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Narayandas S. Kanuga v. Sarasvatibai D. Joshi

Bombay High Court
Mar 7, 1967
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Case Summary — Opinion of Patel, J.

Factual and Procedural Background

The subject is a rectangular plot of land (1895 sq. yards) in Goregaon abutting on two roads (B.J. Road to the south and Gram Panchayat Road to the east). The owner subdivided the plot into thirteen small plots which were occupied by persons who built small shops approximately nine feet high. The owner characterises these occupants as licensees; the occupants claim to be tenants. The Municipal Corporation and the owner consider the constructions unauthorised and the Corporation has issued notices for demolition.

The owner sought to develop the plot into a multi-storeyed building, offered accommodation in the proposed new building to the occupants, but the occupants were not satisfied and eviction suits by the owner are pending in the Small Cause Court. The owner obtained sanctioned plans on June 19, 1965, and subsequently obtained permission from the Corporation on June 11, 1966 to build part of the proposed building while eviction proceedings were pending.

Two appellants (occupants) filed suits against the owner and the Corporation seeking an injunction restraining the building on the ground that the proposed construction violated municipal building bye-laws (alleged breaches included a required 30 ft. distance between two buildings and an average 50 ft. distance from a public road). The plaintiffs did not allege any personal effect on them beyond the byelaw grounds. The trial Court granted a temporary injunction. The defendants appealed; Mr. Justice Palekar allowed the appeal and discharged the Notice of Motion. This opinion by Patel, J. analyses both the competence of an appeal and the merits of the injunction.

Legal Issues Presented

  1. Whether an appeal lies against an order refusing or discharging an interlocutory (temporary) injunction under the relevant Letters Patent clause — i.e., whether such an interlocutory order qualifies as a "judgment" permitting appeal.
  2. Whether the plaintiffs/appellants established a prima facie case entitling them to a temporary injunction restraining construction on the ground of alleged breach of municipal building bye-laws.
  3. Whether a statutory duty imposed on municipal or sanitary authorities (Public Health / building regulations) gives rise to an individual right of action in neighbouring owners/occupiers, or whether such duties are intended only for the public/general benefit.
  4. Whether, in the circumstances (including pending eviction suits and the status of occupants as alleged licensees/tenants), a temporary injunction was appropriate, considering principles under Order XXXIX (rr. 1 & 2) and ss. 54 & 56 of the Specific Relief Act.

Arguments of the Parties

Arguments Presented by Counsel (as recorded in the opinion)

  • Mr. Advani (recorded in the opinion) relied on Mansata Films Distributors v. Sorab Modi to contend that an appeal will lie where an interlocutory order determines the right of a party "pro tanto" — i.e., where an interlocutory order determines a right of a party to some extent.
  • The appellants relied upon decisions such as In re Lakshmimoni Dassi and Kanahyalal Ruia v. Corporation of Calcutta to support their entitlement to relief under statutory/regulatory protections (as recorded in the opinion).
  • The Municipal Corporation and the owner maintained the constructions were unauthorised and took the position that the occupants were licensees (owner's position) or, as the occupants claimed, tenants; the owner had sought sanctioned plans and Corporation sanction to proceed with part of the building.

