Summary
The High Court ordered a developer at an interlocutory stage to hand over eight additional flats and sixteen parking spaces pursuant to settlement terms between the other parties. The Supreme Court set aside that mandatory injunction, held that those terms could not be imposed on the appellant, and restored the earlier restraint against dealing with identified flats and parking spaces pending the suit.
Issues
- Whether an interlocutory mandatory injunction could compel delivery of additional flats on the basis of settlement terms between other parties.
- Whether moulding final relief justified the mandatory handover order at the interim stage.
Provisions considered
- Order XXXIX, Code of Civil Procedure, 1908The interlocutory injunction jurisdiction did not justify the mandatory handover in the circumstances; the earlier protective arrangement was revived instead. (¶¶ 19, 24, 26, 31, 32)
Held
- The respondents’ settlement and consent terms could not be imposed on the appellant, who was not a party to them. His obligations arose under his own development agreement and, at most, the tripartite agreement; the settlement could not transfer another party’s liability to him. (¶¶ 23, 29, 30)
- Moulding relief when finally disposing of proceedings differs from granting a mandatory interlocutory injunction. Such interim relief generally preserves or restores the last uncontested position and requires a strong case exceeding the ordinary prima facie standard, irreparable or serious injury, and a favourable balance of convenience. On these facts, the additional handover order exceeded that jurisdiction. (¶¶ 24, 25, 26, 27, 28, 31)
- The prior ad-interim restraint, as corrected, was revived until disposal of the suit or modification by the High Court for subsequent developments. The observations were confined to the interim dispute and were not to influence the pending substantive proceedings. (¶¶ 32, 33)
Result
Appeal allowed; the mandatory handover order was set aside and the earlier protective ad-interim order restored, subject to later High Court modification. No costs.