INDUSTRIAL INVESTMENT BANK OF INDIA LTD Vs. MARSHALS POWER AND TELECOM INDIA LTD
LAWS(SC)-2006-11-33
SUPREME COURT OF INDIA (FROM: MADRAS)
Decided on November 23,2006

INDUSTRIAL INVESTMENT BANK OF INDIA LTD. Appellant
VERSUS
MARSHAL'S POWER AND TELECOM (I) LTD. Respondents


Referred Judgements :-

STATE BANK OF INDIA V. M/S RANJAN CHEMICALS LTD. AND ANR. [REFERRED TO]


JUDGEMENT

- (1.)Leave granted.
Heard both sides.

Defendant No.1 in C.S. No. 644 of 2003 filed on the Original Side of the High Court of Madras is the appellant. The appeal challenges the grant of an interim injunction by the Division Bench of the High Court in favour of the plaintiff, respondent No.1 herein, pending the suit. The suit was filed by the plaintiff for a mandatory injunction restraining defendants 1 and 2 jointly or severally from taking possession of or interfering with the use of or exercising any right of lien, charge or from issuing notice in any form or from creating any kind of disturbance or from attaching otherwise or raising a claim in respect of certain capacitor banks systems allegedly supplied by the plaintiff and installed at various substations of Transmission Corporation for Andhra Pradesh (for short, 'APTRANSCO') and for award of the costs of the suit. In that suit, the plaintiff filed O.A. No. 806 of 2003 under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure seeking an interim injunction along the same lines to ensure during the suit. The suit was filed when defendant No. 1 issued a notice to the plaintiff and defendant No. 2 in the suit seeking repayment of the amounts advanced by the first defendant to the second defendant, the repayment of which was secured by hypothecation and charge created by the plaintiff.

(2.)According to the plaint, no valid charge or hypothecation was created in favour of the first defendant and the first defendant was not entitled to claim any amount as against the plaintiff and was not entitled to enforce the charge or hypothecation as against the plaintiff.
(3.)The trial court granted an ad interim ex parte order of injunction after entertaining the suit. Meanwhile, the first defendant filed its claim for recovery of the amounts allegedly due to it from defendants 1 and 2 before the Debts Recovery Tribunal. The first defendant also appeared in the suit filed by the plaintiff and in addition to filing an objection to the interim application for injunction also filed Application No. 4726 of 2003 praying for vacating the interim order of injunction granted by the court. The first defendant pleaded that substantial amounts were due to it; that certain assets had been hypothecated to it and a charge created for securing the loan by the plaintiff and that the charge and the hypothecation were legally enforceable and there was no ground for granting an interim order of injunction as sought for. It was also submitted that the plaintiff had no cause of action for filing such a suit and it was for the plaintiff to put forward its case or its defence before the Debts Recovery Tribunal.


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