Bombay High Court Upholds Compensation for Breach of Status Quo Order in Property Dispute — District Judge's Order to Pay Rs.1,00,000/- Upheld as Proportionate Penalty for Violation of Interim Injunction Under Order 39 Rule 11 CPC.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, Hasan Ali Bohra, was the defendant No.3 in a civil suit filed by respondent No.1, Sindhutai Dabhade, seeking a declaration that a sale deed executed in favour of the petitioner was not binding on her and for specific performance of an agreement to sell. The plaintiff had filed an application for temporary injunction under Order 39 Rules 1 and 2 CPC, which was dismissed by the trial court. In appeal before the District Court, the plaintiff filed another application for temporary injunction. On 17th January 2004, the District Judge passed an order directing the parties to maintain status quo. According to the plaintiff, the petitioner breached this order by continuing construction on the suit property. Consequently, the plaintiff filed an application under Order 39 Rule 11 read with Section 151 CPC, seeking to strike off the petitioner's defence and forfeit his right to contest the appeal. The District Judge, after hearing the parties, held that the petitioner had indeed made alterations and undertaken construction in violation of the status quo order. However, considering that the matter had been pending for about 13 years, the court directed the petitioner to pay Rs.1,00,000/- as compensation to the plaintiff, rather than striking off the defence. The petitioner challenged this order in the High Court. The High Court noted that the respondents were served but none appeared. After hearing the petitioner's counsel, the court found no merit in the petition. The High Court held that the District Judge had exercised discretion judiciously and the compensation amount was proportionate to the breach. The court observed that the order did not warrant interference under Article 227 of the Constitution. The petition was dismissed, and the rule was discharged.

Headnote

A) Civil Procedure - Breach of Injunction - Order 39 Rule 11 CPC - Compensation - The District Judge found that the petitioner violated the status quo order dated 17th January 2004 by making alterations and construction on the suit property. Instead of striking off the defence, the court directed payment of Rs.1,00,000/- as compensation to the plaintiff, considering the long pendency of the matter. The High Court upheld this order, holding that the penalty was proportionate and within the court's discretion. (Paras 4-5)

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Issue of Consideration

Whether the District Judge was justified in directing the petitioner to pay compensation of Rs.1,00,000/- for breach of the status quo order, instead of striking off the defence under Order 39 Rule 11 CPC.

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Final Decision

The High Court dismissed the writ petition, upholding the order of the District Judge directing the petitioner to pay Rs.1,00,000/- as compensation for breach of the status quo order.

Law Points

  • Breach of status quo order
  • Order 39 Rule 11 CPC
  • Compensation for contempt
  • Proportionality of penalty
  • Interim injunction violation
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Case Details

2019 LawText (BOM) (08) 166

WRIT PETITION NO. 3023 OF 2017

2019-08-27

Z.A. HAQ, J.

Ms Monika Dodani, Adv. h/f. Shri Rohit Joshi, Advocate for Petitioner. None for Respondents.

Hasan Ali S/o. Akbar Ali Bohra

Sindhutai Pandurang Dabhade, Rajesh Sharadrao Rebhankar, Ravindra Sharadrao Rebhankar

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Nature of Litigation

Civil writ petition challenging the order of the District Judge directing payment of compensation for breach of status quo order.

Remedy Sought

Petitioner sought to quash the order of the District Judge directing him to pay Rs.1,00,000/- as compensation for breach of status quo order.

Filing Reason

The petitioner was aggrieved by the order of the District Judge directing him to pay compensation for violating the status quo order.

Previous Decisions

The trial court dismissed the plaintiff's application for temporary injunction. The District Court, in appeal, passed a status quo order on 17th January 2004. The plaintiff alleged breach of that order and filed an application under Order 39 Rule 11 CPC. The District Judge directed the petitioner to pay Rs.1,00,000/- as compensation.

Issues

Whether the District Judge was justified in directing the petitioner to pay compensation of Rs.1,00,000/- for breach of the status quo order, instead of striking off the defence under Order 39 Rule 11 CPC.

Submissions/Arguments

The petitioner argued that the order of the District Judge was excessive and not warranted.

Ratio Decidendi

The court held that the District Judge had discretion under Order 39 Rule 11 CPC to impose a penalty for breach of an injunction, and the compensation of Rs.1,00,000/- was proportionate given the long pendency of the matter and the nature of the breach.

Judgment Excerpts

The learned District Judge held that the defendant No.3 (present petitioner) made alterations in the suit property and undertook construction in spite of the order passed by the District Court directing the parties to maintain status-quo. Considering the fact that the matter was pending for about 13 years, the learned District Judge directed defendant No.3 to pay Rs.1,00,000/- to the plaintiff towards compensation for committing breach of the order.

Procedural History

The plaintiff filed a civil suit for declaration and specific performance. The trial court dismissed the temporary injunction application. The plaintiff appealed to the District Court, which passed a status quo order on 17th January 2004. The plaintiff alleged breach and filed an application under Order 39 Rule 11 CPC. The District Judge directed the petitioner to pay Rs.1,00,000/- compensation. The petitioner challenged this order in the High Court by way of writ petition.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 39 Rules 1, 2, 11; Order 43 Rule 1(r); Section 151
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