Supreme Court Quashes Permanent Injunction in Civil Appeal Due to Unregistered Agreement. Unregistered Agreement to Sell Cannot Support Permanent Injunction as It Is Inadmissible in Evidence.

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Case Note & Summary

The dispute arose from a civil appeal concerning a permanent injunction sought by the original plaintiff based on an unregistered agreement to sell dated 23.03.1996. The original plaintiff filed Original Suit No. 696 of 1997, seeking to restrain the original defendant from disturbing her possession of the suit property. The learned trial Court dismissed the suit, allowing the defendant's counter-claim, stating that the plaintiff could not prove the agreement to sell and was in unauthorized possession since 08.07.1997. The original plaintiff appealed to the first appellate Court, which reversed the trial Court's decision, granting the injunction and dismissing the counter-claim. The High Court confirmed this decision in its judgment dated 10.12.2019. The original defendant challenged this in the Supreme Court, arguing that the unregistered agreement was inadmissible and that the plaintiff's suit was improperly framed to avoid seeking specific performance. The respondent contended that the unregistered document could be used for collateral purposes. The Supreme Court found that the lower courts erred in granting the injunction based on the unregistered agreement, emphasizing that the plaintiff could not obtain relief indirectly that she could not secure directly. The Court allowed the appeal, quashed the lower courts' orders, and restored the trial Court's judgment dismissing the suit and allowing the counter-claim, with no order as to costs.

Headnote

A) Civil Procedure - Permanent Injunction - Admissibility of Unregistered Document - Code of Civil Procedure, 1908 - The court held that an unregistered agreement to sell cannot be used to grant a decree for permanent injunction as it is inadmissible in evidence. The plaintiff's attempt to seek relief indirectly through clever drafting was rejected, leading to the quashing of the lower courts' decisions. (Paras 6-8)

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Issue of Consideration

Whether the original plaintiff was entitled to a decree for permanent injunction based on an unregistered agreement to sell.

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Final Decision

The Supreme Court allowed the appeal, quashed the High Court's judgment and the first appellate Court's decree, restored the trial Court's judgment dismissing the suit for permanent injunction and allowing the counter-claim.

Law Points

  • Permanent injunction
  • unregistered agreement
  • admissibility of evidence
  • counter-claim
  • specific performance
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Case Details

2022 LawText (SC) (09) 218

Civil Appeal No. 6733 of 2022

2022-09-23

M.R. Shah, Krishna Murari

Balram Singh

Kelo Devi

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Nature of Litigation

Civil appeal concerning a permanent injunction based on an unregistered agreement to sell.

Remedy Sought

The original defendant sought to quash the decree for permanent injunction and restore the trial Court's judgment.

Filing Reason

The original plaintiff filed a suit for permanent injunction based on an unregistered agreement to sell.

Previous Decisions

The trial Court dismissed the suit and allowed the counter-claim, which was reversed by the first appellate Court and confirmed by the High Court.

Issues

Entitlement to permanent injunction based on unregistered agreement Admissibility of unregistered documents in evidence

Submissions/Arguments

The original plaintiff's suit was based on an unregistered agreement, which is inadmissible. An unregistered document can be used for collateral purposes.

Ratio Decidendi

An unregistered agreement to sell is inadmissible in evidence and cannot support a decree for permanent injunction. The plaintiff cannot obtain relief indirectly that she cannot secure directly through a suit for specific performance.

Judgment Excerpts

The original plaintiff instituted a suit praying for a decree of permanent injunction only. The plaintiff cannot get the relief by clever drafting.

Procedural History

The original plaintiff filed a suit in 1997, which was dismissed by the trial Court. The first appellate Court allowed the appeal, leading to a decree for permanent injunction. The High Court confirmed this decision, which was then appealed to the Supreme Court.

Acts & Sections

  • Code of Civil Procedure, 1908:
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