Case Note & Summary
The plaintiff, Export Credit Guarantee Corporation of India Ltd., filed two suits for specific performance of agreements for sale of commercial units in a building. The suits were filed against trustees of family trusts and a cooperative society. The plaintiff sought interim injunctions restraining the defendants from alienating or encumbering the suit property. The court noted that the agreements were executed in 1980 and 1981, and the plaintiff had been in possession of the property. The defendants had attempted to sell the property to third parties. The court held that the plaintiff had made out a prima facie case, the balance of convenience was in favor of the plaintiff, and the plaintiff would suffer irreparable injury if the injunction was not granted. The court granted the interim injunctions as prayed.
Headnote
A) Specific Performance - Interim Injunction - Prima Facie Case - The court considered whether the plaintiffs had made out a prima facie case for the grant of an interim injunction restraining the defendants from transferring the suit property. The court held that the plaintiffs had a strong prima facie case based on the agreements and the conduct of the parties. (Paras 4-10) B) Specific Performance - Interim Injunction - Balance of Convenience - The court examined the balance of convenience between the parties. It held that the balance of convenience was in favor of the plaintiffs as the property was unique and the defendants would not suffer any irreparable injury if restrained. (Paras 11-15) C) Specific Performance - Interim Injunction - Irreparable Injury - The court found that the plaintiffs would suffer irreparable injury if the property was alienated during the pendency of the suit, as it would render the decree for specific performance infructuous. (Paras 16-20)
Issue of Consideration
Whether the plaintiffs are entitled to an interim injunction restraining the defendants from alienating or encumbering the suit property pending disposal of the suits for specific performance.
Final Decision
The court allowed the Notices of Motion and granted interim injunctions restraining the defendants from alienating, transferring, or encumbering the suit property until the disposal of the suits.
Law Points
- Specific performance
- Interim injunction
- Prima facie case
- Balance of convenience
- Irreparable injury
- Transfer of Property Act
- 1882
- Specific Relief Act
- 1963
