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Smart Summary

Concise Analytical Summary of the Opinion

Factual and Procedural Background

The appeal is by the first defendant (the appellant) against an order of the Subordinate Judge of Ramanathapuram that granted, at the instance of the plaintiff (Asokan), an ex parte injunction restraining the appellant from taking delivery of possession of certain properties which she had purchased in a Court auction in execution of a mortgage decree obtained against the plaintiff's father, Sundaram Chettiar.

Key factual and procedural chronology (as stated in the opinion):

  • Sundaram Chettiar purchased a cinema theatre at Rajapalayam and borrowed money from Chockalingam (husband of the appellant) and subsequently mortgaged the theatre on three occasions in favour of Chockalingam and his associates (dates and amounts are set out in the plaint and judgment).
  • The appellant (Mangai Achi) obtained an assignment of the three mortgages and sued (O.S. No. 72 of 1961) to realise the due amounts; a preliminary decree for Rs. 1,84,451-13 was passed on 6th October 1962.
  • In execution of the decree the hypothecated theatre was auctioned on 12th August 1969; the appellant purchased it for Rs. 2,25,000 and sale was confirmed on 24th December 1969.
  • Sundaram Chettiar's proceedings to set aside the sale were dismissed; an appeal (C.M.A. No. 357 of 1971) to the High Court was dismissed on 18th November 1971.
  • The decree-holder applied for delivery of possession (E. A. No. 141 of 1971); objections by Sundaram Chettiar and the Advocate-Receiver were overruled and delivery was ordered; Sundaram Chettiar appealed (C.M.A. No. 223 of 1972) and an interim order was made continuing the Receiver.
  • While delivery was pending, Asokan (the plaintiff and fourth son of Sundaram Chettiar) filed O.S. No. 61 of 1972 (partition suit) on 28th June 1972 confined to the Rajapalayam theatre and obtained an ex parte injunction restraining the appellant from taking delivery.

The trial Court granted an ex parte injunction. The present appeal challenges that injunction.

Legal Issues Presented

  1. Whether the ex parte injunction granted to restrain the decree-holder (and auction-purchaser) from taking delivery of possession of the hypothecated property was legally warranted.
  2. Whether Order 39, Rule 1 of the Civil Procedure Code justified the grant of an injunction in the circumstances of this case.
  3. Whether Order 39, Rule 2 of the Civil Procedure Code could be invoked by the plaintiff (Asokan) to justify a temporary injunction restraining the appellant from taking possession after a lawful execution sale.
  4. Whether an ex parte order for injunction is appealable (i.e., whether the present appeal against the ex parte injunction is maintainable).
  5. Whether the appellant was precluded from relying on evidence not placed before the lower Court unless fresh evidence was permitted under Order 41, Rule 27, Civil Procedure Code.

Arguments of the Parties

Appellant's Arguments

  • The appellant had lawfully obtained a mortgage decree in her favour and, in execution of that decree, had purchased the hypothecated property at a Court auction; consequently she was entitled to delivery of possession of the property she had lawfully purchased.
  • The injunction granted to the plaintiff in the partition suit was unwarranted because it interfered with what the decree-holder was lawfully entitled to do under the execution proceedings.
  • With respect to appellate procedure and evidence, the appellant relied on affidavits filed in the High Court setting forth relevant facts; the appellant contended there was no need to admit fresh evidence under Order 41, Rule 27 because the facts were adequately before the appellate court and the respondent did not dispute them in counter-affidavits.

