Supreme Court Allows Electricity Board to Complete Sub-Station in Land Dispute Case. Balance of Convenience and Public Interest Outweighs Alleged Possession Claims.

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Case Note & Summary

The dispute pertains to a land measuring about 3.61 acres in Jamshedpur, Jharkhand. The respondents (plaintiffs) claimed that their mother, late Smt. Shyal Devi, purchased the land in 1958 via unregistered sale deeds and was in possession. In 1992, she filed Title Suit No. 153/1992 against the Bihar State Road Transport Corporation (BSRTC) for interference, which was decreed in her favour in 1999, confirming her possession. However, in appeal, the Additional District Judge held that she failed to establish title, though possession was confirmed. The BSRTC filed a second appeal, which is pending. In 2015, the respondents filed Title Suit No. 45/2015 seeking permanent injunction against the Jharkhand State Electricity Board (JSEB) from constructing an electricity sub-station on the land. The trial court and appellate court dismissed their interim injunction application, finding no prima facie case and noting suppression of facts. The Jharkhand High Court, however, granted status quo, restraining JSEB from construction on the disputed land. The Supreme Court set aside the High Court's order, holding that the balance of convenience and public interest favoured allowing JSEB to complete the sub-station, as 90% construction was already done and the respondents could be compensated monetarily if they succeed in the suit. The Court directed JSEB to deposit Rs. 5 lakhs as security and allowed it to energise the sub-station.

Headnote

A) Civil Procedure - Interim Injunction - Order XXXIX Rules 1 and 2 CPC - Prima Facie Case - The plaintiffs failed to establish a prima facie case as they did not specifically describe the suit property in the plaint and suppressed material facts regarding a previous withdrawn writ petition. (Paras 2.9-2.10)

B) Civil Procedure - Interim Injunction - Balance of Convenience - Public Interest - The balance of convenience lies in favour of the Electricity Board as the sub-station serves public interest and 90% construction was completed; the plaintiffs can be compensated in money if they succeed. (Paras 2.12, 4-5)

C) Civil Procedure - Interim Injunction - Irreparable Loss - The plaintiffs failed to show irreparable loss as the alleged possession was not supported by rent receipts or municipal receipts, and the land was recorded in the name of the Bihar State Road Transport Corporation. (Paras 2.10, 4)

D) Civil Procedure - Suppression of Facts - Adverse Inference - The plaintiffs suppressed the fact of filing and withdrawing a previous writ petition seeking similar relief, warranting an adverse inference against them. (Para 2.10)

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Issue of Consideration

Whether the High Court was justified in granting status quo and restraining the Electricity Board from completing construction of an electricity sub-station on disputed land, pending disposal of the title suit.

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Final Decision

The Supreme Court allowed the appeals, set aside the High Court's order dated 19.05.2015, and dismissed the writ petition filed by the respondents. The Court directed the JSEB to deposit Rs. 5 lakhs with the trial court as security and allowed it to complete and energise the sub-station. The trial court was directed to decide the suit expeditiously, preferably within one year.

Law Points

  • Interim Injunction
  • Prima Facie Case
  • Balance of Convenience
  • Irreparable Loss
  • Public Interest
  • Suppression of Facts
  • Order XXXIX Rules 1 and 2 CPC
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Case Details

2019 LawText (SC) (1) 90

Civil Appeal Nos. 21-22 of 2019 (Arising out of SLP (C) Nos. 26645 and 24684 of 2015)

2019-01-04

Indu Malhotra, J.

The State of Jharkhand and The General Manager, Jharkhand State Electricity Board

Surendra Kumar Srivastava & Ors.

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Nature of Litigation

Civil appeal against High Court order granting status quo in a suit for permanent injunction.

Remedy Sought

The appellants (State of Jharkhand and JSEB) sought to set aside the High Court's order directing status quo and to allow completion of the electricity sub-station.

Filing Reason

The High Court granted status quo restraining construction of an electricity sub-station on disputed land, despite the trial and appellate courts dismissing the injunction application.

Previous Decisions

Title Suit No. 153/1992 decreed in favour of plaintiffs' mother confirming possession; Title Appeal No. 20/1999 dismissed but held title not established; Second Appeal pending. Trial court and appellate court dismissed interim injunction in Title Suit No. 45/2015.

Issues

Whether the High Court erred in granting status quo and restraining the Electricity Board from completing construction of the sub-station. Whether the plaintiffs made out a prima facie case, balance of convenience, and irreparable loss for grant of interim injunction.

Submissions/Arguments

Appellants argued that the plaintiffs failed to describe the suit property specifically, suppressed material facts, and the sub-station serves public interest with 90% construction completed. Respondents argued that they were in possession since 1958 as confirmed in earlier litigation, and construction would cause irreparable loss.

Ratio Decidendi

In matters of interim injunction, the court must consider prima facie case, balance of convenience, and irreparable loss. Public interest and suppression of facts are relevant factors. Here, the balance of convenience favoured the Electricity Board as the sub-station was for public benefit and almost complete, and the plaintiffs could be compensated monetarily.

Judgment Excerpts

The balance of convenience lies in favour of the Appellant – The General Manager, Jharkhand State Electricity Board, since the construction of the Electricity Sub-station is for the benefit of the public at large. The Plaintiffs have failed to make out a prima facie case, and no irreparable loss would be caused which could not be compensated in terms of money.

Procedural History

Title Suit No. 45/2015 filed by respondents; interim injunction dismissed by Civil Judge (07.04.2015); appeal dismissed by District Judge (21.04.2015); writ petition allowed by Jharkhand High Court granting status quo (19.05.2015); Supreme Court set aside High Court order and allowed appeals (04.01.2019).

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order XXXIX Rules 1 and 2, Order XLIII Rule 1(r)
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Supreme Court Supreme Court Allows Electricity Board to Complete Sub-Station in Land Dispute Case. Balance of Convenience and Public Interest Outweighs Alleged Possession Claims.