The Calcutta High Court, led by Justice Shekhar B Saraf, held that the court should inherit its powers when the prima facie case was established, and no express provisions under the Civil Procedure Code provided for the same. In this instant case, it was observed that the distributors of the chemical firm Tata Pars had colluded themselves with a former employee of the firm to avail excess credit notes, against which they had been given discounts and rebates by the company. After knowing this incident, the employee was fired, and two of the distributors initially agreed to repay the excess amount they had claimed. Further, one of the distributors did not make good on the payment. Subsequently, the company lodged a criminal complaint.
The company sought and invoked section 94 of the CPC read with order 39 before the Hon’ble High Court to grant an interim injunction to prevent further alienation by the distributors of the company’s property. The court dismissed the arguments in contrary and held that the case was a fit one for providing an interim injunction, and there was no section provided against the fraudulent case. Therefore, the Court passed an order of injunction and restrained the defendants from transferring properties beyond limits, and had set timelines for filing necessary affidavits and other documents. Also, the court observed that the inherent power of the High Court under Section 151 of the Code of Civil Procedure (CPC) would be invoked or used on equitable considerations, rather than confining to a narrow and pedantic view of the law.
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