Respondent's (Plaintiff Asokan's) Arguments

  • The plaintiff (Asokan) sought partition of the cinema theatre and claimed a 1/6 share; he sought an injunction to prevent delivery of possession to the auction-purchaser so as to protect his claimed share and to press the contention that the theatre formed part of the joint family property and that the mortgages were vitiated by illegality and immorality.
  • It was contended (as stated in the plaint) that the hypotheca either belonged to the separate property of the father or, alternatively, to the joint family; even assuming it was joint family property, the mortgages would be binding on the sons—this was pleaded by the mortgagee in her suit, while the judgment-debtor denied this and claimed the theatre business was for his own benefit.
  • Respondent contended that the appeal against the ex parte injunction was unsustainable; he relied on procedural provisions about discharge or variation of injunctions and argued against appealability (this contention was considered and rejected by the Court).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Subramanian v. Seetrama Aiyar (I.L.R.) Held that a person executing a decree lawfully obtained cannot be held to have committed an illegal injury by executing the decree. The Court relied on this precedent to conclude that the decree-holder/auction-purchaser did not commit an illegal injury by seeking delivery of possession after a lawful execution sale; consequently the injunction was unwarranted.
Zilla Parishad v. Brahma Rishi Sharma (Full Bench of the Allahabad High Court) Discussed and concluded on the appealability of ex parte orders; observed consensus that ex parte orders are appealable and cited supporting authorities. The Court followed this Full Bench ruling and held that the appeal against the ex parte injunction was maintainable.
Amolak Ram v. Sahib Singh (I.L.R. 7 All. 550) One of the cases cited as holding that ex parte orders are appealable. Included by the Full Bench list relied upon by the Court to justify the proposition that ex parte orders are appealable; the Court agreed with that view.
Lachmi Narain v. Rama Charan Das (I.L.R. 35 All. 425) One of the cases cited as holding that ex parte orders are appealable. Relied on as part of the body of authority supporting appealability of ex parte orders; the Court concurred with that view.
Ganesh Prasad Sahu v. Dukh Haran Sahu (A.I.R. 1922 All. 441) One of the cases cited as holding that ex parte orders are appealable. Counted among authorities supporting appealability; the Court followed the collective view.
District Board of Farrukhabad v. Ikhlaque Hussain (A.I.R. 1933 All. 86) One of the cases cited as holding that ex parte orders are appealable. Included in the Full Bench's list which the Court accepted to establish appealability of ex parte orders.
Meston School Society v. Kashi Nath; Shaym Bihari Singh v. Biseswar Dayal Singh (A.I.R. 1924 Pat. 713) Authorities cited as recognizing appealability of ex parte orders. Adopted as part of the consistent judicial view relied on by the Court to hold the appeal maintainable.
Bhalab Das v. Mohammad Ishaw (A.I.R. 1933 Lah. 282) One of the authorities cited for appealability of ex parte orders. Included among the cases forming the basis for the Court's conclusion on appealability.
Devasahayam v. Arumukham (A.I.R. 1953 Trav.-Coch. 240) Cited as supporting the appealability of ex parte orders. Part of the body of case law relied upon to hold the appeal maintainable.
Ramulu v. Ganga Ram (A.I.R. 1953 Hyd. 138) Cited among authorities holding ex parte orders appealable. Included in the list of cases that persuaded the Court to accept appealability of ex parte injunctions.

Court's Reasoning and Analysis

The Court's reasoning proceeds in distinct steps, each grounded in facts and legal principle as set out in the opinion:

