Temporary injunction in service contract disputes requires irreparable injury; damages can defeat injunctive relief when adequate compensation is available.

Temporary injunction in a contract-of-service dispute requires proof of a prima facie case, balance of convenience, and irreparable injury; where the alleged loss can be adequately compensated by damages, injunctive relief must be refused. The District Judge found that even assuming a prima facie case, the balance of convenience was against the respondent and monetary compensation would be sufficient, so injunction was declined. The SC held that the High Court erred in interfering without properly applying these requirements and in restoring the injunction despite the absence of irreparable injury. The respondent was therefore not entitled to temporary injunction.

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Issues: Whether the respondent was entitled to a temporary injunction in a suit arising out of a contract of service, and whether the High Court was justified in interfering with the District Judge's order refusing such injunction.

Analysis: Temporary injunction can be granted only when the applicant establishes a prima facie case, balance of convenience, and irreparable injury not compensable in money. In a dispute based on a contract of service, if the alleged injury can be adequately compensated by damages, the requirement of irreparable injury is not satisfied. The District Judge had recorded that even assuming a prima facie case, the balance of convenience was against the respondent and monetary compensation would be an adequate remedy. The High Court failed to give effect to these findings and interfered with the refusal of injunction without properly addressing the essential requirements for grant of such relief.

Conclusion: The respondent was not entitled to temporary injunction, and the High Court was not justified in restoring it.

Ratio Decidendi: Temporary injunction cannot be granted unless all three requirements of prima facie case, balance of convenience, and irreparable injury are satisfied, and where the injury is compensable by damages, injunctive relief must be refused.

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