The Law of Injunction in India has its origin in the Equity Jurisprudence of
England who too in its turn borrowed it from the Roman Law, wherein, it was
known as Interdict. The Roman Interdicts were divided in three parts, Prohibitory, Restitutory and 'Exhibitory.
The Prohibitory Interdict
corresponds to Injunction. The Injunction as a chancery remedy developed at the
time of Henry, the Vlth. The Chancellor set aside a certain bond by the
Plaintiff as one not binding on him. The Court of Common Pleas, however, gave a
decree with bond. Chancellor thereupon devised the remedy of Injunction by which
he prohibited execution of the decree of Common Law Court.
This exercise of
power by issuing Injunction by the Chancery Court was viewed with jealousy by
the Common Law Court and it became a source of conflict between the two
jurisdictions. This conflict rose to the climax between the Lord Justice Coke &
Lord Chancellor Ellesmere in 1816. A decree was obtained from Lord Coke by practising gross fraud.
The Chancellor thereupon by an Injunction perpetually
enjoined the decree-holder from proceeding to execute his Judgment. The validity
of this procedure of issuing Injunction was seriously questioned. The matter was
referred to Bacon, the then Attorney General and other Counsel, who finally
settled the question in favour of Chancellor.
The jurisdiction to issue
Injunctions was thus affirmed and the remedy which is termed as the strong arm
of the Courts of equity has contributed a lot to consolidate the position of the
Judiciary in dispensing Justice between the litigant parties.
An Injunction is an equitable remedy in the form of a Court Order that compels a
party to do or refrain from specific acts. It is a Court Order which restrains
one of the parties to a suit in equity from doing or permitting others who are
under his control to do an act which is unjust to the other party. An injunction
clearly forbids a certain type of conduct. It is a remedy that originated in the
English Courts of equity.
Like other equitable remedies, it has traditionally
been given when a wrong cannot be effectively remedied by an award of money
damages. Injunctions are intended to make whole again someone whose rights have
been violated. Nevertheless, while deciding whether to grant an Injunction,
Courts also take into account the interests of non-parties (that is, the public
interest). When deciding whether to give an Injunction, and deciding what its
scope should be, Courts give special attention to questions of fairness and good
faith. One manifestation of this is that Injunctions are subject to equitable
defenses, such as laches and unclean hands.
Injunctions are given in many different kinds of cases. They can prohibit future
violations of the law, such as trespass to real property, infringement of a
patent etc. Taking in to consideration the duration and the stage, they can be
classified into Temporary Injunctions and Perpetual Injunctions.
Otherwise, an Injunction that requires conduct is called a Mandatory Injunction.
An Injunction that prohibits conduct is called a Prohibitory Injunction. Many
Injunctions are both—that is, they have both mandatory and prohibitory
components, because they require some conduct and forbid other conduct.
When an
Injunction is given, it can be enforced with equitable enforcement mechanisms
such as contempt. It can also be modified or dissolved (upon a proper motion to
the Court) if circumstances change in the future. These features of the
Injunction allow a Court granting one to manage the behavior of the parties.
In Indian legal system the Law of Injunctions is mainly governed by Order XXXIX
OF Code of Civil Procedure, 1908 and Section 36 & 42 of the Specific relief Act,
1963. Section 94 (c) of the Civil Procedure Code, 1908 also gives supplemental
provision for grant of Temporary Injunction. It is also settled that there is no
bar in granting Injunction or Supplementary Orders under Section 151 of the
Civil Procedure Code, 1908 for compliance of Injunction in just cases. The later
provision of inherent powers increases the scope of Civil Courts for granting
Injunctions.
Interlocutory Orders or as we know them Orders of Injunction passed by Courts
pending disposal of the suit, application or proceedings are a regular feature
in every lawyer's practice. You are either applying for the same if you are a
Plaintiff or attempting to prevent the same being passed against you if you are
a Defendant. We encounter this day in and day out. These Orders inure till the
disposal of the suit or till they are otherwise set aside in appeal or vacated
due to changed circumstances or lapsing of the orders in cases where the orders
are limited only up to a particular date or only for a particular purpose.
Orders of injunction are passed in view of the inherent jurisdiction of the
Court under Order 39 of the Code of Civil Procedure, 1908 which sets out the
various circumstances in which an order of injunction can be passed.
