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M/S. Bagmane Constructions Pvt. Ltd., Bangalore v. Sri D. Digambarnath And Others

Karnataka High Court
Nov 13, 2013
Smart Summary (Beta)

Structured Summary of the Judgment delivered by Aravind Kumar, J.

Factual and Procedural Background

The plaintiff instituted Suit O.S. 4743/2012 seeking declaration of title to the schedule property, declarations that certain instruments (including a General Power of Attorney dated 17.02.2000 and sale deeds dated 09.02.2005, 18.10.2005 and 27.07.2010) are void or illegal, recovery of possession of the suit schedule property, and perpetual injunction. An interlocutory application for a temporary injunction restraining the defendants from alienating or encumbering the schedule property was filed along with the plaint. Defendant No. 11 filed a written statement and objections to the application for temporary injunction and also filed an application under Order VII, Rule 11(b) & (d) of the Code of Civil Procedure (CPC).

The Trial Court, by an order dated 21.10.2013, directed that the parties "maintain status-quo in respect of suit schedule property till next date." The order recorded the presence of counsel for the parties and that counsel for defendants 7 to 11 submitted that construction was already completed before filing the suit. Defendant No. 11 aggrieved by that order filed the present appeal (the appeal is by defendant No. 11 of O.S. No. 4743/2012).

Text recorded from the Trial Court's order (as reproduced in the opinion):
“Advocate for plaintiff present.
Advocate for D-3 present.
Advocate for D-7 to 11 present.
Adv for D-7 to 11 submit that construction is already completed before filing the suit.
Both the parties are directed to maintain status-quo in respect of suit schedule property till next date.”

Additional interlocutory applications and objections were pending before the Trial Court, including (as referred to in the judgment) an application filed by the plaintiff on 14.08.2013 seeking restraint against changing or altering the nature of the property, objections by defendants 7 to 11, an application under Order 7, Rule 11(b) & (d) CPC by defendant No. 3, and applications described in the judgment as LA. No. 1/12 under Order 39, Rules 1 and 2 CPC, I.A. Nos. 9/2013 and LA. 5/2012.

Legal Issues Presented

  1. Whether the Trial Court's order directing the parties to "maintain status-quo" in respect of the suit schedule property (dated 21.10.2013) is sustainable when the order does not specify the nature of the status-quo.
  2. Whether the Trial Court ought to have considered and disposed of the pending interlocutory applications (including applications under Order VII, Rule 11(b) & (d) CPC and the application for temporary/injunctive relief) on merits before passing a status-quo order.
  3. Whether, given the factual position (including the plaintiff's pleadings as to possession and the defendants' pleadings that construction had commenced/completed prior to the suit), the status-quo direction without qualification was appropriate.

Arguments of the Parties

Plaintiff's Arguments

  • The plaint prays for declaration of title, declaration that certain instruments are void or illegal, delivery of lawful possession of the suit schedule property, and perpetual injunction.
  • An interlocutory application sought a temporary injunction to restrain the defendants from alienating or encumbering the suit schedule property.
  • The plaintiff also filed an application on 14.08.2013 seeking an order restraining the defendants from changing or altering the nature of the property.

Defendants' Arguments (as recorded)

  • Defendants 7 to 11 informed the Trial Court that construction on the suit schedule property had already been completed before the filing of the suit (as recorded in the Trial Court order).
  • Defendants 7 to 11, in their objections, contended that the plaintiff did not have a prima facie case and that the balance of convenience was not in favor of the plaintiff.
  • They also contended that irreparable injury to them would be greater than any injury to the plaintiff if injunctive relief were granted; these contentions were set out in their objection statement.
  • Defendant No. 11 (the appellant) filed a written statement and objections to the interlocutory application and also filed an application under Order VII, Rule 11(b) & (d) CPC (challenging the maintainability of the plaint as appropriate under those provisions).
  • Defendant No. 3 also filed an application under Order 7, Rule 11(b) & (d) CPC (as recorded in the judgment).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
AIR 1989 MADRAS 73 : D. Albert v. Lalitha Orders directing preservation of "status-quo" must state in unequivocal terms what the "status-quo" is; courts should not pass status-quo orders simpliciter. The Court cited this authority to support the proposition that a status-quo order without specification is improper and that the Trial Court's status-quo order (which did not define the status-quo) could not be sustained.
N. Ramaiah v. Nagaraj S., 2001 (4) KCCR 2657 : ILR 2001 KAR 3466 An order of status-quo is a species of interim order; when granted it must indicate the nature of the status-quo (possession, title, nature of property, or other aspect); merely saying "status quo" should be avoided because it causes confusion and may lead to breach of peace. The Court relied on this case to underline that the Trial Court ought to have specified the context/conditions of the status-quo and that failure to do so leads to ambiguity; this supported setting aside the Trial Court order.
AIR 2006 SC 1474 : (2006) 3 SCC 312 — Kishore Kumar Khaitan v. Praveen Kumar Singh It is inappropriate to pass an order directing parties to maintain status-quo without indicating what the status-quo is; if interim injunctive relief is appropriate, the court should grant a specific injunction. A prima facie finding of possession is required before granting certain forms of interim mandatory injunctions. The Court invoked this Supreme Court authority to reinforce that the Trial Court should not have passed an equivocal status-quo order without indicating its nature and without first considering the merits of the pending interlocutory applications; this authority supported the conclusion that the status-quo order was not appropriate.

