Bombay High Court Dismisses Appeal Against Refusal of Temporary Injunction in Neon Sign Board Dispute. Handwritten Alterations and Non-use of Board Lead to Affirmance of Trial Court's Order.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The appeal arose from an order of the Civil Judge, Senior Division, Mapusa, dismissing an application for temporary injunction in a suit concerning a neon sign board. The appellant, an advertising company, had entered into an agreement with the respondent, a property owner, on 12th November 1998, to erect and display a neon sign on her property for five years, ending 31st December 2003, at an annual advance rent of Rs. 12,000. After expiry, the appellant sought renewal for a further five years at a 10% increase, but the respondent refused by letter dated 17th January 2004 and called upon the appellant to remove the board within seven days. The appellant filed a suit for injunction to restrain the respondent from acting on that notice and for mandatory injunction to allow reinstallation of a generator and diesel tank that were allegedly forcibly removed on 28th January 2004. A temporary injunction application was made, and initially, a status quo order was passed until May 2004. The trial court dismissed the temporary injunction application on 31st July 2004. On appeal, the High Court examined the agreement, which contained handwritten alterations. The respondent had added the words “at my discretion” to the renewal clause, while the appellant had added and then struck out “mutual consent”. The court observed that the respondent’s initials appeared only once on the lines where alterations were made, suggesting she had substituted the typed portion with her handwritten words and had not cancelled the latter; therefore, the appellant’s deletion of “my discretion” was suspect. This undermined the appellant’s claim of automatic renewal. The respondent also denied that the appellant had invested Rs. 12,00,000 in the sign board, asserting that it belonged to United Breweries Ltd. The court held that this factual dispute was a matter for trial. Crucially, the appellant had not used the sign board since January 2004, and by the date of the appeal in June 2005, over a year had passed without any use. The court found that this non-use indicated no urgency or irreparable injury, and thus no case for temporary injunction was made out. The appeal was accordingly dismissed.

Headnote

A) Civil Procedure - Temporary Injunction - Disputed Agreement and Prima Facie Case - Code of Civil Procedure, 1908 - The plaintiff sought injunction based on an agreement with a handwritten renewal clause. The defendant had added 'at my discretion' and the plaintiff attempted to strike it out. The court found that the defendant's initialling suggested she had substituted the typed clause with her handwritten words, and the plaintiff's deletion of those words without her initials rendered the clause ambiguous. Therefore, the plaintiff failed to show a clear prima facie case for automatic renewal. Held that the trial court's dismissal of temporary injunction was not erroneous. (Paras 3-4)

B) Civil Procedure - Temporary Injunction - Non-use of Property and Balance of Convenience - Code of Civil Procedure, 1908 - The plaintiff had not used the neon sign board since January 2004, and at the time of the appeal in June 2005, the non-use had been for over a year. This indicated no irreparable injury and tipped the balance of convenience against granting interim relief. The dispute over ownership of the sign board was a triable issue to be decided at trial. Held that there was no question of granting temporary injunction. (Para 5)

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Issue of Consideration

Whether the trial court was justified in dismissing the application for temporary injunction given the disputed renewal clause and the fact that plaintiffs had not used the sign board.

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Final Decision

Appeal from order dismissed. The court found no error in the trial court's order refusing temporary injunction. The disputed alterations raised doubts about the renewal clause, and the plaintiff's non-use of the board since January 2004 indicated no urgency for interim relief.

Law Points

  • temporary injunction
  • balance of convenience
  • prima facie case
  • alteration of agreement
  • use
  • possession
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Case Details

2005 LawText (BOM) (06) 21

Appeal From Order No. 42 of 2004

2005-06-10

S.S. Parkar, J.

Mr. S.D. Lotlikar, Sr. Advocate with Mr. Rohit Bras de Sa for the appellant; Mr. V.A. Lawande for the respondent

Sine Fine Advertising Pvt. Ltd.

Mrs. Salette Miranda e Shetty

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Nature of Litigation

Civil suit for injunction relating to a neon sign board on respondent's property

Remedy Sought

Plaintiff (appellant) sought temporary injunction to restrain defendant from removing the neon sign board and for mandatory injunction to allow reinstatement of generator and diesel tank forcibly removed

Filing Reason

The defendant refused to renew the agreement for displaying the sign board and called upon the plaintiff to remove the board, and later forcibly removed generator and diesel tank

Previous Decisions

The trial court (Civil Judge, Senior Division, Mapusa) dismissed the temporary injunction application on 31st July 2004

Issues

Whether the trial court was justified in dismissing the application for temporary injunction Whether the plaintiff had a prima facie case for renewal of the agreement given the disputed handwritten alterations Whether the plaintiff was entitled to temporary injunction despite not having used the sign board for a long period

Submissions/Arguments

Appellant argued that the defendant was bound to renew the agreement every five years with 10% increase and that the defendant had herself entered into agreement with United Breweries Ltd., indicating her consent Appellant argued that they had spent Rs. 12,00,000 on the neon sign board which could not be used by the defendant Respondent argued that she added handwritten words 'at my discretion' to the renewal clause, and the plaintiff's deletion of those words without her consent invalidated the automatic renewal, thus no prima facie case Respondent denied that the plaintiff had invested Rs. 12,00,000 and claimed that the sign board belonged to United Breweries Ltd.

Ratio Decidendi

The plaintiff failed to establish a prima facie case because the agreement's renewal clause was disputed, with the defendant's handwritten alterations raising doubts about automatic renewal. Additionally, the plaintiff had not used the sign board for a long period, indicating no irreparable injury, and thus temporary injunction was not warranted.

Judgment Excerpts

Realising that the words 'mutual consent' might come in her way, she cancelled the words 'mutual consent' and put the words 'at my discretion'. It is the defendant's case that the plaintiffs have deliberately scored out the hand written words 'my discretion'. Her initialing on line No.6 as well as line No.7 is once only. It means that she had initialed for cancellation of the typed portion and substituted the hand written portion and she must not have cancelled the handwritten portion herself, in which case the plaintiffs would have asked her to put her initials again. Since the plaintiffs are admittedly not using the neon sign board for display of hoardings fixed at the site, from January, 2004 until today, there is no question of granting temporary injunction.

Procedural History

The plaintiffs filed a suit, along with an application for temporary injunction, to restrain the defendant from removing the neon sign board and to reinstall removed machinery. The Civil Judge, Sr. Division, Mapusa, dismissed the temporary injunction application on 31st July 2004. An appeal from order was filed before the High Court, which heard both sides and dismissed the appeal on 10th June 2005.

Acts & Sections

  • Code of Civil Procedure, 1908:
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High Court Bombay High Court Dismisses Appeal Against Refusal of Temporary Injunction in Neon Sign Board Dispute. Handwritten Alterations and Non-use of Board Lead to Affirmance of Trial Court's Order.
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