Sunday, 20 July 2014

Injunction / Restraint order against non-party to legal proceedings


Can a Court issue injunction against a non-party to the legal proceedings? 

The Hon’ble Delhi High Court in its recent judgment in RELIANCE INDUSTRIES LTD. Vs VIJAY CABLE INDUSTRIES & ORS, after discussing most of the decisions rendered by the Supreme Court and other High Courts, held “The law therefore is found to be, that while injunctions outside Order XXXIX Rules 1&2 CPC can be granted in exercise of inherent powers of the Court under Section 151 CPC, there is no dicta, at least of the Supreme Court on the aspect, whether even under Section 151 CPC, injunction can be issued against a non-party to the suit. The views of the High Courts have been noticed above.”.  

In the said case, the Plaintiff filed a mortgage suit under 34 of the Code of Civil Procedure, 1908 against the Defendants. Subsequently, he learnt that Uttar Pradesh Financial Corporation, invoking its power under Section 29, issued an advertisement, whereby, bringing the property (mortgaged with Plaintiff) for sale. Therefore, the Plaintiff, without impleading Uttar Pradesh Financial Corporation in suit proceedings, sought an order of injunction against Uttar Pradesh Financial Corporation from selling, alienating, transferring or creating third party interest in the property mortgaged, while contending that since the original title documents of the property mortgaged were lying with him, the said property could not be lying as collateral security with the Uttar Pradesh Financial Corporation.


The Hon’ble Delhi High Court dismissed the relief sought for by the Plaintiff on the ground that there is no challenge in the present suit to the right of the Uttar Pradesh Financial Corporation to sell the property.  

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