Case Note & Summary
The applicant, C.J. Charles Rajkumar, proprietor of M/s. Kiruba Constructions, filed an application under Section 9 of the Arbitration and Conciliation Act, 1996, read with Order XIV Rule 8 of the Madras High Court Original Side Rules, 1956, seeking an ad-interim injunction restraining the respondents from dealing with, encumbering, or alienating a property described in the schedule. The property consists of vacant land and building in Puthur Village, Chengalpet District, measuring a total of 1 acre and 24 cents. The applicant is the decree-holder in execution petition EP 31 of 2023 pending before the Principal District Judge at Chengalpet. The respondents are the legal representatives of the original judgment-debtor, Mrs. Rahamathunnisa, who died. The court heard the counsel for the applicant, Mr. Srikanth, and the counsel for the first respondent, Mr. P.V. Balasubramanian (senior counsel for Mr. M. Marudhachalam). The court found that the applicant had made out a prima facie case for grant of interim injunction to protect the subject matter of the execution proceedings. The court granted an ad-interim injunction restraining the respondents from alienating or encumbering the property until further orders. The court directed the applicant to give an undertaking to pay damages if the injunction was later found to be unjustified. The matter was adjourned for filing counter and for further hearing.
Headnote
A) Arbitration - Interim Measures - Section 9 of Arbitration and Conciliation Act, 1996 - Injunction - The applicant, a decree-holder, sought an ad-interim injunction to restrain the respondents from alienating the property which is the subject matter of execution proceedings in EP 31 of 2023 on the file of the Principal District Judge at Chengalpet. The court, after hearing both sides, granted the injunction to protect the applicant's interest pending execution. Held that the applicant has made out a prima facie case for grant of interim injunction to prevent alienation of the property (Paras 1-3).
Issue of Consideration
Whether an applicant/decree-holder is entitled to an ad-interim injunction under Section 9 of the Arbitration and Conciliation Act, 1996 restraining the respondents from alienating the property which is the subject matter of execution proceedings pending disposal of the execution petition.
Final Decision
The court granted an ad-interim injunction restraining the respondents from in any manner dealing with, encumbering, or alienating the property described in the schedule until further orders. The applicant was directed to give an undertaking to pay damages if the injunction was later found to be unjustified. The matter was adjourned for filing counter and for further hearing.
Law Points
- Section 9 of Arbitration and Conciliation Act
- 1996 grants interim measures including injunction to protect subject matter of arbitration
- Order XIV Rule 8 of Madras High Court Original Side Rules
- 1956
- decree-holder can seek interim relief to prevent alienation of property pending execution of arbitral award
