Civil Procedure-Inherent powers of courts--Temporary Injunction-Restraining party from proceeding with suit in another State-legality and propriety of-Code of Civil Procedure, 1908 (V of 1908), ss. 94(c) 151 : O. 39 r. 1.
M filed a suit at Asansol against H for recovery of
money. Later, H filed a counter suit at Indore against M
for recovery of money. In the Asansol suit one of the
defences raised by H was that the Asansol court had no
jurisdiction to entertain the suit. H applied to the Asansol
court to stay the suit but the court refused the prayer. An
appeal to the Calcutta High Court against the refusal to
stay was dismissed with the direction that the preliminary
issue of jurisdiction should be disposed of by the trial
court immediately. Thereupon, H applied to the Indore
court for an injunction to restrain M from proceeding with
the Asansol suit pending the disposal of the Indore suit and
the court purporting to act under O. 39 Code of Civil Procedure granted the injunction. M appealed to the Madhya
Bharat High Court which dismissed the appeal holding that
though O. 39 was not applicable to the case the order of
injunction could be made under the inherent powers of the
court under s. 151 Code of Civil Procedure.