Stay orders become binding only on knowledge; actions taken before communication are not automatically void.

A stay order operates as a prohibitory direction and does not itself extinguish the court's or authority's jurisdiction. It becomes effective against the tribunal only when the order is known to it, whether through formal communication or other reliable information. Until that knowledge is received, steps taken are not void. Once informed of the stay, however, any further action in disregard of it is unlawful. In an appropriate case, the court may use its inherent powers to undo interim steps taken between the making of the stay and its communication to prevent injustice.

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Issues: Whether a stay order passed in pending proceedings divests the court or authority of jurisdiction before the order is communicated or otherwise brought to its knowledge, and whether steps taken in ignorance of such stay are a nullity.

Analysis: A stay order is in the nature of a prohibitory order. It does not by itself quash the proceedings or extinguish jurisdiction; it only forbids further action. The prohibition becomes effective against the court or authority only when the order is known to it, whether by formal communication or by other reliable information. Until such knowledge is received, the court or authority does not lose jurisdiction. Once knowledge is acquired, further action in disregard of the stay is illegal. The court may, in an appropriate case and in the interests of justice, invoke its inherent powers to set aside interim steps taken between the passing of the stay order and its communication.

Conclusion: The permission granted before the Magistrate had knowledge of the stay order was not a nullity, and the challenge to it failed.

Ratio Decidendi: A stay order operates as a prohibitory direction that takes effect against the tribunal or court only upon knowledge of the order; proceedings taken before such knowledge are not void, though the court may later act under its inherent powers to undo injustice where necessary.

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