High Court grants interim injunction favoring appellant, directs prompt action.

The High Court granted an interim injunction in favor of the appellant, directing the Trial Judge to expedite the process and dispose of the injunction application promptly. The Court emphasized that the interim injunction would last for eight weeks or until further notice, allowing the Trial Judge to make a final decision on the injunction application. The Court found that the Trial Judge should have granted the interim relief based on a prima facie case made by the appellant, with the balance of convenience favoring the injunction for a limited period. No costs were imposed on either party.

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Issues involved:
- Appeal against refusal of interim relief by Trial Judge
- Application for injunction against arbitration proceedings

Analysis:
The appellant filed an appeal against the Trial Judge's order refusing interim relief in a case where the plaintiff sought a declaration that an arbitration agreement was void. The appellant also applied for an injunction to stop respondent no.1 from proceeding with arbitration. The appellant company, incorporated in 1985, was involved in a dispute regarding share transfer agreements dating back to 2002. Initially, the Company Law Board allowed the transfer of shares to the Chatterjee group, but this decision was later dismissed by the High Court and the Supreme Court. Subsequently, respondent no.1 filed a Request For Arbitration regarding the registration of shares. The Trial Judge refused to grant interim relief, leading to the appeal and injunction application.

The High Court, after considering submissions from both parties, found that the Trial Judge should have granted an interim injunction based on a prima facie case made by the appellant. The Court believed that the balance of convenience favored granting the injunction for a limited period. Therefore, the High Court directed an interim injunction in favor of the appellant until the final disposal of the injunction application. The Court extended the time for filing affidavits and requested the Trial Judge to expedite the process and dispose of the injunction application promptly. The Court emphasized that the interim injunction would last for eight weeks or until further notice, allowing the Trial Judge to make a final decision on the injunction application. The Court concluded by disposing of the application and appeal without any costs imposed on either party.

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