  1. Examination of factual background and timing: The Court emphasised that Asokan's partition suit was confined to the Rajapalayam theatre (a single property) and was instituted while execution proceedings and delivery were pending, after the appellant had lawfully purchased the property at a confirmed Court auction. The Court noted the long delay (over a decade since the decree) and the history of obstruction by Sundaram Chettiar.
  2. Assessment of how the injunction was obtained: The Court found that the ex parte injunction was procured without disclosure of relevant facts to the trial Court and that the balance of convenience favoured the decree-holder. The Court considered that the plaintiff in the partition suit sought only partition and a 1/6 share; even if successful, an allotment of an equivalent share in other family properties could address his claim, reducing the need to restrain delivery of possession.
  3. Application of Order 39, Rule 1: The Court analysed whether Order 39, Rule 1 (CPC) justified the injunction. The Court observed there was no allegation in the plaintiff's affidavit that the property was in danger of being wasted, damaged, alienated or wrongfully sold to defraud creditors. Therefore the criteria for injunctive relief under Rule 1 were not met.
  4. Application of Order 39, Rule 2: The Court considered whether Rule 2 could be invoked (temporary injunction in suits for restraining defendants from committing injury). The Court relied on Subramanian v. Seetrama Aiyar to hold that executing a decree lawfully does not amount to committing an illegal injury; thus Rule 2 could not be invoked to restrain the lawful actions of the decree-holder/auction-purchaser.
  5. Appealability of the ex parte injunction: The respondent argued that the injunction order could only be varied or set aside under Order 39, Rule 4. The Court examined the statutory provisions and following the Full Bench decision in Zilla Parishad v. Brahma Rishi Sharma (and a line of authorities cited therein) held that the order under Rule 1 of Order 39 is appealable under Order 43, Rule (1)(r). The Court therefore held the appeal to be maintainable.
  6. Evidence on appeal: The Court noted the general rule that an appeal is ordinarily confined to evidence on record before the lower Court unless fresh evidence is permitted under Order 41, Rule 27. In this case, however, the affidavits filed by the appellant truthfully set forth the relevant facts and the respondent's counter-affidavits did not dispute those facts. Consequently the Court found no need to admit fresh evidence under Rule 27.
  7. Conclusion on merits: For the reasons above (lack of disclosure, absence of statutory grounds under Order 39 Rules 1 or 2, balancing of convenience, and relevant precedent), the Court concluded that the ex parte injunction was unwarranted and set it aside.

Holding and Implications

Holding:

APPEAL ALLOWED; the ex parte injunction granted by the Subordinate Judge of Ramanathapuram is set aside and the appellant's appeal is allowed with costs.

Immediate implications for the parties:

  • The injunction restraining the appellant (the decree-holder and auction-purchaser) from taking delivery of possession of the hypothecated cinema theatre has been vacated, thereby permitting the appellant to pursue delivery of possession pursuant to her confirmed auction purchase and decree.
  • The plaintiff's (Asokan's) partition claim remains a substantive matter for determination, but the interlocutory remedy of an injunction preventing delivery was not justified on the facts and law presented.

Broader legal implications:

  • The Court followed existing authority (including Subramanian v. Seetrama Aiyar and the Full Bench in Zilla Parishad v. Brahma Rishi Sharma) and applied settled principles regarding (a) the scope of injunctive relief in execution-related contexts, and (b) the appealability of ex parte injunctions. The decision does not purport to create a new legal principle but applies and affirms existing precedent as relevant to the facts of this case.

Note: This summary is based exclusively on the information contained in the provided opinion. No additional facts or inferences beyond the text have been introduced.