In order to give power to the Trial Court to punish the erring Defendant
committing breach of an Interlocutory Order Rule 2-A was introduced in Order
XXXIX of the of the Civil Procedure Code, 1908. The purpose of Rule 2-A of CPC
is not to punish a person who had disobeyed the Injunction Order but to enforce
it. Only wilful disobedience invites the penal action. Rule 2-A of Order 39 of
the Civil Procedure Code, 1908 does not apply to the Final Order decree of
Permanent Injunction passed by the Court at the conclusion of the hearing of the
suit. Rule 2-A would apply for breach of an undertaking given to the Court.
The proceeding initiated on the ground of disobedience or breach of Injunction
Order is the nature of a criminal proceeding. Here the principle of criminal law
will apply and the Plaintiff will have to establish beyond any shadow of doubt
that the Defendants had committed disobedience or breach of the Injunction Order
even though he had full knowledge of the same.
There also Orders of attachment before Judgment under Order 38 (2) of Code of
Civil Procedure, 1908 which are also passed.
The party committing disobedience
and breach of Injunction, his property is liable to be attached and such person
may also be detained in the Civil prison for a term, not exceeding three months.
Attachment made under this Rule shall not remain in force more than a period of
one year.
In a case of continuation of disobedience then attached property be
sold, and out of the sale proceeds, the Court may award such compensation as it
think fit to the injured party and balance, if any, shall be returned to the
Owner. Rule 11 of Order 39 of the Civil Procedure Code, 1908 empowers the Court
to strike of defence of Defendant who commit breach of an Order of the
Injunction. The remedy for the enforcement/disobedience of either perpetual or
mandatory Injunction is to proceed in accordance with Order 21 Rule 32 of Code
of Civil Procedure, 1908 by levying execution.
A third type of Injunctive Orders which we regularly come across are orders
passed by the Court under Section 9 of the Arbitration & Conciliation Act 1996.
There are also Orders of Injunction passed in terms of exercise of writ
jurisdiction in constitutional matters where the challenges normally are to
Orders of Inferior Courts, Authorities, Tribunals, etc.
Legal Proposition
As is well known, these Orders take many forms and usually are prohibitory in
nature and meant to preserve the subject of the dispute or prevent damage or
loss to the party applying. Orders of Injunction are normally sought (to prevent
parties from entering into third-party contracts, breaching contracts, creating
third-party rights, trespassing, etc.) so that the entire suit or action in
which final relief or orders are to be passed is not rendered infructuous.
The
Orders of Injunction are sought in suits/actions for specific performance, for
trespass, for breach of contractual rights, for land, pertaining to development
rights, partnership disputes and partition actions amongst a host of others. It
is in such suits/actions that the Plaintiff applies for Interim Relief and
depending upon the merits of the case the Court passes a temporary injunction
pending disposal of the suit against the Defendant.
There arise many situations when the Defendant would not want to be bound by the
order and would try to get out of it or frustrate it by creating third-party
rights or dealing with the property even after Orders of Injunction, although
legally the Orders of Injunction are required to be obeyed and cannot be flouted
with impunity.
Legal Position On The Subject
The following cases set out the view consistently taken by Supreme Court and
other High Courts:
11. Thus it is apparent from the said observation of the Supreme Court that no
technicality can prevent the Court from doing justice in exercise of its
inherent power. Order 39, Rule 2A lays down a punitive measure for the purpose
of compelling a party to comply with the Order of Injunction. The process as
contemplated by the said provision may or may not be ultimately effective but,
in any event, the procedure laid down in Order 39, Rule 2A is incapable of
granting an immediate relief to a party who has been forcibly dispossessed in
violation of an Order of Injunction. We do not think that in such a case the
Court is powerless to grant relief to the aggrieved party in exercise of its
inherent power.
The very object for which Order 39, Rule 2A has been enacted
will be fulfilled by the grant of a temporary mandatory injunction and
restoration of possession of the aggrieved party. The inherent power of the
Court as recognised in Section 151 of the Code is in addition to the power
conferred on the Court under the provisions of the Code. All that the Court is
concerned is to prevent abuse of the process of Court and to do justice by
immediately intervening under circumstances which require such intervention by
the Court.
(10) In [Keshrevial Jivji Shah & Anr. Vs Bank of Maharashtra & Ors.. 2004 SCC OnlIne Bom 368], it was held:
27. We cannot accept Shri Naphade's contention that observations of the Supreme
Court in {Surjit Singh & Ors. Vs Harbans Singh & Ors., (1995) 6 SCC 50} should
be read as restricted to proceedings under Order 22 Rule 10 of the Civil
Procedure Code and the same cannot be extended to defiance of Injunction Order
issued under Order 39 Rule 1 of the Civil Procedure Code. Once the issue is
placed on the pedestal of public policy and the very faith of litigants in Rule
of Law and administration of Justice, then it is not possible to make the
distinction or bifurcation suggested by Shri Naphade.