Court's Reasoning and Analysis

The Court began by noting the general principle—repeatedly stated by this Court and the Hon'ble Apex Court—that an order of status-quo must be explained in unequivocal terms and that failure to specify what the status-quo entails creates ambiguity and may lead to multiplicity of proceedings.

The Court examined the ordinary legal meaning of "status quo" (as reflected in Wharton's Law Lexicon and Black's Law Dictionary excerpts cited in the opinion) and observed that the term is inherently ambiguous unless qualified by the Court specifying the particular aspect to be preserved (e.g., possession, title, or the physical state of the property).

Applying those principles to the facts on record, the Court observed:

  • The plaintiff's suit sought declarations that specific documents were void, declarations regarding sale deeds, recovery of possession, and perpetual injunction — which indicated that the plaintiff was not in possession of the suit property on the date of the suit (the Court expressly stated, "This would clearly indicate that undisputedly plaintiff is not in possession of the suit schedule property as on date of suit.").
  • An interlocutory application for temporary injunction to restrain alienation/encumbrance was pending; the Trial Court had issued an emergent notice on that application and written statements and objections were filed, including objections by defendants 7 to 11 who stated they had commenced construction on the property and contested the merits (prima facie case, balance of convenience, and irreparable injury).
  • The Trial Court, without disposing of these pending applications and without examining whether the application under Order 7, Rule 11(b) & (d) CPC merited acceptance, passed a bare order directing maintenance of "status-quo" without specifying its nature.

On this basis, and in light of the precedents cited (which warn against passing unqualified status-quo orders), the Court concluded that the Trial Court's direction to maintain status-quo without qualification was unsustainable. The Court considered it necessary in the interests of justice to have the Trial Court decide the pending interlocutory applications expeditiously rather than allow an ambiguous status-quo direction to remain in force.

Consequently, the Court set aside the Trial Court's status-quo order, directed the parties to appear before the Trial Court and seek disposal of specified applications (LA. No. 1/12 under Order 39, Rules 1 and 2 CPC, I.A. Nos. 9/2013 and LA. 5/2012) expeditiously, and refrained from expressing any opinion on the merits of the parties' contentions.

Holding and Implications

Holding: The Court SET ASIDE the Trial Court's order dated 21.10.2013 directing the parties to "maintain status-quo" in respect of the suit schedule property, on the ground that the order was passed without specifying the nature of the status-quo and without disposing of pending interlocutory applications.

Direct Consequences and Orders:

  • The parties are directed to appear before the Trial Court and seek disposal of LA. No. 1/12 filed under Order 39, Rules 1 and 2 CPC, I.A. Nos. 9/2013 and LA. 5/2012 expeditiously, and in any event within 30 days from the date learned advocates furnish a copy of this order before the Trial Court.
  • No opinion was expressed by this Court on the merits of the parties' contentions; the contentions of both parties are left open for adjudication by the Trial Court.
  • Parties are directed to bear the costs of these appellate proceedings.

Broader Implication: The judgment reiterates and applies existing law that orders of "status-quo" must indicate specifically what is to be preserved (possession, title, or other aspects). The opinion did not express new legal doctrine beyond these established principles; its operative effect was limited to setting aside the particular unqualified status-quo order and directing the Trial Court to determine pending interlocutory matters.