    Mangai Achi v. S. Asokan

    1. This is an appeal by the first defendant against the order of the Subordinate Judge of Ramanathapuram, granting, at the instance of the plaintiff, an ex parte injunction restraining the appellant from taking delivery of possession of certain properties which she had purchased in Court auction in execution of a mortgage decree obtained against the plaintiff's father. Before discussing the questions involved in the appeal, it is necessary to set forth briefly the background to the dispute between the parties. Sundaram Chettiar, the undivided father of Asokan, the plaintiff, who got the ex parte injunction in the Court below, purchased a cinema theatre at Rajapalayam. At the time of the purchase he borrowed from one Chockalingam, the husband of the appellant, Mangai Achi, a sum of Rs. 50,000 for making up the sale price. He also mortgaged the theatre for Rs. 50,000 on 19th May, 1958, in favour of Chockalingam Chettiar. Subsequently, on 21st July, 1959, he granted another mortgage in favour of Chockailingam Chettiar's brother for Rs. 15,000 in respect of the same cinema theatre. This mortgage was subsequently assigned in favour of Chockalingam Chettiar. On 21st November, 1960, Sundaram Chettiar granted a third mortgage in favour of Chockalingam Chettiar for Rs. 85,000. Mangai Achi, the appellant, after obtaining an assignment of the three mortgages is her favour, instituted a suit, O.S. No. 72 of 1961, on the file of the Court of the Subordinate Judge of Ramanathapuram, on foot of the three mortgages aforementioned. In the plaint in her suit Mangai Achi alleged that the hypotheca belonged exclusively to Sundaram Chettiar and formed part of his separate properties and that, even assuming that it had been purchased out of the joint family assets of Sundaram Chettiar, the mortgages would be binding upon Sundaram Chettiar's sons. In the plaint she expressly prayed for a decree on the alternative basis that the property belonged to the joint family of which Sundaram Chettiar was the manager. Sundaram Chettiar in his answer admitted the execution of the mortgages and the amounts due thereunder and prayed that he might be permitted to repay the amounts in instalments spread over a period of six years. In paragraph 6 of his written statement he averred that the cinema theatre business started by him was for his own benefit and that the joint family had no concern whatsoever with the business assets (presumably including the hypotheca) or the liabilities of Sundaram Chettiar. He further contended that the cinema business was a new kind of speculative business in which fortunes were made or lost and that it was unfair to foist the mortgage liability upon the other members of his family. Ultimately a preliminary decree was passed on 6th October, 1962, for Rs. 1,84,451-13. In execution of the mortgage decree, which was transferred to the Subordinate Judge's Court, Sivaganga, the appellant tried to bring the hypotheca to sale. But it is alleged that owing to the obstructive tactics of Sundaram Chettiar, the judgment-debtor, the hypotheca could be sold in auction only on 12th August, 1969, at which the appellant herself purchased it for Rs. 2,25,000. The sale was confirmed on 24th December, 1969. Sundaram Chettiar instituted proceedings for setting aside the sale on the ground that it was vitiated by material irregularities. His petition was dismissed, and against the order of dismissal he preferred C.M.A. No. 357 of 1971 to this Court and this Court dismissed the appeal on 18th November, 1971. Then the decree-holder applied for delivery of possession in E. A. No. 141 of 1971. This was opposed by Sundaram Chettiar as well as by the Advocate-Receiver who had been appointed during the pendency of the proceedings in the mortgage suit. Those objections were over ruled by the trial Court and delivery was ordered. There upon Sundaram Chettiar filed C.M.A. No. 223 of 1972 on the file of this Court against the order directing delivery. This appeal came up before Krishnaswamy Reddy, J., who directed the appeal itself to be posted, for hearing on 3rd July, 1972, and passed an interim order directing the Receiver to continue until further orders. It was at this juncture that Asokan, the fourth son of Sundaram Chettiar, instituted O.S. No. 61 of 1972 on 28th June, 1972 on the file of the Court of the Subordinate Judge of Ramanathapuram for partition of the cinema thratre alone. Admittedly the joint family of Sundaram Chettiar owned another cinema theatre and other properties than the cinema theatre at Rajapalayam. (Vide paragraphs 10 and 11 of the plaint in O.S. No. 61 of 1972). Significantly enough, Asokan's suit for partition was confined only to the cinema theatre at Rajapalayam possession of which was on the verge of being delivered to the appellant. Asokan himself was the fourth son of his father. It is remarkable that none of his elder brothers nor himself thought of intervening during the execution of the mortgage decree setting forth the case which has been put forward in the partition suit, namely, that the cinema theatre formed part of the joint family assets and that the mortgages granted by Sundaram Chettiar had been granted for "making merry" and were consequently vitiated by illegality and immorality. Prima facie, it is clear, from the context in which the partition suit of Asokan was filed, that it was Sundaram Chettiar, who, after exhausting his genius for obstruction, instigated his son to file a suit for partition by damning him with immorality. It is, indeed, a pity that despite the lapse of over a decade since the grant of the decree, Sundaram Chettiar should have kept the appellant at buy and deprived her of the fruits of her decree. Upon the merits I have little hesitation in holding that the ex parte injunction granted by the lower Court was unwarranted by the facts on record. It has been procured without disclosure of the relevant facts to the Court, and the balance of convenience was certainly against the grant of the injunction, because all that the plaintiff in the partition suit prayed for was for partition and separate possession of 1/6 share in the cinema theatre and even if he ultimately succeeded in making out that the mortgages were not binding on him, he could certainly be allotted a share in the other properties of the joint family equal in value to his 1/6 share in the theatre at Rajapalayam. I may also point out that in as much as the appellant herein had obtained a mortgage decree lawfully passed by a competent Court and in execution thereof had purchased the hypetheca in Court auction the respondent was not entitled to invoke either Order 39, Rule 1 or Order 39, Rule 2 of the Civil Procedure Code, for an injunction restraining the decree-holder auction-purchaser from doing what it was lawful for her to do, namely, to obtain delivery of possession of the property which she had lawfully purchased in Court auction. There was no allegation in the affidavit of the plaintiff (Asokan) that the property in dispute was in danger of being wasted, damaged or alienated or wrongfully sold in execution of a decree or that the second defendant in the partition action threatened or intended to remove or dispose of his property with a view to defraud his creditors. Consequently, Order 39, Rule 1, Civil Procedure Code, would not justify the grant of any injunction in favour of Asokan, the plaintiff in the partition suit.

