A view of the Madras High Court. File
| Photo Credit: The Hindu
The Madras High Court Chief Justice’s Bench has cautioned all the courts in Tamil Nadu and Puducherry against passing ex-parte interim orders in a casual manner and without due consideration to the loss that an individual/entity suffering and such an order would have to undergo until the orders get vacated.
The first Division Bench comprising Chief Justice K.R. Shriram and Justice Senthilkumar Ramamoorthy made it clear that ex-parte orders could be passed only if there was a grave urgency and that too after obtaining an undertaking from the petitioners to make good the loss if their cases get dismissed ultimately.
“The courts must endeavour to ensure that even-handed justice is given to both the parties,” the Bench said while staying the operation of an ex-parte interim injunction, granted by a Coimbatore Commercial Court, restraining a private company from manufactuing goods/rendering services using the word ‘Anugraha.’
The judges said, there was no need for the Commercial Court to pass such an “harsh ex-parte order” when the GST registration certificate, PAN card, electricity connection, quality approvals, Engineering Export Promotion Council certificate and all other approvals had been issued only in the name of Anugraha Castings.
The Bench also took note that Anugraha Castings had been in existence since 2018 but a trademark infringement suit against it was filed by Anugraha Valve Castings Private Limited, before the Commercial Court, only in 2025 though the latter had issued a caution notice as early as in September 2021.
“Therefore, the Commercial Court need not have passed the “extremely harsh” ex-parte interim order on January 20, 2025 especially when no case had been made out for granting such an interim injunction without ordering notice to the other side,” the Division Bench said.
“We only hope that courts exercise restraint while passing such orders. An ex parte order can have disastrous consequences and should be passed only in case of real emergency and there are averments to that effect in the plaint or affidavit and after adverting to those averments. It should not be done in a routine manner as it has been done in this case,” the Bench wrote.
It went on to state: “By virtue of such ex-parte injunction orders, it is possible that a party’s business would come to a grinding halt. By the time the party is heard and order is vacated, lot of time would be lost and that would result in great and irreparable loss and hardship not only to the party, but also its customers. The very existence of some parties may be destroyed.”
Authoring the verdict for the Bench, the Chief Justice recalled the Supreme Court to have dealt with the issue of grant/refusal of injunctions in detail in Maria Margarida Sequeira Fernandes versus Erasmo Jack De Sequeira (2012) and laid down certain principles on the subject.
“The courts across the State must bear in mind the aforesaid principles enunciated by the apex court and ensure that only in case of grave urgency, after considering the principles governing the grant or refusal of injunction and analysing the pleadings and documents on record, such ex-parte orders are passed, that too, for a specified period,” the Bench said.
It added that the courts “should also take an undertaking from plaintiff that, if the suit is eventually dismissed, plaintiff undertakes to pay restitution, actual or realistic costs.”
Published – February 02, 2025 01:36 pm IST