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1983 (9) TMI 218 - SC - Companies LawWhether in view of the provision contained in section 41(b) of the Specific Relief Act, 1963 the court will have jurisdiction to grant an injunction restraining any person from instituting any proceeding in a court not subordinate to that from which the injunction is sought? Held that:- Appeal allowed. Taking the most favourable view of the decision of the Appellate Bench and assuming that the Bench had in its mind the inherent power of the court to grant injunction despite statutory inhibition and consistent with the view taken by the courts in England, it had then in order to do justice between the parties first reach an affirmative finding that the winding up petition as and when presented by the Corporation—the creditor would be frivolous and would constitute an abuse of the process of the court or a device to pressurise the Bank to submit to an unjust and dishonest claim. It must also reach an affirmative conclusion that the debtor-Bank is sufficiently solvent to satisfy the claim as and when established. It has also to record an affirmative finding that the Corporation—the creditor—is not seeking bona fide to present a petition for winding up but is actuated by an ulterior motive in presenting the petition. The decision of the Appellate Bench is conspicuously silent on these relevant points and for this additional reason also the appeal must succeed.
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