Supreme Court Modifies Injunction Orders for Property Sales & Leases

The Supreme Court modified the injunction orders, allowing the appellants to sell certain flats and let out commercial properties with conditions to protect the plaintiffs' potential interests. The trial court was directed to expedite the hearing and dispose of the suit within six months, with costs of the appeals to abide by the result of the suit. The court emphasized the need for fair and honest conduct from parties seeking equitable relief like an injunction.

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Issues Involved:
1. Validity of Nirmala's adoption.
2. Plaintiffs' entitlement to the properties.
3. Bar of limitation on the suit.
4. Balance of convenience and irreparable injury for granting injunction.
5. Conduct of the parties and its relevance to the injunction.

Issue-wise Detailed Analysis:

1. Validity of Nirmala's Adoption:
The purported adoption of Nirmala by Obalappa was a central issue. The plaintiffs claimed Nirmala was adopted by Obalappa, which was contested by the appellants. The court noted that proving a valid adoption required evidence of a giving and taking ceremony and performance of 'datta homam,' which was not established. Moreover, the court referred to legal texts indicating that the adoption of a daughter was invalid under Hindu law. Thus, prima facie, Nirmala was not a validly adopted daughter of Obalappa.

2. Plaintiffs' Entitlement to the Properties:
The plaintiffs sought partition of the properties based on Nirmala's alleged status as an adopted daughter. The court observed that even if Nirmala was not adopted, she could claim as the natural daughter of Kadarappa. However, her share would be limited to what Kadarappa was entitled to, which was 1/8th of the properties. The court emphasized that the extent of Kadarappa's property would depend on the 1954 partition deed.

3. Bar of Limitation on the Suit:
The appellants argued that the suit was barred by limitation. However, the court did not delve deeply into this issue at the stage of granting an injunction, focusing instead on the prima facie case and other factors relevant to interim relief.

4. Balance of Convenience and Irreparable Injury for Granting Injunction:
The court evaluated whether the plaintiffs had a prima facie case, the balance of convenience, and potential irreparable injury. It was noted that the trial court and High Court found in favor of the plaintiffs. However, the Supreme Court highlighted that the lower courts did not adequately consider the balance of convenience and irreparable injury to the appellants. The court also questioned whether the plaintiffs should furnish security in case the suit was dismissed.

5. Conduct of the Parties and Its Relevance to the Injunction:
The conduct of both parties was scrutinized. The court noted that the appellants had disposed of some properties in violation of a status quo order, which was relevant to the injunction. However, the plaintiffs' changing stands and the need for them to furnish security were also considered. The court emphasized that equitable relief like an injunction required fair and honest conduct from the party seeking it.

Conclusion:
The Supreme Court allowed the appeals to the extent of modifying the injunction orders. The appellants were permitted to sell certain flats and let out commercial properties, with conditions to protect the plaintiffs' potential interests. The trial court was directed to expedite the hearing and dispose of the suit within six months. The costs of the appeals were to abide by the result of the suit.

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