High Court of Karnataka Dismisses Appeal Against Rejection of Temporary Injunction in Suit for Specific Performance and Injunction — No Prima Facie Case Made Out for Interim Relief. The court held that the appellant failed to establish a prima facie case for grant of temporary injunction under Order 39 Rules 1 and 2 CPC as the agreement of sale was unregistered and the claim appeared stale.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The appellant, M/s. Gaurav Rose Real Estate Pvt. Ltd., filed a miscellaneous first appeal under Order 43 Rule 1(r) of the Code of Civil Procedure, 1908 (CPC) against the order dated 28.04.2018 passed by the IV Additional City Civil and Sessions Judge at Mayo Hall Unit, Bengaluru (CCH-21) in O.S.No.25855/2017. The trial court had rejected I.A.Nos.I/2017 and II/2017 filed by the appellant/plaintiff under Order 39 Rules 1 and 2 CPC seeking temporary injunction to restrain the respondents from alienating or creating third-party rights over the suit property. The appellant had filed the original suit for specific performance of an alleged agreement of sale dated 01.01.2010 and for permanent injunction. The respondents, including M/s. Blue Horizon Hotels Pvt. Ltd. and others, opposed the injunction applications. The trial court, after hearing both sides, held that the plaintiff failed to make out a prima facie case for grant of temporary injunction. The High Court, in the present appeal, examined the material on record and the submissions of the learned counsel for the appellant and the learned Senior Counsel for respondent Nos.1 and 2. The court noted that the appellant relied on an unregistered agreement of sale and did not produce any contemporaneous documents to prove payment of consideration or delivery of possession. The conduct of the parties, including the fact that the appellant did not take any steps for specific performance for several years, weighed against the grant of injunction. The High Court held that the trial court's discretion in refusing the injunction was not perverse or arbitrary and that the appellant failed to establish a prima facie case, balance of convenience in its favor, or that irreparable injury would be caused. Consequently, the appeal was dismissed, and the order of the trial court was upheld.

Headnote

A) Civil Procedure - Temporary Injunction - Order 39 Rules 1 and 2 CPC - Prima Facie Case - The appellant/plaintiff sought temporary injunction to restrain the respondents from alienating the suit property pending disposal of the suit for specific performance. The trial court rejected the applications holding that the plaintiff failed to establish a prima facie case. The High Court affirmed, noting that the plaintiff's claim was based on an unregistered agreement of sale and the conduct of the parties did not support the existence of a valid agreement. (Paras 1-10)

B) Specific Performance - Agreement of Sale - Unregistered Document - Prima Facie Case - The plaintiff relied on an unregistered agreement of sale dated 01.01.2010. The court observed that the plaintiff did not produce any contemporaneous documents to show payment of consideration or possession. The balance of convenience was not in favor of the plaintiff as the property was already subject to multiple transactions and the plaintiff's claim appeared stale. (Paras 11-20)

C) Injunction - Discretionary Relief - Balance of Convenience - The court held that the trial court's discretion in refusing injunction was not perverse or arbitrary. The plaintiff failed to show that irreparable injury would be caused if injunction was not granted. The appeal was dismissed. (Paras 21-25)

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Issue of Consideration

Whether the trial court was justified in rejecting the applications for temporary injunction under Order 39 Rules 1 and 2 CPC in a suit for specific performance and permanent injunction.

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Final Decision

The High Court dismissed the appeal and upheld the order of the trial court dated 28.04.2018 rejecting I.A.Nos.I/2017 and II/2017.

Law Points

  • Order 39 Rules 1 and 2 CPC
  • prima facie case
  • balance of convenience
  • irreparable injury
  • specific performance
  • temporary injunction
  • discretionary relief
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Case Details

2024 LawText (KAR) (11) 47

M.F.A. NO.4806/2018 (CPC)

2024-11-23

H.P. Sandesh

Sri Ajesh Kumar S. for appellant; Sri Anant Mandgi, Senior Counsel for Sri R.A. Chandrashekara Reddy for respondent Nos.1 and 2

M/s. Gaurav Rose Real Estate Pvt. Ltd.

M/s. Blue Horizon Hotels Pvt. Ltd. and Others

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Nature of Litigation

Miscellaneous first appeal against rejection of temporary injunction applications in a suit for specific performance and permanent injunction.

Remedy Sought

The appellant sought setting aside of the trial court order dated 28.04.2018 rejecting I.A.Nos.I/2017 and II/2017 and allowing those applications for temporary injunction.

Filing Reason

The appellant claimed that the respondents were attempting to alienate the suit property in violation of an agreement of sale dated 01.01.2010.

Previous Decisions

The trial court rejected the injunction applications on 28.04.2018, holding that the plaintiff failed to make out a prima facie case.

Issues

Whether the trial court was justified in rejecting the applications for temporary injunction under Order 39 Rules 1 and 2 CPC? Whether the appellant made out a prima facie case, balance of convenience, and irreparable injury for grant of temporary injunction?

Submissions/Arguments

The appellant argued that the trial court erred in rejecting the injunction applications as the agreement of sale was valid and the respondents were attempting to defeat the appellant's rights. The respondents contended that the appellant failed to establish a prima facie case and that the agreement was not supported by any consideration or possession.

Ratio Decidendi

The grant of temporary injunction under Order 39 Rules 1 and 2 CPC is discretionary and the appellate court will not interfere unless the trial court's discretion is perverse or arbitrary. The appellant failed to establish a prima facie case, balance of convenience, or irreparable injury.

Judgment Excerpts

Heard the learned counsel for the appellant and learned Senior counsel for respondent Nos.1 and 2. This miscellaneous first appeal is filed praying this Court to set aside the order dated 28.04.2018 passed by the IV Additional City Civil and Sessions Judge at Mayo Hall Unit, Bengaluru (CCH-21) in O.S.No.25855/2017 on I.A.Nos.I/2017 and II/2017 and allow the said applications.

Procedural History

The appellant filed O.S.No.25855/2017 for specific performance and permanent injunction. The trial court rejected I.A.Nos.I/2017 and II/2017 for temporary injunction on 28.04.2018. The appellant filed M.F.A. No.4806/2018 under Order 43 Rule 1(r) CPC against that order. The High Court reserved judgment on 08.11.2024 and pronounced on 23.11.2024.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 39 Rule 1, Order 39 Rule 2, Order 43 Rule 1(r)
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