Introduction

• This case deals with Order XXXIX Rule 1 and the inherent powers of the High Court under Section 151 of the Code of Civil Procedure, 1908 (CPC).

Facts

• The appellant and the respondent entered into a partnership at Indore for working coal mines at Kajora gram (District Burdwan) and manufacture of cement etc., in the name and style of 'Diamond Industries'.
  • The partnership was dissolved by a deed of dissolution dated 22nd August 1945.
• On 18^th August 1948, the appellant instituted a suit in the Court of the Subordinate Judge at Asansol against the respondent for the recovery of Rs. 1,00,000/- on account of his share in the capital and assets of the partnership firm 'Diamond Industries’ and Rs. 18,000/- as interest for detention of the money or as damages or compensation for wrongful withholding of the payment.
• On October 27, 1948, respondent filed a petition under Section 34 of the Arbitration & Conciliation Act, 1996 in the Asansol Court praying for the stay of the suit in view of the arbitration agreement in the original deed of partnership.
  • This application was rejected on 20^th August 1949.
• The respondent filed a civil suit against the appellant in the Court of District Judge, Indore under Sections 10 and 151 CPC.
  • The application was opposed by the respondent on three grounds:
    • The first one was the deed in dissolution, that Court alone could decide the disputes.
    • Second was that the suit in Asansol Court could not have the effect of staying the proceedings of that suit.
    • The third one was that the two suits were different in nature, their subject matter and relief claimed being different.
• Later on, the respondent applied under Section 151 CPC the Indore Court, restraining the appellant from continuing the proceedings in the suit filed by him in the Court at Asansol.
• The Learned District Judge, Indore issued interim injunction to the appellant restraining him from proceeding with his Asansol suit as the appellant violated the provision in the deed of the dissolution.
• Aggrieved from the issue of injunction, the appellant preferred an appeal before the High Court of Madhya Bharat (Now Madhya Pradesh), which dismissed the appeal.
• Hence, this appeal was filed before the Supreme Court of India.

Issues Involved

• Whether the Court could not exercise its inherent powers when there are specific provisions in the CPC for the issuance of interim injunctions?
• Whether the Court, in the exercise of its inherent jurisdiction, exercised its discretion properly, keeping the facts of the case in mind?

Observations

• The Court observed that the section itself says that nothing in the Code (CPC) shall be deemed to limit or otherwise affect the inherent power of the Court to make orders necessary for the ends of justice.
• In the face of such a clear statement, it is not possible to hold that the provisions of CPC control the inherent power by limiting it or otherwise affecting it.
• The inherent power has not been conferred upon the Court; it is a power inherent in the Court by virtue of its duty to do justice between the parties before it.
• The Court further observed that when CPC itself recognizes the existence of the inherent power of the Court, there is no question of implying any powers outside the limits of the Code.
• The Court further said the inherent powers under Section 151 of the CPC can be exercised by the Court in very exceptional circumstances for which the Code lays down no procedure.
• The question of jurisdiction of the Asansol Court over the subject matter of the suit before it will be decided by that Court. The Indore Court cannot decide that question.
• The Court said that the jurisdiction of the Asansol Court is not ousted by the provisions of the proviso in the deed of dissolution, even though that proviso expresses the choice of the parties for having their disputes decided in the Court at Indore.
• The CPC is undoubtedly not exhaustive.
• The civil courts are authorized to pass such orders as may be necessary for the ends of justice, or to prevent abuse of the process of court, but where an express provision is made to meet a particular situation, the Code must be observed, a departure there from is not permissible.

Conclusion

Hence, it is held that the court cannot exercise its inherent powers under Section 151 of CPC order an injunction when a specific provision under Order XXXIX to grant temporary injunction is enshrined in the Code.

Notes

Section 51 of CPC: Saving of Inherent Powers of the Court -

Nothing in this Code shall be deemed to limit or otherwise affect the inherent power of the Court to make such orders as may be necessary for the ends of justice or to prevent abuse of the process of the Court.