Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Interlocutory order - Breach of - Technical Services Agreement between EIH- |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Interlocutory order - Breach of - Technical Services Agreement between EIH-respondent no. 1 and BHEL wherein EIH was to provide technical knowledge and skill required for operation of hotel constructed by BHEL - ElH paid BHEL, Rs. 15.21 Crores by way of financial accommodation - Termination of the said agreement, and BHEL to refund the said amount - BHEL took financial assistance from IFCl and TFCl - Issuance of advertisement by TFCI for sale of hotel project of BHEL - ElH informing TFCI about the agreements between EIH and BHEL that till the said amount was not refunded, ElH would have exclusive right over the hotel - Thereafter, suit by EIH against BHEL and others seeking declaration that Technical Services Agreement is valid, legal and subsisting as also sought permanent injunction restraining BHEL and others from selling - Meanwhile, grant of temporary injunction to ElH and OB hotels by the High Court - Two years later, on initiation of proceeding by lFCl under SARFAESl Act, RB Hotels purchased the hotel unit of BHEL - Thereafter, impleadment of RB hotel - Interim application by ElH, seeking restraining of RB from having construction of hotel unit or taking steps in derogation of rights of EIH under Technical Services Agreement - Single Judge dismissed the application, however. Division Bench issued certain directions - Thereafter, suit as also interim applications filed by ElH and OB Hotels praying for a declaration that Deed of Transfer entered into between the financial institutions and RB Hotels, and the certificate of sale of immovable property as illegal and, null and void; as also for perpetual injunc_tion - Dismissal of interim application by the High Courts, however, suit by ElH and OB Hotels pending - On appeal, held: It is not open either a party to the /is or to any third party to determine at their own that an order passed by a Court is valid or void - Party to the lis or the third party who considers an order passed by a court as voidable or non est, ll(USI approach the court of competent jurisdiction for setting aside the said order - Injunction ordained that while dealing with the hotel unit the rights of the applicant be disclosed - However, the financial institutions sold the hotel contrary to the order passed by the High Court without disclosing the rights of the applicant as provided by B the Agreement - Financial institutions who had executed the deed of transfer in favour of R Hotels and were parties to suit, were bound by the said interim injunction which was only to the effect that the liability of BHEL to repay the amount of Rs. 15.21 Crores up to particular date was to be communicated and recognised to C any subsequent purchaser - Object was that anyone purchasing the hotel unit should be aware of the liability and said liability should also be adverted and taken care of - There is no error in the directions issued by Division Bench of the High Court - lnterim order passed by the High Court, directing for deposit of Rs. 15. 12 Crores has done substantial justice between parties, which need no 0 interference by this Court in exercise of its jurisdiction u!Art. 136 - Furthermore, the Hotel has already commenced its operation and contracts have been made with third parties for the operation of the hotel and bookings are also made - Taking into consideration the overall circumstances as also that the last suit by EIH and OB E hotels, are yet to he adjudicated, orders passed by the Single Judge and Division Bench, refusing to grant interim injunction, cannot be faulted - Constitution of India - Art. 136 - Code of Civil Procedure, 1908. |
Judge | Hon'ble Mr. Justice Ashok Bhushan |
Neutral Citation | 2016 INSC 1107 |
Petitioner | Robust Hotels Pvt. Ltd. & Ors. |
Respondent | Eih Limited & Ors. |
SCR | [2016] 8 S.C.R. 437 |
Judgement Date | 2016-11-07 |
Case Number | 11886-11887 |
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