The opinion records these positions and counsel submissions; it does not contain a more detailed adversarial argumentation beyond what is summarised above.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Vanichand v. Lakhmichand (1919) 21 Bom. L.R. 955 Refusal to grant an interim injunction is not a "judgment" for purposes of appeal under Letters Patent; it does not finally decide the rights of the parties. The Court relied on this authority (and similar ones) to hold that an interlocutory order refusing or discharging a temporary injunction does not give rise to an appeal as a "judgment".
Salemahomed v. Mahomed Taher (1957) 59 Bom. L.R. 1193 Same principle (refusal of interlocutory injunction not a judgment allowing appeal). Cited along with Vanichand to support the conclusion that no appeal lies from the refusal of interim relief.
Gyangirji v. Dhanrajgirji (1959) 68 Bom. L.R. 207 Same principle regarding non-appealability of interlocutory refusal of injunction. Used as part of the authorities establishing the settled meaning of "judgment" for Letters Patent purposes.
Mansata Films Distributors v. Sorab Modi (1954) 57 Bom. L.R. 228 Where an interlocutory order determines the right of a party pro tanto, such an order may be appealable (submission relied upon by Mr. Advani). The Court considered the submission based on this case but held that the right affected must be finally determined between the parties; where the question remains at large in the suit and the court only considered prima facie matters, it is not a judgment for appeal.
Khan Sahib Abdul Isa Bhagat v. Sultanalli Sulemanji (1942) Second Appeal No. 859 of 1941 (Unrep.) Considered a similar question; cited approvingly the observations in Mullis v. Hubbard about Public Health Acts not creating individual rights of adjacent neighbours. The Court relied on this decision to support the conclusion that the plaintiffs had no cause of action under the statutory/regulatory framework as private individuals.
Mullis v. Hubbard [1903] 2 Ch. 431 Observation that Public Health Acts generally create rights for the public or inhabitants collectively, not individual rights for adjacent neighbours; where the urban authority may give consent, neighbors may have no ground of complaint. Quoted and applied (via Khan Sahib Abdul Isa Bhagat) to reason that statutory building or public health controls do not necessarily confer a private right of action on adjacent occupiers in the circumstances of this case.
Nandalal v. Provudayal [1952] A.I.R. Cal. 74 Authority holding that a plaintiff had no cause of action in circumstances similar to challenges based on statutory public health/building provisions. Cited as a supporting precedent for the proposition that the plaintiffs lacked a recognizable private right entitling them to a prohibitory injunction.
Cawashah Bomanji v. Prafulla Nath [1941] A.I.R. Nag. 364 Similar authority indicating no private cause of action in analogous circumstances. Relied upon by the Court as supporting the absence of a private right of action for the appellants.
Saunders v. Holborn District Board of Works [1895] 1 Q.B. 64 Section imposing duties on sanitary authorities did not give a person suffering special damage a right of action for breach of that statutory duty. Invoked to reinforce the proposition that statutory duties owed by municipal or sanitary authorities may not create individual causes of action for adjoining proprietors.
Butler (or Black) v. Fife Coal Company Ltd [1912] A.C. 149 Where a statute is enacted for the special benefit of particular persons, a right of action may be inferred in those persons; court must consider scope and purpose of the statute. The Court acknowledged this as a recognized exception but found it inapplicable on the facts before it (i.e., no statutory scheme conferring individual rights on these appellants was established).
In re Lakshmimoni Dassi (petition under s.45 Specific Relief Act) Case where the Corporation was held to owe a duty to an adjacent owner and the adjacent owner had a legal right (in respect of injury to light, air, health) sufficient to found a mandamus application. The appellants relied on this authority, but the Court distinguished it on the facts — finding that in the present case there was no comparable injury or right shown.
Kanahyalal Ruia v. Corporation of Calcutta (1949) 88 Cal. L.J. 78 Cited as precedent relied upon in support of relief against municipal action or development on statutory grounds. The Court treated this authority as distinguishable on the facts and not applicable to the present circumstances.

Court's Reasoning and Analysis

The opinion proceeds in two main stages: first addressing the competence of an appeal under the Letters Patent, then considering the merits of the interlocutory application for a temporary injunction.

On competence of appeal:

  • The Court observed that the word "judgment" in cl.15 of the Letters Patent has an established meaning. It relied on authorities (Vanichand, Salemahomed, Gyangirji) that a refusal by a Judge to grant an interim injunction is not a "judgment" because it does not finally decide any rights between the parties; consequently, no appeal lies from such an interlocutory refusal.
  • The opinion considered the submission (based on Mansata Films) that an interlocutory order may be appealable where it determines the rights of a party "pro tanto". The Court held that for an interlocutory order to be appealable the affected right must be determined finally between the parties; where the question remains open in the main suit and the interlocutory order only assesses whether a prima facie case exists, it is not a final determination permitting appeal.
  • Applying this test, the Court found that the trial Court's view was merely an assessment of whether the plaintiffs had a prima facie case and therefore did not constitute a "judgment" for appeal purposes.

