The Appellant’s father owned a 22,000 square feet plot in Chembur, Mumbai.
He leased 11,250 square feet of this plot to a partnership firm, M/s Silver Chem (India)/Respondent No.21.
The entire property devolved upon the Appellant upon his father’s death in 1972.
The Appellant terminated the lease agreement on 11.02.2008 and filed Eviction Suit No. 119/148 of 2008 in the Small Causes Court at Bombay.
Respondent No.1, claiming to be the legal heir of one of the partners of Respondent No.2, allegedly runs a business from the suit structure under the name M/s Asset Motors.
Respondent No.1 filed an Impleadment Application in the Eviction Suit, which was initially allowed on 06.10.2016 but later set aside on 03.05.2019 by the Appellate Small Causes Court.
Members of the Vijan family, including partners of Respondent No. 2 and Respondent No. 1, entered into a Family Settlement Agreement on 09.06.20214. This agreement purportedly entitled Respondent No. 1 to 550 square feet within the subject land, though the Appellant claims it was without his consent and knowledge.
In the aftermath of this settlement, Respondent No. 2 and Respondent No. 1 purportedly entered into a Lease and License Agreement dated 15.10.2021 with M/s KMG Global for a period of 12 months.
Respondent No. 2 and its partners later surrendered their tenancy rights on 19.10.20225.
Despite this, Respondent No. 1 filed an impleadment application in the Eviction Suit again5. The Appellant unconditionally withdrew the Eviction Suit on 13.01.2023.
Respondent No. 1 then filed a second application for impleadment and the Appellant applied for leave and license agreement dated 11.04.2023 with M/s KMG Global covering 2,200 square feet.
Respondent No. 1 filed Suit No. 519/2023 before the Small Causes Court seeking a declaration of his tenancy rights over 550 square feet.
Respondent No. 1 also filed an application (Exhibit 10) seeking an interim injunction restraining the Appellant from dispossessing him from the 550 square feet8. This was granted on 27.04.2023 and confirmed on 10.05.2023, and upheld by the Appellate Bench of the Small Causes Court on 20.12.2023.
Respondent No.1 subsequently filed Writ Petition (C) No.763/2024 in the High Court, which restored the order dated 27.04.2023 and granted injunction in favour of Respondent No.18. This instant appeal is directed against that High Court order dated 30.07.2024.
Law Involved
The grant of an interim injunction is governed by well-settled principles .
The Court must satisfy itself of three essential prerequisites for granting an interim injunction :
Firstly, the existence of a prima facie case in favour of the applicant .
Secondly, that the balance of convenience lies in favour of granting the injunctive relief .
Thirdly, that the applicant would suffer irreparable injury or harm not adequately compensable in damages if the injunction is refused .
The concept of locus standi (the right or capacity to bring an action or appear in a court) was raised regarding Respondent No. 1’s ability to obstruct the Appellant’s development rights.
The principle of simpliciter injunction was also mentioned, referring to an injunction without due process of law.
Reasoning
The Supreme Court noted that the High Court gravely erred in issuing an injunction in the absence of any eviction proceedings initiated by the Appellant against Respondent No. 15.
The Court highlighted that the Appellant’s counsel contended that Respondent No. 1 lacks locus standi to obstruct the Appellant’s development rights as he is not in lawful actual possession of the subject land.
It was argued that the original tenants (Respondent No. 2 and its partners) had unequivocally surrendered their tenancy rights, thereby conferring complete and unencumbered rights upon the Appellant.
The Appellant’s Senior Counsel, Mr. Shyam Divan, contended that the impugned injunction order effectively paralysed the Appellant’s legitimate redevelopment plans, causing substantial financial detriment . He underscored that the disputed area of 550 square feet represents only a small fraction of the entire property .
Mr. Arunaabh Chowdhury, Senior Counsel for Respondent No. 1, argued that the impugned order was a simpliciter injunction and should not be set aside as Respondent No. 1 had not filed any suit to evict the Appellant, nor had he withdrawn the Eviction Suit filed against Respondent No. 2 . He also argued that the Family Settlement Agreement mediated by a Mediator appointed by the Court created rights in the disputed property .
The Court found that the putative Surrender Letter relied upon by the Appellant was ex facie forged and illegal, as it was purportedly entered into without any consideration and not signed by all partners .
The short question for consideration was whether the High Court was justified in restoring the interim injunction in favour of Respondent No. 1 in a modified term .
The High Court had noted that Respondent No.1 is a tenant/joint tenant of the subject land based on the Appellant’s alleged admission acknowledging his possession .
Tushar Himatlal Jani V. Jasbir Singh Vijan And Others
Supreme Court: 2025 INSC 663: (DoJ 13-05-2025)




