SEARLE INDIA LIMITED Vs. M A MAJID

JUDGEMENT

(1.) By consent of parties this contempt appeal has been taken up for hearing as this appeal arises out of contempt proceedings for alleged breach of an order of interim injunction. The further order made on the application for injunction was the subject matter of appeal in O.S.A. No.96 of 1997 which has been heard and allowed today.

(2.) The appellant was the defendant in C.S. No.92 of 1997, a suit filed on the original side of this Court. The prayer made in the suit was to direct the appellant herein to continue the clearing and forwarding agency of the plaintiff as per the agreement between the parties dated 11.11.1986 as renewed and confirmed by letter dated 12.04.1994. The plaintiff filed an application O.A. No.98 of 1997 seeking an order of interim injunction to restrain the appellant, his agents and servants from acting in any manner upon the termination letter dated 18.01.1997 that had been issued to the plaintiff more than a month prior to the date on which the suit was filed, either by discontinuing contract or awarding the same to any third party pending disposal of the main suit. The plaintiff was successful in obtaining an ex parte order of interim injunction on 25.02.1997 which was to be in force for a period of two weeks, i.e., till 11.03.1997. While obtaining that order of injunction, the plaintiff did not produce the agreement, injunction against discontinuation of which was sought, and the terms of the agreement were not disclosed to the Court, more particularly, the clause therein which provided that the dispute, if any, between the parties, was to be adjudicated upon by the Court at Bombay in which city the agreement had been entered into. The plaintiff had also failed to disclose to the Court the existence of the arbitration clause in the said agreement.

(3.) After service of notice, the appellant filed three applications on 06.03.1997 - Application No.911 of 1997 to revoke the leave granted, Application No.912 of 1997 to vacate the interim injunction and Application No.913 of 1997 to refer the dispute for arbitration.