the High Court vacated the stay of the punishment and dismissed the appeal, recording that the tenant continued construction despite an unstayed injunction and obstructed a court commissioner. The High Court later dismissed an application to set aside that order on November 7, 1994, emphasizing that the tenant had no regard for court orders. Separately, the defendants had filed Civil Revision Application No. 888 of 1991 challenging the Civil Court's jurisdiction. On July 3, 1996, the High Court allowed the revision, holding that the Bombay City Civil Court lacked jurisdiction to entertain the suit in view of Section 28 of the Bombay Rent Act and that destruction of the building by fire did not terminate the tenancy. The landlord's Special Leave Petition against that order was dismissed by the Supreme Court on September 3, 1996. Relying on the jurisdictional ruling, the tenant applied to the High Court for permission to occupy the premises; on September 13, 1996, the High Court allowed the application, observing that all orders passed by a court lacking jurisdiction came to an end and were to be treated as non-est. The landlord then filed a Special Leave Petition before the Supreme Court, which was granted on October 1, 1996; the Supreme Court directed that the respondents shall not be entitled to possession of the premises till the appeal is decided by the High Court and requested the High Court to dispose of the appeal or case by November. The central legal issue was whether a person who disobeys an interim injunction made by a Civil Court can be punished under Order 39 Rule 2-A of CPC where it is ultimately found that the Civil Court had no jurisdiction to entertain the suit. The landlord argued that interim orders must be obeyed and their violation punished regardless of the ultimate finding on jurisdiction; the tenant argued that all interim orders passed by a court lacking jurisdiction were void and could not form the basis for contempt. The Supreme Court granted special leave and stayed the delivery of possession; the final judgment on merits is not included in the provided text.

Headnote

A) Civil Procedure - Interim Injunction - Violation of interim injunction is punishable under Order 39 Rule 2-A irrespective of ultimate finding on jurisdiction - Code of Civil Procedure, 1908, Order 39 Rule 2-A - The landlord obtained an interim injunction; the tenant carried on massive construction despite the order; the Civil Court found wilful disobedience and committed the second defendant to prison for one month. Held that a party cannot flout court orders with impunity; once an interim order is passed, it must be obeyed until set aside; later finding of lack of jurisdiction does not render earlier orders non-est for purposes of contempt. (Paras Not mentioned)

B) Civil Procedure - Jurisdiction of Civil Court - Section 9-A CPC (Maharashtra Amendment) and Section 28 Bombay Rent Act - City Civil Court had no jurisdiction to entertain suit concerning tenancy after building destroyed by fire - Code of Civil Procedure, 1908, Section 9-A; Bombay Rent Act, Section 28 - The High Court in revision held that the Bombay City Civil Court lacked jurisdiction because Section 28 of the Bombay Rent Act confers exclusive jurisdiction on Small Causes Court; destruction of building by fire did not terminate tenancy. (Paras Not mentioned)

C) Contempt of Court - Wilful Disobedience - Courts cannot permit litigants to benefit from their own wrong - Code of Civil Procedure, 1908, Order 39 Rule 2-A - High Court findings confirmed continuous, wilful, blatant breach of injunction; tenant obstructed commissioner and refused to purge contempt; party in default must not be allowed to enjoy benefit of his action; interim orders must be obeyed regardless of ultimate success. (Paras Not mentioned)

D) Bombay Rent Act - Tenancy - Destruction of building does not terminate monthly tenancy - Bombay Rent Act, Section 28 - The High Court held that destruction of the house by fire does not put an end to the tenancy of the defendants; the Special Leave Petition against that order was dismissed by the Supreme Court. (Paras Not mentioned)

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Issue of Consideration

Whether a person who disobeys an interim injunction made by the Civil Court can be punished under Rule 2-A of Order 39 of the Code of Civil Procedure where it is ultimately found that the Civil Court had no jurisdiction to entertain and try the suit.

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Final Decision

The Supreme Court granted special leave and directed that respondents shall not be entitled to put in possession of the premises till the appeal is decided by the High Court; final judgment/order on merits is not included in the provided text.

Law Points

  • Interim orders must be obeyed until set aside
  • a party cannot flout court orders with impunity
  • violation of an interim injunction is punishable under Order 39 Rule 2-A of the Code of Civil Procedure
  • 1908
  • even if the civil court is later found to lack jurisdiction
  • a party in default must not be allowed to enjoy the benefits of his wrong
  • orders passed by a court without jurisdiction are not automatically non-est for the purpose of punishing contempt of its interim orders.
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Case Details

1997 LawText (SC) (02) 144

1997-02-19

B.P. Jeevan Reddy, Suhas C. Sen

Tayabbhai M. Bagasarwalla & Another

Hind Rubber Industries Private Limited etc.