On the merits (prima facie case for injunction):

  • The Court held that, even on merits, the plaintiffs did not show a prima facie case entitling them to a temporary injunction.
  • It relied on authorities (notably Khan Sahib Abdul Isa Bhagat and Mullis v. Hubbard) for the proposition that statutory schemes such as Public Health Acts and related building controls are typically intended to confer general public or municipal rights and duties rather than individual private rights of adjacent neighbours. Where an urban authority has the power to permit or prohibit, the neighbour's complaint may be displaced by the authority's decision.
  • The opinion cited Nandalal and Cawashah Bomanji as further supporting authorities where courts found no private cause of action in analogous situations. Saunders was cited to show that duties imposed on sanitary authorities do not necessarily give private persons a right of action for special damage.
  • The Court acknowledged the narrow exception (Butler v. Fife Coal Co.) where a statute may be intended for the special benefit of certain persons and may therefore give them private rights; but the Court found no basis to apply that exception here.
  • Statutory remedies and discretionary equitable remedies under ss. 54 and 56 of the Specific Relief Act were considered relevant. The Court noted that an injunction under s.54 requires an obligation in favour of the applicant. The plaintiffs had not alleged any recognisable obligation or right in their favour; hence if they could not obtain a perpetual injunction, a temporary injunction was not justified.
  • The Court examined the factual circumstances: the occupants were alleged to be licensees (owner's case) or, at best, tenants under pending eviction proceedings; their constructions were small (9–10 ft) with no rear openings and were allegedly unauthorised, with demolition notices already issued by the Corporation. Given these factors, the Court concluded that the alleged injury was not such as to entitle the appellants to a temporary injunction.
  • The Court criticised the trial Judge's "light" grant of the injunction, emphasising established principles for interim injunctions (Order XXXIX, rr.1 & 2): the need to show a legal injury (not fancied injury), to identify the rights claimed, and to consider irreparable injury to the plaintiffs if relief is refused. The Court further stressed that the potential loss to the owner should also be weighed and that subordinate Courts should exercise caution (including imposing terms or security) when granting interlocutory relief, especially ex parte.

Administrative direction: Finally, the Court directed the City Civil Court to expedite the hearing of the appellants' suit against the Municipal Corporation challenging demolition notices and the suits pending in the present case.

Holding and Implications

Holding: Mr. Justice Palekar's order allowing the appeal and discharging the Notice of Motion (i.e., discharging the temporary injunction) is upheld in principle: the interlocutory injunction was improperly granted and the plaintiffs/appellants do not show a prima facie right entitling them to that interim relief.

Implications:

  • Direct effect on parties: The temporary injunction that had restrained the owner from proceeding with construction was discharged; the owner is not restrained by that interlocutory order and may proceed subject to the outcome of the pending eviction proceedings and any action by the Municipal Corporation (including demolition notices).
  • Procedural consequence: The City Civil Court was directed to expedite hearing of the suits concerning demolition notices and the suits in the present litigation so that the substantive rights can be determined on their merits.
  • Wider guidance (judicial caution): The opinion emphasises that interlocutory injunctions should not be granted lightly. Subordinate Courts (Small Causes and City Civil Courts) are reminded to carefully examine whether a real legal case exists, to consider the rights on both sides, to assess whether irreparable injury is shown, and to protect absent parties (for example by imposing terms or security). The Court explicitly warns against granting injunctions without due care and circumspection.
  • Precedential note: The opinion applies existing authorities about the non-appealability of interlocutory refusals and the limited circumstances in which private rights arise from public health/building statutes. The opinion does not purport to create a new principle but applies established precedent to the facts before it.

This summary is based exclusively on the text of the opinion provided and does not add information beyond what the opinion contains.

Show all summary ...

Patel, J.:— There is a rectangular plot of land abutted on two sides by roads—on the south by B.J Road and on the east Gram Panchayat Road. It measures 1895 sq. yards. Small plots of land, thirteen in number, were given to various persons by the owner who have built small shops about nine feet high and they have been running the shops. The owner says they are licensees while the occupants say they are tenants. The Municipal Corporation and the owner say that the constructions are unauthorised and the former has issued notice for demolition. The owner wants to develop the plot and wants to build a multi-storeyed building. She offered the occupants accommodation in the new building but they were not satisfied with what was offered and she had to file suits in the Small Cause Court for eviction which are pending.

