TMI Blog2002 (7) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... /8, Nampally Station Road, Abids, Hyderabad and also to restrain them from interfering with running the day to day business of the said petrol pump. The Trial Court took note of the factual position that the plaintiff instituted the suit on 28th September, 2000 whereas notice of termination of dealership agreement had been served on the Manager of the petitioner on 22nd September, 2000 i.e. about a week prior to institution of the suit, and that there were claims and counter claims between the parties about the possession of the petrol pump. The Trial Court also took note of the case of the petitioner that though notice of termination was served on 22nd September, 2000 the attempt of the defendant to dispossess him could not succeed and the petitioner continued in possession of the petrol pump till 29th September, 2000 on which date between 9.30 and 10.30 A.M. he was forcibly dispossessed. The trial Court also took into consideration the case of the defendant that on 22 nd September, 2000 at about 3.30 p.m. after serving the notice of termination on the Manager of the plaintiff, possession of the petrol pump was taken over and the premises were got vacated by the defendant; that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sees, I have no hesitation in coming to a positive conclusion that the petitioner/ plaintiff, after service of notice of termination of the agreement which was admittedly on 22.9.2000, is not entitled for the relief of temporary injunction, since he is nothing but a licensee. When the petitioner/plaintiff is not entitled for temporary injunction even if he is in possession since it is unlawful, the question of restoration as claimed in the IA 1497/2000 does not arise. 4. The High Court in the appeal discussed the case of parties, the contentions raised on their behalf and considered the question whether the orders passed by the Courts below are sustainable in law. The High Court observed that in the instant case show cause notice was issued on the ground that the Corporation was obliged to adhere to the principles of natural justice to the effect that such a provision is made in the agreement between the parties. The High Court appears to have taken note of the fact that there was cancellation of the dissolutions of the partnership firm of the plaintiff with effect from 1.3.2000 and that was intimated to the defendant on 3.3.2000. When such a dissolution had taken place before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... injunction. 6. Per contra Shri R.F. Nariman, learned senior counsel appearing for the respondent No. 1 submitted that in the context of the facts and circumstances of the case as stated in the impugned order, the High Court rightly granted the prayer for interim injunction. According to the learned senior counsel the order is based on relevant considerations. He urged that this Court may not interfere with the impugned order. 7. It is elementary that grant of an interlocutory injunction during the pendency of the legal proceeding is a matter requiring the exercise of discretion of the Court. While exercising the discretion the Court normally applies the following tests :- i) whether the plaintiff has a prima facie case; ii) whether the balance of convenience is in favour of the plaintiff; and iii) whether the plaintiff would suffer an irreparable injury if his prayer for interlocutory injunction is disallowed. 8. The decision whether or not to grant an interlocutory injunction has to be taken at a time when the exercise of the legal right asserted by the plaintiff and its alleged violation are both contested and remain uncertain till they are established ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndatory injunction shall ultimately rest in the sound judicial discretion of the court to be exercised in the light of the facts and circumstances' in each case. Though the above guidelines are neither exhaustive nor complete or absolute rules, and there may be exceptional circumstances needing action, applying them as a prerequisite for the grant or refusal of such injunctions would be a sound exercise of a judicial discretion. 10. In the case of Indian Oil Corporation Ltd. v. Amritsar Gas Service and Ors., (1991)1SCC533, a bench of three learned Judges of this Court considered the appropriate relief to be granted in a case arising from revocation of the distributorship agreement for sale of LPG by the Indian Oil Corporation under different clauses of the agreement. In that connection, this Court made the following observations :- The question now is of the relief which could be granted by the arbitrator on its finding that termination of the distributorship was not validly made under Clause 27 of the agreement. No doubt, the notice of termination of distributorship dated March 11, 1983 specified the several acts, of the distributor on which the termination was b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order it appears that the High Court has dealt with the matter as if it was deciding the suit. 12. The questions whether, If the respondent No. 1 had violated the condition stipulated in the agreement by changing the structure of the firm without taking prior permission from the appellant, still the latter was bound to give to the former an opportunity for rectifying the defect; and whether passing the order revoking the agreement without affording such opportunity will render the revocation order invalid, are matters which are to be considered when the suit is taken up for hearing. These are not matters to be considered in detail for considering the prayer for interlocutory order of injunction. Regarding the question of status quo on the date of the order of injunction there was serious dispute whether the appellant had taken over possession of the property after notice of revocation of the agreement was served on the manager of respondent No. 1 and had made over possession of the suit property to respondent No. 2 for the purpose of running the petrol pump. The High Court has tried to get over this question by recording a finding that there were some materials on r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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