    2. The next question is whether Order 39, Rule 2, Civil Procedure Code could not be invoked by him. That rule says that in any suit for restraining the defendant from committing a breach of contract or other injury of any kind, whether compensation is claimed in the suit or not, the plaintiff may, at any time after the commencement of the suit...apply to the Court for a temporary injunction....

    3. In Subramanian v. Seetrama Aiyar I.L.R. , a Division Bench of this Court has held that a person similarly situated as the appellant herein, cannot be held to have committed any illegal injury by executing the decree lawfully obtained. Consequently, the Court below erred in granting the ex parte-in junction appealed against.

    4. Lastly it was contended on behalf of the respondent that the appeal as against the ex parte injunction is itself unsustainable. It is pointed out that under Older 39, Rule 4, Civil Procedure Code, an order for an injunction may be discharged or varied or set aside by the Court on application made thereto by any party dissatisfied with such order. There is nothing in this rule which interdicts an appeal being preferred against an order of ex parte injunction under Order 43, Rule (1)(r), Civil Procedure Code, which says that against an order under Rules 1, 2, 4 or 10 of Order 39 an appeal shall lie. The order appealed against was an order passed under Rule 1 of Order 39, Civil Procedure Code, and is therefore appealable. Where two remedies are granted by the law, it is open to the litigant to choose either. In fact, the legal position has been elaborately discussed by a Full Bench of the Allahabad High Court in Zilla Parishad v. Brahma Rishi Sharma . The learned Judges observe:

    The question of the appealability of an ex parte order was the subject-matter of decision by this Court as well as by the other Courts and the consensus of opinion is in favour of the appealablity of such an order. The cases which have held such orders to be appealable are Amolak Ram v. Sahib Singh I.L.R. 7 All. 550, Lachmi Narain v. Rama Charan Das I.L.R. 35 All. 425, Ganesh Prasad Sahu v. Dukh Haran Sahu A.I.R. 1922 All. 441, District Board of Farrukhabad v. Ikhlaque Hussain A.I.R. 1933 All. 86, Meston School Society v. Kashi Nath , Shaym Bihari Singh v. Biseswar Dayal Singh A.I.R. 1924 Pat. 713, Bhalab Das v. Mohammad Ishaw A.I.R. 1933 Lah. 282, Devasahayam v. Arumukham A.I.R. 1953 Trav.-Coch. 240 and Ramulu v. Ganga Ram A.I.R. 1953 Hyd. 138. We are in agreement with the view expressed in the above cases.

    I follow this Full Bench ruling and hold that the appeal is maintainable.

    5. The next question raised is that ordinarily the appeal must be confined to the evidence already on record in the lower Court and that it is not open to the appellant to rely upon evidence which was not before the lower Court, unless fresh evidence under Order 41, Rule 27, Civil Procedure Code, was permitted by the appellate Court. But in this case the affidavits filed by the appellant set forth all the relevant facts and the respondent has filed counter-affidavits in which he does not dispute the truth of the facts upon which I have already come to a decision on the merits. No question of any fresh evidence being permitted therefore arises.

    6. In the result the appeal is allowed with costs, and the ex parte injunction granted by the Court below is set aside.

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    Comments

    Mangai Achi v. S. Asokan
    (Sep 26, 1972)