In a significant ruling, the Supreme Court has held that the High Court cannot dismiss the substantive part of a civil suit while deciding an appeal against an order refusing an interim injunction.
The Supreme Court Bench comprising Justice Pamidighantam Sri Narasimha and Justice Joymalya Bagchi allowed an appeal challenging a High Court order that had, during the hearing of an interim injunction appeal, effectively dismissed the suit itself.
Background
The dispute stemmed from a property jointly tenanted by three brothers—Magruram, Deepnarayan, and Baburam Chotanki Gupta. The appellants, descendants of Magruram Gupta, filed a suit claiming rights to the property on the basis of a notarized affidavit and a declaration by Deepnarayan Gupta’s widow relinquishing her rights.
When the Trial Court refused to grant a temporary injunction, the appellants approached the High Court. However, instead of merely addressing the injunction, the High Court passed sweeping remarks on the merits of the case and virtually dismissed a substantial portion of the suit, suggesting that the rest be pursued in a separate action by the defendants.
Supreme Court’s Observations
The Apex Court came down heavily on the High Court’s approach, terming it “completely illegal and unsustainable in law.” It emphasized that:
“In an appeal against the Trial Court’s refusal to grant interim injunction, the High Court could not have dismissed the substantive portion of the suit or directed that the remaining part be pursued in a different suit.”
The Bench also noted that the High Court erred in assessing the admissibility of unregistered documents at the interim stage, which are matters strictly reserved for trial.
Accordingly, the Supreme Court restored the original suit to its file and restrained the defendants from dispossessing the appellants during its pendency.
Case Summary
- For Appellants: Advocates Amol Chitale, Sarthak Sharma, AOR Pragya Baghel
- For Respondents: Advocates Satyajit A Desai, Amit K. Pathak, and others
- Case Title: Mahendra Magruram Gupta & Anr. v. Rajdai Shaw & Ors.
- Neutral Citation: 2025 INSC 651
