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Hero Cycles Limited v. Hero Ecotech Limited

Civil Appeal · 2026 INSC 169Decided 10 Feb 2026
C.A. No.-001478-001478 - 2026
Justice B.V. Nagarathna · Justice Ujjal Bhuyan

Background

In a pending Title Suit before a trial court in Bihar, the trial court had directed that contempt proceedings be initiated against the defendants (respondents here) for alleged violation of an injunction, without first properly deciding the underlying application filed under Order XXXIX Rule 2A read with Section 151 of the Civil Procedure Code. The respondents challenged this before the Patna High Court, which set aside the trial court's order. The appellants (Hero Cycles Limited and another) then appealed to the Supreme Court against the High Court's decision.

Decision Breakdown

The Supreme Court held that the trial court had failed to properly adjudicate the Order XXXIX Rule 2A application in accordance with law before ordering contempt proceedings. It set aside both the High Court's order and the trial court's order, and restored the Order XXXIX Rule 2A application to the trial court's file for fresh adjudication. The Court directed that if either party sought a formal inquiry into the alleged violation, both sides must be given a reasonable opportunity to participate in that inquiry if it had not already been completed.

Lesson Learnt

Before a court can escalate a dispute into contempt proceedings for alleged breach of an injunction, it must first properly and lawfully decide the underlying application on merits, and both parties are entitled to a fair opportunity to be heard in any resulting inquiry.

Official source (sci.gov.in)View Judgment (PDF)

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