Show all summary ...

The Judgment of the Court was delivered by

Aravind Kumar, J.:— This appeal is by defendant No. 11 of O.S No. 4743/2012 directed against the order of status-quo passed by trial Court on 21.10.2013

2. Though appeal is listed for orders by the consent of learned Advocates appearing for parties, it is taken up for final disposal. Plaintiff filed a suit O.S 4743/2012 for declaration of his title to the suit schedule property amongst other declarations sought for and for perpetual injunction. An application for grant of temporary injunction to restrain the defendants from alienating or encumbering the schedule property was also filed. Written statement and also objections to the application for temporary injunction came to be filed by the 11th defendant.

An application under Order VII, Rule 11(b) & (d) of CPC came to be filed by 11th defendant. Trial Court by order dated 21.10.2013 passed an order to the following effect:

“Advocate for plaintiff present.

Advocate for D-3 present.

Advocate for D-7 to 11 present.

Adv for D-7 to 11 submit that construction is already completed before filing the suit.

Both the parties are directed to maintain status-quo in respect of suit schedule property till next date.”

Being aggrieved by this order, present appeal has been filed by 11th defendant.

3. Time and again this Court as well as Hon'ble Apex Court has held that when an order of status-quo is granted by a Court said order of status quo should be explained in unequivocal terms as to “what that status-quo would mean” as otherwise such orders when passed without any qualification or condition it would lead to ambiguity, erroneous interpretation by the parties to the lis and thereby resulting in multiplicity of proceedings.

4. The expression ‘status quo’ is undoubtedly a term of ambiguity and at times gives rise to doubt and difficulty. According to the ordinary legal connotation, the term ‘status quo’ implies the existing state of things at any given point of time. In Wharton's Law Lexicon 14th Edition at page 951 Status Quo has been defined as meaning:

“The existing state of things at any given date; e.g, Status quo ante bellum, the state of things before the war.”

5. According to Black's Law Dictionary 6th Edition the relevant passage occurs:

“The existing state of things at any given date. Status quo ante bellum the state of things before the law. “Status quo” to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy.”

6. If in a given case, the Court intends to give interim relief, it has to make endeavour to give specific injunctive relief or interim relief as may be necessary in the facts and circumstances of the said case. However, if the Courts were to opine or find it appropriate to grant an order of “status quo”, then it has to indicate the nature of such status quo as otherwise it may lead to multiplicity of proceedings. It is always desirable to indicate the nature of status quo and granting of such orders without qualifying the same should be avoided. The following judgments would clearly support said proposition:

1. AIR 1989 MADRAS 73 : D. Albert v. Lalitha

“7. I am aware that many a Court including the High Court have passed orders of ‘status-quo’ simpliciter. In fact, some time back, I came across an order of the High Court on the following lines: Petitioner claims to be in possession. Respondent filed a counter that he is in possession. In the circumstances, status quo should continue till the disposal of the appeal. It is obvious that such orders should not be passed by any Court, high or low. Whenever a Court passes an order directing the preservation of ‘status quo’ it should be the same order state in unequivocal terms what the ‘status quo’ is. Otherwise the Court will be failing to do its duty.”

2. N. Ramaiah v. Nagaraj S., 2001 (4) KCCR 2657 : ILR 2001 KAR 3466

“22. An order of status quo is a specie of interim orders, when granted indiscriminately and without qualifications or conditions, leads to ambiguity, difficulties, and injustice. If Courts want to give interim relief, they should endeavour to give specific injunctive relief. If grant of order of ‘status quo’ is found to be the only appropriate relief, then Courts should indicate the nature of status quo, that is whether the status quo is in regard to possession, title, nature of property or some other aspect. Merely saying ‘status quo’ or ‘status quo to be maintained’ should be avoided. If in a Suit for injunction, where plaintiff claims that he is in possession of the suit property and the defendant is attempting to interfere with his possession, and the defendant contends that he is in possession and petitioner was never in possession, if the Court merely directs status quo to be maintained by parties, without saying any thing more, it will cause confusion and in many cases even lead to breach of peace. On the basis of such order, the plaintiff would contend that he is in possession and he is entitled to continue in possession; and the defendant would contend that he is in possession and he is entitled to continue in possession. In such a case, if the Court wants to direct status quo it should specify the context in which or conditions subject to which, such status quo direction is issued.”

