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Issues: Whether the order rejecting the application for temporary injunction and imposing costs required modification, and whether the interim arrangement of status quo should continue till disposal of the suit.
Analysis: The suit was for bare injunction and the pleadings were complete. In the circumstances, the parties agreed that the trial court should be directed to decide the suit on merits while the existing status quo order regarding possession of the suit site was continued. The request to waive the costs imposed by the trial court was also accepted.
Conclusion: The impugned order was modified by directing the parties to maintain status quo regarding possession of the suit site till disposal of the suit, and the costs of Rs. 7,000/- were set aside.
Final Conclusion: The appeal succeeded to the extent of securing continued interim protection and removal of the cost burden, while the suit was directed to proceed expeditiously on merits.
Ratio Decidendi: Where the dispute is confined to a suit for bare injunction and the pleadings are complete, the court may preserve the existing possession status quo till disposal of the suit while ensuring expeditious adjudication and may also interfere with costs imposed on refusal of interim relief.