Article 227 Constitution - The Legal Chamber

The Supreme Court emphasized that Order 39 Rule 3 CPC mandates recording reasons for granting ex parte injunction and strict compliance with procedural obligations by the applicant. Non-compliance warrants vacation of the ex parte order without adjudicating merits, ensuring the opposite party is not deprived of an early hearing. Facts Of The Case: The petitioner, Time City Infrastructure and Housing Limited, filed a civil suit claiming ownership and possession of certain land parcels in District Barabanki, based on an Agreement to Sell from 2015 and a subsequent Sale Deed from April 2025. The plaintiff alleged that peaceful physical possession was handed over in 2015 upon full payment, after which they developed the land with significant investment. The Civil Judge (Senior Division...

The Supreme Court upheld the High Court's interim order restraining encashment of a bank guarantee during pending Section 9 arbitration proceedings under the Arbitration Act. The Court emphasized that judicial interference with bank guarantees is permissible only to prevent irretrievable injustice, while leaving open questions regarding maintainability of Article 227 petitions against interlocutory orders in arbitration matters. The ruling preserves the arbitral process by directing the Commercial Court to decide the Section 9 petition within eight weeks, subject to continued extension of the bank guarantee validity. The judgment balances contractual sanctity of bank guarantees with equitable considerations in ongoing arbitration. Facts Of The Case: Jindal Steel & Power Ltd. awarded ...

Tag: Article 227 Constitution

Mandatory Rules for Ex-Parte Injunctions: A Key Reminder from the Supreme Court

Supreme Court Clarifies Jurisdiction Over Bank Guarantees in Section 9 Arbitration Petitions