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        Case ID :

        1999 (5) TMI 613 - SC - Indian Laws

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        Tribunal interim relief power includes ex parte injunctions in exceptional cases, but reasons and prompt review are required. A tribunal empowered by statute to grant interim injunctions or stays may issue an ex parte interim order in exceptional circumstances, and the reference ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Tribunal interim relief power includes ex parte injunctions in exceptional cases, but reasons and prompt review are required.

                          A tribunal empowered by statute to grant interim injunctions or stays may issue an ex parte interim order in exceptional circumstances, and the reference to natural justice does not remove that power; it requires that the relief be exercised fairly, with recorded reasons and prompt reconsideration when the other side appears. The High Court's broad view that such ex parte relief was outside the tribunal's jurisdiction was therefore incorrect. However, the particular tribunal order was criticised as reasonless and omnibus in form, and the lapse of time meant the matter could not be practically reopened on the same interim basis.




                          Issues: Whether the Debts Recovery Tribunal has power to grant an ex parte interim order of injunction or stay, and whether the High Court was justified in setting aside the Tribunal's ex parte order.

                          Analysis: The statutory scheme of the Act confers on the Tribunal authority to entertain and decide applications for recovery of debt, to issue interim orders by way of injunction or stay, and to regulate procedure subject to the Act and the rules. The reference to natural justice in Section 22 does not curtail the Tribunal's power to grant interim relief; rather, it requires that such power be exercised fairly. An ex parte order is exceptional and must be supported by reasons, granted only where the circumstances justify urgent protection, and kept under prompt review when the opposite party appears. The High Court's broad view that ex parte relief was outside the Tribunal's jurisdiction was therefore not correct. At the same time, the Tribunal's order in the case before the Court was criticised for lacking reasons and being omnibus in character, and the long passage of time meant that the matter could not practically be reopened on the same interim footing.

                          Conclusion: The Tribunal does have jurisdiction to grant an ex parte interim injunction or stay in an appropriate case, but the impugned High Court order was not interfered with in the circumstances of the case.

                          Final Conclusion: The legal position on the Tribunal's interim power was affirmed in principle, while the specific challenge failed because of the circumstances and lapse of time, leaving the parties to pursue further interim relief before the Tribunal if the proceeding was still pending.

                          Ratio Decidendi: Where a statute empowers a tribunal to grant interim injunction or stay and requires conformity with natural justice, that power includes authority to make an ex parte interim order in exceptional circumstances, provided reasons are recorded and the order is subject to prompt reconsideration.


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                          ActsIncome Tax
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