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Nature of Litigation

Civil suit for perpetual injunction restraining the first defendant tenant from carrying on any construction in the suit premises; interim injunction was granted, and contempt proceedings were initiated under Order 39 Rule 2-A of CPC for alleged violation.

Remedy Sought

Landlord sought perpetual injunction and punishment of defendants for contempt of the interim injunction; later tenant sought possession and permission to carry on business after the High Court held that the City Civil Court lacked jurisdiction.

Filing Reason

Building destroyed by fire on 25.8.1985; landlord claimed tenancy ended and filed suit on 11.2.1991 to restrain tenant from unauthorized construction; tenant allegedly continued massive construction despite interim injunction.

Previous Decisions

Civil Court granted ad-interim injunction on 15.2.1991, confirmed it on 29.11.1991, held it had jurisdiction, and on 2.12.1991 committed second defendant to one month imprisonment; High Court stayed punishment but later dismissed appeal on 28.7.1994; Civil Revision Application No.888 of 1991 allowed on 3.7.1996 holding City Civil Court lacked jurisdiction under Section 28 Bombay Rent Act; Special Leave Petition dismissed on 3.9.1996; High Court on 13.9.1996 allowed tenant to occupy premises treating all orders as non-est; Supreme Court granted special leave and stayed possession until appeal decided.

Issues

Whether a person who disobeys an interim injunction made by the Civil Court can be punished under Order 39 Rule 2-A of CPC where it is ultimately found that the Civil Court had no jurisdiction to entertain and try the suit. Whether the destruction of the suit building by fire put an end to the tenancy of the first defendant and consequently whether the Bombay City Civil Court had jurisdiction to entertain the suit in view of Section 28 of the Bombay Rent Act.

Submissions/Arguments

Landlord/appellant argued that interim orders must be obeyed and their violation is punishable despite later finding of lack of jurisdiction; the High Court erred in treating all orders as non-est. Tenant/respondent argued that City Civil Court lacked jurisdiction, so all interim orders passed therein were void and could not form basis for contempt; also contended construction was by other tenants and not by it. Mr. Apte for plaintiff submitted before High Court that the appellant cannot be heard because they are in contempt and must first purge contempt. Respondents' counsel before High Court pointed out that petitioner is guilty of violating interim orders and contempt proceedings are pending, but High Court held that immaterial once original orders are without jurisdiction.

Ratio Decidendi

Not mentioned in the provided excerpt

Judgment Excerpts

The question is whether a person who disobeys an interim injunction made by the Civil Court can be punished under Rule 2-A of Order 39 of the Code of Civil Procedure where it is ultimately found that the Civil Court had no jurisdiction to entertain and try the suit? If the City Civil Court is having no jurisdiction to decide the suit itself, all the orders passed therein come to an end and are required to be treated as non-est. It is clear that in spite of an Order which has not been stayed, the Appellants are going on with the construction. They are wilfully violating Order of a Competent Court.

Procedural History

On 25.8.1985 building destroyed by fire. On 11.2.1991 landlord filed Suit No.1407 of 1991 in City Civil Court, Bombay for perpetual injunction. On 15.2.1991 ad-interim injunction granted. On 11.4.1991 plaintiff moved for punishment under Order 39 Rule 2-A. On 24.7.1991 application to vacate injunction dismissed. On 29.11.1991 Civil Court affirmed injunction and held jurisdiction. On 2.12.1991 Civil Court allowed contempt motion and sentenced second defendant to one month imprisonment. In July 1992 defendants filed appeals in Bombay High Court; High Court stayed punishment but not injunction. On 15.7.1994 High Court appointed commissioner; report on 18.7.1994 showed construction ongoing. On 28.7.1994 High Court vacated stay on punishment and dismissed appeal with costs; application to set aside dismissed on 7.11.1994. On 3.7.1996 Civil Revision Application No.888 of 1991 allowed holding City Civil Court lacked jurisdiction under Section 28 Bombay Rent Act. Special Leave Petition dismissed on 3.9.1996. On 13.9.1996 High Court allowed tenant to occupy premises treating orders non-est. On 1.10.1996 Supreme Court granted special leave and stayed possession, requested High Court to dispose of appeal/case by November.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 39 Rule 2-A, Section 9-A (Maharashtra Amendment)
  • Bombay Rent Act: Section 28
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