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        2003 (5) TMI 529 - SC - Indian Laws

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        Article 136 interference with interim deposit orders may be limited, yet relief can be moulded on equitable grounds. Article 136 interference with an interim deposit order is reserved for cases of substantial injustice or compelling need, and is not justified merely ...
                      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.

                          Article 136 interference with interim deposit orders may be limited, yet relief can be moulded on equitable grounds.

                          Article 136 interference with an interim deposit order is reserved for cases of substantial injustice or compelling need, and is not justified merely because a legal flaw may be arguable. The Court noted that the rent arrears claim was not seriously disputed, the order did not finally determine the suit, and no liberty to withdraw the deposit had been granted. On those facts, full interference was declined, but the Court exercised equitable discretion to mould relief by reducing the deposit amount to suit the ends of justice.




                          Issues: Whether interference under Article 136 of the Constitution of India was warranted against an interim order directing deposit of alleged arrears of rent, and whether the direction required modification in the facts of the case.

                          Analysis: The dispute concerned an interim deposit order passed in a commercial suit. The Court noted that the claim for arrears of rent was not seriously disputed and that the order under challenge did not finally determine the suit. In exercising jurisdiction under Article 136 of the Constitution of India, interference is not called for merely because some legal flaw may be detectable; the power is reserved for cases of substantial injustice or supreme need. The Court further took into account the peculiar facts and the absence of any liberty to withdraw the deposit, and considered that the ends of justice would be served by modifying the amount directed to be deposited.

                          Conclusion: Interference on merits was declined, but the deposit direction was modified from Rs. 82,00,000 to Rs. 50,00,000.

                          Final Conclusion: The appeal did not succeed in obtaining reversal of the interim order, but the Court granted limited equitable relief by reducing the deposit amount and disposing of the matter accordingly.

                          Ratio Decidendi: In an appeal under Article 136 of the Constitution of India, the Court may decline full interference with an interim order where no substantial injustice is shown, yet still mould relief on equitable grounds to suit the ends of justice.


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                          ActsIncome Tax
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