2. In the meantime she got the plans sanctioned on June 19, 1965. She had collected funds and materials ready. But as the occupants of the shops refused to vacate, to save time, she approached the Corporation for permission to build a part of proposed building to which the Corporation gave sanction on June 11, 1966.

3. The two appellants filed suits against her and the Corporation for injunction restraining the building on the ground that the construction violates the building bye-laws. The bye-laws alleged to be violated are: (1) that there should be distance of not less than 30 ft. between the two buildings and (2) on an average there should be a distance of about 50 ft. between the proposed construction and a public road. It may be stated that the property is situated at Goregaon. The plaintiffs do not allege that the construction affects them personally.

4. They applied for temporary injunction which the trial Court granted. The defendants appealed and Mr. Justice Palekar in an elaborate judgment allowed the appeal and discharged the Notice of Motion.

5. The first question is whether an appeal is competent. The word “judgment” in cl. 15 of the Letters Patent has by now acquired a definite meaning and it has been held that refusal of a Judge to grant interim injunction is not judgment as it does not decide any of the rights of the parties finally and therefore no appeal lies. See Vanichand v. Lakhmichand . 1919 21 Bom. L.R 955. Salemahomed v. Mahomed Taher . 1957 59 Bom. L.R 1193. and Gyangirji v. Dhanrajgirji . 1959 68 Bom. L.R 207.. Mr. Advani relying upon Mansata Films Distributors v. Sorab Modi . 1954 57 Bom. L.R 228, at p. 234. contended that an appeal will not lie where the order is made by a single Judge only in connection with a step in aid in the suit, but where the interlocutory order determines the right of a party pro tanto, the party affected has a right of appeal. In our view, the right affected must however be determined finally between the parties. When the question involved however is at large in the suit, it cannot be said that pro tanto the right is decided. In the present case, view expressed by the Court is merely to find out if the plaintiffs have a prima facie case and does not affect the merits of the suit.

6. Even on merits, the plaintiffs have no prima facie case. Similar question; was considered by our High Court in Khan Sahib Abdul Isa Bhagat v. Sultanalli Sulemanji . 1942 Second Appeal No. 859 of 1941, decided by Broomfield and Macklin, JJ., on November 26, 1942 Unrep.., where Mr. Justice Broomfield cited with approval the following observations of Mr. Justice Farwell in Mullis v. Hubbard . [1903] 2 Ch. 431, at p. 437..

“…I have also heard arguments as to the general intent and meaning of the Public Health Acts, and it is said that I ought to find some intention to protect the individual next-door neighbor as distinct from the whole body of corporators of the borough or the whole of the inhabitants of the particular district. In my opinion that is not the true view. If the next-door neighbor has any common law rights, they are left untouched and he can assert them. If he has no common law rights, the Legislature under the Public Health Acts intended, not to create rights in individuals, but general rights for the benefit of the inhabitants of a particular borough or district. The very words of this section appear to me to exclude any notion of individual right, because the sole arbiter whether the house shall or shall not be brought forward is the urban, authority. They may give their written consent and, if they do, the next door neighbour has no ground of complaint. … Certainly it would-be an unfortunate construction that would allow the numerous individuals in a street to bring their private actions against a man who had built a few feet in front of the line allowed when, as in this case, the urban authority decline to complain or interfere in any way.”

7. In the above case the Court held that the plaintiff had no cause of action. Similar view has been taken in Nandalal v. Provudayal . [1952] A.I.R Cal. 74. and Cawashah Bomanji v. Prafulla Nath . [1941] A.I.R Nag. 364..

8. In Saunders v. Holborn District Board of Works . [1895] 1 Q.B 64. the Court observed that:

“Sec. 29 of the Public Health (London) Act, 1891, which imposes on the sanitary authorities of London the duty of removing street refuse from the streets within their respective districts does not give any right of action to a person suffering special damage from a breach of such duty.”

