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Saturday, 4 June 2016

When court should grant injunction restraining alienation in suit for specific performance of contract?

 It appears that the substantial amount in the sum of Rs.10.00
Lacs has been paid out of agreed consideration of Rs.19.00 Lacs as per
agreement whereby the defendant was called upon to perform part of the
contract and execute the sale deed upon payment of entire consideration
amount.   The plaintiff has apprehension that the defendant is likely to
create third party interest so as to defeat the claim of the plaintiff in the
pending suit.   This apprehension of likelihood of creating thirty party
interest itself sufficient in the accompanying facts and circumstances that
there was an agreement to sell suit property existing which averred that
consideration is in the sum of Rs.19.00 Lacs and substantial amount of
Rs.10.00 Lacs was already paid.  When such averments are made before
the trial Court, the trial Court should have protected the property from
changing its hands by the defendant pending disposal of the suit.   The
defendant could have been restrained from creating third party interest till
trial Court decides the suit on merits.  That being so, the impugned order
needs modification.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY,
NAGPUR BENCH, NAGPUR.
APPEAL AGAINST ORDER NO.121 OF 2014
Milind S/o Madhusudan Alsundekar,

  v
Ajay S/o Prabhakar Rawat, 

CORAM : A.P. BHANGALE, J.
DATE : JULY 1, 2015.
Citation: 2016(2) MHLJ 656

1. Heard.  ADMIT.   By consent of learned counsel appearing for
both the parties the matter is taken up for final hearing.
2. The   appellant   is   aggrieved   by   refusal   of   grant   of   temporary
injunction   in   the   pending   Special   Civil   Suit   No.10   of   2014.     The
application was preferred under Order XXXIX Rules 1 and 2 read with

Section   151   of   the   Code   of   Civil   Procedure   for   grant   of   temporary
injunction to restrain the defendant from selling, transferring, mortgaging
or   creating   any   third   party   interest   in   the   suit   property   till   the   final
decision of the suit.
3. It appears that the substantial amount in the sum of Rs.10.00
Lacs has been paid out of agreed consideration of Rs.19.00 Lacs as per
agreement whereby the defendant was called upon to perform part of the
contract and execute the sale deed upon payment of entire consideration
amount.   The plaintiff has apprehension that the defendant is likely to
create third party interest so as to defeat the claim of the plaintiff in the
pending suit.   This apprehension of likelihood of creating thirty party
interest itself sufficient in the accompanying facts and circumstances that
there was an agreement to sell suit property existing which averred that
consideration is in the sum of Rs.19.00 Lacs and substantial amount of
Rs.10.00 Lacs was already paid.  When such averments are made before
the trial Court, the trial Court should have protected the property from
changing its hands by the defendant pending disposal of the suit.   The
defendant could have been restrained from creating third party interest till
trial Court decides the suit on merits.  That being so, the impugned order
needs modification.

4. In that view of the matter, the impugned order is set aside. The
defendant is restrained from creating third party interest or alienating suit
property in any manner till decision of the suit.  The parties shall appear
and co­operate with the trial Court for expeditious final disposal of the
pending suit.  The trial Court shall endeavour to dispose of the suit finally
as early as possible.  Hence, the order :
ORDER
The   appeal   against   order   is   allowed   accordingly.
There shall be no order as to costs.

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