Interlocutory relief and status quo preservation upheld where contractual and statutory dispute raised serious triable issues

In interlocutory disputes, the Court may preserve the status quo and decline interference where the parties raise serious triable issues on contractual interpretation and the statutory forum for resolution. Applying the settled tests for interim relief, including serious question to be tried, balance of convenience, irreparable injury, past conduct and judicial comity, it found no basis to disturb the High Court's injunction. The Court also noted that overlapping writ and arbitration-related proceedings could create complications if the interim arrangement were upset.

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Issues: Whether the High Court's interim injunction preserving the existing position pending adjudication called for interference under Article 136 of the Constitution of India.

Analysis: The dispute arose out of a power purchase arrangement under which the parties had long acted on a particular understanding of installed capacity and billing. The Court noted that the controversy involved serious triable issues concerning the interpretation of the agreement and the effect of the relevant electricity statutes on the forum and manner of dispute resolution. In considering whether to interfere with the interim order, the Court applied the settled principles governing interlocutory relief, namely existence of a serious question to be tried, balance of convenience, irreparable injury, the need to preserve status quo, and the relevance of the parties' past conduct. It also observed that conflicting interim orders between the writ proceedings and the arbitration-related proceedings could create complications and offend judicial comity. On that basis, and in the exercise of its discretionary jurisdiction, the Court declined to upset the High Court's interim arrangement.

Conclusion: The Court held that this was not a fit case for interference with the High Court's interim injunction and declined to disturb the order.

Ratio Decidendi: In interlocutory matters, especially where competing proceedings are pending and the dispute raises triable issues on contractual interpretation and statutory forum, the Court may preserve status quo and refuse interference in discretionary appellate jurisdiction if the balance of convenience and judicial comity so require.

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