Time City Infrastructure and Housing Limited Lucknow v. The State of U.P.
Background
The petitioner company had obtained an ex parte ad-interim injunction from a Trial Court in Barabanki, U.P., protecting its claimed title and possession over certain land, based on a sale deed and claimed prior possession. The High Court of Judicature at Allahabad (Lucknow Bench), exercising its supervisory jurisdiction under Article 227 of the Constitution, set aside that injunction, finding the suit itself to be "nothing but a legal jugglery": filed after the limitation period for specific performance had expired, without any claim to ownership benefits under Section 53A of the Transfer of Property Act, and granted by the Trial Court without recording the mandatory reasons required under Order 39 Rule 3 CPC. The High Court also directed the case be transferred to a different judge and asked for administrative review of the Trial Court's conduct. The petitioner company challenged this before the Supreme Court.
Decision Breakdown
The Supreme Court examined Order 39 Rule 3 CPC, which requires a court granting an ex parte injunction to record reasons and requires the applicant to promptly serve copies of the application and supporting papers on the opposite side, both provisions being mandatory, as settled in Shiv Kumar Chadha v. MCD. However, since the Trial Court hearing was scheduled for the very next day to decide the injunction application afresh on merits, the Supreme Court found no need to interfere with the High Court's order at that stage. It disposed of the petition, directing the Trial Court to hear both sides and decide the injunction question independently, uninfluenced by the High Court's observations. The Court found the earlier grant of injunction procedurally defective but chose not to disturb the High Court's corrective order, since a fresh, fair hearing before the Trial Court was already imminent: effectively deferring the substantive dispute back to the Trial Court.
Lesson Learnt
An injunction granted without notice to the other side must be backed by recorded reasons and prompt compliance with procedural safeguards; courts will not hesitate to set aside ex parte orders passed casually, even while leaving the underlying dispute to be decided afresh on its merits.