High Court Allows Appeal in Land Dispute, Grants Interim Injunction Against Creating Third-Party Rights. Appellants Challenge Trial Court's Rejection of Injunction in Property Recovery Suit

Sub Category: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The Appellants, filed an Appeal from Order under Section 104 read with Order 43 Rule 1(r) of the Code of Civil Procedure, 1908 (CPC), challenging the Trial Court's Order dated 3rd May 2023 that rejected their application for a temporary injunction (Exhibit-5) against the Respondents, The Appellants, as joint owners of agricultural land, acquired the property through a registered conveyance deed dated 28th August 2014 and sought to recover possession after the Respondents' 50-year lease expired on 23rd April 2018. The Respondents had filed a prior suit for specific performance and obtained an injunction restraining the Appellants from dispossessing them or creating third-party rights. In the Appellants' suit for recovery of possession, the Trial Court refused to grant a similar injunction against the Respondents, leading to this appeal. The High Court found the Trial Court's approach inconsistent, as it protected the Respondents' possession but allowed them to create third-party rights, which could cause irreparable injury and multiplicity of proceedings. The Court held that the Appellants' rights under the registered conveyance deserved protection pending final adjudication, and granted the interim injunction to restrain the Respondents from creating any third-party interest in the suit property.

Headnote

The High Court of Judicature at Bombay allowed an Appeal from Order challenging the rejection of an interim injunction application -- The Appellants, as joint owners of agricultural land, sought to recover possession from the Respondents, who were lessees under expired leases -- The Trial Court had restrained the Appellants from creating third-party rights but denied similar relief to the Appellants against the Respondents -- The High Court held that the Trial Court's approach was inconsistent and contrary to principles of equity -- The Court emphasized the need to protect the Appellants' rights under a registered conveyance deed and prevent multiplicity of proceedings -- Interim injunction was granted to restrain the Respondents from creating any third-party interest in the suit property pending final decision

Issue of Consideration: The Issue of Consideration was whether the Trial Court erred in refusing to grant an interim injunction to the Appellants restraining the Respondents from creating third-party rights in the suit property pending final adjudication

Final Decision

The High Court allowed the appeal, set aside the impugned Order dated 3rd May 2023, and granted an interim injunction restraining the Respondents from creating any third-party interest in the suit property pending final adjudication of the suit

 

2026 LawText (BOM) (02) 83

Appeal from Order No. 986 of 2023 with Interim Application No. 17755 of 2023

2026-02-17

Kamal Khata, J.

2026:BHC-AS:8190

Mr. Girish Godbole, Senior Advocate a/w. Adv. Shailendra Kanetkar i/by Adv. Shivraj Patne & Adv. Bharat Thorat for the Appellants, Mr. Rakesh Kumar a/w. Adv. Pranay Singh i/by Legal Vision for the Respondents

Gaurav Rajeshbhai Desai, Chirag Rajeshbhai Desai, Mitul Ramanbhai Desai

Yagyanarayan Prabhunath Mishra, Shikshan Prasaran Samiti, The Education Welfare Society

Nature of Litigation: Civil appeal challenging the rejection of an interim injunction application in a property dispute

Remedy Sought

The Appellants sought an interim injunction to restrain the Respondents from creating third-party rights in the suit property pending final adjudication

Filing Reason

The Trial Court refused to grant the injunction, which the Appellants argued was inconsistent with prior orders and could cause irreparable injury

Previous Decisions

The Trial Court had allowed an injunction in favor of the Respondents in Special Civil Suit No. 194 of 2017, restraining the Appellants from dispossessing them or creating third-party rights, but denied a similar injunction to the Appellants in Special Civil Suit No. 18 of 2023

Issues

Whether the Trial Court erred in refusing to grant an interim injunction to the Appellants restraining the Respondents from creating third-party rights in the suit property pending final adjudication

Submissions/Arguments

The Appellants argued that the Trial Court's approach was inconsistent, as it restrained them but allowed the Respondents to create third-party rights, contrary to law and equity -- They contended that this could lead to multiplicity of proceedings and irreparable injury -- The Appellants asserted their rights under a registered conveyance deed dated 28th August 2014 and that the Respondents' lease had expired, making them unauthorized occupants -- They challenged the validity of an unregistered agreement relied upon by the Respondents

Ratio Decidendi

The Court held that in interim injunction matters, consistency and protection of rights are crucial to prevent irreparable injury and multiplicity of proceedings -- The Appellants' rights under a registered conveyance deed deserved protection pending litigation, and allowing the Respondents to create third-party rights would be inequitable and contrary to the balance of convenience

Judgment Excerpts

By this Appeal from Order under Section 104, read with Order 43 Rule 1 (r) of the Code of Civil Procedure, 1908, the Appellant/Original Plaintiff challenges the impugned Order dated 3rd May 2023 passed by the learned Civil Judge (Senior Division), Kalyan, Dist. Thane, whereby the Appellants’ application for temporary injunction, popularly known as Exhibit-5 Application, against the Respondent/Original Defendants came to be rejected -- Mr. Godbole, learned Senior Counsel for the Appellants, submits that by an Order dated 2nd August 2022 passed in Exhibit 5 Application in Special Civil Suit No. 194 of 2017, the Ld. Trial Court has restrained the Appellants from creating any third-party rights in this Suit property. However, the same Trial Court denied a similar relief to the Appellants against the Respondents, in effect, permitted the Respondents to create third party rights pending final adjudication. According to him, such an approach is contrary to law, equity and good conscience -- It is submitted that permitting the Respondents to create the third-party interest would result in multiplicity of proceedings, compelling the Appellants to initiate further litigation against subsequent transferees, thereby causing irreparable injury -- Learned Senior Counsel further submits that the Appellant acquired right, title and interest in the Suit property under a registered Deed of Conveyance dated 28th August 2014, which remains valid and subsisting. These rights, he submits, deserve protection pending final adjudication

Procedural History

The Appellants acquired the property through a conveyance deed dated 28th August 2014 -- The Respondents' 50-year lease expired on 23rd April 2018 -- The Respondents filed Special Civil Suit No. 194 of 2017 for specific performance and obtained an injunction restraining the Appellants -- The Appellants filed Special Civil Suit No. 18 of 2023 for recovery of possession and injunction, but the Trial Court rejected their interim injunction application on 3rd May 2023 -- The Appellants filed this Appeal from Order, which was heard and decided by the High Court on 17th February 2026

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