Case Note & Summary
The case involves two appeals filed by Bajaj Auto Ltd. against the Pimpri Chinchwad Municipal Corporation and its officers, challenging a common order dated 9.8.2006 passed by the trial court in Special Civil Suit Nos.973 of 2002 and 643 of 2004. The trial court had partly allowed the appellants' applications for interim relief, temporarily restraining the Corporation from closing the current account facility of the appellants, subject to the condition that the appellants deposit Rs.31.98 crores in Suit No.973 of 2002 and Rs.2,56,43,923/- in Suit No.643 of 2004 within one month. The Corporation was also allowed to withdraw the deposited amount. The appellants challenged this order, arguing that the condition of deposit was onerous and that they had a strong prima facie case. The Corporation contended that the appellants had defaulted in payment of octroi and that the current account facility was a privilege, not a right. The High Court, after hearing both sides, modified the trial court's order, directing the appellants to deposit a reduced amount of Rs.15 crores in Suit No.973 of 2002 and Rs.1.5 crores in Suit No.643 of 2004, and allowed the Corporation to withdraw the same. The court held that the balance of convenience was in favor of the appellants, as the closure of the current account facility would cause irreparable injury to their business. The appeals were disposed of with the modified order.
Headnote
A) Civil Procedure - Interim Injunction - Condition of Deposit - The trial court's order requiring the appellant to deposit the entire disputed octroi amount as a condition for continuing the current account facility was modified. The appellate court held that the condition of deposit was onerous and directed the appellant to deposit a reduced amount, balancing the interests of both parties. (Paras 2-5) B) Municipal Law - Octroi - Current Account Facility - The dispute pertained to the closure of the current account facility by the Municipal Corporation for non-payment of octroi. The court held that the facility could continue subject to the appellant depositing a portion of the disputed amount, as the appellant had made out a prima facie case and the balance of convenience was in its favor. (Paras 2-5)
Issue of Consideration
Whether the trial court's order directing deposit of the entire disputed octroi amount as a condition for continuing the current account facility was proper, and whether the appellants are entitled to interim relief without such deposit.
Final Decision
The appeals are partly allowed. The impugned order is modified. The appellants shall deposit Rs.15 crores in Suit No.973 of 2002 and Rs.1.5 crores in Suit No.643 of 2004 within four weeks. The Corporation is allowed to withdraw the amount. The current account facility shall continue till the disposal of the suits.
Law Points
- Interim relief
- deposit of disputed amount
- balance of convenience
- irreparable injury
- prima facie case