3. AIR 2006 SC 1474 : (2006) 3 SCC 312, Kishore Kumar Khaitan v. Praveen Kumar Singh

“5. It is necessary to notice at this stage that in an original suit of this nature, it was not appropriate for the Additional District Judge to pass an order directing the parties to maintain status quo, without indicating what the status quo was. If he was satisfied that the appellant before him had made out a prima facie case for an ad interim ex parte injunction and the balance of convenience justified the grant of such an injunction, it was for him to have passed such an order of injunction. But simply directing the parties to maintain status quo without indicating what the status quo was, is not an order that should be passed at the initial stage of a litigation, especially when one Court had found no reason to grant an ex parte order of injunction and the appellate Court was dealing with only the limited question whether an ad interim order of injunction should or should not have been granted by the trial Court, since the appeal was only against the refusal of an ad interim ex parte order of injunction and the main application for injunction pending suit, was still pending before the trial Court itself. Therefore, we are prima facie of the view that the Additional District Judge ought not to have passed an equivocal order like the one passed in the circumstances of the case. But of course, that aspect has relevance only to the extent that before ordering an interim mandatory injunction or refusing it, the Court has first to consider whether the plaintiff has proved that he was in possession on the date of suit and on the date of the order and he had been dispossessed the next day. Unless a clear prima facie finding that the plaintiff was in possession on those dates is entered, an order for interim mandatory injunction could not have been passed and any such order passed would be one without jurisdiction.”

7. Keeping the principles laid down by the Hon'ble Apex Court, Madras High Court and Division Bench of this Court when the facts on hand are examined, it would indicate that plaintiff herein has filed a suit for declaration to declare the General Power of Attorney dated 17.02.2000 as void document and not binding on him; to declare sale deed dated 09.02.2005 executed by defendant No. 1 being General Power of Attorney holder of plaintiff in favour of defendant No. 3 as illegal; and, so also the sale deed dated 18.10.2005 executed by defendant No. 3 in favour of defendant No. 7; and, sale deed dated 27.07.2010 executed in favour of defendant Nos. 7 to 10. One another prayer sought for by plaintiffs is for possession of suit schedule property from defendant No. 11 namely to deliver back lawful possession to plaintiff and for perpetual injunction.

8. This would clearly indicate that undisputedly plaintiff is not in possession of the suit schedule property as on date of suit.

9. Along with plaint an interlocutory application has been filed seeking for temporary injunction to restrain defendants from alienating or encumbering suit schedule property. Trial Court has issued emergent notice on the said application and on appearance, written statement came to be filed and objections to application for temporary injunction was also filed and it is at the stage of adjudication. During the pendency of said suit one more application came to be filed on 14.08.2013 by plaintiff seeking an order of restraint against defendant from changing or altering the nature of property, which was objected to by defendants 7 to 11 by filing a detailed statement of objections and raising a plea with regard to maintainability of the suit itself. In fact an application under Order 7, Rule 11(b) and (d) of CPC has also been filed by defendant No. 3. Trial Court without disposing off these applications on merits has proceeded to pass an order directing parties to maintain status-quo. Objections filed by defendants 7 to 11 would indicate that they have commenced construction of building in the suit schedule property and they have also contended as to how plaintiff does not have a prima facie case or balance of convenience not being in favour of plaintiff. It is also contended that irreparable injury which would be caused to them would be much more than what plaintiff may suffer and it has been explained in detail in their objection statement. Without considering these aspects and also without examining as to whether application filed under Order 7, Rule 11(b) and (d) of CPC merits acceptance, trial Court has proceeded to pass an order of status-quo. An order of status-quo when being passed without specifying or qualifying as to what is the nature of such status-quo, it cannot be sustained. Hence, order under appeal cannot be sustained even for a moment. In that view of the matter, I am of the considered view that ends of justice would be met if the parties are directed to appear before Trial Court and seek disposal of LA. No. 1/12 filed under Order 39, Rules 1 and 2 CPC, I.A Nos. 9/2013 and LA. 5/2012, expeditiously at any rate within 30 days from the date of learned Advocates furnishing the copy of this order before Trial Court. Hence, order passed by the Trial Court is hereby set aside and no opinion is expressed on merits and contentions of both parties are left open.

10. Parties are directed to bear costs of these proceedings.