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FOOD CORPORATION OF INDIA versus SUKH DEO PRASAD

Citation: [2009] 4 S.C.R. 1107 · Decided: 24-03-2009 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2009] 4 S.C.R. 1107 
..,. 
FOOD CORPORATION OF INDIA 
A 
~ 
v. 
SUKH DEO PRASAD 
Civil Appeal No. 380 of 2007 
MARCH 24, 2009 
8 
[R.V. RAVEENDRAN AND MARKANDEY KAT JU, JJ.] 
Interim order : Interim direction to tenant, in a suit by 
) 
creditor against landlords/borrowers to deposit arrears of rent 
in Court and to continue to deposit the rents in Court with a c 
condition that tenant would pay interest if rent was not so 
deposited -Held: Such interim direction cannot be considered 
to be injunction order - Such interim direction would not fall 
under order 39 Rule 1 CPC as the prayer did not relate to 
clause (a), (b) or (c) of the said rule, nor under Order 39 rule 2 
D 
t 
CPC as there was no contract between the creditor and the 
tenant nor any injury caused by tenant to bank - Injunction -
Code of Civil Procedure, 1908 - Or39rr1 and 2. 
Code of Civil Procedure, 1908: Or.39 rule 2A -
Application under - Held: Maintainable only when there is E 
disobedience of any injunction granted or order made under 
Rule 1 or 2 of Or 39 or breach of the terms on which injunction 
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was granted or the order was made - Direction to pay money 
either by way of final or interim order is not an injunction - On 
facts, on an application by bank, interim direction to tenant to 
F 
deposit rents to the loan account of landlord/borrower- Tenant 
vacated the tenanted godown - Landlord had no locus to file 
application under Or39 r2A alleging disobedience of interim 
order - Trial court erred in misinterpreting the interim order 
and in allowing the application under Or 39 r 2A. 
G 
,( 
Contempt jurisdiction : Held: Cannot be invoked for 
enforcement of money decree or directions/orders for payment 
of money - If garnishee who is directed to pay money does 
not pay the amount, the remedy is execution and not action 
1107 
H 
1108 
SUPREME COURT REPORTS 
[2009) 4 S.C.R. 
A for contempt or disobedience in Or 39 r 2A - Code of Civil 
.... 
Procedure, 1908- Or21 r46B, Or39 r2A- Contempt of Courts 
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Act, 1971. 
The respondent-defendant no. 1 and his brother 
B offered to construct and let out godowns to appellant and 
for that purpose obtained loan of Rs.1 O lakhs from Bank 
for construction of godowns and mortgaged their 
properties in favour of Bank. Three godowns wereΒ· 
constructed by respondent and his brother and let out to 
appellant for five years in 1978. On instruction of lessors, 
' 
c appellant credited the rents to the loan account of lessors 
with the bank. Appellant vacated the said godowns and 
surrendered back possession in December, 1983. 
The Bank filed suit against the respondent-
D defendants 1 to 3 and their guarantors for recovery of loan 
amount, by sale of mortgaged properties and balance if 
~ 
any personally from the borrowers and their guarantors. 
Respondent contested the claim on the ground that 
the loan was obtained for constructing godowns for 
E appellant who had agreed to remain in occupation of 
those godowns till repayment of entire loan amount and 
appellant had vacated the godowns prematurely and 
should be made party to the suit and also made liable for 
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payment of the suit claim. The trial court directed 
F 
impleadment of appellant as seventh defendant in the suit. 
In June, 1994, during pendency of suit, appellant took 
one godown on month to month lease with a condition to 
surrender same without any notice. On 18.1.1996, the 
bank filed an application in its suit, seeking an interim 
G direction to appellant to restrain it from paying the rent 
for the said godown to lessors and to deposit the rents to 
,. 
the loan account of defendants 1 to 3 with the bank. 
The trial Court allowed the application by order dated 
27 .5.1996. It held that when appellant earlier took the 
H godowns on rent for five years, the borrowers had 
FOOD CORPORATION OF INDIA V 
1109 
SUKH DEO PRASAD 
="' 
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authorized the Bank to receive the rent with the condition A 
that if the lease was not continued, the lessors-borrowers 
would be liable to pay the loan amount from their own 
resources. It further held that bank was authorized under 
the loan documents executed by the lessors to receive 
the rents in respect of the mortgaged property directly B 
from the tenant. It directed appellant to deposit rent 
payable to landlords upto 31.3.1996 with the Bank by way 
of fixed deposit in the name of lessors. In regard to the 
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rent payable from 1.4.1996, in respect of every 12 months, 
the court directed that 2 months 

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