Whether the alienation of the property pending the suit can be set aside in contempt of proceedings for voiltion of injunciton orders restraing from alienation ? – No-

Hon’ble Dr. Justice D.Y. Chandrachud

The appellant filed a suit against PABC’s for specific performance in the year 1993 basing on sale agreement 0f the year 1981 and the same was decreed and sale deed was executed in the year 2003 – in the mean while in the year 1994 a suit was filed against the properties PABC – in the year 2003 the Madara High court granted interim injunciton not to alinate the properties of PABC- a contempt petition filed – Madras High court set aside the sale and order to restoration of the property – Appellant is not the party before the Madaras High court –

Apex court held that in the present appeal, the case of the appellant that it was in pursuance of the decree passed by the Civil Court in Andhra Pradesh in a suit for specific performance that the appellant had obtained the sale deed through the process of the Court, could not have been negated in the summary manner in which the High Court had proceeded to pass orders in the exercise of its contempt jurisdiction. Moreover, it is not in dispute that the appellant is not a party to the suit pending before the Madras High Court. The issue as to Whether the alienation of the property by PABC is valid or otherwise must be adjudicated upon in the course of the hearing of the suit. That is also the basis of the order dated 26.04.2013 passed by this Court in the earlier civil appeals, noted above. In the circumstances, we are of the view that the impugned order passed by the High Court in purported exercise of its contempt jurisdiction should be set aside in so far as the appellant is concerned. It is ordered accordingly. We however, clarify that it will be open to the plaintiffs to seek appropriate remedies in the suit which is pending before the Madras High Court.