9. Very often statutes are enacted for the special benefit of persons for whose benefit certain obligations are placed upon others. In such a case a right of action may be inferred in those for whose benefit the statute is enacted as was done in Butler (or Black) v. Fife Coal Company, Limited . [1912] A.C 149., where it was said: “We are to consider the scope and the purpose of the statutes and in particular for whose benefit it is intended”.

10. In this connection, ss. 54 and 56 of the Specific Relief Act are also very relevant. Section 54 enables the Court to grant perpetual injunction to prevent the breach of an obligation existing in favour of the applicant—whether express or implied. This is again subject to exceptions. The query, therefore, has to be “whether there exists an obligation in favour of the applicant”. Even where an obligation is made out, if the case falls within s. 56, injunction cannot be granted. The plaintiffs cannot and do not allege any recognizable right or obligation in them, nor the breach of the same. If they could not get a perpetual injunction, they could not get temporary injunction.

11. Mr. Advani relied upon In re Lakshmimoni Dassi11 and Kanahyalal Ruia v. Corporation of Calcutta . 1949 88 Cal. L.J 78.. In the first case, the petition was under s. 45 of the Specific Relief Act on the Original Side of the High Court. The proposed building 13 was so near the building 21, that the learned Judge recognising that the existence of the element of “legal right” depends upon the facts of each case said on the facts of the case (p. 395):

“…I propose to hold that the Corporation owed such a duty to the adjacent owner, and that there was in the adjacent owner such a legal right within the meaning of the cases, as to found an application for mandamus. No. 21, as I have found, was injured as to light, air, health and amenities by the breach of restrictions, by reason of its particular situation”.

12. The subsequent case in Nandalal v. Provudayal distinguishes this case. Assuming without admitting that the case lays down the correct principle, it cannot apply in the present case where there can be no question of any rights of the applicants being affected. The appellants are mere licensees as alleged by the owner and at best tenants as alleged by them. Even as ordinary tenants if they are, they have no right to stick to the property except as provided by the Rent Act and suits in eviction are pending. Their constructions themselves are petty and hardly 9 or 10 ft. high with no opening in the rear. Moreover, they are alleged to be unauthorised. The Corporation has issued notices for their demolition. It is with these kinds of constructions that the great right of vicinity is claimed by them. The second case is rightly distinguished by Mr. Justice Palekar. The trial Judge has very lightly granted the injunction. Principles of granting temporary injunctions are well settled. Order XXXIX, rr. 1 and 2 provide for such injunctions. Rule 1 does not apply. Rule 2 requires that some injury must be threatened. Injury must be a legal injury and not any fancied injury. In all cases where injury is alleged the Court is put on an enquiry as to what are the contents of the rights claimed by the appellants. Assuming that some such right is shown, the second element to be considered is whether irreparable injury or inconvenience may result to the plaintiffs if the same is refused. The appellants want to prevent the owner from developing the property merely by relying upon the Rules of the Corporation. Their shops exist as they are and they could carry on the business without any hindrance until the Small Causes Court decides the eviction suit. By this injunction, the appellants are only holding the owners to ransom. The trial Court did not even pause to consider the loss to the owner. We have dealt with the question in some what details, for in recent days cases after eases come to our notice where we find injunctions are granted without due care and circumspection and without thought to the consequences of the same to other side, particularly by the Small Causes Court and the City Civil Court, in Bombay. No attempt is even made to safeguard the other side by imposing terms such as security or otherwise. The duty of being careful even in the case of ex-parte applications cannot but be emphasised. It is the duty of the Judge to be careful in the exercise of this power and must by careful questioning of the applicant ascertain whether a real case exists for the grant of the same. He must be satisfied that the law permits it and the emergency demands it. It should not be granted lightly or inadvisedly. Even if granted, the absent party ought to be sufficiently protected. (Canon of Judicial Ethics of American Bar Association). We only hope that care will hereafter be shown by subordinate Courts in granting injunctions.

13. We direct the City Civil Court expedite the hearing of the suit filed by the appellants against the Municipal Corporation against demolition notices and the suits in this case.