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        Case ID :

        2016 (11) TMI 1690 - HC - Indian Laws

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        Prima facie case for interim injunction fails when a sale agreement is unstamped and earnest money lacks documentary proof. Interim injunctive relief in a specific performance suit was found unavailable where the foundational agreement was executed on insufficient stamp paper ...
                        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.

                              Prima facie case for interim injunction fails when a sale agreement is unstamped and earnest money lacks documentary proof.

                              Interim injunctive relief in a specific performance suit was found unavailable where the foundational agreement was executed on insufficient stamp paper and was therefore prima facie unenforceable unless impounded in evidence. The court also noted that the alleged earnest money payment was unsupported by any receipt clause, separate receipt, or contemporaneous record identifying the currency notes. On these materials, no prima facie case for ad interim injunction was made out, and the refusal of interim relief was justified.




                              Issues: Whether the plaintiff had made out a prima facie case for grant of ad interim injunction in a suit for specific performance where the agreement for sale was executed on insufficient stamp paper and the alleged earnest money payment was unsupported by any receipt or contemporaneous record.

                              Analysis: The agreement relied upon by the plaintiff was typed on a ten-rupee non-judicial stamp paper and, on that footing, could not be enforced unless impounded in evidence. At the interlocutory stage, the Court could not grant injunction on the basis of such a document. The claim of payment of Rs. 65,00,000 as earnest money was also not supported by any receipt clause in the agreement, any separate receipt, or any description of the currency notes said to have been paid. In these circumstances, the materials on record did not disclose a prima facie case for interim relief.

                              Conclusion: The refusal to grant ad interim injunction was justified and the appeal was liable to be dismissed.

                              Ratio Decidendi: Interim injunctive relief in a specific performance suit cannot be granted where the foundational agreement is prima facie unenforceable for want of proper stamp paper and the alleged consideration payment is unsupported by credible documentary material, so that no prima facie case is shown.


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                              ActsIncome Tax
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