It would mean that
consequences of nullifying such transaction not being provided by the statute,
it would not lose its legal efficacy even if it is in utter disregard to or in
violation of or breach of prohibitory order or Order of Injunction issued by a
Court of Law. It would mean that parties can breach and violate Court Orders
openly and with impunity neither they nor the beneficiaries suffer any
consequences. It is time that we recognise the principle that transfer of
immovable property in violation of an Order of Injunction or prohibition issued
by Court of Law, confers no right, title or interest in the transferee, as it is
no transfer at all.
The transferee cannot be allowed to reap advantage or
benefit from such transfer merely because he is not party to the proceedings in
which Order of Injunction or other prohibitory direction or restraint came to be
issued. It is enough that the transferor is a party and the Order was in force.
These two conditions being satisfied, the transfer must not be upheld. If this
course is not adopted then the tendency to flout Orders of Courts which is
increasing day by day can never be curbed.
The Court exercises its powers on the
foundation of respect and regard for its authority by litigating public. People
would lose faith and respect completely if the Court does not curb and prevent
this tendency. The note of caution of the Supreme Court must be consistently at
the back of everybody's mind. Therefore, Shri Naphade is not right in the
distinction which he is trying to make.
28. Equally untenable is the contention of Shri Naphade that an Order of
Injunction will bind only the transferor in this case. It is his submission that
the said order does not bind the world at large. He submits that ownership
rights are neither taken away nor restricted in any manner by Order of
Injunction or other preventive directions. He submits that the transfer in
favour of his client was thus neither invalid nor illegal, leave alone null and
void. For the reasons already recorded above, we find it difficult to accept
this contention of Shri Naphade. Decision of the Supreme Court in {Krishan
Kumar Narula Vs State of Jammu & Kashmir (1967) 3 SCR 50} has no application.
There, the Supreme Court was distinguishing an Order of Stay from an Order of
Injunction. The distinction was made in the context of consequences upon breach
and violation of such Orders. It is in that context that the Supreme Court
observed that the Order of Stay is qua a Court, whereas an Order of Injunction
reaches and touches a party to the lis.
These observations cannot be applied
when it is noticed that during the pendency of an Order of Injunction, immovable
property, which is subject-matter of Restraint or Injunction, is transferred.
When this course is admittedly adopted, then there is no choice but to declare
the transaction as illegal. There is no question of then deciding the nature and
effect of the Order of Injunction.
29.
Other Remedies
There is also a remedy available to apply for holding the violator guilty of
Civil Contempt under Section 2 (b) of the Contempt of Courts Act, 1971. This
remedy enables the Court to (if Contempt is proved) pass Orders for Detention of
the contemnor which is a strong deterrent and usually results in the contemnor
reversing the transaction or step taken in order to avoid the stringent
punishment of imprisonment. In cases of Companies the Directors can be hauled up
for Contempt and punished.
It must however be noted that since the Orders of Injunction operate only till
the disposal of the suit finally in the event that there is a transaction which
is contrary to the Injunction the same would not take effect if the suit is
decreed in favour of the Plaintiff but in the event the suit of the Plaintiff
fails the necessary consequences is that the Order itself of Temporary
Injunction comes to an end an d in that event the transaction pending the suit
would continue and take effect.
Conclusion
Respect for law is one of the cardinal principles for an effective operation of
the Constitution, law and the popular Government. The faith of the people is the
source and succour to invigorate Justice intertwined with the efficacy of law.
The principle of Justice is ingrained in our conscience and though ours is a
nascent democracy which has now taken deep roots in our ethos of adjudication --
be it Judicial, Quasi-Judicial or administrative as hallmark, the faith of the
people in the efficacy of Judicial process would be disillusioned, if the
parties are permitted to abuse its process and allowed to go scot free.
It is
but the primary duty and highest responsibility of the Court to correct such
orders at the earliest and restore the confidence of the litigant public, in the
purity of fountain of Justice; remove stains on the efficacy of Judicial
adjudication and respect for Rule of Law, lest people would lose faith in the
Courts and take recourse to extra-constitutional remedies which is a death-knell
to the Rule of Law.
Operative Orders of Injunction cannot be ignored and if so ignored will not only
invite the wrath of the Court but will invariably have the effect of the Court
nullifying the transactions and preventing the defaulting party acting contrary
to Injunctions issued till the injunctive relief is in force.
Written By: Dinesh Singh Chauhan, Advocate, J&K High Court of Judicature,
Jammu.
Email: [email protected], [email protected]
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